Prime Minister Narendra Modi on Monday said that the government is committed towards the empowerment of women in the country and Mahila Samman Savings Certificates launched by India Post is the best example of it. The Ministry of Finance also issued the Gazette Notifications for the same and said that it has been made available in 1.59 lakh post offices with immediate effect.
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The scheme was announced in the 2023-24 Budget by the Union Finance Minister to commemorate ‘Azadi Ka Amrit Mahotsav’ and is a significant step towards financial inclusion and empowerment of the women, including the girls, Ministry of Finance noted.
महिलाओं के सम्मान और सशक्तिकरण के लिए हमारी सरकार प्रतिबद्ध है और ‘‘महिला सम्मान बचत पत्र’’ इसका बेहतरीन उदाहरण है। https://t.co/ixzvvBIkfi https://t.co/xTbrNQdv6P
— Narendra Modi (@narendramodi) April 3, 2023
Also known as Mahila Samman Bachat Patra, this scheme is a one-time small savings scheme that will be available till March 2025 only. Since it is a small savings scheme backed by the government, it does not have any credit risk.
Investment limits of the scheme
The Mahila Samman Bachat Patra allows for a maximum deposit of Rs 2 lakh.
Tenor and interest rate offered
The tenor of the scheme is 2 years and interest rate is 7.5 percent per annum with the facility of partial withdrawal.
Tax benefits
There are no tax benefits on investing in Mahila Samman Savings Certificates. However, as per the general rules, the interest income on this scheme will become taxable.
Other benefits
According to experts, this will help women to start investing for their short-term financial goals and needs.
Compared to other small savings schemes like Sukanya Samriddhi Yojna which has a maximum investment limit of Rs 1.5 lakh in a financial year, and also has a long lock-in period of 21 years, the Mahila Samman Savings Patra provides an opportunity to invest up to Rs 2 lakh for a tenure of 2 years, making it a better investment option for female investors, experts say.
Comparison with other small savings schemes
| Particulars | Mahila Samman Savings Certificates | PPF | Sukanya Samriddhi Yojna (SSY) | Senior Citizen Savings Scheme (SCSS) |
| Eligibility | Women and girl children | Any individual | Only in the name of a girl child before she attains 10 years | Senior citizens aged above 60 years |
| Interest Rate | 7.50% | 7.10% | 8% | 8.2% |
| Tenure | 2 years | 15 years | 21 years from opening the account or when the girl child attains 18 years | 5 years |
| Deposit Limit | Maximum - Rs.2 lakh | Minimum - Rs 500 | Minimum - Rs.250 | Minimum - Rs.1,000 |
| Maximum - Rs 1.5 lakh | Maximum - Rs 1.5 lakh | Maximum - Rs 30 lakh | ||
| Premature Withdrawal | Allowed | Permits partial withdrawal after 7 years | Allowed under certain circumstances | Can be closed at any time |
| Tax Benefit | Not yet specified | Exempt-Exempt-Exempt (EEE) category under Section 80C category | Exempt-Exempt-Exempt (EEE) category under Section 80C category | Deductions of up to Rs.1.5 lakh under Sectio |
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