On 13th Mar 2015 a Memorandum of Understanding (MoU) was signed between the Indian Army and HDFC Bank on the Defence Salary Package. The signing in ceremony was chaired by Lt Gen Rakesh Sharma, Adjutant General of Indian Army and attended by top dignitaries of HDFC Bank headed by Mr Rajender Sehgal, Group Head (Govt Business).
The first MoU between HDFC Bank and the Indian Army was signed in 2011 and was valid for a period of three years. The revised MoU is tailor made to suit the requirements of serving soldiers, pensioners and families. Number of additional facilities have been incorporated in the revised MoU after concerted efforts. Army is hoping that this MoU will benefit a large number of serving and retired Army personnel who are having their accounts with HDFC and provide them an opportunity to access modern banking facilities.
The basic features of the MoU are free drafts, free cheque books, free funds transfers to any bank in India through RTGS / NEFT and free ATM cards.
Some features which have been improved from before are enhancement of Personal Accident Insurance (PAI) cover and its applicability both on Account and Debit Card, Air Accident Insurance of Rs 25 Lakhs, Interest concession on auto loan and 50 % waiver on processing fees for auto and house loan. Two major additions have been applicability of the and overdraft facility to pensioners. The MoU also has a provision for yearly review of specific features and requests.