SBI launches Defence Salary Package for Army

State Bank of India today launched a special product called Defence Salary Package (DSP) for Army personnel and aims to open about 12 lakh accounts under the scheme.

"We expect to open about 12 lakh plus accounts under DSP," SBI Chairman O P Bhatt said at the launch of the new service here.

The bank is ready with stationery and application form for opening such huge number of accounts, he said.

"The product offers a bundle of free services to the officers and jawans," Bhatt said.

The package includes free drafts, free cheque book, free fund transfers to any of the SBI Group's about 15,000 branches and free ATM cards, he said.

Bhatt said the bank would also offer home, auto and personal loans to Army personnel at 25 basis points lower than the floor rate.

At the same time, bank is contemplating to launch special two-wheeler loan scheme for jawans, he added.

SBI plans to add 13,000 ATMs during the year and intends to locate a large number of ATMs to serve Army formations just as many of its branches are already located in difficult and arduous terrain, he said.  SBI is also working with the Army to transfer salary electronically in the accounts, Bhatt said.

The bank also plans to open special grievance cell for the Army personal as well as defence banking advisers, he said.

Besides, the bank is also planning to roll out tailor made products for them, he said, adding that the debit card for the Army personnel will come with host of features