State Bank of India opens 0.63 mn accounts under Har Ghar Lakhpati scheme

State Bank of India, the country’s largest lender, has opened 0.63 million accounts under its Har Ghar Lakhpati scheme, a recurring deposit product, in about 45 days from the date of its launch, according to its chairman, C S Setty.

 

Lakhpati is a pre-calculated recurring deposit (RD) scheme designed to help customers accumulate Rs 1 lakh or multiples thereof and develop a savings habit.

 

Setty, speaking at an event to roll out JanNivesh SIP of SBI Mutual Fund, said one of the safest investments in the last decade has been the systematic investment plan (SIP). The original SIP of the banking industry is the recurring deposit.

 

“All of us have grown up with recurring deposits, and we do not want to move people who seek banking safety and have their small savings captured. Under the Lakhpati scheme, a depositor would know how much they have to save in 15 days or one month to meet the end objective of having Rs 1 lakh in a year,” the SBI chairman added. This product is also available to minors, encouraging early financial planning and a savings habit.

 

Today, there are three elements of financial inclusion. One is having access to a bank account, the second is insurance cover, and the third is an investment component. On the deposits side under the Jan Dhan Yojana, SBI has a 33 per cent share in terms of accounts. The bank has opened more than 150 million such accounts.

 

Most of these accounts were opened with zero balance. Through continuous engagement with customers, the bank now has the lowest number of zero-balance Jan Dhan accounts, he added.