In an effort to promote financial inclusion and support low-income families, India’s leading public sector banks — State Bank of India (SBI) and Canara Bank — have aligned with various government initiatives to offer financial benefits to their account holders. Among these benefits is the potential to receive up to ₹1 lakh through insurance, emergency overdrafts, or welfare-linked schemes. This article provides a comprehensive overview of how this benefit works, who is eligible, and how you can claim it.

Purpose of the ₹1 Lakh Benefit
The ₹1 lakh benefit provided to bank account holders is not just a financial giveaway. It serves specific purposes such as:
- Insurance support in accidental cases
- Overdraft assistance in emergencies
- Financial empowerment of women and the underprivileged
- A safety net for rural and economically weaker families
This initiative helps families avoid falling into financial ruin due to unexpected situations like accidents, death of the earning member, or lack of access to immediate funds during crises.
How the ₹1 Lakh is Provided
While there is no single scheme that directly transfers ₹1 lakh to all account holders, there are multiple programs and services offered by the government and public sector banks that together make this possible.
1. Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- This is an accident insurance scheme offered by both SBI and Canara Bank.
- Account holders between 18 and 70 years old can enroll.
- In case of accidental death or full disability, the nominee receives ₹2 lakh.
- For partial disability, ₹1 lakh is paid.
- The annual premium is very low and is usually auto-debited from the savings account.
2. Overdraft Facility under Jan Dhan Yojana
- Jan Dhan account holders are eligible for an overdraft facility of up to ₹10,000 to ₹1 lakh.
- This is particularly focused on empowering women and households with no access to credit.
- The overdraft acts as an emergency loan and can be used for medical, education, or livelihood purposes.
3. Bank-Linked Personal Accident Cover
- Some savings accounts with SBI and Canara Bank offer complimentary insurance cover.
- Account holders who maintain a minimum balance or have regular transactions may automatically receive accident insurance worth ₹1 lakh.
- This cover is valid as long as the account remains active.
4. Special Financial Assistance Schemes
- On occasion, banks introduce promotional or welfare schemes where a selected group of account holders receive ₹1 lakh or more.
- These may include support for start-ups, women entrepreneurs, or those affected by natural disasters.
Eligibility Conditions
To receive any of the above benefits, account holders must meet certain eligibility criteria:
- Must be a resident of India with an active account in SBI or Canara Bank.
- Should be between 18 and 70 years of age for insurance-based benefits.
- Must have a linked Aadhaar number and mobile number with the bank account.
- The account should be in active use, with regular deposits or withdrawals.
- Enrollment in specific schemes like PMSBY must be completed.
How to Avail the ₹1 Lakh Benefit
The process of availing the benefit varies depending on the scheme:
For Insurance Benefits:
- Enroll in schemes like PMSBY through net banking, mobile apps, or by visiting your bank branch.
- In the event of a claim, the nominee needs to submit:
- Death certificate or disability certificate
- FIR in case of an accident
- Bank passbook copy
- Identity proof of the nominee
- The claim is usually processed within a month if all documents are in order.
For Overdraft Facility:
- Visit the bank branch and request an overdraft form.
- Submit your Aadhaar and PAN details along with income proof if required.
- The overdraft is granted based on your transaction history and account standing.
Required Documents
To claim or avail any of the ₹1 lakh schemes, keep the following documents ready:
- Aadhaar card
- PAN card
- Bank passbook or account statement
- Two passport-sized photographs
- Address proof (utility bill or voter ID)
- In case of claim: FIR, death/disability certificate, hospital records
Benefits to the Public
The ₹1 lakh assistance has proved to be life-saving in many situations. Here’s how:
- Families who lost their sole breadwinner in road accidents have used the benefit to meet living expenses.
- Farmers and daily wage workers have taken advantage of the overdraft facility to continue earning during crisis periods.
- Women entrepreneurs used the funds to start home-based businesses.
- It reduces the dependency on moneylenders and high-interest loans.
Importance of Awareness
Despite the simplicity and affordability of these schemes, a major issue is lack of awareness among the public, especially in rural areas. Many people open bank accounts but do not know about the available benefits. This leads to unused benefits and loss of opportunity.
SBI and Canara Bank have been actively conducting awareness campaigns, SMS alerts, and workshops to educate account holders about these schemes. Financial literacy is key to ensuring that every eligible citizen receives what they are entitled to.
Bank Support and Helpline
Branches of SBI and Canara Bank have dedicated officers to guide customers regarding the:
- Application process
- Document submission
- Claim settlement
- Renewal of schemes
Customer care numbers and in-branch assistance can help account holders understand their eligibility and start the application or enrollment process.
Conclusion
The ₹1 lakh benefit for SBI and Canara Bank account holders reflects India’s growing focus on inclusive and responsive financial support systems. Whether through accident insurance, overdraft facilities, or bank-driven welfare schemes, this financial aid serves as a shield for many families, protecting them from slipping into poverty during emergencies.
Citizens are encouraged to check their eligibility, enroll in the relevant schemes, and keep their bank accounts active. With minimal effort, one can gain significant financial protection that could make a huge difference during critical times.
As India marches forward in its mission of financial empowerment and social security, programs like these are essential tools that uplift millions. Every bank account is not just a place to save money — it can be a gateway to financial security worth ₹1 lakh or more.