Convert Your Defence Salary Package Account to DSP Pension Account Today Just From Your Home

Benefits applicable to DSP Pension Account Holder

• Zero balance account and free unlimited number of transactions across all SBI ATMs in India.
• Personal Accidental Insurance (Death) cover of Rs. 50 Lakhs to all ranks (For Details and Date of coverage Table Enclosed)
• 100% waiver of processing fee on Pension Loans.
• Up to 25% off on annual locker rent.
• Auto-Sweep facility (optional) to create e-MODs (Multi Option Deposits) and earn higher interest.
• Demat & Online Trading A/c facility available.
• Free issuance of Drafts, Multi City Cheques, SMS Alerts. NEFT/RTGS.

Benefits under Pension Account are subject to classification of Savings Bank Account to respective Pension Account and Variant in banks system. All Customers Drawing Pension through SBI Accounts are required to apply along with proof of Pension and PPO to their home branch for conversion of savings account to respective Pension Account/Variant (Conversion Forms). Account holders are required to verify classification of their accounts under respective package/variant from the name of package / variant printed on first page of their bank passbook / statement.

In case, monthly pension is not credited into the account for more than 3 consecutive months, the account will be converted to normal savings account and all the features offered under Pension Package will stand withdrawn. All the Charges shall be levied as applicable to normal Savings Bank Account.

The Salary Package is being offered to the employees by the Bank as a comprehensive solution for the purpose of providing various banking services and associated features are not intended for mobilization of deposits from them.

To get benefit PAI coverage of Rs 50 Lakh, you must convert your DSP account to DSP Pension Account immediately.

Conversion of Defence Salary Account to Defence Pension Account

A communication has been issued to all Army Commands and Corps regarding the mandatory conversion of Defence Salary Package (DSP) accounts into Defence Pension Accounts upon retirement.

Background of the issue related to DSP Pension account

The letter refers to an earlier directive and highlights an issue reported by several banks:
Many Army personnel do not convert their Defence Salary Accounts to Defence Pension Accounts when they retire.

Problem Identified by the Defence Authority

Because this conversion is not done at the time of retirement:

• The bank is unable to map the account to the correct pension account code.
• As a result, the pensioner becomes ineligible for several benefits provided under the MoU between the Ministry of Defence and the banks.
• These lost benefits include:
  • Personal Accident Insurance coverage
  • Death or disability benefits
  • Other MoU-linked facilities

This lack of conversion has serious financial implications for pensioners in case of an unfortunate incident.

Important Clarification by MoD

The letter emphasizes that:

• Banks do not automatically know when a soldier retires.
• Therefore, pension account mapping is not automatic.
• It is the responsibility of the pensioner to inform the bank (the one receiving pension credit) about their retirement.
• The pensioner must formally request the bank to convert the existing salary account into a Defence Pension Account.

Instructions to Formations by IHQ MoD/Command HQs

All units and formations have been advised to:

• Sensitize all personnel who are proceeding on retirement about the need to convert their accounts.
• Ensure that individuals:
  • Convert their salary account to a pension account, and
• Obtain written confirmation from the bank after conversion.

• Suggestion for Exservicemen

              All Exservicemen drawing pension from SBI/ other nationalised banks are requested to approach their concerned home branch for conversion of DSP account to DSP Pension Account.  In case of any difficulty, you may approach to your Defence banking advisor of your region as list given here – click now

• Sample application form for conversion of your DSP Salary account to DSP Pension Account –

  Application for DSP Acct to DSP Pension AccountDownload

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