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

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

Bank of India (BoI) has taken a significant step towards empowering women by becoming the first bank in India to offer the Mahila Samman Savings Certificate (MSSC) account opening facility at all its branches nationwide. The official launch of the Mahila Samman Savings Certificate, 2023, took place on Tuesday, July 4.

Rajneesh Karnatak, the Managing Director and CEO of Bank of India expressed pride in the bank’s achievement of operationalizing this scheme at all its branches. All Bank of India branches are now authorized to open accounts under the Mahila Samman Savings Certificate, 2023.

The introduction of the Mahila Samman Savings Certificate is a significant development as it aims to promote financial inclusion and empower women in India. This initiative offers women a dedicated savings scheme catering to their needs and aspirations. By providing women with access to formal banking services and opportunities to save, the scheme aims to enhance their financial security and enable them to achieve their financial goals.

Bank of India’s commitment to extending the availability of the Mahila Samman Savings Certificate to all its branches demonstrates their dedication to supporting women’s financial empowerment on a large scale. By making this scheme accessible across the country, the Bank of India is actively contributing to women’s economic growth and empowerment.

This initiative by the Bank of India is expected to encourage more women to engage with formal banking channels, thereby fostering financial literacy and inclusion. The availability of the Mahila Samman Savings Certificate at all Bank of India branches provides women with a convenient and reliable option for saving and investing their money, which can help them build a strong financial foundation.

By taking this proactive step, the Bank of India sets an example for other financial institutions to follow, emphasizing the importance of catering to the unique financial needs of women. The Mahila Samman Savings Certificate, 2023, has the potential to make a significant impact on women’s lives by providing them with a secure and empowering financial tool.

Overall, Bank of India’s launch of the Mahila Samman Savings Certificate, 2023, at all its branches reflects the bank’s commitment to promoting gender equality, financial inclusion, and women’s empowerment. This milestone achievement marks a significant stride towards creating a more inclusive and equitable banking system in India.

The Mahila Samman Savings Certificate is a scheme introduced by the Bank of India to promote financial inclusion and empower women in India. Under this scheme, individual girls or women can open an account called the Mahila Samman Savings Certificate, and in the case of minor girls, a guardian can open the report on their behalf.

To open an account, a minimum investment of Rs 1000 is required, and deposits can be made in multiples of Rs 100. The scheme allows individuals to deposit funds up to a maximum limit of Rs 200,000. It is worth noting that multiple accounts can be opened by an individual with a gap of three months between each account as long as the overall investment cap of Rs 200,000 is not exceeded.

The Mahila Samman Savings Certificate provides women with a dedicated savings option catering to their financial needs and aspirations. By offering this scheme, the Bank of India aims to enhance women’s financial security and provide them with opportunities to save and invest their money. This initiative encourages women to engage with formal banking services and fosters financial literacy and inclusion among women in India.

The scheme’s flexibility in terms of investment amount and the option to open multiple accounts within the specified limits allows women to tailor their savings strategy according to their financial goals and capacity. By participating in the Mahila Samman Savings Certificate, women can build a strong financial foundation and work towards achieving their economic aspirations.

Overall, the Mahila Samman Savings Certificate is a unique initiative designed to empower women and provide them with a secure and inclusive platform for saving and investing. By offering this scheme at all its branches, the Bank of India aims to make financial services more accessible and contribute to the economic growth and empowerment of women in India.

According to the press release by Bank of India, deposits made under the Mahila Samman Savings Certificate scheme will earn an attractive interest rate of 7.5% per annum. The interest will be compounded quarterly and credited to the account. It is important to note that all earnings from this scheme will be taxable as per the existing income tax provisions.

One notable aspect of the scheme is that TDS (Tax Deducted at Source) will not be deducted. This means that individuals opening accounts under the Mahila Samman Savings Certificate will receive the full interest amount without any tax deduction at the source.

The maturity period for the Mahila Samman Savings Certificate account is two years from the date of opening. Individuals need to be aware of the maturity date and plan their investments accordingly.

The scheme allows for account openings until 31st March 2025, providing a window of opportunity for women to take advantage of the benefits offered. Additionally, the scheme provides a nomination facility, allowing account holders to designate a nominee who will receive the benefits of the account in the event of the account holder’s unfortunate demise.

Under the Mahila Samman Savings Certificate scheme, there are provisions for premature closure of the account under specific circumstances. In the unfortunate event of the account holder’s death, the account can be closed prematurely. Additionally, 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, premature closure is also allowed.

In the case of premature closure under the aforementioned conditions, the interest on the principal amount will be payable at the rate applicable to the scheme, 7.5% per annum. This means that even if the account is closed before the maturity period, the account holder will still receive the accrued interest at the specified interest rate.

It is important to note that premature closure should be exercised only under the specified circumstances and in accordance with the rules and regulations set by Bank of India. Account holders should contact the bank and follow the necessary procedures to initiate the premature closure process if they meet the qualifying conditions.

These provisions for premature closure provide flexibility and address unforeseen circumstances where the account holder may need access to the funds before the maturity period.

Account closure can also be requested by the customer in case of emergencies or at their discretion. However, in such cases, there will be a penalty of 2% if the closure is made after six months from the date of account opening. The applicable interest rate in such cases will be 5.5%, which is lower than the regular rate of 7.5%.

Furthermore, account holders have the option to make partial withdrawals from their accounts. After one year from the account opening date, they can withdraw up to 40% of the eligible balance, subject to the rules and regulations of the scheme.

Previously, only post offices were authorized to open accounts under the Mahila Samman Savings Certificate scheme. However, with a gazette notification dated 27th June 2023, the government has allowed scheduled banks to offer this facility. Bank of India has become the first bank to roll out this scheme, allowing individuals to open Mahila Samman Savings Certificate accounts at their branches nationwide.

It is important for account holders to familiarize themselves with the terms and conditions, including penalties, interest rates, and withdrawal limits, before opening an account under this scheme.