RBI Issues Alert: Maintain Minimum Balance Before May 31 to Keep Insurance Benefits Active
The Reserve Bank of India (RBI) has issued an important advisory for bank account holders across the country. As per the latest update, individuals enrolled in the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) must maintain a minimum balance of ₹436 in their bank accounts by May 31, 2025, to ensure the uninterrupted renewal of their life insurance policy.
What is PMJJBY?
The Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed life insurance scheme introduced in 2015. It offers a life cover of ₹2 lakh for an annual premium of ₹436, which is directly debited from the subscriber’s bank account. The policy is renewable annually and is primarily aimed at providing affordable insurance to low-income individuals.
Why is the May 31 Deadline Important?
According to the RBI’s directive:
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Bank accounts linked to PMJJBY must have at least ₹436 by May 31, 2025.
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Failure to maintain this amount will lead to automatic termination of the insurance policy.
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Since the premium is auto-debited, insufficient balance will prevent successful renewal.
Who is Affected?
This rule primarily affects:
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Individuals who have opted for PMJJBY.
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Low-income and rural citizens relying on government insurance schemes.
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Customers with minimal account activity.
What Happens If You Don't Comply?
If account holders do not maintain the minimum required balance:
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The insurance coverage will lapse.
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They will lose eligibility for the ₹2 lakh life insurance benefit.
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Re-enrollment in the scheme may not be immediate or guaranteed.
RBI’s Clarification on Inoperative Accounts
RBI has also clarified that:
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Inoperative accounts (those inactive for over two years) will not be penalized for non-maintenance of minimum balance.
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Accounts opened for government subsidies or scholarships will not be considered inactive even if unused for extended periods.
Why This Matters
This move is part of RBI’s broader effort to:
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Enhance financial transparency in banking operations.
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Ensure beneficiaries of government schemes remain protected.
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Avoid unintended lapses in essential coverage due to low balances.
What Should You Do Now?
If you're enrolled in PMJJBY:
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Check your bank balance immediately.
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Ensure ₹436 or more is available before May 31, 2025.
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Set reminders for annual renewals and maintain sufficient funds.
Stay insured. Stay informed. A small amount today can ensure a secure tomorrow.