Home / Industry / Banking /  Airtel Payments Bank launches salary account for MSMEs

Mumbai: Airtel Payments Bank today announced a salary account for micro, small and medium enterprises (MSME).

Through the 'Suraksha Salary' account, MSMEs and other organisations will be able to make cashless payments and also provide financial security blanket to their employees. The benefits under the account include Hospicash Insurance and Personal Accidental insurance cover, given the low penetration of insurance in India.

The MSME workforce has been one of the worst affected during the nationwide lockdown. These units employ a large number of informal labour force who are not eligible for social and healthcare benefits as part of their salaries. The lack of any financial protection makes them highly vulnerable, particularly in the current times.

After the recent policy measures for the sector, different industries have been reaching out to tap into the new found cash flow in the sector

The Cabinet committee recently announced that it will infuse 20,000 crores into the sector. This came soon after collateral-free loans worth 3 lakh crore for MSMEs was announced by the finance minister as part of the Atmanirbhar Bharat Abhiyan economic package.

Airtel Payments Bank's salary account enables businesses to disburse salaries in a seamlessly convenient manner and also maintain records digitally for future references and tax processes. The product will be available only to new bank customers for now. It will be soon made available to existing customers who wish to operate their salary accounts with Airtel Payments Bank.

“Our research reflected how lack of protection makes the workforce susceptible to financial setbacks, particularly in case of illness. With this consumer insight, we developed the Suraksha Salary Account to enable MSMEs to offer financial protection and formal banking experience to their employees," Anubrata Biswas, MD and CEO, Airtel Payments Bank said.

In the event of hospitalization, the account holder would be entitled to a fixed cover of 400 per day up to a maximum of 10 days. The policy will cover covid-19 as well, and mitigate the impact on the account holder due to potential loss of pay and savings during hospitalisation. The account holder also gets free of charge group accidental cover of 1 lakh. This ensures added financial protection for the family. The account has no minimum balance condition and the holder can make convenient cash withdrawals at Airtel Payments Bank’s 500,000 banking points across India. Customers can also make cash deposits and transfer money at these points.

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