On June 15, 2020, Airtel Payments Bank introduced the “Suraksha Salary Account” as India commenced its reopening phase post the COVID-19 lockdown. This initiative by Airtel Payments Bank aims to create an innovative salary account tailored for Micro, Small, and Medium Enterprises.
The concept of MSME registration was established by the Government of India through an agreement with the Micro, Small & Medium Enterprises Development Act of 2006. These enterprises form the backbone of the Indian economy, including micro, small, and medium-sized entities engaged in the manufacturing, production, processing, or preservation of goods and commodities. In this blog, we shall discuss about Suraksha Salary Account for MSMEs.
Importance of Suraksha Salary Account for MSMEs
The MSME sector plays a crucial role in India’s economy, constituting over 60 million units and contributing 29% to the Gross Domestic Production (GDP). Recognising the significance of this sector, the “Suraksha Salary Account for MSME” has been introduced, addressing specific needs and features beneficial for MSMEs, including:
- Healthcare And Social Benefits
A significant portion of the MSME workforce consists of informal labour, lacking healthcare and social benefits as part of their compensation. The Suraksha Salary Account for MSMEs aims to bridge this gap, providing essential advantages to this workforce.
- Financial Protection
Many MSME workers lack financial protection, leaving them vulnerable, especially in challenging times such as the Covid-19 pandemic. The Suraksha Salary Account for MSMEs seeks to address this issue by offering a layer of financial security to these workers.
- Cashless Payments
Opening a Suraksha Salary Account for MSMEs enables MSME laborers to receive cashless payments directly into their accounts. This not only enhances convenience but also contributes to the financial security of the workforce.
- Consumer Cohort
Designed exclusively for the MSME consumer segment, the Suraksha Salary Account facilitates cashless payments, aligning with the current trend exacerbated by the Covid-19 outbreak. This inclusive approach benefits the entire consumer cohort, enhancing their financial stability.
- Wide Range of Benefits
Airtel Payments Bank’s Suraksha Salary Account offers a comprehensive suite of benefits, including Personal Accidental insurance and Hospicash Insurance cover. This is especially significant given the relatively low insurance penetration in India.
- ·Details On Suraksha Salary Account
The Suraksha Salary Account for MSMEs imposes no minimum balance condition and allows cash withdrawals at 500,000 banking points across India. Account holders can also make cash deposits and money transfers at these points, with no charges on deposits up to Rs 20,000 and withdrawals up to Rs 50,000 per month.
- Two Free Cardless Cash Withdrawals
Account holders enjoy two free cardless cash withdrawals via IMT at ATMs nationwide. Additionally, the Suraksha Salary Account for MSMEs facilitates free money transfers from bank to bank throughout India.
- Cabinet Committee’s Initiative
The Cabinet Committee has announced an infusion of Rs. 20,000 crores into the MSME sector. This follows the finance minister’s declaration of collateral-free loans worth Rs. 3 lakh crores for MSMEs as part of the Atmanirbhar Bharat Abhiyan economic package.
- Maintain Account Records
Airtel Payments Bank’s Suraksha Salary Account streamlines salary distribution for MSMEs, promoting digital transactions and facilitating the maintenance of digital records. This not only ensures convenience but also eases the tax processes for account holders.
The benefits of the Suraksha Salary Account are initially accessible to new bank customers, with plans to extend these benefits to existing customers opting to open their salary accounts with Airtel Payments Bank under the Suraksha Salary Account.
Benefits Provided Under Suraksha Salary Account
The Suraksha Salary Account offers a range of benefits specifically designed for workers in the MSME sector who choose to open their accounts under this program. These benefits include:
1. Free Hospicash Insurance and Free Accidental Insurance
In the event of hospitalisation, account holders are entitled to a fixed daily cover of Rs 400 for a maximum of 10 days. This insurance policy extends coverage to COVID-19, alleviating the financial impact on the account holders during hospitalisation.
Providing added financial protection for the account holder’s family, the Free Accidental Insurance offers a group accidental cover of Rs 1 lakh to all account holders at no additional cost.
2. Zero Minimum Balance and Easy Withdrawals
Suraksha Salary Account holders are not subject to any minimum balance requirements, providing flexibility and ease of account management.
Account holders can conveniently make cash withdrawals at Airtel Payments Bank’s extensive network of 500,000 banking points across India. This feature also allows for the seamless transfer of money and cash deposits at these banking points.
3. Zero Charges on Cash Transactions
Suraksha Salary Account holders incur no charges for cash withdrawals up to Rs 50,000 and cash deposits up to Rs 20,000 within a one-month duration. Additionally, they enjoy two free cardless cash withdrawals via IMT at ATMs nationwide. Furthermore, the account allows free bank-to-bank money transfers across India.
These benefits collectively contribute to the financial security, ease of transactions, and overall well-being of MSME workers who choose to avail themselves of the Suraksha Salary Account.
Final Thoughts
The Suraksha Salary Account for MSMEs in India emerges as a vital initiative to address the unique financial needs of this vital sector. With zero minimum balance requirements and an extensive network of banking points, it offers unparalleled convenience for account holders. The inclusion of free Hospicash and Accidental Insurance adds a layer of financial security, particularly during hospitalisation and unforeseen circumstances. Furthermore, the account’s zero charges on cash transactions, coupled with two free cardless cash withdrawals, promote uniform financial transactions. By aligning with the government’s economic initiatives, the Suraksha Salary Account stands as a comprehensive solution, fostering financial stability and digital empowerment within the MSME community.
