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Ministry asks LIC to consider life cover for all Jan Dhan beneficiaries

K.R. Srivats New Delhi | Updated on November 25, 2017

The Finance Ministry has asked Life Insurance Corporation to see if it can provide life cover of Rs 30,000 to each of the 15 crore new bank account-holders proposed to be covered under the Jan Dhan Yojana.

The Jan Dhan Yojana, a financial inclusion mission to be launched by Prime Minister Narendra Modi later today, could be further sweetened if the Finance Ministry has its way.

The Finance Ministry has asked State-owned Life Insurance Corporation to see if the insurance behemoth could provide life cover of ₹30,000 to each of the 15 crore new bank account-holders proposed to be covered under the Jan Dhan Yojana.

If agreed to by the LIC, the life cover will be in addition to the accident cover of ₹1 lakh to be provided under the Jan Dhan Yojana.

Guinness Book of World Records?

A Guinness record may be in the offing today for the maximum number of bank accounts to be opened in a day.

The BJP-led Government wants to open at least 1 crore Jan Dhan accounts on August 28 — the day of the launch by the Prime Minister.

Given that 70,000 camps are being organised in 600 districts across the country today, it would not come as a surprise if a world record were created in terms of the maximum number of accounts opened in a day, a chief executive of a public sector bank said.

Faster rollout

The Finance Ministry, at the behest of the Prime Minister, is now looking to open 15 crore bank accounts much ahead of the earlier envisaged one-year timeframe.

Modi is understood to have recently asked the Finance Ministry top brass to complete the project in 100 days rather than take a whole year, official sources said.

Opening 15 crore new basic bank accounts (with a debit card and insurance cover) in a span of 100 days will be a big ask for the Indian banking industry. But the challenge could be met with a good effort, say bankers.

The department of financial services was comfortable with a target date of January 26 next year for the complete rollout of the Jan Dhan Yojana.

>srivats.kr@thehindu.co.in

Published on August 28, 2014

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