Indian Army Defence Salary Package (DSP) Account Benefits 2026 include personal accident insurance, disability cover, air accident insurance, education assistance, loan concessions, banking facilities and several additional benefits for serving personnel, Agniveers and pensioners.
The “Comprehensive Guide to Banking Benefits” issued by the Indian Army’s AGs Branch brings together the benefits available under the Memoranda of Understanding (MoUs) signed with participating banks. The document was updated on 28 April 2026 and notes that benefits may change whenever an MoU is renewed, revised or terminated.
Important: The benefits and amounts below are reproduced from the uploaded Indian Army banking-benefits guide. Individual claims remain subject to the applicable bank’s MoU, eligibility conditions and terms and conditions.
Indian Army DSP Account: 10 Banks Covered
According to the guide, the Indian Army had valid MoUs with the following 10 banks as of the document’s April 2026 update:
| Bank | MoU validity – Serving/Pensioners | MoU validity – Agniveers |
| Bank of Baroda | Till 03 May 2029 | Till 03 May 2029 |
| State Bank of India | Till 15 Jan 2028 | Till 03 Nov 2028 |
| Punjab National Bank | Till 12 Jan 2029 | Till 12 Jan 2029 |
| Punjab & Sind Bank | Till 20 Jun 2028 | Till 20 Jun 2028 |
| ICICI Bank | Till 12 Nov 2028 | Till 12 Nov 2028 |
| Bank of India | Till 03 Mar 2028 | Till 03 Mar 2028 |
| AXIS Bank | Till 29 Oct 2028 | Till 29 Oct 2028 |
| HDFC Bank | Till 05 Jan 2029 | Till 05 Jan 2029 |
| YES Bank | Till 19 Feb 2029 | Till 19 Feb 2029 |
| IDFC First Bank | Till 05 Feb 2029 | Till 05 Feb 2029 |
The guide specifically states that these details can change when MoUs are revised or renewed.
Major Benefits of an Indian Army DSP Account
A Defence Salary Package account can provide benefits beyond normal salary-account facilities. The major categories covered in the guide include:
- Personal Accident Insurance on death
- Personal Accident Insurance on disability
- Air Accident Insurance
- Add-on insurance covers
- Education assistance for children
- Girl-child marriage benefits
- Loan concessions
- Overdraft facilities
- Debit and credit card benefits
- ATM transaction facilities
- Health insurance-related benefits
- Other banking concessions
1. Personal Accident Insurance on Death
One of the most important benefits associated with DSP accounts is Personal Accident Insurance (PAI).
The guide lists the following maximum accident-death insurance amounts:
| Bank | Serving Personnel/Agniveers | Pensioners |
| Bank of Baroda | ₹1.25 crore | ₹75 lakh |
| SBI | ₹1 crore | ₹50 lakh |
| Punjab National Bank | ₹1 crore | ₹50 lakh |
| Punjab & Sind Bank | ₹1 crore | ₹1 crore |
| ICICI Bank | ₹1 crore | ₹50 lakh |
| Bank of India | ₹1 crore | ₹10 lakh* |
| AXIS Bank | ₹1 crore | ₹50 lakh |
| HDFC Bank | ₹1 crore | ₹1 crore |
| YES Bank | ₹1 crore | ₹40 lakh |
| IDFC First Bank | Up to ₹90 lakh/₹60 lakh depending on salary-credit conditions | ₹60 lakh + ₹35 lakh for nominee subject to specified pension-credit conditions |
*Bank of India also lists additional free group insurance cover based on the qualifying account balance.
The actual amount payable is subject to the applicable policy and MoU conditions.
2. Personal Accident Disability Insurance
The banking guide also provides bank-wise details of Personal Accident Insurance for disability.
| Bank | Serving Personnel/Agniveers | Pensioners |
| Bank of Baroda | Up to ₹1.25 crore / ₹67.5 lakh | Up to ₹75 lakh / ₹37.5 lakh |
| SBI | Up to ₹1 crore | NA |
| Punjab National Bank | Up to ₹1 crore / ₹50 lakh | Up to ₹50 lakh / ₹25 lakh |
| Punjab & Sind Bank | Up to ₹1 crore | Up to ₹1 crore |
| ICICI Bank | Up to ₹1 crore | Up to ₹50 lakh |
| Bank of India | Up to ₹1 crore / ₹50 lakh | Up to ₹50 lakh |
| AXIS Bank | Up to ₹1 crore | Up to ₹50 lakh |
| HDFC Bank | Up to ₹1 crore | Up to ₹1 crore |
| YES Bank | Up to ₹1 crore | Up to ₹40 lakh |
| IDFC First Bank | Up to ₹60 lakh | Up to ₹60 lakh |
Conditions for disability insurance
The guide states that:
- The amounts mentioned are for 100% disability.
- Applicable IRDAI norms have to be followed.
- A medical certificate is required.
- The disability must result from an accident covered under the scheme.
- Claims must be submitted within the prescribed time.
- The applicable bank’s MoU conditions must be satisfied.
3. Air Accident Insurance for DSP Account Holders
Air Accident Insurance (AAI) is another significant DSP account benefit.
The guide lists the following coverage:
| Bank | Air Accident Insurance |
| Bank of Baroda | No separate AAI; air accidents covered under PAI of ₹1.25 crore |
| SBI | ₹1.5 crore |
| Punjab National Bank | ₹1.5 crore serving / ₹1 crore pensioners |
| Punjab & Sind Bank | ₹1.2 crore domestic / ₹1 crore international |
| ICICI Bank | ₹1 crore |
| Bank of India | ₹2 crore |
| AXIS Bank | ₹1.5 crore |
| HDFC Bank | ₹1 crore |
| YES Bank | ₹1 crore |
| IDFC First Bank | ₹1 crore |
The conditions concerning debit-card usage or purchase of air tickets through the concerned bank’s debit card vary from bank to bank. Some banks do not require the ticket to be purchased through the debit card, while others specify such a condition.
The guide also states that service/chartered aircraft and tickets provided by the department are covered for applicability of AAI cover.
4. Add-On Covers on Defence Salary Accounts
Apart from PAI and AAI, several banks provide additional covers.
Bank of Baroda
- Term Life Insurance – ₹10 lakh
State Bank of India
The guide lists:
- Plastic surgery – maximum ₹10 lakh
- Imported medicine – maximum ₹5 lakh
- Death after coma – maximum ₹5 lakh
- Air ambulance – maximum ₹10 lakh
- Family transportation – maximum ₹50,000
- Repatriation of mortal remains – maximum ₹50,000
- Ambulance charges – maximum ₹50,000
- Xpress Credit Loan – maximum ₹10 lakh
- Term Life Insurance – ₹10 lakh
AXIS Bank
- Term Life Insurance – ₹10 lakh
- Additional ₹10 lakh for death due to an act of terrorism
Punjab National Bank
Benefits listed include:
- Plastic surgery – maximum ₹10 lakh
- Imported medicine – maximum ₹10 lakh
- Death after coma – maximum ₹5 lakh
- Body repatriation – maximum ₹50,000
- Funeral expenses – maximum ₹30,000
- Emergency medical expenses – maximum ₹25,000
- Ambulance charges – maximum ₹50,000
- Air ambulance – maximum ₹10 lakh
Punjab & Sind Bank
The guide lists:
- Plastic surgery – maximum ₹10 lakh
- Imported medicine – maximum ₹10 lakh
- Death after coma – maximum ₹2 lakh
- Body repatriation – maximum ₹30,000
- Funeral expenses – maximum ₹10,000
- Emergency medical expenses – maximum ₹10,000
- Ambulance charges – maximum ₹3,000 per case
ICICI Bank
- Air ambulance – up to ₹15 lakh
- Normal ambulance – up to ₹25,000
- Plastic surgery/burns – up to ₹10 lakh
- Imported medicine – up to ₹2 lakh
- Transportation of dead body – ₹30,000
- Death after coma – up to ₹2 lakh
- Family transportation – up to ₹50,000
Bank of India
The guide mentions:
- Health insurance
- Contributory health insurance cover of ₹20 lakh at an annual premium of ₹1,999
- Additional ₹20 lakh PAI cover on subscribing to health insurance
- Applicable to serving personnel as well as pensioners
HDFC Bank
- Additional PAI of ₹1 lakh
- AAI cover of ₹5 lakh for zero-balance salary family account
YES Bank
Benefits include:
- Plastic surgery – maximum ₹10 lakh
- Imported medicine – maximum ₹5 lakh
- Death after coma – maximum ₹2 lakh
- Air ambulance – maximum ₹10 lakh
- Family transportation – ₹20,000
- Repatriation of mortal remains – ₹20,000
- Ambulance charges – ₹15,000
- Daily hospitalisation cash – ₹1,000 per day, up to ₹20,000 in a calendar year
5. Education Benefits for Children
DSP accounts can also provide education-related financial assistance depending on the bank.
| Bank | Education Assistance Listed in Guide |
| SBI | ₹8 lakh for male child and ₹10 lakh for girl child aged 18–25 |
| PNB | ₹10 lakh per child, maximum two children, subject to conditions |
| Punjab & Sind Bank | ₹6 lakh for each boy and ₹12 lakh for each girl, for children aged 12–22 |
| ICICI Bank | ₹5 lakh up to age 22; ₹5 lakh upfront for girl children up to 22 |
| Bank of India | Maximum ₹10 lakh for up to two children till graduation |
| AXIS Bank | Higher education assistance up to ₹4 lakh for one child |
| HDFC Bank | Education benefit up to ₹5 lakh |
| YES Bank | ₹5 lakh each for maximum two children up to age 25 |
| IDFC First Bank | Children education cover of ₹4 lakh |
The exact age, number of children and other conditions vary by bank.
6. Girl Child Marriage Benefits
Some DSP banking arrangements also provide financial assistance for the marriage of girl children.
The guide lists examples such as:
- SBI: ₹10 lakh girl-child marriage benefit for two girl children aged 18–25.
- PNB: ₹10 lakh for two girl children, stated as ₹5 lakh each.
- Punjab & Sind Bank: Child benefit of ₹12 lakh for each girl child aged 12–22, for a maximum of two children.
- AXIS Bank: ₹5 lakh for girl-child marriage up to 22 years; ₹10 lakh maximum for two or more girl children.
- HDFC Bank: Girl-child marriage cover of ₹5 lakh.
- YES Bank: ₹5 lakh each for two girl children aged 18–25.
- IDFC First Bank: Girl-child marriage cover of ₹2 lakh.
7. Loan and Other Banking Benefits
DSP account holders may also receive preferential banking facilities.
Bank of Baroda
The guide lists:
- Personal loans at attractive interest rates depending on the loan type
- Overdraft up to ₹3 lakh, based on the average of the last two months’ salary
- ₹10 lakh on Debit Card
- ₹20 lakh on Yoddha Credit Card
- Unlimited transactions at bank ATMs
SBI
- 100% processing-fee waiver on loans
- Unlimited transactions at SBI ATMs in India
- 10 free transactions per month at other bank ATMs
Punjab National Bank
- Concessions on housing, car, personal and education loans
- ₹2 lakh to ₹10 lakh with POS condition on debit card
- Up to ₹10 lakh on credit card
- Unlimited transactions at PNB ATMs
- 25% concession in locker rent
Punjab & Sind Bank
The guide mentions:
- Home loan at ROI of 7.55%
- Nil prepayment charges
- Legal and valuation charges borne by the bank
- Overdraft facility
- ATM transaction concessions
- RuPay Select debit-card facility
- 50% locker-rent concession
ICICI Bank
- Unlimited free transactions at bank ATMs
- Free add-on debit card for joint account holders
- Education loan – unsecured loan up to ₹1 crore
Bank of India
- Up to 100% concession on processing fee
- Concessional loan interest rates
- Overdraft equal to one month of salary
- Additional PAI cover on credit card up to ₹10 lakh
- Additional PAI cover on debit card up to ₹10 lakh
AXIS Bank
- Home loan/LAP/PL/gold loan/car loan/education loan at competitive rates
- Less documentation
- 12 EMIs waived in relation to home loans, as specified in the guide
- Unlimited free transactions at bank ATMs
HDFC Bank
- ₹10 lakh on debit card subject to POS condition
- Unlimited free transactions at bank ATMs
YES Bank
- Preferential rates on loans
- Unlimited free transactions at bank ATMs
8. Eligibility Conditions for PAI Claims
Having a DSP account does not automatically mean every death or disability is covered.
The guide lays down several conditions, including:
- The serving person’s/Agniveer’s account should have been converted into the Defence Salary Account as applicable.
- On retirement, the serving account should be converted into the appropriate pensioner/veteran account.
- The casualty must be accidental in nature for PAI.
- Natural death and suicide are not eligible for PAI benefits.
- The accident/injury should not have occurred under the influence of alcohol or drugs.
- The injury should not be self-sustained.
- The accident should not result from a breach of law involving criminal intent.
- Conditions can differ from one bank to another according to the relevant MoU.
9. DSP Account PAI Claim Procedure
The guide recommends the following procedure for early processing of PAI claims:
Step 1: Inform the Bank
The nearest branch of the bank where the DSP account was held should be informed about the casualty.
In disability cases, the guide specifies that the bank should be informed within 30 days.
In death cases, intimation should be given at the earliest.
Step 2: Collect the Claim Forms
The prescribed forms should be collected from the concerned bank and completed properly.
Step 3: Obtain Acknowledgement
The claimant should obtain acknowledgement for:
- Intimation of casualty
- Submission of documents
Step 4: Submit Disability Certificate
For disability claims, the required disability certificate should be submitted within the stipulated period.
The guide warns that a delay of more than 12 months in submitting the disability certificate may result in lapse or repudiation of the claim.
10. Common Reasons for PAI Claim Problems
The guide identifies several common mistakes that can result in rejection or loss of benefits.
These include:
- Post-mortem report and FIR do not mention the death as “accidental.”
- Account has not been converted into the bank’s DSP account.
- Documents are submitted after the prescribed deadline.
- Account is held with a bank that does not have a valid MoU with the Indian Army.
- Documents do not contain adequate contact details of the individual/NOK/unit personnel.
- Disability is not intimated to the bank and insurance company within 30 days.
- Claims are submitted for natural death or suicide.
- Salary is credited into an account where the DSP account code has not been mentioned.
- The exact cause of death is not established.
- Post-mortem and FIR do not corroborate the cause of death as accidental.
- Death is actually caused by natural or medical reasons rather than an accident.
11. Important Advice for Serving Personnel Before Retirement
The banking guide also highlights the importance of managing loans and bank accounts before retirement or discharge.
Serving personnel are advised to:
- Keep mobile number, email ID and permanent address updated.
- Ensure retirement/discharge details are correctly recorded.
- Maintain details of loans, EMIs, EMI amounts and maturity dates.
- Update KYC details.
- Make arrangements for outstanding loans before retirement/discharge.
- Ensure there are no undisclosed loans while changing bank accounts.
The guide also recommends financial-management awareness sessions during the discharge process.
12. What Should Pensioners Do to Continue DSP Benefits?
Retiring personnel should pay particular attention to conversion of the serving DSP account into the appropriate pensioner/veteran DSP account.
The guide specifically advises personnel proceeding on pension to change their account from DSP Account (Serving) to DSP Account (Pension) to ensure eligibility for applicable PAI claims.
Pension credit should also continue into the DSP account.
13. Nominee Details Are Extremely Important
DSP account holders should ensure that the nominee details are correctly entered.
This is particularly important because the guide states that PAI and other benefits will be extended only to the nominee registered with the bank/insurance company, subject to applicable terms.
Therefore, personnel should regularly check:
- Nominee name
- Relationship
- Contact details
- Bank records
- KYC details
14. SBI PAI Claim Tracking Facility
For SBI DSP account holders, the guide mentions a mobile application called “PAI Assist” for checking the status of PAI claims after the claim documents have been submitted and the claim has been admitted.
The guide also mentions a WhatsApp chatbot facility for SBI-related claims. It states that the chatbot can provide information concerning:
- Initial claim intimation
- Required claim documents
- Downloading claim forms
- Claim status
- Pending documents
- Escalation/contact information
The guide provides 8657923021 as the WhatsApp chatbot number for this facility.
Users should verify the current availability and contact details with SBI before relying on this facility, as the uploaded guide itself states that banking arrangements are subject to change.
15. Can an Army Personnel Change His DSP Bank?
Yes. The guide makes an important point that banking is a personal choice.
It states that Regimental Centres, formations and units should not give preference to any particular bank, and equal opportunities should be provided to banks to publicise their products.
It also states that there should be no restriction on an individual who wishes to change the DSP account from one bank to another.
This means eligible personnel can make an informed choice based on the benefits, services and conditions offered by the participating banks.
16. Key Points for Indian Army Personnel and Pensioners
Before selecting or changing a DSP bank account, personnel should check:
For serving personnel
- Is the bank’s MoU currently valid?
- Has the account been converted to DSP?
- Is salary being credited into the DSP account?
- Is the nominee correctly registered?
- What PAI and AAI cover is available?
- Are debit-card/POS conditions applicable?
- What loan concessions are available?
For pensioners
- Has the serving DSP account been converted to the pension DSP account?
- Is pension being credited into the correct account?
- Is the nominee updated?
- What PAI cover is available for pensioners?
- What additional insurance and banking benefits remain applicable?
For families
- Keep copies of the DSP account details.
- Keep nominee information updated.
- Preserve relevant bank and insurance documents.
- In case of an accident, inform the bank immediately.
- Ensure FIR and post-mortem documents accurately record the circumstances of an accidental death where applicable.
Conclusion
The Indian Army Defence Salary Package (DSP) Account can provide substantially more than routine salary or pension banking. Depending on the bank and the applicable MoU, benefits may include personal accident insurance, disability insurance, air accident cover, education assistance, girl-child marriage benefits, medical-related assistance, loan concessions, overdraft facilities and other banking privileges.
However, the benefits are bank-specific and condition-specific. The April 2026 Indian Army guide itself states that the information is subject to change when MoUs are renewed, terminated or banking policies change.
Therefore, serving personnel, Agniveers and pensioners should verify the latest applicable terms with their bank before making financial or insurance decisions.