Sunday, June 7, 2020


1. I am Maj Gen PK Ramachandran (Retd) currently serving in State Bank of India as Circle Defence Banking Advisor looking after the salary packages of Defence (including Indian Coast Guard) and Para Military Forces.  I am working in the capacity of a contractual GM.
2. During interaction with various veterans and also referring to our data base, I have observed the following issues:-

(a)  Many of our veterans are having pension a/c with SBI as normal SB A/C and not as Defence Salary Package Pension (DSP Pension) A/c. By this they are depriving themselves all the privileges associated with DSP A/c. They can give their consent to the Branch Manager and convert their existing SB a/c in to DSP Pension A/c. All the benefits stated in DSP a/c are available to ESM less the following:-

(i)   Personal Accident Insurance Cover.

(ii)  Two months salary overdrawal facility limited to Rs 40,000/- to Silver Card.

b)  Depending on the rank they have retired they are eligible for the type of a/c they are entitled.

3. They are also entitled to Pension Loan as under:-

Particulars                                       Loan amount                Repayment
Age of Pensioner                       Pensioner     F/Pensioner 

Up to 72 Years                          Rs.14 lakhs  Rs.5 lakhs         60 months 
Above 72 and up to 74 Years      Rs.12 lakhs  Rs.4.5 lakhs      48 months 
Above 74 and up to 76 Years      Rs.7.5 lakhs Rs.2.5 lakhs      24months   

4. However, the loan amount cannot be more than 18 Months of Pension. All categories are entitled for a Second Loan within the eligible criteria.The interest rate is 3.5% above base rate (13.35% at current base rate).

5. Please also advise all veterans to link their Aadhaar with E-KYC (Know Your Customer) at the branch which would enable them to render life certificate from anywhere in the future as and when implemented.  Branches are being given separate instructions for completing the Aadhaar based e-KYC.

6. You can contact me on Mob No.07032903055 and also on e-mail and second contact person at Local Head Office, Hyderabad is  for any queries. 

7. May I request you to keep all the veterans informed so that the benefits reaches them.


Maj Gen PK Ramachandran(Retd)CDBA Army, LHO (Hyd)

(Source : Via e-mail)