Personal Finance

Customer to bear MDR charges for Postal life insurance online premium payment from Jan 17, 2022


Those who have Rural Postal Life Insurance (RPLI) and Postal Life Insurance (PLI) policies will now have to bear the merchant discount rate (MDR) charges while paying insurance premiums online from Jan 17, 2022. The Department of Posts made this announcement via an office memorandum dated January 18, 2022.

According to the notification, “In pursuance of para 3(ii) of Department of Expenditure (Ministry of Finance) 0/o Controller General of Accounts OM no. R-18o001/1/2020-GBA CGA/918-1068 dated 17.09.2021, “no MDR shall be paid by the Government portal to the Authorized Acquirer Bank and their PGs/PGAs. All MDR charges would be paid by the Customer/Card Holder..”, the necessary orders are being implemented for PLI/RPLI online premium payment transactions. In light of above, MDR charges shall henceforth be paid/borne by the 2. customer/card holder, wherever applicable for the online PLI/RPLI premium payment transactions w.e.f17.01.2022.”

MDR is a fee that a merchant is charged by their issuing bank for accepting payments from their customers via credit and debit cards.

Rural Postal Life Insurance (RPLI)

Rural Postal Life Insurance (RPLI) was introduced for rural communities in India on March 24, 1995. Only 22% of the country’s insurable population was insured in 1993, according to the Malhotra Committee, and life insurance assets accounted for only 10% of total household savings, according to the website.

The scheme’s main goal is to give insurance coverage to the rural population in general, with a focus on the weaker sections and women workers in rural areas, as well as to raise insurance knowledge among the rural population.

Who are covered under Postal Life Insurance?

PLI (Postal Life Insurance) was first implemented on February 1, 1884. It began as a postal employee social program and was later expanded to include employees of the Telegraph Department in 1888. Employees of the national and provincial governments, central and state public sector undertakings, universities, government-aided educational institutions, nationalised banks, local governments, autonomous bodies, joint ventures with a minimum of 10% government/public sector stake, credit cooperative societies, and other entities are now covered.



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