postal life insurance: the customer must bear the MDR costs for the online payment of the postal life insurance premium from January 17, 2022

Those with Rural Postal Life Insurance (RPLI) and Postal Life Insurance (PLI) policies will now have to bear the Merchants Discount Rate (MDR) fee while paying insurance premiums online from January 17, 2022. The Post Office Department made the announcement via a memo dated January 18, 2022.

According to the notification, “Pursuant to paragraph 3 (ii) of the Department of Expenditure (Ministry of Finance) 0/o Comptroller General of Accounts OM No. R-18o001/1/2020-GBA CGA/918-1068 of 17.09. 2021 , “no MDRs will be paid by the government portal to the approved acquiring bank and its PGs/PGAs. All MDR charges would be paid by the customer/cardholder..”, necessary controls are implemented for PLI/RPLI online premium payment transactions. In light of the above, MDR charges will now be paid/borne by the 2. customer/cardholder, where applicable for PLI/RPLI premium online payment transactions wef17.01.2022.”

MDR is a commission charged to a merchant by their issuing bank for accepting payments from their customers via credit and debit cards.

Rural Postal Life Insurance (RPLI)

Rural Postal Life Insurance (RPLI) was introduced for rural communities in India on March 24, 1995. According to the Malhotra committee, only 22% of the country’s insurable population was insured in 1993, and insurance assets life accounted for only 10% of the total. household savings, according to the website.

The main objective of the program is to provide insurance coverage to the rural population in general, with an emphasis on the weakest sections and working women in rural areas, as well as to improve knowledge on insurance. insurance among the rural population.

Who is covered by postal life insurance?

PLI (Postal Life Insurance) was first implemented on February 1, 1884. It began as a social program for postal employees and was later expanded to include employees of the Telegraph Department in 1888. national and provincial, central public sector and state governments enterprises, universities, state-subsidized educational institutions, nationalized banks, local governments, self-governing bodies, joint ventures with an equity stake of at least 10% of government/public sector, cooperative credit societies and other entities are now covered.

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