The Department of Posts has announced the implementation of 40% withdrawal functionality for the Mahila Samman Savings Scheme. The implementation has been done on the Finacle System used by the India Post employees. The order was issued on March 17, 2025, by the Ministry of Communications, Department of Posts (Financial Services Division). It is important to know that the last date to invest in the Mahila Samman Savings Scheme is March 31, 2025.According to the order issued, this functionality has been live in Finacle since March 7, 2025, and a Standard Operating Procedure (SOP) has been attached as an annexure to guide the withdrawal process. The SOP details each step of the withdrawal process within Finacle, ensuring that the system automatically calculates the appropriate interest for the withdrawal based on the balance as of the last quarterly interest due date.
Also read: Mahila Samman Savings Certificate vs Bank FDs: Which investment option is offering highest interest rate?
Under the Mahila Samman Savings Scheme rule, an account holder is eligible to withdraw up to 40% of the eligible balance once after completing one year from the account opening date, but before the account reaches maturity.
The scheme has been open for investment since April 1, 2023. Hence, a women investor who invested on, say, April 30, 2023, is eligible for partial withdrawal from May 1, 2024.
How 40% partial withdrawal amount is calculated
Consider an MSSC account that was initially opened with a deposit of Rs 2,00,000. After one year, the account balance grows to Rs 2,15,427 due to accrued interest. If the account holder opts for a 40% partial withdrawal, the process begins by determining 40% of the original deposit, which amounts to Rs 80,000.
However, instead of withdrawing just Rs 80,000, the scheme allows the withdrawal to be calculated as 40% of the total current balance. Consequently, 40% of Rs 2,15,427 comes out to be Rs 86,171.
This higher amount reflects the inclusion of interest earned over the one-year period in the total balance, thereby ensuring that the withdrawal is proportionate to the actual funds available in the account.
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Features of Mahila Samman Savings Certificate
The Mahila Samman Savings Certificate (MSSC) is designed with a fixed tenure of two years and is available exclusively to women and girls. Minor girls can also make investments in the scheme through their guardians. The scheme has deposit limits that require a minimum investment of Rs 1,000 and allow a maximum of Rs 2 lakh per individual. Investors are allowed to make partial withdrawals of up to 40% of the deposit after one year, while the full principal, along with the accrued interest, becomes available upon maturity.
Additionally, the interest earned on the certificate is taxable and must be reported under “Income from Other Sources,” and it does not qualify for any tax deduction under Section 80C.
