PSU Banks aim to reach the masses with Government Insurance Schemes in FY24

PSBs in India have established goals for selling government insurance plans including PMJJBY and PMSBY in FY24, along with targets for other financial inclusion schemes such as Mudra Yojana and StandUp India Scheme. In order to make these plans economically feasible, the finance ministry amended the rates for PMJJBY and PMSBY last year. The banks are encouraged to promote multi-year policies instead of annual renewals to customers. As of March 31, 2023, 15.99 crores and 33.78 crores were enrolled under PMJJBY and PMSBY, respectively.

Furthermore, the ministry has requested banks to promote the purchase of multi-year policies among their customers. Individuals in the age range of 18-50 years with a bank or post office account can receive a life insurance cover of Rs 2 lakh under PMJJBY. PMSBY offers insurance cover of Rs 2 lakh for accidental death or total permanent disability and Rs 1 lakh for partial permanent disability for people in the age group of 18-70 years with a bank or post office account.

Last week, the finance ministry met with heads of PSBs and financial institutions and urged them to push various financial inclusion schemes, including Jan Suraksha and Mudra Yojana. Department of Financial Services Secretary Vivek Joshi exhorted the PSBs to achieve the targets allocated to them under the various schemes for financial inclusion in a time-bound manner.

In order to reach maximum enrollment under PMJJBY and PMSBY, the finance ministry initiated a three-month campaign starting on April 1st. The banks are utilising their banking correspondent networks to reach and enrol potential beneficiaries. They are conducting camps at the Gram Panchayat level throughout all districts in the country with the participation of the state administration and other ministries of the central government. The goal of this campaign is to ensure that the benefits of both Jan Suraksha schemes are accessible to the general public.

PSBs are optimistic about achieving their targets and selling flagship government insurance schemes like PMJJBY and PMSBY. The multi-year policies are expected to be more popular than annual renewals, and the outreach campaign should help reach more potential beneficiaries. The financial inclusion schemes are expected to benefit millions of people across India and provide them with life insurance and accident coverage.