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CSR in India

Bank of India launches Mahila Samman Savings Certificate 2023

Bank of India

Bank of India, one of India’s leading public sector banks, has officially introduced the Mahila Samman Savings Certificate, 2023. The roll-out ceremony was initiated by the MD & CEO, Shri Rajneesh Karnatak, through VC (Video Conference). The ceremony was also attended by ED Shri. P.R Rajagopal, Shri M. Karthikeyan, CGM’s, GM’s from the Corporate Office, and personnel from all offices of the National Banking Group & Zones who joined in through VC.

According to MD and CEO Shri Rajneesh Karnatak, Bank of India is the first bank to operationalize this plan across all of its branches, allowing them to create accounts under the Mahila Samman Savings Certificate, 2023.

Mrs. Nirmala Sitharaman, the Honourable Finance Minister, unveiled this flagship scheme during the FY 2023-2024 Budget Speech on February 1, 2023. Individual girls or women can open a Mahila Samman Savings Certificate under the scheme, or a guardian can open an account on behalf of an underage girl. The minimum investment is Rs 1000/-, and deposits can be made in multiples of Rs 100/- up to a maximum of Rs 200,000/-. Individuals can open numerous accounts with a three-month interval between them, subject to a total investment ceiling of Rs 2,00,000/-.

Deposits made under this scheme will earn an attractive 7.5% annual interest rate, which will be compounded weekly and credited to the account.

Bank of India

The account will mature two years after it is started, and accounts under this system can be opened until 31 March 2025. The scheme also includes a nomination option. The account can be terminated prematurely in the event of the account holder’s death. Premature closure is also available in circumstances of extreme compassion, such as the account holder’s life-threatening illness or the death of the guardian, if the operation or continuation of the account causes excessive hardship to the account holder.

In the event of a premature closure under the aforementioned criteria, interest on the principal amount will be due at the scheme’s applicable rate, which is 7.5%. Account closure can also be requested by the customer in the event of an emergency or at their choice, with a 2% penalty after six months from the date of account opening, and the appropriate interest rate will be 5.5%. After one year from the date the account was opened, account holders can make partial withdrawals of up to 40% of the eligible balance.

Until until, only post offices were authorised to open accounts under the Mahila Samman Savings Certificate, however the government has permitted scheduled banks to offer this service via a gazette notice dated 27-06-2023, and Bank of India is the first bank to implement this scheme.