Mahila Samman Savings Certificate (MSSC), Eligibily, Benefit & How to Apply

The Mahila Samman Savings Certificate (MSSC) is a small savings scheme that has been specially introduced by the Department of Economic Affairs, Ministry of Finance, Government of India. The main purpose of this scheme is to provide safe, secure, and rewarding savings opportunities to women and girl children in India.

This scheme was launched on April 1, 2023, and will remain available for a period of two years, up to March 31, 2025. Earlier, the account under this scheme could only be opened in Post Offices. However, on June 27, 2023, the government issued an e-gazette notification extending the scheme to all Public Sector Banks and certain authorized Private Sector Banks as well. This decision has made the scheme easily accessible to women and girls across India, allowing them to open accounts either in a Post Office or in a Scheduled Bank.

Main Features of the Scheme

1. Exclusive for Women and Girls – The scheme has been designed only for women and girl children to ensure financial inclusion and security.
2. Availability Period – Accounts under this scheme can be opened only till March 31, 2025, for a fixed tenure of two years.
3. Interest Rate – The scheme offers an attractive interest rate of 7.5% per annum, which is compounded quarterly (every three months).
4. Minimum Deposit – An account can be opened with as little as ₹1,000, and deposits must be made in multiples of ₹100.
5. Maximum Deposit – A woman can invest up to ₹2,00,000 across all her MSSC accounts combined.
6. Maturity Period – Each account matures after 2 years from the date of opening.
7. Withdrawal Facility – Account holders are allowed to withdraw up to 40% of the balance after completing one year, before maturity.

Benefits of the Scheme

• Safety and Reliability – Since the scheme is backed by the Government of India, it is a completely safe and risk-free savings option.
• Attractive Returns – The fixed interest rate of 7.5% per annum is higher compared to many other small savings schemes.
• Flexibility with Partial Withdrawal – Women and girls can withdraw up to 40% of the balance after one year, which ensures liquidity in case of need.
• Encourages Small Savings – With a minimum deposit of just ₹1,000, it is suitable for all income groups.
• Empowers Women Financially – The scheme is a step towards encouraging financial independence and discipline among women and girl children.

(Note: If the rules of the scheme are broken, the depositor will only receive interest equivalent to the rate of a normal Post Office Savings Account, which is much lower than 7.5%.)

Eligibility Criteria

• Only Indian citizens are eligible to open an account.
• The scheme is restricted to women and girl children only.
• Any adult woman can open an account in her own name.
• A guardian can open an account for a minor girl child.
• There is no age limit for opening the account – women of all age groups can apply.
• Only single-holder accounts are allowed. Joint accounts are not permitted.

Deposit Rules

• A woman can open more than one account, but there must be a minimum gap of 3 months between two accounts.
• Minimum Deposit: ₹1,000 (in multiples of ₹100).
• Maximum Deposit: ₹2,00,000 (across all accounts in her name).
• No additional deposits can be made after the initial deposit at the time of opening.

Payment on Maturity

• After 2 years, the account matures automatically.
• The depositor (or guardian in case of a minor) will receive the principal amount plus accrued interest.
• The maturity amount will be rounded off to the nearest rupee. (50 paisa or more is considered ₹1, while less than 50 paisa is ignored).

Withdrawal Rules

• Withdrawal is allowed only once during the 2-year period.
• The withdrawal can be made after 1 year but before maturity.
• The maximum amount that can be withdrawn is 40% of the balance.
• In the case of a minor, the guardian must apply for withdrawal.
• The withdrawn amount will also be rounded to the nearest rupee.

Application Process (Offline)

1. Visit the nearest Post Office or designated Bank branch.
2. Collect the application form (or download it from the official Post Office/Bank website).
3. Fill out the form carefully and attach the required documents.
4. Provide a nominee declaration for future claim settlement.
5. Submit the form along with the initial deposit in cash or cheque.
6. Receive the certificate, which serves as proof of investment.

(Note: The application must be submitted before March 31, 2025, either by the woman herself or by a guardian in case of a minor girl.)

Premature Closure of Account

Generally, the account cannot be closed before the 2-year maturity period. However, there are certain exceptions:

1. Death of the account holder – The account will be closed, and the balance with interest will be paid to the nominee/legal heir.
2. Medical emergencies or hardship cases – For example, life-threatening illness or the death of a guardian. In such cases, premature closure may be allowed with proper documentation.
3. Personal reasons – If the account is closed voluntarily after 6 months, the interest will be paid but at a reduced rate – 2% less than the scheme rate.

Documents Required

• Recent passport-size photograph.
• Proof of age (Birth Certificate for minors).
• Aadhaar Card.
• PAN Card.
• Pay-in-slip or cheque for the deposit amount.
• Any one valid ID and Address Proof, such as:
  • Passport
  • Driving License
  • Voter ID card
  • NREGA Job Card (signed by State Government officer)
  • Letter from National Population Register (with name & address)

Summary in Simple Words

The Mahila Samman Savings Certificate (MSSC) is a 2-year small savings scheme exclusively for women and girl children in India. It offers a fixed interest of 7.5% per year, allows partial withdrawal of up to 40%, and has a maximum investment limit of ₹2 lakh. It is a safe, government-backed scheme aimed at promoting financial security for women.

Frequently Asked Questions (FAQs)

Q1. What is the Mahila Samman Savings Certificate (MSSC)?
It is a government savings scheme for women and girl children, with a fixed maturity of 2 years. The maximum deposit allowed is ₹2,00,000.

Q2. What is the interest rate of the scheme?
The scheme provides 7.5% annual interest, compounded every three months.

Q3. Who can open an account?

• Any woman of any age.
• A guardian on behalf of a minor girl child.
• Only Indian citizens are eligible.

Q4. What are the benefits?

• Safe and guaranteed savings.
• 7.5% fixed interest.
• Option to withdraw up to 40% after 1 year.
• Exclusive financial support for women and girls.

Q5. Where can the account be opened?

• At any Post Office.
• At Public Sector Banks and selected Private Sector Banks.

Q6. What is the investment period?
From April 1, 2023, to March 31, 2025.

Q7. What is the minimum and maximum deposit?

• Minimum: ₹1,000
• Maximum: ₹2,00,000

Q8. When does the account mature?
The account matures 2 years after opening, and the full balance with interest can be withdrawn.

Q9. Can the account be closed before maturity?
Generally no, except in cases of death, serious illness, or personal closure after 6 months (with reduced interest).

Q10. How does withdrawal work?
Only once, after 1 year, up to 40% of the balance can be withdrawn.

Q11. Under what circumstances is premature closure allowed?

• Death of the account holder.
• Serious illness or death of guardian.
• Personal closure after 6 months (with 2% less interest).