SBI (DSP) ACCOUNT—FEATURES & BENEFITS EXPLAINED
The Defence Salary Package (DSP) Account is a crucial financial service provided by the State Bank of India (SBI) exclusively for the Indian Army and Air Force personnel. This account offers numerous benefits, including enhanced insurance coverage, free banking privileges, and special loan waivers. SBI remains the most preferred banking partner for defence personnel, ensuring financial security for them and their families.
SBI signed a renewed Memorandum of Understanding (MoU) with the Indian Army on 16th January 2025 and with the Indian Air Force on 17th January 2025. This agreement will remain valid for three years, until 15th January 2028.
KEY UPDATES FROM AG’s BRANCH
- Conversion of Salary Account to Pension Account: As per the 4th February 2025 letter from AG’s Branch, personnel must convert their DSP salary account into a DSP pension account upon retirement to continue availing benefits. Failure to do so may lead to claim rejections.
- Enhanced Insurance Coverage: Several benefits have been increased in the new contract, ensuring better financial protection for serving and retired personnel.
KEY BENEFITS OF SBI DEFENCE SALARY PACKAGE (DSP ACCOUNT)
The following table provides a detailed breakdown of all benefits available under the SBI DSP Account:
| BENEFITS | SERVING PERSONNELS | PENSIONERS | ELEGIBILITY CONDITIONS |
| Personal Accident Insurance (PAI) | ₹1 crore in case of accidental death | ₹50 lakh in case of accidental death | Death must be accidental |
| Permanent Total/Partial Disability Cover | Up to ₹1 crore (based on disability percentage) | Not Available | Only for serving personnel, must be due to an accident |
| Air Accident Insurance | ₹1.5 crore | Not Available | Applies to travel by commercial airline (ticket purchased using SBI account) and official duty aircraft |
| Higher Education Cover for Children | Son: ₹8 lakh, Daughter: ₹10 lakh (age 18-25) | ₹5 lakh for each child (age 18-25) | Available only in case of accidental death of the account holder |
| Girl Child Marriage Cover | ₹10 lakh (up to ₹5 lakh per daughter, max 2 daughters) | ₹5 lakh (1 daughter) | Available only in case of accidental death of the account holder, daughter must be aged 18-25 years |
| Term Life Insurance | ₹10 lakh (covers accidental & non-accidental deaths) | Not Available | Only for serving personnel |
| Additional Cover for Death in Anti-Terror/Enemy Action | ₹10 lakh | Not Available | Only applicable for deaths in action |
| Loan Insurance Cover for Death in Service | ₹10 lakh | Not Available | Loan must be active at the time of death |
| Family Travel for Emergency (Accidental Death Cases) | ₹50,000 | ₹50,000 | Immediate family members traveling to the accident site |
| Repatriation of Mortal Remains | ₹50,000 | ₹50,000 | Transport of remains to the home location |
| Ambulance Charges | ₹50,000 | ₹50,000 | Emergency ambulance services |
| Air Ambulance Charges | ₹10 lakh | ₹10 lakh | Emergency evacuation required |
| Death in Coma (48+ hours after accident) | ₹5 lakh | ₹5 lakh | Applies if the insured is in a coma for more than 48 hours before death |
| Plastic Surgery for Burn Cases | ₹10 lakh | ₹10 lakh | Only for severe burns requiring reconstructive surgery |
| Transportation of Imported Medicines | ₹25 lakh | ₹25 lakh | Required for life-threatening conditions |
| SBI Rishtey Family Savings Account | Free Zero Balance Account for up to 4 family members with ₹5 lakh insurance per account holder | Same as Serving Personnel | Family members must be linked to the primary DSP account holder |
| EXCLUSIVE BANKING BENEFITS FOR DSP ACCOUNT HOLDERS | |||
| Banking Feature | Benefit | ||
| Zero Balance Account | No minimum balance requirement | ||
| Free Passbook & Auto Sweep Facility | Available | ||
| Debit Card Benefits | International Platinum & Gold Debit Cards issued free of cost | ||
| ATM Transactions | Unlimited free SBI ATM transactions & 10 free transactions at other bank ATMs per month | ||
| Locker Rent Concession | 10% to 15% discount | ||
| RTGS/NEFT & Demand Drafts | Free for DSP account holders | ||
| Family Savings Account (SBI Rishtey) | Spouse, children, parents, and siblings can open zero-balance accounts with insurance coverage | ||
| SHAURYA FAMILY PENSION ACCOUNT FOR DEFENCE PENSIONERS ELIGIBILITY: Family pensioners of the Indian Army and Air Force can avail the following benefits: | |||
| Feature | Benefit | ||
| Zero Balance Account | No minimum balance requirement | ||
| Free Passbook & Auto Sweep Facility | Available | ||
| Gold Debit Card | No Annual Charges | ||
| ATM & Demand Draft Benefits | Unlimited ATM transactions & free demand drafts | ||
| Loan Processing Fee Waivers | Home, Car, and Pension Loans (valid till 30th June 2027) | ||
| Personal Accident Insurance for Pensioners | ₹50 lakh | ||
| LOAN PROCESSING FEE WAIVERS FOR DSP HOLDERS (VALID TILL 30TH JUNE 2027) | |||
| Loan Type | Processing Fee Waiver | ||
| Home Loan | 100% (except property search & valuation fee) | ||
| Car Loan | 100% | ||
| Personal Loan (Xpress Credit) | 100% | ||
| Pension Loan for Family Pensioners | 100% | ||
HOW TO RESOLVE ISSUES WITH SBI DSP ACCOUNT?
- SBI has appointed Defence Banking Advisors (DBAs) (retired senior Army and Air Force officers) to assist DSP Account holders.
- Contact details of Circle Defence Banking Advisors are available for different regions.
- AG’s Branch DSP Helpline is also available for resolving banking-related issues.
ELEGIBILITY CONDITIONS FOR DSP BENEFITS
To claim benefits under the DSP Account, the following conditions must be met:
- Active DSP Account: Salary/Pension must be credited to the DSP account every month.
- Accidental Clause: Insurance covers only accidental deaths or disabilities. Natural deaths and suicides are not covered.
- No Intoxication: Claims will be rejected if the accident occurred under the influence of alcohol or drugs.
- No Self-Inflicted Injuries: Self-harm incidents are not eligible for benefits.
- No Criminal Involvement: Death or injury due to criminal activities is not covered.
CONCLUSION
SBI’s Defence Salary Package is an essential financial tool designed to provide maximum benefits to Indian Army and Air Force personnel. With increased insurance coverage, free banking services, loan waivers, and exclusive privileges, it ensures financial security for serving and retired personnel as well as their families.
It is crucial for pensioners to convert their DSP Salary Account into a DSP Pension Account to continue availing benefits. SBI’s Defence Banking Advisors and AG’s Branch DSP Helpline are available to assist with any banking-related concerns.
With these revamped offerings, SBI continues to reaffirm its commitment as the “Banker to Every Indian”, serving those who serve the nation.
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