Budget 2025: Will FM Nirmala Sitharaman extend the Mahila Samman Savings Scheme that was introduced Budget 2023-24 

Budget 2025: The Mahila Samman Savings Certificate Scheme (MSSC) was introduced in March 2023 with the objective of promoting financial independence among women and minor girls through attractive interest rates.

The scheme, launched exclusively for women as part of the government's efforts to promote financial inclusion, aims to empower women, encourage their participation in financial decision-making, and promote overall financial independence.

Announced under the ‘Azadi Ka Amrit Mahotsav’, MSSC offers a competitive interest rate of 7.5%.

Key features

> Minimum deposit of Rs 1000/- and maximum deposit of Rs 2 lakhs

> Tenure of two years only

> Interest rate of 7.5% per annum, compounded quarterly and credited to the account.

> The option for partial withdrawal and early closure of the Mahila Samman Savings Certificate account is available under certain circumstances:

According to the India Post website, pre-mature closure rules,
(i) On the death of the account holder
(ii) On extreme compassionate ground (a) Life threatening decease of account holder (b) death of the guardian on production of relevant documents.
(iii) After six months of account opening without mentioning any reason.
Note:-Scheme interest less by 2% will be paid e.g. 5.5%.
Note:-Scheme interest will be paid on principal amount.
> In terms of maturity, the depositor will receive the principal amount and accrued interest two years after the account opening date.

Mahila Samman Savings Certificate Scheme: How to open account

The deadline to invest in the Mahila Samman Savings Scheme is March 31, 2025. 

To open a Mahila Samman Savings Certificate account, individuals must submit an account opening form, KYC documents (such as Aad and PAN cards), a KYC form for new account holders, and a pay-in-slip along with the deposit amount or cheque at their nearest post office.

As per an e-gazette announcement released on June 27, 2023, the Department of Economic Affairs, Ministry of Finance has authorized all Public Sector Banks and select Private Sector Banks to offer the Mahila Samman Savings Certificate, 2023.

Please note that not all banks are permitted to open Mahila Samman Savings Certificate accounts. Authorized banks include Bank of Baroda, Canara Bank, Bank of India, PNB, and Union Bank of India.

Mahila Samman Savings Certificate Scheme: Benefits 

This account can be opened by women of any age or by parents/guardians for minor girls. The eligibility criteria are straightforward, with a minimum deposit of Rs 1,000 and subsequent deposits in multiples of Rs 100.

The maximum investment allowed is Rs 2 lakh across all accounts held by the account holder. Similar to a fixed deposit, only one account is permitted for time investment. 
A minimum waiting period of three months is required before reinvesting in the scheme.

Interest is compounded quarterly and paid at the end of the tenure upon account closure. Partial withdrawals of up to 40 per cent are allowed after one year from the account opening date. 

In the unfortunate event of the investor's death, life-threatening illness, or guardian's demise, the account can be closed prematurely.

Budget 2025: Extension expected?

Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance, told the Economic Times: “The Mahila Samman Savings Certificate, introduced in Budget 2023 as a limited-period investment opportunity, has played a crucial role in promoting women's financial inclusion and empowerment. With the scheme set to end on March 31, 2025, an extension in Budget 2025 would be a welcome move to further strengthen women's financial independence. Given the government’s focus on women-centric financial policies, it may consider either extending the scheme or introducing a similar investment alternative to sustain its impact."