India’s major public sector banks — State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BOB) — are set to roll out a new government-backed financial protection scheme from 1 November 2025, offering customers up to ₹3 lakh in total benefits.
The initiative, supported by the Ministry of Finance and the Indian Banks’ Association (IBA), aims to provide an additional layer of financial security to millions of savings account holders across the country. Although the scheme’s official title is yet to be announced, preliminary circulars have already been shared with participating banks.
Here’s everything you need to know about the ₹3 Lakh Bank Benefit Scheme — its purpose, benefits, eligibility, and how to enroll once it launches.
What Is the ₹3 Lakh Bank Benefit Scheme?
This is not a cash payout, but a comprehensive insurance-cum-security package bundled with your savings account. It has been designed to help families stay financially secure in the event of emergencies such as accidents, critical illness, or the loss of the account holder.
The ₹3 lakh coverage will be divided into three major components:
1. Accidental Death and Disability Cover
A key portion of the benefit amount will be paid to the nominee if the account holder dies in an accident or suffers a permanent disability.
2. Critical Illness Cover
A defined payout will be made upon diagnosis of specific illnesses like cancer, stroke, or organ failure, helping policyholders manage medical expenses.
3. Hospital Cash Assistance
This feature provides daily cash benefits for hospitalization due to sickness or injury, up to a specified limit.
Together, these three benefits form a complete financial protection shield for account holders and their families.
Key Features and Benefits
- Total Cover: ₹3 lakh cumulative protection for each eligible account holder.
- No Premium for Basic Plan: The base cover will likely be free for qualifying savings account holders, funded by banks as part of their financial inclusion mission.
- Simple Enrollment: One-time consent through Net Banking, Mobile App, or a branch visit will be enough.
- Family Protection: Nominees receive full benefits, ensuring the family’s financial security.
- Nationwide Rollout: Applicable initially to SBI, PNB, and BOB customers with active savings accounts.
Eligibility Criteria
To qualify for the ₹3 Lakh Bank Benefit Scheme, customers must meet the following requirements:
- Account Type: Must be a primary savings account holder in SBI, PNB, or BOB.
- Age Limit: Between 18 and 55 years.
- Account Activity: The account must be active, with minimum average balance requirements met.
- KYC Compliance: Aadhaar, PAN, and address proof must be up to date.
- Single Account Rule: Only one account per individual across all banks will be eligible.
Note: Customers already holding premium insurance-linked accounts may automatically receive upgraded or extended coverage under this scheme.
Steps to Prepare Before the Launch
Before the official rollout on 1 November 2025, make sure your account details are accurate and compliant.
1. Update Nominee Information
Confirm that your nominee details are correct and current. This ensures smooth benefit disbursal in emergencies.
2. Complete KYC Verification
Submit valid Aadhaar, PAN, and address proof to keep your account fully compliant.
3. Reactivate Dormant Accounts
If your account has been inactive, perform a small deposit or withdrawal to reactivate it.
4. Verify Contact Details
Ensure your mobile number and email ID are correctly linked to your bank account. Official communications and OTP verifications will be sent through these.
Enrollment Process from 1 November 2025
Starting November, eligible customers will receive notifications through SMS, email, and bank apps (YONO, PNB One, BOB World).
The process will include:
- Notification: You’ll get an official offer or link from your bank.
- Digital Consent: Confirm participation via one-time OTP verification.
- Enrollment Confirmation: Once verified, your digital certificate of coverage will be available in your app or internet banking dashboard.
Why SBI, PNB, and BOB Are Leading the Rollout
These three banks have the widest reach across India — urban, semi-urban, and rural. Their inclusion ensures that the benefits of this program reach maximum citizens, fulfilling the government’s goal of universal financial protection.
- SBI: Updates via the YONO app and SBI online banking.
- PNB: Notifications on PNB One and official website.
- BOB: Announcements on Baroda Connect and BOB World app.
Why This Scheme Matters
This initiative is more than a safety net — it’s a strategic step towards inclusive financial security. By offering ₹3 lakh coverage without premium costs, it ensures that even small account holders receive meaningful protection against unforeseen life events.
It’s a reminder to every saver that financial security isn’t just about saving — it’s about safeguarding.
Conclusion: The ₹3 Lakh Bank Benefit Scheme, launching 1 November 2025, represents a new era of customer-centric banking and social protection.
It offers a safety layer to millions who rely on public sector banks for daily financial needs, turning ordinary savings accounts into tools of long-term stability.
Before the rollout, take a few minutes to update your nominee, verify KYC, and reactivate your account if needed. These small steps can make a big difference when it matters most.
This scheme isn’t just about policy — it’s about protection, preparedness, and peace of mind.
Disclaimer: This article is for informational purposes only. Final details of the ₹3 Lakh Bank Benefit Scheme — including coverage limits, eligibility, and conditions — will be confirmed by the Ministry of Finance and participating banks closer to launch. Readers should always verify information from the official websites of SBI, PNB, or BOB before enrollment.
