The Mahila Samman Savings Certificate (MSSC) was a government-backed savings scheme designed to promote financial independence among women. Though new deposits into the scheme ended after March 31, 2025, existing account holders have received an important update regarding how they can access their funds.
Enhanced Withdrawal Options
Previously, withdrawals from the MSSC could be made in cash (within set limits), credited to a Post Office Savings Account (POSA), or issued via a Postmaster Cheque Account. However, the option to transfer funds directly to other bank accounts using the Electronic Clearance Service (ECS) was not available.
This has now changed. The ECS facility is now active for the MSSC, allowing account holders to withdraw their money directly into non-post office bank accounts.
This update streamlines the withdrawal process, making it more convenient for those who prefer to manage their finances outside the postal network.
Account holders are encouraged to ensure their ECS details are correctly registered with their local post office to take advantage of this feature.
Current Withdrawal Methods
- Cash (subject to prescribed limits)
- Credit to a Post Office Savings Account (POSA)
- Postmaster Cheque Account
- Electronic Clearance Service (ECS) to other bank accounts
Withdrawal Rules and Premature Closure
After holding the account for one year, up to 40% of the eligible balance can be withdrawn. The scheme also allows for premature closure under certain circumstances:
- Death of the account holder
- Compassionate grounds, such as life-threatening illness of the account holder or the death of the guardian, with supporting documents
In these cases, the full scheme interest is paid on the principal. Additionally, the account can be closed after six months from the date of opening without any specific reason, but in such cases, the interest paid will be 2% lower than the standard scheme rate.
Key Features of the Scheme
- Fixed tenure of two years from the date of investment
- Interest rate of 7.5% per annum, credited quarterly and paid at closure
- Minimum deposit: ₹1,000
- Maximum deposit: ₹2 lakh per individual
- Exclusively for women and girls
The MSSC was introduced to offer women a secure and high-yield savings option, and the recent improvements to the withdrawal process further enhance its accessibility and user-friendliness. Account holders should review their account details and update their withdrawal preferences to make the most of the new ECS facility.
