State Bank of India and Indian Army signs MoU on Defence Salary Package
State Bank of India (SBI) has signed a Memorandum of Understanding (MoU) with Indian Army on the Defence Salary Package (DSP).
Signed MoU is revised version of the first MoU which was signed on DSP between two parties in 2011 and was valid for a period of three years. The revised MoU meets the requirements of serving soldiers, pensioners and their families.
Key facts about new MoU
- MoU include provisions for number of free and concessional banking services like drafts, cheque books, funds transfers to any other bank in India through Real Time Gross Settlement (RTGS), free ATM cards etc.
- It also includes provision for implementing the Nepal Express Remittance Scheme. This scheme will benefit of the Nepali Domicile Gorkha Soldiers serving in the Indian Army in order to instantly transfer funds to Nepal.
- MoU adds improved features for linking of the Personal Accident Insurance (PAI) to the Savings account instead of the debit card.
- It also seeks to enhance the PAI amounts and the exemption percentage of margin money for house and car loans. It also waives off of the processing charges on the loans.
The revised MoU is going to benefit 19.5 lakh pensioners and 10 lakh serving personnel with access modern banking facilities. These personnel’s either hold Pay or Pension accounts with SBI.