Finance Minister while presenting the Budget 2023 announced a new scheme for women, Mahila Samman Saving Certificate. This scheme has now been operationalized.

Mahila Samman Saving Certificate

• It is a one-time new small savings scheme of the government of India announced in the Budget 2023.
• It will be made available for a two-year period up to March 2025.
• This will offer deposit facility upto Rs 2 lakh in the name of women or girls for a tenure of 2 years.
• The deposit facility will offer fixed interest rate of 7.5 per cent with a partial withdrawal option.

Benefits offered

• It is a suitable alternative to fixed deposits (FDs) invested in the name of a woman for the short term.
• The returns are higher than bank FDs and partial withdrawal makes liquidity less of a concern.

Other details

• The Scheme will be rolled out through banks and post offices across the country.
• The taxation structure is yet to be known and the scheme is expected to be available from April 1, 2023.

How is it different from Sukanya Samriddhi Yojana?

• SSY is a small deposit scheme of the government of India meant exclusively for a girl child. The scheme is meant to meet the education and marriage expenses of a girl child.
• The current rate of interest offered by Sukanya Samriddhi Yojana is 7.6%, which is compounded annually.
• Account can be opened in the name of a girl child till she attains the age of 10 years.
• The total amount deposited in an account shall not exceed Rs 1,50,000 in a financial year.
• Sukanya Samriddhi scheme has tax benefits under Section 80C.
• The account matures after 21 years from the date of opening or on marriage of the girl child under whose name the account is opened, whichever is earlier.

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