Mahila Samman Scheme: The Road Towards Women’s Financial Empowerment

]This Mahila Samman Scheme is a scheme by the Government of India as a step for women’s empowerment through providing financial assistance. It would provide improved opportunities for savings as well as for the handling of finances among women, therefore enhancing their economic independence.

The scheme was announced in the Union Budget 2023 to provide women and girls with a safe, reliable, and attractive opportunity for investment. This will inspire women towards financial literacy, encouraging long-term savings among them and giving them an independent hold over their finances.

This blog discusses the key highlights of the Mahila Samman Scheme and its benefits, eligibility, and how a woman can get benefits from it.

Overview: Mahila Samman Scheme

The Union Finance Minister, Smt. Nirmala Sitharaman, announced the Mahila Samman Savings Certificate in her Budget Speech 2023-24 to commemorate Azadi ka Amrit Mahotsav. Mahila Samman scheme will be functional for two years starting from April 2023 to March 2025 and can have a maximum deposit of Rs. 2 lakh in the name of girls or women at a fixed interest of 7.5%.

Scheme Name	Mahila Samman Savings Certificate Scheme
Launched By	Govt. of India
Depp.	Department of Economic Affairs
Launched In	2023
Target Beneficiary	Girls & Women
Deposit Limit	Minimum – 1,000 Rs.Maximum – 2,00,000 Rs.
Tenure	2 Years

Read More:- Mukhyamantri Prakhand Parivahan Yojana  || Medhavi Chhatra Yojana

Features of the Mahila Samman Scheme:

1. Eligibility

• Women of all ages are eligible for the Mahila Samman Scheme..  
• Girls below 18 years of age can also be permitted to open accounts but the guardian or parent will be the holder of the account.

2. Amount Invested

• The minimum deposit required is Rs. 1,000, and the maximum limit is Rs. 2 lakh per individual.

3. Tenure

• The scheme offers a fixed tenure of 2 years. However, the government has also announced that it can be extended depending on the economic needs.

4. Interest Rate

• The scheme offers an interest rate of 7.5% p.a., compounded quarterly; it is one of the highest in many other saving options. Thus, the Mahila Samman Savings Certificate Scheme has considerable appeal to women looking to invest and get a good steady return on that investment.

5. Interest Payout

• The interest on the investment will be paid quarterly, thus providing a steady flow of income to women who might need regular cash flow.

6. Tax Benefits

• Tax Exemption under Section 80C of the Income Tax Act: The scheme does not offer any tax exemptions. However, the interest earned is taxable based on the individual’s tax bracket.

7. Premature Withdrawal

• There is also a partial withdrawal facility in the Mahila Samman Saving Certificate. The account holder is allowed to withdraw 40% of the amount saved in the account one year after the account has been opened.

8. Transferability

• The certificate is transferable from one post office to another, providing convenience for women who might relocate or need to access different banking services.

Eligibility Criteria

• The applicant should be a citizen of India.
• Only female applicants are eligible for the scheme.
• Women of all ages are eligible for the scheme.
• The minor girls’ account can be opened by the guardian.

Required Documents

1. Passport size photograph
2. Proof of age, i.e. Birth Certificate
3. Aadhaar Card
4. PAN Card
5. Pay-in-Slip along with deposit amount or cheque
6. The following documents are accepted as valid documents for identification and address proof:
   • Passport
   • Driving licence
   • Voter’s ID card

Also Read:- Silai Machine Yojana || Jal Nigam Vacancy || MP Police vacancy

How to Apply for the Mahila Samman Scheme?

The account is easily opened under the Mahila Samman Savings Certificate Scheme, and one may get it done at any post office in India or a designated bank.

• Visit any Post Office branch across India or a designated bank.
• Take the application form from the office or download the application form from the official website.
• Fill out the application form.
• Duly submit KYC documents (proof of identity like Aadhaar, voter ID, or Passport, and proof of address such as a utility bill or bank statement).
• Submit the application form with the required documents.
• Make a minimum deposit of Rs. 1,000 by cash, cheque, or online transfer.
• Take the Mahila Samman Savings Certificate as proof of investment.

Benefits Of Mahila Samman Scheme

1. The scheme offers a 7.5% annual interest rate, which is attractive compared to traditional savings accounts and fixed deposits.
2. The scheme is supported by the Government of India, which ensures full security and safety of investment.
3. It is a good choice for women who require a regular income to cover their expenses since it offers quarterly interest payouts.
4. You can easily transfer your certificates from one post office to another, so you are at liberty to transfer them even if you change offices or locations.
5. It enables women to be in control of their economic future by providing them with a simple and low-risk way of increasing money over time.

Pay Out at Maturity of the Mahila Samman Scheme

At maturity, the principal with interest would be released for the Mahila Samman Savings Certificate Scheme. This interest shall be added quarterly during the entire term of the investment period but at maturity, you shall get

• Principal Amount: An amount that was invested at your end.
• Accrued Interest: Total interest earned at the rate of 7.5% per annum compounded quarterly.

Both principal and interest amounts will be credited to the Post Office account or a linked bank account.

Premature Closure of Mahila Samman Account

The premature closure of the Mahila Samman Scheme is allowed but subject to conditions and penalties.

• Penalties on Early Withdrawal: The amount drawn out of the investment before completion of 2 years shall incur a penalty by which the rate of interest will be reduced. Penalties may also reduce the total returns from the investment.
• Reduced Interest: In case of early closure, you might get a lower interest rate than the original 7.5% per annum, depending on the date of withdrawal.
• Closure Procedure: To close the account prematurely, you will have to submit a request for closure at the post office, along with your Mahila Samman Savings Certificate and other documents.
• Time Frame: The early closure is usually permitted subject to a certain minimum period such as after 6 months, but the actual terms are different.

Withdrawal from Account

• The account holder is allowed to withdraw up to 40% of the Eligible Balance once, after a year from the opening date of the account but before maturity.
• For an account opened for a girl minor, the guardian shall be allowed to apply for withdrawal by furnishing the stipulated certificate.
• Withdrawals will round fractions to the nearest rupee; fifty paisa or more amount will be counted as one rupee and less than fifty paisa amount shall be ignored.

Why is the Mahila Samman Scheme Important?

1. Financial Independence for Women
2. Encourages Long-Term Savings
3. Boost to Women’s Financial Literacy
4. Support for Women Entrepreneurs
5. Safe Investment

Also Read:- Bhavantar Bhugtan Yojana || UP Free Tablet Yojana || Chiranjeevi Yojana

FAQs

1. Who is eligible to open an account under the Mahila Samman Scheme?

Ans. Any female or girl (minor and major) can open an account. If the account holder is a minor, then a guardian is compulsorily required to open an account on behalf of that minor.

2. How much can I invest under the Mahila Samman Scheme?

Ans. The maximum investment limit is Rs. 2 lakh per individual. One can open multiple accounts, but the total combined investment should not exceed Rs. 2 lakh.

3. How is the interest on the Mahila Samman Savings Certificate paid?

Ans. The interest is paid quarterly, and it provides a regular source of income for the account holder.

4. Is the investment redeemable before the end of the 2 years?

Ans. Yes, but premature withdrawal incurs a penalty for the closure of an account before the scheduled maturity date.

5. Is the interest earned under the Mahila Samman Savings Certificate tax-free?

Ans. Yes, but the interest earned is subject to tax according to the individual’s income tax slab.

6. How do I open an account under this scheme?

Ans. You can open an account at any post office after submitting the required documents, filling up the application form, and depositing a minimum amount of Rs. 1,000.

7. What happens if I don’t withdraw the interest?

Ans. If you don’t withdraw the interest quarter-wise, it will compound and accumulate throughout the investment.

Read More:-

1.	Khasra Khatauni MP – डिजिटल हस्ताक्षरित भू अभिलेख प्रतिलिपि कैसे निकाले?
2.	MP Bhulekh Naksha: एमपी भूलेख नक्शा कैसे देखें?
3.	Mp Bhulekh Ekyc: भूमिस्वामी आधार E-KYC करे
4.	MP Bhulekh: मध्य प्रदेश भूलेख खसरा खतौनी नाम अनुसार कैसे देखें?
5.	MP Bhu Abhilekh: एमपी भूअभिलेख कैसे देखें?