Finance Ministry notifies authorization of all Public Sector Banks and certain Private Banks to Operate Mahila Samman Savings Certificate, 2023 [Read Notification]

The Department of Economic Affairs under the Ministry of Finance vide notification no. S.O. 2791(E) has notified the authorisation of all public sector banks and certain private banks to operate Mahila Samman Savings Certificate, 2023 on 27th June 2023. The private banks included ICICI Bank, Axis Bank, HDFC Bank Ltd. and IDBI bank.

The ministry has mentioned certain conditions to operate the same. According to the conditions stated, there shall be a dedicated software in the bank for operation and accounting of National Savings with specific functionality for each scheme.

The authorisation under this notification is subject to the following conditions, namely, that-

(i) there shall be dedicated software in the bank for operation and accounting of National Savings Schemes with specific functionality for each scheme;

(ii) the bank may manage the operations in accordance with the said Scheme, through on-line mode also in all branches that are on Core Banking Solution, subject to adequate security checks and the branches that are not on Core Banking Solution may operate the said Scheme manually;

(iii) all remittances shall be credited to the Government Account at the Reserve Bank of India, Central Accounts Section, Nagpur within one day in case of Core Banking Solution branches and three days in case of non-Core Banking Solution branches;

(iv) in case of delay in remittances beyond the period as specified in clause (iii), the Bank shall pay a penalty equal to the rate of interest payable to the depositor plus 0.5% in case of delays upto thirty days, and 1% in case of delays beyond thirty days;

(v) the Bank shall report various transactions under proper codes to the Reserve Bank of India, and the Ministry of Finance may levy penalty in case of failure on this count by the Bank.

(vi) the Bank shall, subject to the reasonable justification furnished to the Central Government, declare in advance the list of branches that shall not operate any of the National Savings Schemes as mentioned in clause(i) above;

(vii) in case of any pecuniary liability arising from the failure of the Bank to perform in accordance with the provisions of the said Scheme, the Bank shall be liable to bear the liability, in addition to being liable to be deauthorised to operate National Savings Schemes;

(viii) in case of any amount including penalties, becoming due from any Bank under these terms and conditions, the Central Government shall realise the amount from the Bank; and

(ix) every Bank shall submit a periodic reports or any other requisite information from time to time to the Central Government concerning the deposits of subscription and withdrawals under the said Scheme.

Additionally, For the purposes of this notification, the expression “public sector bank” shall have the same meaning as assigned to it in the explanation to clause (23D) of section 10 of the Income-tax Act, 1961.

To Read the full text of the Order CLICK HERE

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