Bank of India becomes first bank to offer Mahila Samman Savings Certificate

Bank of India, one of the largest public sector banks (PSBs) in the country, has become the first bank to officially roll out Mahila Samman Savings Certificate (MSSC) scheme.

The scheme was announced by Union Finance Minister Nirmala Sitharaman during her Budget speech this year. The scheme offers an interest rate of 7.5 per cent per annum, compounded quarterly.

Individual girls or women can open an account under the Mahila Samman Savings Certificate sheme or a guardian can open an account on behalf of a minor girl.

The account will mature after two years from the date of opening. Accounts under this scheme can be opened until March 31, 2025.

According to a statement by the bank, while the minimum investment is Rs 1,000, any sum in multiples of Rs 100 can be deposited, up to a maximum limit of Rs 2 lakh.

Individuals can open multiple accounts with a gap of three months between each account, subject to the overall investment cap of Rs 2 lakh, per the statement.

Account closure can be requested by the customer in case of emergencies or at their discretion, with a penalty of 2 per cent after six months from the date of account opening, and the applicable interest rate will be 5.5 per cent, the bank said.

Account holders can also make partial withdrawals, up to 40 per cent of the eligible balance, after one year from the date of opening 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.

Bank of India’s MD & CEO Rajneesh Karanatak further highlighted that Bank of India is the first bank to operationalise this scheme at all its branches.

So far, only post offices were authorised to open accounts under the Mahila Samman Savings Certificate.