In a bid to boost the ongoing comprehensive financial inclusion programmes, the Central Government has asked all State-owned banks and insurance companies to complete its system enablement by April 15 in order to ensure the three proposed social security schemes, announced in the Union Budget, are implemented successfully by June 1 this year.
The Government has already prepared a roadmap to implement the three most coveted social security schemes by June 01 under Pradhan Mantri Jan Dhan Yojana (PMJDY), which has already witnessed more than 14 crore new bank accounts so far. “We have already asked all the State-owned banks and insurers to go for system enablement by April 15 so as to ensure that all the three schemes are implemented successfully by June 01” a source in the finance ministry told The Pioneer on Thursday.
All the three schemes under PMJDY programme are PM Jeevan Suraksha Bima Yojana (PMSBY), PM Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY), which are a part of the ongoing comprehensive financial inclusion drive of the Government.
The country’s largest life insurer life Insurance Corporation (lIC) will provide the PMJJBY. Apart from lIC, the PMSBY will be also provided by four State-owned non-life insurers - New India Assurance, United India Insurance, National Insurance Company and Oriental Insurance Company.
The Government is hopeful that the system enablement will help the banks start offering these products to the beneficiaries of PMJDY well in advance and also ensure speedy delivery in the system.
Banks are being brought on board for the implementation of the schemes through the integration of their core banking system (CBS) with the insurance companies providing the schemes. First, an option will be given to the beneficiaries to avail of the schemes and it will be followed by the system recovery and the auto debit of premium amount under the scheme.
The issue was discussed during a meeting which was held at Indian Banks’ Association (IBA) in Mumbai on March 19. Prior to it, the same issue was also discussed during the review of banks and insurance companies which was held in New Delhi by the Union Finance Minister Arun Jaitley on March 11.
While PMJJBY will provide a life cover to be offered by lIC through the CBS platform, PMSBY is a health cover to be provided by the state-owned non-life insurance companies and APY being a pension scheme, has also been included in this system.