On 09th June 2015 a Memorandum of Understanding (MoU) was signed between the Indian Army and Punjab National Bank (PNB) on the Defence Salary Package. The signing ceremony was chaired by the Adjutant General, Lt Gen Rakesh Sharma and was attended by top dignitaries of PNB headed by Shri N K Arora, General Manager and Shri Subodh Kaushik, General Manager, Govt Business Division.The first MoU between PNB and the Indian Army was signed in 2011 and was valid for a period of three years. The 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 due consultation between Bank & Army authorities. Speaking on the occasion Lt Gen Sharma expressed confidence that the MoU will benefit a large number of serving and retired Army personnel who are having their accounts with PNB; and also provide them an opportunity to access modern banking facilities.
The basic features of the earlier MoU have been retained which includes the standard package of services including free drafts, cheque books, funds transfers to any bank in India through RTGS / NEFT, ATM cards etc. Some features which have been improved from the previous MoU are that the Personal Accidental Insurance(PAI) cover has been extended to Rs 2 lacs and Rs 5 lacs from Rs 50,000/- and Rs 2 lacs respectively. Two major additions are the applicability of PAI and overdraft facility to pensioners and PAI cover for deaths occurring in the course of any active Army Operations. The MoU also has a provision for yearly review of specific features and requests.Speaking on the occasion Shri Arora, GM, Punjab National Bank informed that these services would be available through more than 6500 branches across the country. The Bank has established large number of branches in cantonment areas, to serve the Defence Personnel at their door steps. Shri Kaushik, GM, Govt Business Division, further informed that Bank is at an advanced stage in setting up of Centralised Pension Processing Centre at CDA (P) Allahabad and Pension Processing Cell at Navy & Air Force pension offices in Mumbai & New Delhi.