The ₹1 lakh benefit provided to SBI and Canara Bank account holders is part of several integrated efforts by the government and banking institutions to ensure social protection, financial literacy, and emergency support. Many citizens, especially those from rural and low-income backgrounds, often remain uninsured and lack financial resilience in times of crisis. These initiatives are meant to offer a basic financial cushion in unforeseen events like death, accidents, or financial hardship.

Types of Schemes Providing ₹1 Lakh Benefit
The benefit of ₹1 lakh does not come in the form of a single scheme but through multiple banking and government-backed initiatives, often directly linked to an individual’s bank account. Below are some prominent ways in which SBI and Canara Bank account holders may be eligible for ₹1 lakh:
1. Accident Insurance Cover
Most government schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY) or Pradhan Mantri Suraksha Bima Yojana (PMSBY) provide an accidental insurance cover to eligible savings bank account holders. Typically:
- PMSBY provides ₹1 lakh for partial disability and ₹2 lakh for accidental death or full disability.
- Account holders of SBI and Canara Bank automatically become eligible for these benefits upon subscribing (with minimal premium, often auto-debited).
- This insurance is available to people between 18 to 70 years of age.
2. Fixed Deposit Linked Benefits
Some bank-specific promotional schemes or term deposits offer extra insurance cover as a value-added service. For example:
- Deposits above a certain limit (e.g., ₹10,000) in a savings account or FD might qualify the account holder for accidental insurance worth ₹1 lakh.
- These are usually applicable for senior citizens or women-centric savings programs.
3. Overdraft Facility under Jan Dhan Accounts
SBI and Canara Bank also provide an overdraft facility of up to ₹1 lakh (earlier ₹5,000, later increased) to eligible account holders under PMJDY. Conditions include:
- Active Jan Dhan account in operation for at least six months.
- Good transaction history.
- Only one person per household can avail the overdraft, preferably a woman.
This overdraft amount, although repayable, serves as emergency funding during times of crisis.
4. Bank-Specific Promotional or Financial Inclusion Programs
From time to time, SBI and Canara Bank roll out bank-led benefit programs where:
- Customers are rewarded with financial assistance or insurance cover on meeting certain banking usage thresholds (e.g., maintaining average balances, regular digital transactions).
- Such schemes often include a financial protection cover of ₹1 lakh either in the form of insurance or cash reward.
Eligibility Criteria
While the schemes offering the ₹1 lakh benefit vary in type, the following general eligibility criteria often apply:
- Valid savings or Jan Dhan account in SBI or Canara Bank.
- Age between 18 to 70 years, depending on the scheme.
- Regular usage of the bank account (minimum number of deposits/withdrawals per month).
- Consent and registration for applicable insurance policies, where required.
- No previous claim for similar benefit from the same account or scheme.
It is important for account holders to check whether their bank account is linked with Aadhaar and mobile number to receive timely notifications and benefits.
How to Claim the ₹1 Lakh Benefit
Claiming the benefit depends on the nature of the scheme:
For Insurance-Based Benefits:
- In the event of death or disability, the nominee or family members must:
- Submit a claim form to the bank.
- Provide necessary documents like death certificate, FIR (if accident), Aadhaar, and bank passbook.
- Claims are usually settled within a 30-day window if all documents are proper.
For Overdraft or Special Programs:
- The individual must request the facility via the bank’s branch or online banking portal.
- Maintain the required transaction and balance history.
- Approval is subject to creditworthiness and banking history.
Documents Required
To benefit from such schemes, the following documents are commonly required:
- Aadhaar Card and PAN Card.
- Bank passbook or account statement.
- Mobile number linked to bank account.
- Proof of identity and residence.
- In case of insurance claims: FIR, medical reports, death certificate (as applicable).
Role of the Bank
SBI and Canara Bank play a pivotal role in:
- Spreading awareness about such schemes through SMS, posters, and customer communication.
- Assisting customers in filling claim forms and uploading required documents.
- Monitoring scheme compliance to ensure eligible customers receive the benefits on time.
Branch managers and customer service representatives are often the first point of contact to know more and apply for such schemes.
Public Awareness and Challenges
Despite the availability of such schemes, many citizens are unaware of the benefits they can receive from simply holding a bank account. Lack of awareness, poor documentation, and low financial literacy are major barriers. Therefore, it becomes essential for both banks and government bodies to regularly conduct awareness drives, especially in rural areas.
Digital banking tools, mobile apps, and SMS alerts can also be used to notify users about eligibility and renewal dates for insurance schemes. Moreover, making enrollment automatic at the time of account opening can help in boosting participation.
Conclusion
The ₹1 lakh benefit available to SBI and Canara Bank account holders reflects the broader goals of financial security, inclusion, and support extended to all sections of society. Whether through accident insurance, overdraft provisions, or savings-linked rewards, these schemes ensure that basic economic support is accessible even to the most vulnerable citizens. While the amount may not replace personal insurance or long-term savings, it offers much-needed support in emergencies and can help families avoid falling into a cycle of debt during difficult times.
However, to make the most of these schemes, account holders must stay informed, ensure their accounts are active and updated, and regularly engage with their bank to know what benefits they are eligible for. In a rapidly growing digital economy, even a simple savings account can be a gateway to multiple opportunities—and sometimes, to ₹1 lakh that could make all the difference.