Bank of India: First Bank to offer Mahila Samman Savings Certificate at all branches. No TDS to be deducted

Bank of India (BoI) has become the first bank in India to offer Mahila Samman Savings Certificate (MSSC) account opening facility at all its branches across the country. On Tuesday (July 4), BoI officially launched the Mahila Samman Savings Certificate, 2023.

Talking about the launch of the scheme, BoI’s MD and CEO Rajneesh Karnatak said Bank of India is the first bank to operationalize this scheme at all its branches, making them authorized to open accounts under the Mahila Samman Savings Certificate, 2023.

Finance Minister Nirmala Sitharaman announced this flagship scheme during the Budget speech FY 2023-2024 on February 1, 2023.

What is Mahila Samman Savings Certificate?

Under the scheme, individual girls or women can open a Mahila Samman Savings Certificate, or a guardian can open an account on behalf of a minor girl. The minimum investment required is Rs 1000, and any sum in multiples of Rs 100 can be deposited, up to a maximum limit of Rs 200,000. Individuals can open multiple accounts with a gap of three months between each account, subject to the overall investment cap of Rs 2,00,000.

No TDS to be deducted

In a press release, Bank of India said that deposits made under this scheme will earn an attractive interest rate of 7.5% per annum and that will be compounded quarterly and credited to the account. All earnings under the Mahila Samman Savings Certificate will be taxable as per existing income tax provisions. However, TDS (Tax Deducted at Source) will not be deducted under the scheme.

The account will mature after two years from the date of opening. Accounts under this scheme can be opened until 31st March 2025. The scheme also provides a nomination facility.

Also Read: Mahila Samman Savings Certificate (MSSC) 2023: Check notification, eligibility, last date, interest details

Premature closure

In the event of the account holder’s death, the account can be closed prematurely. Premature closure can also be availed in cases of extreme compassionate grounds, such as life-threatening diseases of the account holder or the death of the guardian, where the operation or continuation of the account causes undue hardship to the account holder.

In the case of premature closure under the above conditions, the interest on the principal amount will be payable at the rate applicable to the scheme, i.e., 7.5%.

Account closure can also be requested by the customer in case of emergencies or at their discretion, with a penalty of 2% after six months from the date of account opening, and the applicable interest rate will be 5.5%. Account holders can also make partial withdrawals, up to 40% of the eligible balance, after one year from the date of opening the account.

Until now, only post offices were authorized to open accounts under the Mahila Samman Savings Certificate, but the government has allowed scheduled banks to offer this facility through a gazette notification dated 27th June 2023. Bank of India is the first bank to roll out this scheme.

(The above content is based on a press release by Bank of India. Please contact the bank for any queries related to MSSC account opening)