SGSY Group Life Insurance: Revised Payouts for Natural & Accidental Death
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/314 · issued 15 Dec 2010 · ~1 min read
Quick answerRBI has revised SGSY Group Life Insurance payouts: LIC now pays ₹6,000 for natural death and ₹12,000 for accidental death to the nominee. Banks must update their branches and controlling offices on these higher benefit amounts.
What changed
Government of India revised para 4.36 of SGSY guidelines, increasing the Group Life Insurance payout from LIC to ₹6,000 for natural death and ₹12,000 for accidental death. The earlier Master Circular instructions stand amended accordingly.
What it means for you
Banks must ensure that for SGSY-linked group life insurance, the higher benefit amounts are applied to all eligible claims. This increases the financial protection for self-help group members and their nominees. Lenders need to update internal processes and communicate the revised sums to branches.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Issue instructions to all controlling offices and branches about the revised SGSY Group Life Insurance payouts.
Update internal circulars and training materials to reflect the new benefit amounts of ₹6,000 (natural death) and ₹12,000 (accidental death).
Ensure that claims processing for SGSY members aligns with the revised LIC payout structure.
Acknowledge receipt of this RBI circular to the issuing office.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Branches handling SGSY accounts, LIC and its nodal offices, SGSY self-help group members and nominees
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 03:27 IST
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What are the new insurance payouts under SGSY Group Life Insurance?
For natural death, LIC pays ₹6,000 to the nominee; for accidental death, the payout is ₹12,000.
Does this circular apply to Regional Rural Banks?
No, the circular is addressed to all Scheduled Commercial Banks excluding RRBs.
When did these revised payouts take effect?
The circular was issued on December 15, 2010, and the revised guidelines were effective from that date.
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/314
RPCD.GSSD .BC.No.30 /09.01.01/2010 -11
December 15, 2010
The Chairman /Managing Director
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir,
Swarnajayanti Gram Swarozgar Yojana (SGSY) - Group Life Insurance Scheme
Please refer to Para 9 of our Master Circular RBI /2010-11-56-RPCD.SP.BC.No.7/09.01.01/2010 - 11 dated July 1, 2010 on Priority Sector Lending - Special Programmes - Swarnajayanti Gram Swarozgar Yojana (SGSY) and para 4.36 of the SGSY guidelines issued by the Government of India.
2. Government of India have revised para 4.36 of the guidelines in terms of which under the Group Life Insurance Scheme Rs.6000 shall become payable by LIC to the nominee of the deceased in case of natural death. In the event of death due to accident a sum of Rs.12, 000 shall become payable by LIC. Instructions of Master Circular also stand amended.
3. You are advised to issue suitable instructions to your controlling offices and branches, in this regard.
4. Please acknowledge receipt.
Yours faithfully,
(Dr. Deepali Pant Joshi)
Chief General Manager - in - Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/314 · issued 15 Dec 2010. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6147&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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