Bank of India First Bank To Introduce Mahila Samman Savings Certificate, Check Details

Bank of India (BOI), one of India's leading public sector banks, has recently launched the Mahila Samman Savings Certificate, 2023. The Bank of India is the first bank to implement this programme across all of its branches, according to a press release from the bank.

This flagship programme was introduced by the honourable Finance Minister, Mrs. Nirmala Sitharaman, on February 1, 2023, during the Budget speech for FY 2023-2024. A guardian may open an account on a juvenile girl's behalf, or a girl or woman may open a Mahila Samman Savings Certificate on their own. Any amount in multiples of Rs 100 may be placed, up to a maximum of Rs 200,000, with a minimum investment requirement of Rs 1000. Subject to an aggregate investment limit of Rs. 2,00,000, individuals may open as many accounts as they like with a three-month break between each account.

Interest rate-

The scheme offers a 7.5% interest rate on deposits, which is compounded and credited to the account every three months. All income received from the Mahila Samman Savings Certificate will be taxed in accordance with current tax laws. TDS (Tax Deducted at Source) deductions are not permitted by the plan.

Tenure-

Accounts under this scheme may be opened until 31 March 2025, and will mature two years from the date of beginning.

Premature closure-

The Mahila Samman Savings Certificate allows for premature account closure in case of unfortunate circumstances such as the account holder's demise. Additionally, in situations of extreme compassion, like life-threatening illness or the death of the guardian, the account can be closed prematurely if it causes excessive hardship to the account holder. In such cases, the interest on the principal amount will be calculated at the standard rate of 7.5% as per the scheme's guidelines.

Account closure-

The consumer may also ask for account cancellation with a 2% penalty after six months from the day the account was opened. So, 5.5% will be the proper interest rate.

Partial withdrawal-

Account holders may withdraw up to 40% of the eligible balance in partial payments after one year from the date the account was opened.