With the objective of providing economic security to the rural women and to encourage, the saving habit among them, the Mahila Samridhi Yojna was started on 2 October 1993. Under this plan, the rural women of 18 years of above age can open their saving account in the rural post office of their own area with a minimum Rs. 4 or its multiplier.
On the amount not withdrawn for 1 year, 25% of the deposited amount is given to the depositor by the government in the form of encouragement amount. Such accounts opened under the scheme account opened under the scheme are provided 25% bonus with a maximum of Rs. 300 every year.
Up to 31 March 1997 2.45 crore accounts were opened under this scheme with a total collection of Rs. 265.09 crore. The Department of Women and Child Development, the nodal agency for MSY, decided in April 1997 that now new MSY accounts should be opened from 1 April 1997 onwards but the existing account could be maintained.