Customers will now bear the MDR charges for postal life insurance

As per the notification, “No MDR shall be paid to the Acquirer Bank and their PG/PGA authorized by the Government Portal.” Customer/Cardholder will pay all MDR charges and necessary orders are being implemented for PLI/RPLI online premium payment transaction.

MDR is a fee charged to a merchant by their issuing financial institution for accepting payments from their customers through credit cards, net banking and debit cards.

Generally, a customer who is an employee of State and Central Governments, State and Central Public Sector Undertakings, Government of India Aided Educational Institutions, Universities, Local Bodies, Nationalized Banks, Joint Ventures with minimum 10% Government/PSU stake. , credit cooperatives, and staff members of the defense services and paramilitary forces can purchase or hold a postal life insurance policy.

The scheme was started on 1 February 1884. Over the years, PLI has grown from a few hundred policies in 1884 to over 46 lakh policies as of 31 March 2017.

In addition, Rural Postal Life Insurance was launched on 24 March 1995 for the rural people of India. The Malhotra Committee observed in 1993 that only 22% of the insurable population in this country was insured; Life insurance funds account for only 10% of GDP. The government accepted the recommendations of the Malhotra Committee and because of the vast network of post offices and the low cost of operation, mainly in rural areas, Postal Life Insurance needed to expand its coverage to do life insurance business in rural areas. Gave permission.

The main objective of this scheme is to provide insurance cover to rural public in general so as to benefit weaker sections of rural areas and women workers in particular and to spread insurance awareness among rural population.