MoU Between Indian Army and Bank of India (BOI) on the Defence Salary Package
On 08th May 2015, an MoU was signed between the Indian Army and Bank of India (BOI) on the Defence Salary Package. The signing ceremony was chaired by the Adjutant General, Lt Gen Rakesh Sharma, and was attended by senior dignitaries of BOI headed by Mr Arun Shrivastava, Executive Director.
The first MoU between BOI and the Indian Army was signed in 2011 and was valid for a period of three years. The revised MoU is tailor made to suit the requirements of serving soldiers, pensioners and families. Number of additional facilities have been incorporated in the revised MoU after concerted efforts. Army is hoping that this MoU will benefit a large number of serving and retired Army personnel who are having their accounts with BOI; and also provide them an opportunity to access modern banking facilities.
The basic features of the MoU are the same as before. 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 features which have been improved from the previous MoU are that the Personal Accident Insurance (PAI) cover has been extended upto Rs 10 lacs from Rs 5 lacs 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 lacs. 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.
Col Rohan Anand, SM