PM suraksha bima yojana: The Government of India runs a lot of different schemes for the people of the country. Keeping in mind the different needs of different people. The government executes these schemes. In today’s time, insurance has become a very important part of people’s lives. It cannot be said when people need insurance money.

Many people do not have the money to pay the premium of insurance. Such poor and needy people are given the benefit of insurance from the government. Let us tell you that under the Pradhan Mantri Insurance Security Scheme, an insurance of Rs 2 lakh is available for just 20 rupees. Let us tell you how you can take advantage of this scheme.

Insurance of 2 lakhs for 20 rupees

Accident insurance cover is provided under the Pradhan Mantri Bima Yojana of the Government of India. This scheme of the government is for people belonging to poor sections. Through this scheme, the government gives a cover of Rs 2 lakh for only 20 rupees. This scheme was started in the year 2015. Under the Pradhan Mantri Bima Yojana, if a policy section dies in an accident.

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So the nominee is given money. Not only this, if the policy holder becomes disabled. Even then he gets money. Please tell that after death in the accident, the nominee is given 2 lakh rupees. So the same is partially given to 1 lakh rupees if it is partially disabled. If the insured becomes completely disabled. So he is given 2 lakh rupees.

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Premium has to be paid annually

Let us tell you that under the Pradhan Mantri Insurance Security Scheme, a premium of Rs 20 has to be paid annually. The duration of insurance cover is from 1 June to 31 May. An Indian citizen can apply for this scheme between 18 and 70 years old. The form can be filled for this scheme by going to your bank or nearest Common Service Center. The amount of its premium is an auto debit from the account.

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In this era of scams in banks and their drowning, now the question has become big whether your life earnings are safe in the bank? Crores of people in India deposit their hard -earned money as savings and fixed deposits in banks.

But what if that bank suddenly becomes bankrupt? In such a situation, how much is your deposits security? The answer to this question is to date, only up to 5 lakhs. However, now the government and the Reserve Bank of India (RBI) are considering increasing this limit.

What is deposit insurance and how does it work?

Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a subsidiary institution of RBI, insures the zodiac signs deposited in all commercial and cooperative banks of the country. This means that if a bank becomes bankrupt, then customers deposited in that bank get a maximum of 5 lakh (principal + interest) insurance.

This limit is a bank per bank for a person, even if your amount is in different branches of the bank. But if your amount is in different banks, then insurance is applied separately for each bank.

Why can the limit of deposit insurance be increased?

According to the report of Business Standard, RBI is now considering increasing this insurance limit above 5 lakhs. This can be decided soon. Earlier in the budget session, Finance Minister Nirmala Sitharaman also said that the decision to increase the insurance limit will be taken by looking at the current status of DICGC and banking system. A member in Parliament had also proposed to increase it to 50 lakhs.

Why did this question arise from recent bank crises?

PMC Bank Case (2019)

When RBI imposed restrictions on Punjab and Maharashtra Cooperative Bank (PMC), thousands of account holders were in trouble. The deposit of some people was in lakhs, but they got insurance protection up to only 5 lakhs.

Yes bank crisis

Although the RBI and the government together took over the YES Bank, if this effort was not successful, then the capital of millions of account holders could have been in danger.

Plight of cooperative banks

Incidents of the closure of many small banks like Lakshmi Cooperative Bank came to light, where the account holders had to wait for years to get their deposit.

Why is there an increase in insurance limit?

5 lakhs are not enough in this era of inflation. Today, the fixed deposit of a general middle class family is 10 lakh or more. The limit of 5 lakhs is neither relaxed nor security. The elderly and villagers need more security. People from villages and small towns, especially the elderly, are completely dependent on the bank. The amount deposited for them is the capital of life. Apart from this, this will strengthen the trust of customers. If the government increases the limit of deposit insurance, then it will strengthen the trust of the common people towards the banking system.

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