Pradhan Mantri Suraksha Bandhan Yojana – A Fixed Deposit Program of the Indian Government!

On August 1, 2015, in honour of Raksha Bandhan, the Indian government introduced the Suraksha Bandhan Yojana. According to Prime Minister Narendra Modi, three unique gift items would be offered in banks for a set price and can be given as gifts to loved ones. These gifts can be acquired for any special event, including social gatherings, festivals, wedding celebrations, etc.

These presents will essentially be gift cards or bankers’ cheques, which when deposited in the bank will start a new account. Instrument for Rs. 201, Instrument for Rs. 351, and Instrument for Rs. 5001 are the 3 unique gift items. This will also include life insurance.

What do you mean by Suraksha Bandhan Yojana?

All nationalised banks have launched the PM Suraksha Bandhan Yojana, a deposit program that will pay a generous 8% interest rate on deposits made under the program.

In India, there has always been a demand for any financial investment plan that anybody may employ when giving gifts.  For instance, if you want to offer a present to a loved one on a particular occasion, you might prefer to give them cash so they can save it for the future.

People have been known to provide fixed deposits to their daughters and sisters as wedding presents so they can use them whenever necessary.  However, those fixed deposits were standard FDs with no extra features, like a better interest rate.  With the Pradhan Mantri Suraksha Bandhan Yojana, everyone would find this to be simple.

How does PMSBY Policy operate?

The government is providing several gift cards under this plan, with 3 distinct monetary amounts. These gift cards have values of 201, 351, and 5001. Brothers might send these gift cards to their sisters instead of a tangible present with no lasting value.

The only way for girls or women to purchase these gift cards is through a bank account. The cards will be destroyed after the women or girls take them to their selected bank, where the money on them will be put into their personal savings accounts. However, if they do not have a bank account, the bank will incur the expense of creating a new savings account and depositing the funds there.

That’s only the beginning, but what comes next is significantly more crucial. After the money is deposited and the card is dissolved, two things may occur:

  •       Recently deposited funds can be withdrawn from the account and used right away.
  •   Deposited funds are utilised to establish a 10-year term deposit as well as to pay insurance premiums.

Aim of the PMSBY Yojana

The Indian government under the leadership of Mr. Narendra Modi, has launched many programs. The Suraksha Bandhan Policy tradition stands out among them as a special symbol of the bond between a sister & brother. By suggesting the brothers give this policy to their sisters and therefore expanding financial inclusion, the fundamental goal of launching this program is to increase the social security of women.

The Important Details of the Scheme

In August 2015, in time for Raksha Bandhan, the government began the initiative by issuing special deposits & gift cheques. To make it easier for people to enlist in social security programs, the Suraksha Bandhan push will include certain key characteristics. Some of these are as follows:

  •       The banks and insurance firms involved in the initiative will launch it.
  • During this drive, the participating banks and insurance firms will focus on awareness-building, local outreach, and enrolment facilitation.
  •   Representatives of the populace and field staff from ministries and government agencies that interact with the unofficial economy are also anticipated to contribute to the awareness campaign.
  •   Participants in this campaign will not be required to present a certificate of good health for the PMJJBY.
  •   Reaching out to the pool of eligible bank account holders who haven’t used social security plans will be made easier.
  •   The Atal Pension Yojana, which guarantees income security in old age through consistent payments made by subscribers throughout their working lives and a set level of government contribution, would be a part of the effort. For the qualified subscribers who sign up by December 31, 2015, there will be a guaranteed pension at age 60.
  •     As an alternative to paying the annual premium for PMSBY & PMJJBY, the initiative also encourages individuals to give the gift of social security to their loved ones in the form of Jeevan Suraksha gift checks worth Rs. 351 each.
  •   Till September 30, 2015, applicants may still enrol in the PMJJBY & PMSBY programs.
  • Qualified citizens must get information from their respective banks.

The PMSBY Scheme Restrictions

The PMSBY Scheme has its terms and conditions, and the insured or client is responsible for paying for the insurance plans. The interest rate paid on term or fixed deposits will be by the bank’s current rate. The current regulations will deduct TDS from term or fixed deposit accounts.

Reason for the Gift Products: The Rs. 201 PMSBY Gift Product

This will be divided between a life insurance premium for the first year and a fixed deposit for the following year, with the second year’s insurance premium of Rs. 12 being kept in a savings account. The rest of Rs. 177 would be put into a fixed deposit for ten years at an interest rate of 8% per year; this will equate to Rs. 14.16, which will be utilised for future premium payments up until the date of the fixed deposit.

A gift item from the PMSBY worth Rs. 351

In this case, the donation will be divided into two payments: Rs. 12 will go to the Pradhan Mantri Suraksha Bima Yojana, and Rs. 330 will go to the Pradhan Mantri Jeevan Jyoti Bima Yojana. The remaining Rs. 9 will be set up in a savings account earning an interest rate of 8% annually; it will not be deposited into a fixed deposit. The future premiums must be paid annually out of your wallet.

5001 rupees worth of gifts

A total of Rs. 342 will be paid for the gift item over the course of the first five years of the insurance premium cover, with the remaining Rs. 342 being saved for the next year’s premium. The remaining Rs. 4317 will be saved in an FD for a duration of 5 or 10 years at an interest rate of 8%, earning interest of Rs. 345.36 that will be utilised to pay the rest of the insurance premiums until their exact FD’s maturity date.

Can these cards still be purchased after Raksha Bandhan?

The PMSBY will now be available all year round. As a result, these gift cards may be bought whenever you want to. Raksha Bandhan was only selected as a fortunate day to promote this program broadly. It seems sense that a person may buy more than one card and receive more than one card. However, a person who receives multiple cards must deposit each card into a separate bank account.

The PMSBY Limitations

The PMSBY Bandhan Yojana has its terms and conditions, and the insured or client is responsible for paying for the insurance plans. The interest rate paid on term or fixed deposits will be by the bank’s current rate. The current regulations will deduct TDS from term or fixed deposit accounts.

The PMSBY Scheme’s Taxes Rules

Although this is a noble plan, there are some restrictions and gaps in the plan.  The program covered by this Yojana would need a sizable fee even if it is referred to be an FD, therefore it is not a true FD plan.

Another restriction on the plan is that because FDs are taxable, all investments made as gifts under it would also be taxed, discouraging many individuals from using it.

Last but not least, because these programs are designed to promote human well-being, it is better to leave it up to the participants to determine how much they wish to participate in and how much they can gain from the program.  If it goes well, the plan might be improved and changed in other ways.  It’s only a question of time and execution.

Important Points to Bear in Mind

  •   The recipient’s age should fall between 18 and 70 for PMSBY.
  •   Only one PMSBY can be obtained by a single person, either earlier enrollment or gift card.
  •   The prevailing rate of interest will be used to determine the interest rate that will be paid on fixed deposits at the time.
  •   The insured is responsible for maintaining the required insurance plan premium.
  •   The fixed deposit accounts will be subject to TDS, or tax deducted at source.

Final Words

With a focus on the nation’s vulnerable and destitute, the Union Government’s plan aspires to establish a universal social security system. Raksha Bandhan is a holiday that honours a brother and sister’s protective and loving relationship. Similar principles were used in the formulation of the PMSBY Scheme, in which the government intervenes to safeguard the rights of the nation’s citizens.

Rakhi ceremonies will not be complete without gifts. To brighten up the celebration, give your sister a gift card like the PMSBY Policy.

Suraksha Bandhan Yojana Program: What Is It?

According to Prime Minister Narendra Modi, the three special presents would be made available in banks for a defined price and may be given as gifts to loved ones. These presents are not just for the Raksha Bandhan holiday; they may be purchased for any important occasion, including social events, festivals, wedding celebrations, etc.

When was the Suraksha Bandhan Yojana Programme introduced?

On 9th May 2015, the Suraksha Bandhan Yojana Program was introduced.

What are the restrictions for the Suraksha Bandhan Yojana?

Although this is a fantastic initiative, the strategy has several limitations and holes. The program covered by this Yojana would be expensive even if it is referred to be an FD, hence it is clear that it is not a comprehensive FD plan.

What sorts of cards are available under the Suraksha Bandhan Yojana Scheme?

The Suraksha Bandhan Yojana Scheme (PMSBY)offers three different card varieties, priced at Rs. 201, Rs. 351, and Rs. 5,001.

Can I submit a Suraksha Bandhan Yojana application?

Yes. The Suraksha Bandhan Yojana is open to all applicants.

What is the role of gift cards in the scheme?

With the use of this gift card, one may invest the remaining funds in fixed deposits while paying the premiums for the (PMJJBY) Pradhan Mantri Jeevan Jyoti Bima Yojana and (PMSBY) Pradhan Mantri Suraksha Bima Yojana for at least a year. The remainder of the term’s premiums are paid with interest from the FD.

What is the tax rule on this scheme?

The fixed deposit accounts will be subject to TDS, or tax deducted at source.

What is the SBY Gift Card of Rs 5001 means?

This gift card would function more similarly to gift card 351, except, in this instance, the premium for both schemes would last for two years. The remaining amount of Rs. 4,317 would be treated as a fixed deposit for a period of five years and earn interest at a rate of 8%.