On Monday, Airtel Payments Bank announced a salary account for the MSME sector (micro, small and medium enterprises). Its 'Suraksha Salary' account will enable MSMEs and other organisations to make cashless payments and also provide a financial security blanket to their employees with the benefits of Hospicash Insurance and Personal Accidental insurance cover that are included with the salary accounts.
The MSME sector employs a large number of Indians, who mainly form part of the informal labour force that do not have benefits like health insurance or other social benefits like pension from their employers. Tapping the potential of this population, financial companies are launching products targeting these individuals.
Airtel Payments Bank's salary account will enable businesses to disburse salaries and also maintain records digitally for future references and tax processes. However, the product will be available only to new bank customers for now.
If hospitalised, the account holder will be entitled to a fixed cover of Rs 400 per day up to a maximum of 10 days. The policy will cover COVID-19 as well, and comes with a free of charge group accidental cover of Rs 1 lakh.
There is no minimum balance requirement on the 'Suraksha Salary' account and the account holder can make convenient cash withdrawals, cash deposits and money transfers at any of Airtel Payments Bank's 500,000 banking points across India, the bank said.