Pradhan Mantri Sneh Bandhan Insurance Focused Deposit Scheme details

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Pradhan Mantri Sneh Bandhan Insurance Focused Deposit Scheme can be bought and gifted to your sister or any relative for memorable occasions like Raksha Bandhan

The gift we make under Pradhan Mantri Sneh Bandhan would pay the insurnace premia for Accident Insurance and Life Insurance Schemes recently launched by govt – Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY).

The are three types of gifts under Pradhan Mantri Sneh Bandhan Insurance Focused Deposit Scheme which would meet out partial or full insurnace premia payment for receipient as detailed below.

1. Gift for Rs. 201, which pay full term premium for the receipient in Pradhan Mantri Suraksha Bima Yojana (PMSBY)

2. Gift for Rs. 351, which can pay one year premium for Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY). Rest of the premia of Rs.12 and Rs. 330 per year for PMSBY and PMJJBY respectively will have to be paid receipient of the gift.

3. Gift of Rs. 5001/- will be sufficient to pay the entire premium amount for full term for both Insurance Schemes – PMSBY and PMJJBY for receipient.

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY) ? Who can invest in PMSBY? How PMSBY works ? Check the following link to get all the information for this govt sponsored Accident Insurance Scheme.

Click here for Pradhan Mantri Suraksha Bima Yojana (PMSBY) Rules and FAQs

How Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY) is different from PMSBY ? How long should I Pay for PMJJBY? What is the benefit of covered by this Life Insurance Scheme? Get answers for all these questions by checking out following link

Click here to know about Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Rules and FAQs

A gift under Pradhan Mantri Sneh Bandhan can be purchased at any of branches belonging to all Nationalised Banks in India

We have provided the text of official release of IBA containing all information relating to Pradhan Mantri Sneh Bandhan Insurance Focused Deposit Scheme.

PRADHAN MANTRI SNEH BANDHAN YOJANA (PROPOSED NAME)

Hon’ble Prime Minister earlier announced two schemes of Govt. of India i.e Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeewan Jyoti Bima Yojana (PMJJBY).

On the occasion of Raksha Bandhan, three specially designed gift products are now being announced by Hon’ble Prime Minister, which will be purchased from the Banks on payment of specified amount, for gifting the same as detailed below. However, the scheme will be available at all the times.

(i) Gift for Composite insurance under PMSBY and PMJJBY:- For One time premium payment (Amount in Rs.)

Amount (A)	One Year Premium for PMSBY (B)	One Year Premium for PMJJBY(C)	Total(D=B+C)	Balance to be credited in the SB Account ( A-B-C)
351	12	330	342	9

An individual may gift an amount of Rs. 351/- on Raksha Bandhan towards funding of the recipients one time insurance premium for PMSBY and PMJJBY (Rs. 12/- + Rs. 330/- i.e Rs.342/-), with the balance amount of Rs. 9/- to be credited to the savings bank account of the insured. Subsequent insurance premia will have to be deposited by the insurer for continuing the insurance cover.

(ii) Gift of Fixed deposit for insurance under PMSBY only:(Amount in Rs.)

Total Deposit Amount to be paid (A)	1st Year Premium (B)	2nd Year Premium * (C)	Total Amount of FD(D=A-B-C)	Returns on (D) @ applicable ROI (8% p.a)
201	12	12	177	14.16

* To be parked in SB account of the insurer till the date of next premium.

An individual may invest an amount of Rs. 201/- any time during the year for gifting from which:-

(a) Rs. 12/- will be immediately paid to the insurance company as first years’ premium.

(b) Rs.12/- will be parked separately in a SB account of the insurer towards payment of second years’ premium.

(c) Balance amount of Rs. 177/- will be invested in a T.D (Term Deposit) for ten years at the then prevalent interest rate (8% p.a) for earning annual interest income of Rs. 14.16 which will be sufficient for annual insurance premiums, at the current rate, up to the date of the Term Deposit.

(iii) Gift of Fixed deposit for composite insurance under PMSBY and PMJJBY:  (Amount in Rs.)

Total Deposit Amount to be paid (A)	1st Year Premium (B)	2nd YearPremium * (C)	Total Amount of FD(D=A-B-C)	Returns on (D) @ applicable ROI (8% p.a)
5001	342	342	4317	345.36

* To be parked in SB account of the insurer till the date of next premium

An individual may invest an amount of Rs. 5001/- any time during the year for gifting from which:-

(a) Rs. 342/- will be immediately paid to the insurance company as first years’ premium.

(b) Rs.342/- will be parked separately in a SB account of the insurer towards payment of second years’ premium.

(c) Balance amount of Rs. 4317/- will be invested in a T.D (Term Deposit) for Five or Ten years at the then prevalent interest rate (8% p.a) for earning annual interest income of Rs.

345.36 which will be sufficient for annual insurance premiums, at the current rate, up to the date of the Term Deposit.

TERMS AND CONDITIONS:

1. Maintenance of desired insurance schemes’ premium will be the responsibility of the customer / insured.

2. Prevailing rate of interest will be paid on the term / fixed deposits.

3. Extant guidelines related to deduction of tax at source will be applicable on the term / fixed deposit accounts.

Text of Letter addressed by IBA to all Banks:

NO.RB/PMSBY/I092

July 20, 2015

         Indian  Banks’ Association

Chief Executives of all Member Banks

Dear Sirs/Madam,

Pradhan Mantri Sneh Bandhan Scheme – An insurance focused Deposit Scheme

Please find enclosed a Scheme called Pradhan Mantri Sneh Bandhan Scheme received from the Department of Financial Services to be launched  with effect from 1st August 2015.   This gift product  is designed  keeping  in view the  ensuing  Raksha  Bandhan  festival  in mind. However, the product is relevant for other festivals, social occasions and family celebrations also.   Essentially the  gifter buys the  gift instrument  (typically a bankers’  cheque or Gift Card), and gives to a sister or a relative as a gift on the given occasion. The giftee presents the instrument to the bank   to be deposited in her existing account or a new account to be opened.  The bank can open a Zero balance BSBDA account, if need be.  The three variations of the gift instrument are as under:

1.  Instrument for Rs. 201.  This will facilitate premium payment for Pradhan Mantri Suraksha Bima Yojana over a period of several years.

2.   Instrument for Rs.351.  This will facilitate one year premium payment for Pradhan Mantri Suraksha Bima Yojana  and Pradhan Mantri Jeevan Jyoti Bima Yojana.

3.  Instrument for Rs.5001.  This will facilitate premium payment for both PMJJBY and PMSBY over a period of several years.

It is envisaged that  in respect of  product 1 and 3 above,  the interest  on fixed deposit created will   meet premium payment  of the insurance product(s).   In the illustration given in the Scheme, it is envisaged that the premium for initial  2 years will be retained in the savings account and the  balance  amount  kept  in  fixed deposit  for 5 to  10 years..    Banks  could however, examine alternate approaches to optimize the process and to ensure availability of balance in the account  for meeting premium payment every year on the  designated date. (example: after deducting  the  1st  year premium,  the balance  could be kept  in short term deposit  maturing  on  31st   May  2016.    On  that  day,  after  retaining  amount  required  for premium payment on  1st  June 2016 the remaining amount could be placed in longer term deposits  with annual interest getting credited to the savings  account on 31st May every year which will facilitate premium payment on 1st June).

Banks may ensure the giftee is eligible for enrolment in the insurance schemes concerned and necessary enrolment forms are got filled up.  In the event, the giftee is already covered for the current year under the said insurance schemes,   the amount may be utilized  for premium payment in subsequent years. This is for your information and necessary action.

Source: IBA details of Pradhan Mantri Sneh Bandhan , Letter addressed by IBA to Banks