Bank of India rolls out Mahila Samman Savings Certificate

The roll-out ceremony was inaugurated by the MD & CEO, Shri Rajneesh Karnatak through a VC (Video Conference).

The event was also attended by ED P.R Rajagopal, M. Karthikeyan, CGM's, GM's from the Corporate Office, and representatives from all offices of the National Banking Group & Zones, who joined in via VC.

MD and CEO Shri Rajneesh Karnatak highlighted that 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.

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

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/-.

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, and accounts under this scheme can be opened until 31/03/2025. The scheme also provides a nomination facility. 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 27-06-2023, and Bank of India is the first bank to roll out this scheme.