Indian Army signs agreement for Agniveer salary package with 11 banks

The Ministry of Defence announced on Saturday that the Indian Army has secured agreements with 11 banks, including private sector banks like HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, to provide banking capabilities to aggies upon enlistment.

On October 14, 2022, senior bank officials and Lt Gen V Sreehari, DG (MP & PS), signed the memorandum of understandings (MoUs) under the watchful eye of Lt Gen C Bansi Ponappa, Adjutant General of the Indian Army, according to the ministry. The Indian Army has struck a deal with eleven banks, including the State Bank of India, Punjab National Bank, Bank of Baroda, IDBI Bank, ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, Kotak Mahindra Bank, IDFC First Bank, and Bandhan Bank.

The Agniveer compensation package offers similar characteristics and perks to the Defense Salary Package. The banks have also extended lenient loans to departing agricultural workers in order to encourage and improve the business skills of departing farmers. According to a statement from the Ministry of Defence, the first group of agnivers under the “Agnipath Scheme” will begin attending training facilities in January 2023.

The government has made significant changes to the Army, Air Force, and Navy’s human resource policies with this important defence policy reform. According to the Ministry of Defence, the policy, which is effective right away, will henceforth control how personnel below officer rank (PBOR) are hired by the three services.

The Agniveers will have their own rank in each of the three military branches and will have a unique uniform insignia. The AGNIPATH programme enables motivated and patriotic young people to serve in the military for four years. Soldiers recruited by this plan will be referred to as Agniveers.

According to the defence ministry, the AGNIPATH Scheme was created to enable a youthful profile of the armed forces, give them a new lease on “Josh” and “Jazba,” and bring about a revolutionary change towards a more tech-savvy armed force, which is in fact the need of the hour.

With the implementation of this strategy, it is anticipated that the average age profile of the Indian Armed Forces will decrease by roughly 4-5 years.

Agniveers will be paid Rs 33,000 in the second year, Rs 36,500 in the third year, and Rs 40,000 in the fourth. After four years, they will receive Rs. 11,70,000 as part of the Seva Nidhi Package.

Taxes on the “Seva Nidhi” will not apply. Benefits like pensions and gratuities are not admissible. For the term of their employment in the Indian Armed Forces, agniveers would receive non-contributory life insurance coverage worth Rs 48 lakh.

The Agniveers will learn diverse military skills and experience, discipline, physical fitness, leadership traits, courage, and patriotism throughout this time of service to the country.

Each Agniveer will receive a certificate that will serve as a component of his individual resume and recognise the skills he has acquired.