Indian Army and Bank of India ink MoU on Defence Salary Package
Indian Army and Bank of India (BOI) on 8 May 2015 signed Memorandum of Understanding (MoU) on the Defence Salary Package.
The signed MoU is a revised version of previous and first MoU which was signed in 2011 between both parties and was valid for a period of three years.
Key facts of revised MoU
- The basic features of the MoU are the same as before and are tailor made to suit the requirements of serving soldiers, pensioners and their families.
- Number of additional facilities are incorporated after concerted efforts. It includes the standard bundle of free and concessional services.
- These free services are drafts, cheque books, funds transfers to any bank in India through RTGS and NEFT, ATM cards etc.
- Added additional facilities also include extended Personal Accident Insurance (PAI) cover upto Rs 10 lacs from current Rs 5 lacs.
- PAI is for air insurance, Home Loan Insurance on Army Welfare housing Organisation (AWHO) for deaths on account of war, external aggression and terrorist attack up to Rs 50 lacs.
By signing this MoU, Indian Army is hoping it will benefit a large number of serving and retired Army personnel who are having their accounts with BOI. It also seeks to provide them an opportunity to access modern banking facilities.