Bank of India to rolled out Mahila Samman Savings Certificate scheme

Bank of India

Bank of India, one of the largest public sector banks (PSBs) rolled out Mahila Samman Savings Certificate (MSSC) scheme. BOB becomes the first bank to officially roll out the scheme in the country.

Union Finance Minister Nirmala Sitharaman unveiled the scheme during her Budget speech this year. The scheme provides an annual interest rate of 7.5 per cent compounded quarterly.

Individual girls or women can open a Mahila Samman Savings Certificate sheme account, or a guardian can open an account on behalf of an underage girl. The account will mature after two years. The Accounts can be opened under this programme until March 31, 2025.

According to a bank statement, the minimum investment is Rs 1,000, however any amount in multiples of Rs 100 can be invested up to a maximum of Rs 2 lakh.

Individuals can register several accounts with a three-month break between each account, subject to an overall investment ceiling of Rs 2 lakh,according to the statement.

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Account closure can be requested by the customer in the event of an emergency or at their discretion, with a 2 per cent penalty after six months from the date of account opening, and the applicable interest rate will be 5.5 per cent, according to the bank.

After one year from the date of account opening, account holders can make partial withdrawals of up to 40 per cent of the qualifying balance.

All earnings from the Mahila Samman Savings Certificate are taxable under current income tax laws. TDS (Tax Deducted at Source) will not, however, be deducted under the programme.

Rajneesh Karanatak, MD & CEO of Bank of India, added that the bank is the first to implement this scheme across all of its branches.

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