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 achieved a significant milestone 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 his pride in the bank’s accomplishment and emphasized that BoI is the first bank to fully implement this scheme across all its branches. This means that all branches of Bank of India are now authorized to open accounts under the Mahila Samman Savings Certificate, 2023.

The Mahila Samman Savings Certificate is a special savings scheme designed to empower and support women in India. It offers attractive interest rates and various benefits to encourage women to save and invest in their future. By making this scheme available at all its branches, Bank of India aims to provide convenient access to women across the country, enabling them to take advantage of the financial opportunities and security offered by the Mahila Samman Savings Certificate.

Bank of India’s initiative to offer the Mahila Samman Savings Certificate at all branches reflects its commitment to promoting financial inclusion and empowerment of women. By expanding access to this scheme, the bank is contributing to the economic well-being of women and encouraging them to actively participate in the financial sector.

The Mahila Samman Savings Certificate scheme offers flexibility for individual girls and women to open accounts or for guardians to open accounts on behalf of minor girls. The scheme has certain investment requirements and limits to ensure participation and benefit for all.

To open an account, a minimum investment of Rs 1000 is required. Deposits can be made in multiples of Rs 100, with the maximum limit set at Rs 200,000. This allows individuals to choose the amount they wish to invest within this range.

It is important to note that individuals can open multiple accounts, but there must be a gap of three months between each account. This provision allows for additional investments or the opening of accounts for different purposes. However, the overall investment across all accounts should not exceed the cap of Rs 2,00,000.
These investment requirements and limits provide individuals with the flexibility to contribute based on their financial capabilities while ensuring that the benefits of the scheme are accessible to a wide range of participants. By offering these options, the Mahila Samman Savings Certificate aims to encourage savings and empower girls and women to secure their financial future.

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. This interest will be compounded quarterly and credited to the account, allowing the savings to grow over time. It’s important to note that the interest earned will be taxable as per the existing income tax provisions.

Under the scheme, the account will mature after a period of two years from the date of opening. This provides a fixed timeframe for individuals to plan their savings goals. It is also worth mentioning that the scheme allows for the nomination facility, which means individuals can nominate a beneficiary to receive the funds in case of their unfortunate demise.

Furthermore, the Bank of India has specified that the Mahila Samman Savings Certificate accounts can be opened until 31st March 2025. This ensures that eligible individuals have a defined period within which they can take advantage of the scheme.

Overall, the Mahila Samman Savings Certificate scheme offers competitive interest rates, flexibility in account opening, and a nomination facility, aiming to empower women and promote financial inclusion.

Under the Mahila Samman Savings Certificate scheme, provisions are in place for premature closure of the account in certain 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, premature closure can be availed.

In the case of premature closure under these conditions, the interest on the principal amount will be payable at the rate applicable to the scheme, which is 7.5% per annum. This ensures that even in the event of premature closure, the account holder or their legal representatives will receive the accrued interest on their savings.

These provisions provide flexibility and support to account holders and their families during challenging circumstances, allowing them to access their funds when needed.Bank of India (BoI) has become the first bank in India to offer the Mahila Samman Savings Certificate (MSSC) account opening facility at all its branches across the country.

The scheme allows individual girls or women, or their guardians on their behalf, to open an MSSC account. The minimum investment required is Rs 1000, with deposits allowed in multiples of Rs 100 up to a maximum limit of Rs 200,000. Multiple accounts can be opened with a gap of three months between each account, subject to the overall investment cap.

Deposits made under the scheme will earn an attractive interest rate of 7.5% per annum, which will be compounded quarterly and credited to the account. It’s important to note that all earnings under the Mahila Samman Savings Certificate will be taxable as per existing income tax provisions, although no Tax Deducted at Source (TDS) will be deducted under the scheme.

The account has a maturity period of two years from the date of opening, and premature closure is allowed in certain circumstances. In the event of the account holder’s death, premature closure can be requested, and in cases of extreme compassionate grounds such as life-threatening diseases or the death of the guardian causing undue hardship, premature closure is also permitted. In such cases, the interest on the principal amount will be payable at the rate applicable to the scheme, which is 7.5%.

Customers also have the option to request account closure in emergencies or at their discretion, with a penalty of 2% applicable after six months from the date of account opening, and the interest rate will be adjusted to 5.5%.
Furthermore, account holders can make partial withdrawals, up to 40% of the eligible balance, after one year from the date of opening the account. This provides flexibility for account holders to access their funds in case of financial needs.

Previously, only post offices were authorized to open accounts under the Mahila Samman Savings Certificate. However, through a gazette notification dated 27th June 2023, the government has allowed scheduled banks to offer this facility. Bank of India is the first bank to roll out this scheme, enabling more customers to benefit from the Mahila Samman Savings Certificate and its attractive interest rates.