Indian Army on 8 May 2015 signed Memorandum of Understanding (MoU) with the Bank of India (BOI) on the Defence Salary Package.
The first MoU between BOI and the Indian Army was signed in 2011 and was valid for a period of three years. This revised MoU is customised to suit the requirements of serving soldiers, pensioners and families. Number of additional facilities was incorporated in the revised MoU after concerted efforts.
Highlights of the MoU
• This MoU will benefit a large number of serving and retired Army personnel who own their accounts with BOI.
• It will also provide them an opportunity to access modern banking facilities.
• It includes the standard bundle of free/concessional services including free drafts, free cheque books, free funds transfers to any bank in India through RTGS / NEFT, free ATM cards etc.
• Some additional features of this MoU are that the Personal Accident Insurance (PAI) cover is extended upto 10 lakh rupees from 5 lakh rupees.
• It provides for Air insurance, Home Loan Insurance on Army Welfare housing Organisation (AWHO) for deaths on account of war/external aggression/ terrorist attack for up to 50 lakh rupees.
• It provides 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.
• It also has a provision for yearly review of specific features and requests.
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Who: Indian Army
When: 8 May 2015