PSU banks, insurers asked to create common IT module for new social security schemes

The government has asked banks and insurers to develop a common infotech module by June, to roll out three new social security schemes announced in the Union Budget for 2015-16.

Operationalisation of these three schemes would be implemented through banks in collaboration with state-run insurance firms and the Provident Fund Regulatory and Development Authority (PFRDA) since participation in these schemes would be possible only through bank accounts and auto-debit instruction by subscribers, according to a Finance Ministry note sent out to state-run banks and insurers.

Accordingly, PSU lenders and insurers are set to create such a common infotech platform for the first time to implement these three schemes as part of the ongoing Jan Dhan Scheme, the note said.

The new social security schemes announced in the Budget include Atal Pension Yojana (pension), the Pradhan Mantri Suraksha Bima Yojana (non-life cover) and the Pradhan Mantri Jeeven Jyoti Bima Yojana (life cover).

All three schemes would be integrated with the core banking system used by the lenders in order to provide a single-point enrollment of schemes in a seamless manner and substantial enrollment of subscribers, the note stated.

"Obviously technology would be the main bridge to make this happen, looking at the massive numbers, account debiting and transfer of data," New India Assurance Director and General Manager K Sanath Kumar told PTI.

"This is an exciting happening in the delivery of low cost insurance to huge number of Aadhaar-linked accountholders and we would certainly work with banks to make this a success. Success of the programme would largely depend on quick enrollment and clear delivery with information to each and every account holder," he said.