SBI, Canara Bank deducting money for govt insurance schemes from savings accounts without consent; complaints flood X

SBI, Canara Bank deducting money for govt insurance schemes from savings accounts without consent; complaints flood X

The customers of several banks, including State Bank of India (SBI), the largest lender in the country, and Canara Bank, have taken to social media platform, X, to complain that they are being charged yearly premiums for government insurance schemes without their consent.

Banks are debiting insurance premiums for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJY) for life insurance, Pradhan Mantri Suraksha Bima Yojana (PMSBY) for accident insurance without obtaining prior consent from customers, the complaints read.

Sibananda Panda, an SBI account holder mentioned on X on November 24, 2023, that the bank had deducted an amount from his account for the PMJJBY insurance scheme without his consent. Further, he said that he had not applied for the scheme.

Answering him, the official account of SBI said on the social media platform, “Please note that opting for insurance and other investments is purely voluntary and our branches provide the information for the benefit and awareness of our customers. Please register a complaint at this link under the category- General Banking>>Operation of Accounts>>Disputed Debit/Credit Transactions.

Similarly, another SBI customer, Pranab Mahato, said on November 22, 2023, that his savings account was registered with the PMJJBY without his permission.

Here are some of the other complaints posted on X against SBI for deducting money from customers’ accounts for government insurance schemes

ET Wealth Online sent SBI emails seeking a response to this story on customer complaints. At the time of publishing this story, the PSU bank had yet not replied to the emails.

Customers of Canara Bank have complained about the same issue earlier. Ashish Ranjan, an accountholder with Canara Bank also said that the bank had debited money from his account for PMJJBY and PMSBY schemes without his consent.

Another customer, Moiz Khan also complained about the same on the social media platform. Here is his post on X.

When ET Wealth Online reached out to Canara Bank regarding these customer complaints, the public sector lender replied, ” We understand that few instances have been reported regarding the coverage under Prime Minister Jeevan Jyoti Bima Yojana life insurance scheme through deduction of premium from their accounts. The matter has been looked into and an appropriate action plan has already been implemented to address the concerns of our customers.”

Launched in 2025 by the Union Government, Prime Minister Jeevan Jeevan Jeevan Jyoti Bima Yojana or PMJJBY is a one-year term life cover of Rs 2 lakh covering death due to any reason. Also launched in 2015, Pradhan Mantri Suraksha Bima Yojana or PMSBY is a one-year accidental death and disability cover that could be renewed annually. A death benefit of Rs 2 lakh is available to the beneficiary of the policy in case of accidental demise of the injured person.

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