The Indian Army and Bank of India (BOI) signed a Memorandum of Understanding (MoU) on Friday pertaining to the defence salary package of the Army personnel.
The MoU was signed at a ceremony chaired by the Adjutant General Lt. Gen. Rakesh Sharma and was attended by senior dignitaries of BOI, headed by Executive Director Arun Shrivastava.
The features of the MoU include facilities like the standard bundle of concessional services including free drafts, free cheque books, free funds transfers to any bank in India through RTGS or NEFT and free ATM cards among others.
The Personal Accident Insurance (PAI) cover has been doubled to Rs. 10 lakhs, including air insurance, home loan insurance on Army Welfare housing Organisation (AWHO) for deaths on account of war/external aggression/ terrorist attack up to Rs 50 lakhs.
Two major additions are the applicability of PAI and overdraft facility to pensioners and waiver of merchant service fee (MSF) for transaction on BoI POS Terminal installed at CSD Canteens for BOI Card holders. The MoU also has a provision for yearly review of specific features and requests.
The Army hopes that this MoU will benefit a large number of serving and retired Army personnel who have accounts with the BOI and also provide them an opportunity to access modern banking facilities.
The first MoU between BOI and the Indian Army was signed in 2011 and was valid for a period of three years.
