General Studies Paper 3

Context: The Union Minister for Women and Child Development and Minority Affairs opened a Mahila Samman Savings Certificate (MSSC) account.

About Mahila Samman Savings Certificate Scheme

  • It is a new small savings scheme launched specifically for female investors and was announced in Budget 2023 to promote investment among women.
    • Accounts opened under this scheme will be single-holder accounts that can be opened at the Post Office or any registered bank.
  • Who can open a Mahila Samman Savings account: Any woman can open a Mahila Samman account that can be opened for herself or on behalf of a little girl.
    • A time gap of three months shall be maintained between the existing account and the opening of other account.
  • Limit on minimum and maximum investment: The minimum investment amount is Rs 1000, and the maximum investment authorised under the plan is Rs 2 lakh.
  • Interest rate: 7.5% annually
  • Payment on maturity:  After two years from the date opening eligible balance will be paid to the depositor.
  • Withdrawal from account:The account holder may withdraw up to 40% of the balance after the first year from the date of account opening but before the account matures.
  • Premature closure of account: The account shall not be closed before maturity except in the following cases, namely:
    • On the death of the account holder
    • On extreme compassionate ground (i) Life threatening decease of account holder (ii) death of the guardian on production of relevant documents.

When an account is closed prematurely, interest on the principal amount is payable at the rate applicable to the Scheme for which the account was held.

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