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Overview on Suraksha Salary Account Launched for MSMEs in India

calendar22 Mar, 2021
timeReading Time: 4 Minutes
Suraksha Salary Account

On 15th June, 2020 Airtel Payments bank launched “Suraksha Salary Account” while India begins to open up following the COVID-19 lockdown. Airtel Payments Bank announced Suraksha Salary Account keeping in view to make an innovative salary account for the Micro, Small and Medium Enterprises (MSME).

MSME was introduced by Government of India by an agreement with Micro, Small & Medium Enterprises Development (MSMED) Act, 2006[1]. MSMEs are the backbone of Indian economy and these entities cover all the micro, small and medium enterprises engaged in the manufacturing, production, processing or the preservation of goods and commodities.

On 15th June, 2020 Airtel Payments bank launched “Suraksha Salary Account” while India begins to open up following the COVID-19 lockdown. Airtel Payments Bank announced Suraksha Salary Account keeping in view to make an innovative salary account for the Micro, Small and Medium Enterprises (MSME).

MSME was introduced by Government of India by an agreement with Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. MSMEs are the backbone of Indian economy and these entities cover all the micro, small and medium enterprises engaged in the manufacturing, production, processing or the preservation of goods and commodities.

Why Suraksha Salary Account is Important for MSME?

MSME sector in India has more than 60 million units and accounts for about 29% of the India’s Gross Domestic Production.  The reason and the key features for coming up with the “Suraksha Salary Account” is given below:-

Suraksha Salary Account is Important for MSME

Healthcare and Social Benefits

MSME has employed huge number of the informal labour force. These labour forces are not given any advantage or eligibility for healthcare and social benefits as a part of their salaries.

Financial Protection

They lack any kind of financial protection and this makes them extremely vulnerable and helpless particularly in the present situation with the outbreak of Covid-19 pandemic.

Cashless Payments

With the opening up of Salary account the labourers and workers of the MSMEs and other organisations will be able to receive cashless payments in their accounts directly. Thus, this will provide financial security coverage to them.

Consumer Cohort

Suraksha Salary account has been planned exclusively for this consumer division. During this inventive account construct, the MSMEs and other business organizations have MSME registration shall be competent to make cashless payments which are also in vogue nowadays due to the covid-19 outbreak. The whole consumer cohort shall get the benefit of securing their financial position.

Wide Range of Benefits

Suraksha Salary account by Airtel Payments Bank provides an extensive range of benefits that shall include Personal Accidental insurance and Hospicash Insurance cover considering the low penetration of the insurance in India.

Details on Suraksha Salary Account

There is no minimum balance condition in this account. The Account holders will be competent to make cash withdrawals at 500,000 banking points throughout the whole India at Airtel Payments Bank’s.

The account holders shall also able to transfer money and make cash deposits at these banking points. The limits have been given that there is no charge on deposits of up to Rs 20,000 and withdrawal of cash up to Rs 50,000 in the period of one month.

Two Free Cardless Cash Withdrawal

The holder of account shall in addition also get two free withdrawal of cash that too cardless via IMT at ATMs throughout our whole country.  Suraksha Salary account will also permit free money transfers from bank to bank across the whole India.

The Cabinet Committee

The Cabinet has made the announcement to inculcate ₹20,000 crores into this sector. The announcement came soon after the finance minister announced the availability of collateral-free loans worth ₹3 lakh crore for MSMEs as a part of the economic package of the Atmanirbhar Bharat Abhiyan.

Maintain Account Records

The Airtel Payments Bank’s salary account with the launch of Suraksha Salary account has enabled the businesses to distribute salaries to the account holders of MSME in an effortlessly convenient manner. This will also promote digital transaction and will lead to maintaining digital records for any future references and ease the tax processes of the account holders.

The benefits of Suraksha Salary account shall be accessible only to the new bank customers for now. But the benefits shall be soon made accessible to the existing customers who shall choose to open their salary accounts with Airtel Payments Bank under Suraksha Salary account.

What are the Benefits Provided under Suraksha Salary Account?

The benefits provided to the workers of MSME who shall open their account under Suraksha Salary account is given below:-

Free Hospicash Insurance

The account holder in the case of hospitalization would be entitled to receive a fixed cover of Rs 400 per day which shall extend to maximum 10 days.

This policy shall also cover COVID-19 and because of the potential loss of pay and savings this policy shall lessen the impact on the holders account during hospitalization.

Free Accidental Insurance

This insurance policy has added financial protection for the family of the account holder. Free Accidental Insurance also provides free of charge group accidental cover of Rs 1 lakh to all the account holders.

Zero Minimum Balance

There is no minimum balance condition for the account holder under Suraksha Salary account.

Easy Withdrawals

The Suraksha Salary account holder has got the benefit for doing cash withdrawals conveniently at the Airtel Payments Bank’s that too around 500,000 banking points across India .This facility provides the customers to transfer money and make cash deposits at these banking points.

Zero Charges on Cash Transactions

The account holder under the Suraksha Salary account are not charged for withdrawing cash of Rs 50,000 and deposits into the account up to Rs 20,000 in the duration of one month. They are also getting two free cash withdrawal that too cardless through IMT at ATMs across the country. They can transfer bank to bank money free of charge across India.

Conclusion

The Airtel Payments Bank has launched the Suraksha Salary Account to exactly fulfil the specific needs of the people who are employed in India’s MSME sector. They aim to focus on the reason that due to lack of protection in the workplace and high risk of financial setbacks especially during illness makes the employers vulnerable to work.

Therefore, keeping in mind regarding the consumer insight, the Suraksha Salary Account was launched to facilitate MSMEs to provide formal banking experience and offer financial protection to their employees. Thus this innovation is a significant addition to aims at motivating financial inclusion in the country.

Read our article: MSME Registration: Essentials and Upcoming Benefits for Business

Kandarp Vanita

Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents & dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.

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