Salary And Pension Solutions for Indian Military Personnel - A Complete Guide

15 Jul 2022

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From safeguarding our nation from external threat to maintaining peace and security within the country, India’s Armed Forces protect all of us as citizens. For all the bravery and courage that they display on a daily basis, they truly deserve the best in return. To help military personnel maintain their finances, Bank of Baroda offers salary and pension solutions for Indian military personnel.

Salary accounts & pension for military personnel

Like all organisations , the defense services needs to pay its employees. Many banks have signed MoUs with India’s Armed Forces. Military personnel can now also access all sorts of banking services usually Salary and pension accounts are zero balance accounts.

Military personnel also get an armed forces pension after serving the required number of years in services (between 15 to 20 years depending on rank). An army family pension is also paid to the widow for death in service.

Benefits of salary and pension solutions for Indian military personnel

Let us dive deep into the various banking benefits that the Indian Army, Navy, Air Force and Coast Guard personnel can enjoy through Bank of Baroda:

Bank cards

Through these services, military personnel enjoy free debit card and credit card facilities. You pay zero annual card charges and can make unlimited free withdrawals at any of our bank’s ATMs. However, the ATM cash withdrawal limit stands at Rs 50,000 per day, while the maximum Point-of Sale (POS) purchase limit is Rs 2 lakh per day, owing to Reserve Bank of India (RBI) regulations. And the benefits don’t end there. You can also enjoy discounted charges for gift and travel cards. Senior officials can enjoy exclusive features on select debit cards. Depending on your salary and eligibility criteria, you can also avail lifetime free credit card.

Free coverage

Military personnel also receive free personal accident death cover up to Rs 50 lakh, air accident insurance up to Rs 100 lakh, and disability cover between Rs 20 to Rs 40 lakh. There are additional insurance benefits which are offered such as girl child marriage cover and plastic surgery cover too Furthermore, select debit and credit cards offer additional insurance coverage of their own.

Let’s take a closer look at the coverage offered:

  • Personal accidental death: In case of death caused to military personnel due to accidents, nominees of the policy holder get paid a lump sum amount of Rs 50 lakh for on-duty officials and Rs 40 lakh for off-duty military personnel.
  • Permanent total disability: If an official gets injured and is physically incapable of being on-duty in the armed forces, he or she is deemed permanently disabled. In this case, the coverage goes up to Rs 40 lakh.
  • Permanent partial disability: Insurers refer partial total disability in instance where the applicant can perform a limited set of duties. Partial disability examples include loss of one finger or toe finger, loss of vision in one eye or hearing impairment in one ear, etc. For partial disability, you can get a cover of up to Rs 20 lakh.
  • Air accident cover: Air Accident Insurance is an insurance policy that aims to cover aircraft operations and its risk to passengers. You can get an air accident cover of Rs 1 crore, provided the air tickets are booked using the bank’s debit card.

Personal accident insurance (PAI) covers officials in the age groups of 18 to 60 years. 10% of the base PAI can be used to cover the higher education or a girl child’s marriage. Other inclusions cover transportation of remains and plastic surgery costs for burned victims.

Retired Military Personnel, too, can avail of insurance benefits. Personal accident insurance covers pensioners upto the time when they reach 70 years of age. The sum insured for permanent total disability and permanent partial disability are Rs 40 lakh and Rs 20 lakh, respectively.

Payment & transfers

Military personnel can make free transfers via National Electronic Fund Transfer (NEFT) or Real-Time Gross Settlement (RTGS), be it online or at the bank branch. Also, they get free demand drafts and cheque books. Bharat Interface for Money (BHIM)-integrated online facilities enable you to make instant payments.

Online banking

Mobile banking and internet banking platforms are completely free to use. Even financial products such as fixed deposits can be opened online. Military personnel can also transfer money and pay bills instantly using mobile or internet banking.


With this special account, the military personnel are eligible for overdraft facility of a maximum of Rs 3 lakh. Banks provide complete waiver of processing fees on home loans, personal loans, car loans, education loans and mortgage loans. Existing home loan customers can get a 0.25% concession on car loan rate of interest.

Locker facilities

Our Bank offers almost 50% discount on bank locker facilities. That way, military personnel can store their valuables such as jewellery, confidential documents, certificates, and so on in complete safety when away from home. The concession is applicable on the annual locker rent and the rent charges will be auto-debited from the linked salary account.


Armed Forces official can conveniently trade in equity with complete waiver on annual maintenance charges for their Demat account. They can also buy and sell multiple mutual fund units.

Life insurance

Life Insurance policies ensure that your family is financially secured in your absence. The sum paid out can be used by your loved ones to keep their home running and to meet daily expenses. A life insurance policy is especially important in single-income households.

Regardless of whether you are on-duty or off-duty, all military personnel in the age group of 18 to 70 are eligible to apply for life insurance at nominal premiums. By submitting a health declaration form, you can get life insurance cover starting from Rs 1 lakh to Rs 5 lakh from the Life Insurance Corporation (LIC) of India. This insurance is offered to applicable to one applicant and not other family members. The life insurance period is for a year, and renewable during subsequent years, so long as the salary account is active.

Eligibility & documentation

The Indian army bank account benefits from Bank of Baroda are offered to personnel from:

  • Indian Army
  • Indian Navy
  • Indian Air Force
  • Coast Guard

To open the account, the military personnel must submit their PAN details. They also need to submit proof of identity and residence (Aadhaar card, passport, driving license, or voter’s ID). A job card from NREGA that has been signed by an officer of the State Government is also acceptable. In case these documents do not have the person’s current address, they may also submit a utility bill (telephone, electricity, etc.) that is not more than 2 months old.

For more help in understanding the benefits of the salary and pension solutions for Indian military personnel, do reach out to us at Bank of Baroda today. You can get in touch via our toll free numbers to us at 1800 5700 or visit us at a branch close to you.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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