The aid was given to the kin of Maj Satish Dahiya and Capt Ayush Yadav, the statement from the defence ministry said.
Dahiya lost his life in an army operation in the Valley this February, while Yadav was killed in a militant attack on an army camp in the Kupwara district of Kashmir in April.
Speaking on the occasion, the defence minister noted that till now it had been the government, armed forces and insurance agencies that took care of families of these martyrs.
The Army Battle Casualties Welfare Fund was set up by the Department of Ex-Servicemen Welfare (ESW) under Ministry of Defence, following many requests from citizens.
The people had expressed willingness to assist families of battle casualties, especially during the 2016 Siachen incident in which ten soldiers were buried in an avalanche.
"It is a kind of reciprocity from the people indicating that they now stand with these martyrs and next of their kin," the statement quoting Jaitley said.
The minister also released Rs 3.04 crore to 142 other next of kin of soldiers of the Army, who lost their lives battling for the nation, the statement added.
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