RAS question
The 'Mahila Samman Savings Certificate' scheme introduced in Budget 2023-24 offered an interest rate of:
Correct answer: (C) 7.5% per annum.
The Mahila Samman Savings Certificate scheme announced in Union Budget 2023-24 offered a fixed interest rate of 7.5% per annum.
Explanation
The Mahila Samman Savings Certificate was announced in Union Budget 2023-24 as a one-time small savings scheme for women and girls. The PIB release confirms that the scheme was made available through post offices and describes it as a step towards financial inclusion and empowerment of women, including girls. Its key exam point is the return: a two-year tenure with a fixed 7.5% interest rate, compounded quarterly. The scheme also allowed flexible investment and partial withdrawal, with a maximum deposit ceiling of Rs two lakh. It was valid for a two-year window up to 31 March 2025. Therefore, among the given rates, 7.5% per annum is the only rate that matches the Budget scheme.
Why the other options are wrong
- (A) 8.5% per annum is too high; the scheme's fixed rate was 7.5%, not 8.5%.
- (B) 6.5% per annum understates the notified return, because the scheme offered a fixed 7.5% interest rate.
- (D) 5.0% per annum is far below the scheme rate and does not match the Budget-linked small savings announcement.
Concept
This tests small savings schemes and Budget 2023-24 welfare-linked financial instruments. RAS often asks such schemes through their exact rate, tenure, target group, and deposit ceiling.