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The government has authorised all public sector banks and eligible private sector lending institutions to implement and operationalise the Mahila Samman Savings Certificate, 2023.

The Finance Ministry, through a gazette notification issued on June 27, authorised banks to implement the scheme, which was announced by Finance Minister Nirmala Sitharaman during her budget speech on February 1.

The scheme is aimed at enabling enhanced access for girls and women. With this, Mahila Samman Savings Certificate scheme will now be available for subscription in post offices and eligible scheduled banks.

The scheme has been in operation since April 1, through the Department of Posts. Some key features of the scheme are that it provides attractive and secured investment option to all girls and women.

An account can be opened under this scheme on or before the March 31, 2025 for a tenure of two years. The deposit made under the scheme will have an interest rate of 7.5 per cent per annum, which will be compounded quarterly.

Therefore, the effective interest rate will be roughly 7.7 per cent. A minimum of Rs 1,000 and any sum in multiple of 100 can be deposited within the maximum limit of Rs 2,00,000.

Maturity of the investment under this scheme is two years from the date of opening of the account. It envisions flexibility not only in investment but also in partial withdrawal during the scheme tenure. The account holder is eligible to withdraw a maximum up to 40 per cent of the eligible