Those who open such a bank account would be provided a micro insurance of Rs 130,000 (life insurance of Rs 30,000 and accident insurance of Rs 100,000).
Note, this is $2200 (£1 = Rs 100, € 1 = Rs 80, $1 = Rs 60) today. In PPP terms its more like $ 7000 since India has a purchasing power parity of 0.3.
His target is 75 million accounts in five months, and has achieved 15 million accounts on the first day itself. This was done by banks holding about 80,000 camps all over India. So, almost 200 new accounts were opened by each camp.
In previous schemes, the banks had opened accounts but they were essentially non-moving accounts, opened only by the poor because there was a small financial incentive involved.
Note, India has a population of 1.3 billion. With an average family size of five, this works out to 260 million households. 40% exclusion means about 104 million households. So, the initial five month target is to reach 75 million of these households.
Here is a link
As India moves towards banking inclusion, the role of microcredit organizations will move towards becoming banking correspondents. This was the opinion of Dr. Veerendra Heggade, who is the founder of the world's largest faith based microfinance institution, SKDRDP, which has 2.4 million borrowers. He himself will be moving his NGO microcredit organization in this direction over the next few years. We had the pleasure of interviewing him last week, and certainly a blog will follow.