SBI launches product for army personnel

Concessional loans, free ATM cards, credit cards
Our Bureau: hindubusinessline
New Delhi, May 31 State Bank of India has launched a new product – ‘Defence Salary Package – Army’ – that offers a bundle of free/concessional banking services to the officers and jawans of the Indian Army.

This product offering, which has already undergone a pilot run in three cantonments, includes concessional loans, free drafts, free cheque books, free fund transfer to the State Bank Group’s network of 15,000 branches besides free ATM cards, the SBI Chairman, Mr O.P. Bhatt, said here on Friday.

“Defence salary package is a gift wrapped with love from SBI employees to the Army,” Mr Bhatt said at the launch function for this new product. The Chief of Army Staff, Gen Deepak Kapoor, was present on the occasion. Mr Bhatt also said that the bank was looking at a new loan product to help jawans purchase two-wheelers by availing themselves of loans at concessional interest rates. SBI would also provide home, auto and personal loans to Army personnel at 25 basis points lower than floor rate. Also on the anvil is a SBI credit card tailor made for the armed forces.

This Defence Salary Package initiative would benefit many jawans and senior personnel of the Indian army who are posted in far-flung areas of the country and could not hitherto get good banking facilities. Once this product is rolled out to the entire army network, SBI will get about 12 lakh customers within its fold.

The Army is also at present undergoing a pilot project with the Controller General of Defence Accounts (CGDA) to convert its current cash system into a monthly salary payment system through bank accounts. The project includes a complete computerisation of salary records which are being maintained manually. Currently, the salary of personnel below officers rank (PBOR) of the army is paid on the “acquittance roll system” by which only their monthly requirement is paid to them in cash and the rest accumulates with the Government, usually until retirement.

SBI launches product for army personnel

Become a Millionaire in the Armed Forces

You can become a young millionaire with a few simple steps. Many people find this hard to believe because they do not know how many Defence Forces millionaires are enjoying the bounty of the services; however, do not buy into that belief. With some simple steps you can put yourself on the road to enjoying the perks of young millionaire status. The Sixth Pay commission has made it a reality for every one's dream to come true.

All one has to do is invest the MSP in the Provident Fund which yields about 10% or more Compounded Interest. Let us examine the savings for a Jawan and an Officer in the armed Forces.

Jawan
MSP is Rs 1000 pm, invest it in Provident Fund earning 10% Interest for 20 years. Investment after 20 years will total over Rs 6 lakhs.

Officer
MSP is Rs 6000 pm, invest it in Provident Fund earning 10% interest or more for 30 years. Investment for 30 years will yield Rs 105 lakhs.

There are ever so many methods or models of managing Salaries which leads one to save, invest consistently and wisely. Utilise soft loans for a house or a buying a car. Save all your tax free field area allowances which can add to your investment.

Start today and take the steps to become a millionaire. If one is a millionaire there is really no need for one to look for a job or work for anyone else after retirement. You are master of your own destiny! You as an Ex- Servicemen can enjoy the fruits of your hard labour at your own pace and pleasure.