The Indian Army has signed a Memorandum of Understanding (MoU) with the State Bank of India on the Defence Salary Package. The first MoU was signed in 2011 and was valid for a period of three years. Many changes have been made in the revised MoU by the team of experts.
Features of MoU
- Number of free/concessional services like free drafts, free cheque books.
- Free funds transfers to any bank in India through RTGS/NEFT, free ATM cards and others.
- Nepal Express Remittance Scheme – Enables instant fund transfers to Nepal for the benefit of the Nepal based Gorkha Soldiers serving in the Indian Army.
- Personal Accident Insurance was enhanced and linked to the Savings account instead of the debit card.