In a significant development, the Indian Army and the State Bank of India (SBI) have renewed their Memorandum of Understanding (MoU) on 16 January 2025, ensuring financial security and benefits for serving personnel, including Gentleman Cadets and pensioners. The renewed MoU will remain valid for three years, extending its benefits until 15 January 2028.

This MoU continues to provide comprehensive financial security to SBI Defence Salary Package (DSP) account holders, reinforcing SBI’s commitment to the welfare of military personnel.

Key Features of the Renewed MoU

Personal Accident Insurance (Death Cover):

• Serving Personnel: ₹1 Crore
• Pensioners: ₹50 Lakh

Personal Accident Insurance (Disability Cover):

• Serving Personnel: Coverage up to ₹1 Crore (based on percentage of disability)
• Pensioners: Not Applicable

Air Accident Insurance (AAI) Cover:

• Coverage of ₹1.50 Crore for commercial air travel.
• Condition: Tickets must be purchased using an SBI Debit Card, Credit Card, or Internet Banking.

Implications of the Agreement

The renewal of this MoU reflects the Indian Army and SBI’s continued efforts to provide financial security to military personnel and retirees. The substantial insurance coverage for death and disability ensures that personnel and their families receive robust financial protection. Additionally, the inclusion of air accident insurance provides a significant safeguard for those traveling by air.

With the new terms set to remain in effect until 2028, serving personnel and pensioners can rely on SBI’s support, reinforcing their financial well-being and risk coverage. This renewed collaboration marks another step towards strengthening military welfare initiatives and enhancing benefits for India’s armed forces.