Finance Minister Nirmala Sitharaman is all set to present the Union BUdget 2025 on Saturday, February 1 and one of the key discussions leading up to this is the Mahila Samman Saving Scheme. The scheme was first introduced in the Union Budget 2023, it was launched as a one-time small savings initiative specifically designed for women. It was part of the government’s efforts under the “Azadi Ka Amrit Mahotsav,” aiming to empower women financially and provide them with more opportunities to save and grow their wealth.
The Mahila Samman Savings Scheme is available for a two-year period which allows women to deposit up to Rs 2 lakh. It also includes a partial withdrawal option with 7.5 per cent interest rate. The scheme is designed to encourage financial independence among women. However, it is set to conclude on March 31, 2025, and it is still unclear whether the government will extend it beyond that date.
Although the Mahila Samman Savings Scheme was initially launched for a limited time, it has been instrumental in encouraging savings among women, particularly from lower-income groups while also promoting women’s empowerment. Rajani Thadane, Senior Vice President of Mutual Funds at 1 Finance, explained that the scheme was introduced as a limited opportunity but played a crucial role in advancing women’s financial inclusion and empowerment.
With its attractive 7.5 per cent interest rate and flexibility, it does not offer any tax benefits. “Given the government’s consistent focus on women-centric policies, the scheme might have an extension or a similar alternative can be introduced to sustain the impact,” she told the Economic Times.
Sneha Jain, Founder & CEO of Wealth Trust Capital Services, shared with The Economic Times that the government might not extend the scheme. “It is not likely to get extended as the government has collected good responses & deposits from this scheme last year. There is more shift towards equity investments & mutual funds. So, the response to the scheme wouldn’t be as much as seen last year,” she explained.
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