Categories
Economics

Mahila Samman Savings Certificate operationalized

Finance Minister while presenting the Budget 2023 revealed a new scheme for women, Mahila Samman Saving Certificate. This scheme has now been operationalized.

Savings Certificate for Mahila Samman

  • It is a one-time new small savings scheme of the government of India announced in the Budget 2023.
  • It will be made available for a two-year period up to March 2025.
  • This will offer deposit facility upto Rs 2 lakh in the name of women or girls for a tenure of 2 years.
  • The deposit facility will offer fixed interest rate of 7.5 per cent with a partial withdrawal option.

Benefits offered

  • For the short term, it is a viable alternative to fixed deposits (FDs) held in the name of a woman.
  • The returns are greater than those of bank FDs, and partial withdrawal reduces liquidity concerns.

Other details

  • The scheme will be implemented across the country through banks and post offices.
  • The tax structure is unknown, but the scheme is anticipated to be available on April 1, 2023.

How is it different from Sukanya Samriddhi Yojana?

  • SSY is a small deposit scheme of the government of India intended solely for a girl child. The programme is intended to cover the costs of a girl child’s education and marriage.
  • The current rate of interest provided by Sukanya Samriddhi Yojana is 7.6%, which is compounded annually.
  • Account can be created in the name of a girl child till she attains the age of 10 years.
  • The total sum deposited in an account shall not exceed Rs 1,50,000 in a financial year.
  • Sukanya Samriddhi scheme has tax benefits under Section 80C.
  • The account matures after 21 years from the date of opening or on marriage of the girl child under whose name the account is opened, whichever is earlier.
Source: https://economictimes.indiatimes.com/wealth/invest/mahila-samman-savings-certificate-who-can-invest-interest-investment-limit-and-more/mahila-samman-savings-certificate/slideshow/97734037.cms
JOIN OUR NEWSLETTER
And get notified everytime we publish a new blog post.