Banks, insurers asked to create common module

To roll out three new social security schemes announced in the Budget, the government has asked banks and insurers to develop a common infotech module by June.

Operationalisation of these three schemes would be implemented through banks in collaboration with state-run insurance companies 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-owned banks and insurers. Accordingly, state-owned banks 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).

All three schemes would be integrated with the core banking system used by banks 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 said.