Do you have an account under the Mahila Samman Savings Certificate scheme (MSSC)? There’s a big update you shouldn’t miss. Now, women holding a MSSC account can withdraw 40 per cent of the funds. The functionality for this rule has been announced by the Department of Posts in an order issued on March 17, 2025.
The implementation of 40 per cent withdrawal has been updated on the Finacle System since March 7, 2025 - banking platform used by the India Post employees.
The order released by the Department of Posts includes a Standard Operating Procedure (SOP) as a guide to understanding the withdrawal process. The SOP has outlined steps you can follow for the complete withdrawal process (within Finacle).
When you follow the full process, the system will automatically calculate the appropriate interest for the withdrawal. This will be based on the balance in your account as of the last quarterly interest due date.
As per the rules, an MSSC account holder is eligible to withdraw up to 40 per cent of the eligible balance after completing one year as per the date on which the account was opened i.e., even before the account has reached its maturity.
Here’s How the Process of Withdrawal Works:
For example, in an account opened with a deposit of Rs 2 lakh having a balance of Rs 2,15,427/- after expiry of one year.
Here when the account holder requests for a 40 per cent withdrawal, Counter PA has to enter the amount of Rs 80,000/- (40 per cent of the Deposit amount) and the amount payable will be 40 per cent of Rs 2,15,427/- which is Rs 86,171/-).
The guidelines further note that the withdrawal amount is payable by cash if the amount is within the prescribed limit or by credit into a Post Office savings account or through a Postmaster cheque account.
Please note that credit to any other bank account through the ECS option is not available for the scheme. In case of credit into POSA or through cheque, a ‘Repayment account ID’ has to be entered by the Counter PA to initiate the withdrawal.
About Mahila Samman Savings Certificate
This scheme was introduced by the Finance Minister in Budget 2023-24 as a new small savings scheme for women and girls. This is a one-time scheme available for two years (from April 2023 to March 2025) and offers a maximum deposit facility of up to Rs 2 lakh in the name of women or girls for two years at a fixed interest rate.
Here are key features to know about this scheme:
This can be opted by a woman for herself or by the guardian on behalf of a minor girl
It allows for a minimum deposit of Rs 1,000 (could also be deposited in multiples of Rs 100). A maximum of Rs 2 lakh can be deposited in an account
The deposits are eligible for 7.5 per cent interest per annum. Interest will be compounded quarterly, credited to the account and paid at the time of closure of the account
A 40 per cent withdrawal of eligible balance can be taken after one year from the date of account opening
The account is eligible for pre-mature closure following:
(i) The death of the account holder, or
(ii) In the case of extreme compassionate grounds such as a life-threatening disease of the account holder or death of the guardian on the production of relevant documents
How to open an MSS account?
You can go to the nearest post office and submit the account opening form along with KYC Documents (Aadhaar and PAN card), KYC form for the new account holder, and Pay-in-Slip along with the deposit amount/cheque.
Please note that the last date to invest in the MSS scheme is March 31, 2025.
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