Indian Army inks MoU with Punjab National Bank for salary a/c

Army had earlier signed a MoU with Punjab National Bank in 2011 with a validity of three years

The Indian Army today inked a Memorandum of Understanding (MoU) with state-owned Punjab National Bank for defence salary package that will also give an extended benefit on personal accidental insurance coverage.

"The MoU is tailor-made to suit the requirements of serving soldiers, pensioners and families. A number of additional facilities have been incorporated in the revised MoU after due consultation between Bank & Army authorities," Defence Ministry said in a release.

Army had earlier signed a MoU with Punjab National Bank (PNB) in 2011 with a validity of three years.

The current agreement has some improved features compared to the previous MoU as the Personal Accidental Insurance(PAI) cover has been extended to Rs 2 lakh and Rs 5 lakh from Rs 50,000 and Rs 2 lakh, respectively.

"Two major additions are the applicability of PAI and overdraft facility to pensioners and PAI cover for deaths occurring in the course of any active Army operation. The MoU also has a provision for yearly review of specific features and requests," it said.

Besides, a number of additional facilities have been incorporated in the revised MoU after due consultation between Bank & Army authorities, it added.

Speaking on the occasion, Adjutant General, Lt Gen Rakesh Sharma said the MoU will benefit a large number of serving and retired army personnel who are having their accounts with PNB along with providing them an opportunity to access modern banking facilities.

Basic features of the earlier MoU have been retained which includes standard package of services including free drafts, cheque books, funds transfers to any bank in India through RTGS/NEFT, ATM cards etc, the release said.

The services would be available in more than 6,500 PNB branches across the country, PNB General Manager N K Arora said.