NEW DELHI: The Indian Army and the State Bank of India (SBI) have renewed their Memorandum of Understanding (MoU), extending it for another three years until 2028. This partnership provides enhanced banking services and personal accident insurance benefits for both serving and retired army personnel, along with their families.
The MoU provides enhanced Personal Accident Insurance (Death/ Disability) of ₹1 Crore along with Term Life Insurance of ₹10 Lakh to cover non-accidental deaths of serving personnel. The Bank is also providing an Air Accidental Cover of ₹1.5 Crore.
Other associated benefits include a Child Education Cover of ₹10 Lakh, a Girl Child Marriage cover of ₹5 Lakh along with a Collateral Free Education Loan of up to ₹40 Lakh.
The benefits of the MoU are also applicable to #VeeNaris & family members (NOK).
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These enhanced benefits are part of SBI’s ongoing efforts to provide comprehensive support to the Indian Army’s personnel and their families. The partnership between SBI and the Indian Army began in 2011 with the launch of the Defence Salary Package (DSP) Scheme on 12 July 2018, which already offered various benefits such as personal accident insurance and educational support. The new MoU builds on these provisions, reflecting the evolving needs of the armed forces.
The collaboration between the Indian Army and SBI is part of the broader reforms under the Ministry of Defence’s “Year of Reforms” initiative for 2025. This initiative aims to modernize the armed forces and improve welfare measures for service members and veterans.
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The MoU is expected to benefit a wide range of pensioners and serving personnel who hold accounts with SBI. This partnership strengthens the financial security of army personnel, ensuring they and their families are supported in times of need. The MoU extension is a testament to the long-term commitment of both institutions to the welfare of those who serve the nation.
