The Indian Army and IDFC First Bank have entered into a new banking arrangement offering an additional Personal Accident Insurance (PAI) cover of up to ₹60 lakh to eligible serving and retired personnel, subject to the conditions prescribed under the arrangement.
According to Banking Advisory No. 01/2026 issued by the Integrated HQ of MoD (Army), Adjutant General’s Branch, the MoU between the Indian Army and IDFC First Bank was signed on 6 February 2026 for a period of three years.
The most notable feature of this arrangement is that eligible personnel do not necessarily have to transfer their existing salary or pension account to IDFC First Bank. A separate/additional account can be opened, and the required monthly credit can be maintained to become eligible for the additional PAI benefit.
Indian Army–IDFC First Bank MOU 2026: Key Highlights
As per the Banking Advisory shared with units and formations, the important features are:
| Particular | Details |
| Bank | IDFC First Bank |
| Agreement | Indian Army–IDFC First Bank MOU |
| MOU Date | 6 February 2026 |
| Validity | 3 years |
| Additional Account | Permitted |
| Minimum Monthly Credit – Serving Personnel | ₹15,000 |
| Minimum Monthly Credit – Retired Personnel | ₹25,000 |
| Additional PAI Cover | Up to ₹60 lakh |
| Salary/Pension Transfer | Not mandatory for the additional account |
What Is the Special Benefit for Army Personnel?
The special feature of the arrangement is that an Army personnel can maintain their existing salary or pension account with another bank and simultaneously open an additional account with IDFC First Bank.
The advisory specifically explains that the IDFC First account can be opened as an additional account other than the existing salary/pension account.
The account holder is required to maintain the prescribed monthly credit to qualify for the additional PAI cover.
This can be particularly useful for personnel who already have their salary or pension account with another bank and do not want to shift their primary banking relationship.
₹15,000 Monthly Credit for Serving Personnel
For serving personnel, the advisory states that the IDFC First Bank additional account requires a minimum monthly credit of ₹15,000.
The amount credited can be used during the month after the credit.
Importantly, the advisory indicates that the salary need not necessarily be credited to the IDFC First Bank account. Instead, an eligible individual can maintain an additional account and meet the prescribed monthly credit condition.
Example Given in the Banking Advisory
The advisory provides an illustration:
An individual has his salary or pension account with SBI.
He subsequently opens an additional account with IDFC First Bank and credits ₹15,000 every month into that account.
According to the advisory, on meeting the applicable conditions, the individual can become eligible for an additional ₹60 lakh PAI cover from IDFC First Bank.
Therefore, if the individual is already eligible for PAI coverage through his existing salary/pension account with another bank, the additional IDFC First Bank benefit can potentially provide an additional layer of accident insurance coverage.
₹25,000 Monthly Credit for Retired Personnel
For retired personnel, the prescribed minimum monthly credit mentioned in the advisory is ₹25,000 per month.
Thus, retired Army personnel seeking the additional PAI benefit through the IDFC First Bank arrangement need to meet the applicable ₹25,000 monthly credit requirement.
The advisory also mentions a ₹60 lakh PAI cover based on the prescribed monthly credit conditions.
Can You Keep Your Existing Salary or Pension Account?
Yes, according to the advisory, the IDFC First Bank account can be opened as an additional account.
This means an Army personnel who already maintains a salary or pension account with another bank can potentially retain that account while opening the additional IDFC First Bank account.
For example:
Existing account: SBI Salary/Pension Account
↓
Additional account: IDFC First Bank
↓
Required monthly credit: As applicable
↓
Additional PAI benefit: ₹60 lakh, subject to applicable terms and conditions
This is one of the key features that makes the banking arrangement different from a conventional requirement to shift the salary or pension account.
Double PAI Cover: How the Benefit Can Work
The advisory gives an example where an individual already has a salary/pension account with SBI.
If the person opens an additional IDFC First Bank account and maintains the required monthly credit, the advisory states that the individual can become eligible for double PAI coverage—₹1 crore from the existing bank arrangement plus an additional ₹60 lakh from IDFC First Bank, subject to the respective banks’ eligibility conditions and policy terms.
In the example mentioned in the advisory:
Existing PAI Cover: ₹1 crore
Additional IDFC First Bank PAI Cover: ₹60 lakh
Potential Total: ₹1.60 crore
However, beneficiaries should carefully check the actual insurance policy, exclusions, eligibility conditions, validity and claim provisions before relying on the coverage.
₹60 Lakh PAI Cover for Serving and Retired Personnel
The Banking Advisory also states that, based on a monthly credit of ₹25,000 or above, the bank is offering a PAI cover of ₹60 lakh for both serving and retired personnel, as mentioned in the document.
Therefore, the applicable monthly-credit threshold and other eligibility conditions should be verified with IDFC First Bank before opening or operating the account specifically for the insurance benefit.
Important Points for Army Personnel
Before taking advantage of this facility, serving personnel and pensioners should keep the following points in mind:
- The Indian Army–IDFC First Bank MOU was signed on 6 February 2026.
- The MOU is stated to be valid for three years.
- An additional IDFC First Bank account can be opened without necessarily shifting the existing salary/pension account.
- The advisory mentions ₹15,000 minimum monthly credit for serving personnel.
- For retired personnel, the advisory mentions ₹25,000 minimum monthly credit.
- An additional ₹60 lakh PAI cover is offered subject to applicable conditions.
- Existing PAI coverage through another bank may continue separately, subject to that bank’s terms.
- The insurance benefit should not be treated as automatic merely because an account has been opened; the prescribed eligibility and monthly-credit conditions must be fulfilled.
- Personnel should obtain the complete insurance terms and conditions from the bank before making any decision.
Why This MOU Is Important for Army Personnel
Personal Accident Insurance is particularly relevant for military personnel because accident-related risks can have significant financial consequences for families.
The additional ₹60 lakh PAI coverage can provide another layer of financial protection, particularly for personnel who already have PAI coverage linked to their existing salary or pension account.
The facility may therefore be worth examining for eligible serving Army personnel, retired Army personnel and pensioners, especially where maintaining the required monthly credit is practical.
Indian Army IDFC First Bank MOU 2026 – FAQs
Is salary transfer to IDFC First Bank mandatory?
According to the advisory shared here, the IDFC First Bank account can be opened as an additional account, and the existing salary/pension account may continue with another bank, subject to the applicable conditions.
What is the minimum monthly credit for serving personnel?
The advisory mentions a minimum monthly credit of ₹15,000 per month for serving personnel.
What is the minimum monthly credit for retired personnel?
The advisory mentions ₹25,000 per month for retired personnel.
How much additional PAI cover is available?
The advisory states that ₹60 lakh additional PAI cover is available subject to the prescribed conditions.
Can an Army pensioner retain the existing pension account?
Yes. The advisory specifically describes the IDFC First Bank account as an additional account rather than requiring the existing salary/pension account to be shifted.
Can PAI coverage from two banks be available?
The advisory provides an example showing an existing ₹1 crore PAI cover and an additional ₹60 lakh cover from IDFC First Bank, subject to the respective eligibility conditions and insurance terms.
Conclusion
The Indian Army–IDFC First Bank MOU 2026 introduces an important additional banking and insurance facility for eligible serving and retired personnel. The facility allows an additional IDFC First Bank account to be maintained while the existing salary or pension account continues with another bank.
The major attraction is the possibility of obtaining additional PAI cover of ₹60 lakh by fulfilling the prescribed monthly-credit conditions. For serving personnel, the advisory mentions ₹15,000 monthly credit, while for retired personnel it mentions ₹25,000 monthly credit.
Army personnel and pensioners should, however, carefully verify the latest eligibility criteria, insurance exclusions, claim conditions and other terms directly with IDFC First Bank before relying on the additional PAI cover.
Source: Banking Advisory No. 01/2026, Integrated HQ of MoD (Army), Adjutant General’s Branch, as shown in the document provided.