The Finance Minister Nirmala Sitharaman announced in her Budget 2023 speech a one-time small savings scheme ‘Mahila Samman Saving Certificate’.
This small saving scheme can be availed of only once. Women investors can earn 7.5 per cent interest on a maximum deposit of ₹2 lakhs. Interested investors can park their money in this scheme up till March 2025, thus, limiting the availability of this scheme to two years only.
Sitharaman said, “For commemorating ‘Azadi Ka Amrit Mahotsav’, a one-time new small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period up to March 2025.”
This new scheme complements the Ministry of Women and Child Development's existing welfare programs for women and girls. Commenting on the launch of this new scheme would boost savings and investments for women, Abhishek Dev, CEO and co-founder, Epsilon Money Mart, said, “The increase in small savings investment limits for senior citizens and introduction of a new small savings scheme for women is a great initiative to help protect retirement corpus and income for senior citizen and increased financial savings habits, inclusion and financial independence for women. These steps will help further strengthen our society’s financial health.”
Sitharaman added, “Our vision for the ‘Amrit Kaal’ includes a technology-driven and knowledge-based economy with strong public finances, and a robust financial sector. To achieve this, ‘Jan Bhagidari’ through ‘Sabka Saath Sabka Prayas’ is essential.”
The government has already raised the deposit limits in the Senior Citizens Savings Scheme to ₹30 lakhs. Combining this with the newly launched small savings scheme for retired women would serve as a double whammy for retired women investors.
Vineet Patawari, CEO and Co-founder, StockEdge said, “The Finance Minister's efforts have resulted in more savings for citizens and greater investment opportunities in various asset classes.”
Priyanka Wadhwa, Co-Owner, Kapila Krishi Udyog Limited added, “The Mahila Samman Savings Certificate announcement is a positive step towards promoting not only women’s welfare but also economic empowerment. Available for a two-year period up to March 2025, the scheme offers a deposit facility up to ₹2 lakh in the girl child or a woman’s name at a fixed rate of interest. Such an initiative will give a much-needed boost for uplifting women at the grassroot level in semi-urban and rural areas, increasing their financial independence and encouraging them to take decisions regarding finance. It will also give them the confidence to run their own enterprises and small businesses.”
Tanvi Goyal, Founder, Wealth Aware added, “For women looking to invest small amounts, the safety of capital is the paramount concern. The Mahila Samman Saving Certificate offered by the government, with an attractive interest rate of 7.5%, will provide a great opportunity for women to take a step towards their financial independence. Since the tenor is two years, with a partial withdrawal option, it is a more liquid option than the good old PPF.”
The Budget 2023 has launched various new schemes while simplifying and extending the old, thus, taking the focus back to traditional bank deposit investment schemes. The high-interest rates, combined with the flexibility of withdrawal, highlight the importance of middle-class men and women continuing to rely on age-old traditional investment schemes rather than directing all of their earnings to the stock market for higher earnings.
