Pradhan Mantri Sneha Bandhan Yojana-Should you opt?

Pradhan Mantri Sneha Bandhan Yojana SchemePradhan Mantri Sneha Bandhan Yojana Scheme


Govt. of India is launching new scheme Pradhan Mantri Sneha Bandhan Yojana which offers 8% interest. Pradhan Mantri Sneha Bandhan Scheme would be launched on 1st August, 2015 which is special government scheme being launched on Raksha Bandhan festival / Rakhi Festival. This is a FD scheme promoted by Govt. of India to gift your loved ones. What are the features of Pradhan Mantri Sneha Bandhan Yojana Scheme? What the negative factors of Pradhan Mantri Sneha Bandhan Scheme?

Features of Pradhan Mantri Sneha Bandhan Yojana


  • Pradhan Mantri Sneha Bandhan Yojana Scheme is a gift card or banker’s cheque that can be given to loved ones.
  • Gift cards carry a denomination of Rs 201, Rs 351 and Rs 5,001.
  • Each of this card would carry specific features to cover various government of India schemes like Pradhan Mantri Suraksha Bima Yojana Scheme  (PMBYS) and Life insurance Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY). Balance amount (if any) would be deposited in a fixed deposit scheme which carry 8% interest.
  • The receiver of such gift card, can open zero balance account with any bank and deposit such card amount. In case, such receiver already has a bank account, they can deposit the card amount.

Also Read: Should you opt for Pradhan Mantri Jeevan Jyoti Bima Yojana Life Insurance scheme?

1) Pradhan Mantri Sneha Bandhan Yojana gift card for Rs 201


  • This gift card is designed for your loved ones to cover accidental insurance coverage for Rs 2 Lakhs at insurance premium of Rs 12 under Pradhan Mantri Suraksha Bima Yojana (PMSBY).
  • First year premium of Rs 12 + Second year premium of Rs 12 are retained and the balance of Rs 177 would be converted to 10 year fixed deposit scheme which earns 8% interest.
  • Such 8% interest would fetch Rs 14 interest per annum which can be paid for yearly insurance premium under PMSBY.

2) Pradhan Mantri Sneha Bandhan Yojana gift card for Rs 351


  • This gift card is designed for your loved ones to cover accidental insurance coverage for Rs 2 Lakhs at insurance premium of Rs 12 under Pradhan Mantri Suraksha Bima Yojana (PMSBY) + Life insurance of Rs 2 Lakhs under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
  • First year premium of Rs 12 under PMSBY and first year Life insurance premium of Rs 330 under PMJJBY would be deducted and balance of Rs 9 would be deposited in bank saving account.
  • Future insurance expenses would be paid from pocket every year.

3) Pradhan Mantri Sneha Bandhan Yojana gift card for Rs 5,001


  • This gift card is designed for your loved ones to cover accidental insurance coverage for Rs 2 Lakhs at insurance premium of Rs 12 under Pradhan Mantri Suraksha Bima Yojana (PMSBY).
  • 2 years premium under PMSBY (Rs 12) and PMJJBY (Rs 330) would be deducted for Rs 342 per year (Rs 342 x 2 years = Rs 684) and the balance of Rs 4,317 would be converted to 5 year fixed deposit scheme which earns 8% interest.
  • Such deposit of Rs 4,317 would give 8% interest and would fetch Rs 345.36 interest per annum which can be paid for yearly insurance premium under both these schemes.

Also Read: Do you know how much life insurance do you need?

Limitations of Pradhan Mantri Sneha Bandhan Yojana Scheme


  • In reality, this is not FD scheme. Such a gift card is utilized for the insurance premium and the balance (if any) is converted into a bank FD scheme.
  • The insurance policy is taken at the receiver’s end through these gift cards. However, it is the responsibility of the receiver to make sure future premiums are paid on time and bank account is active to continue such accidential coverage insurance and life insurance.
  • FD returns are taxable.

Will update more details about this scheme as soon as they are available.

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Suresh
Pradhan Mantri Sneha Bandhan Yojana Scheme

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