| Integrated Headquarters Ministry of Defence (Navy) |
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MEMORANDUM OF UNDERSTANDING BETWEEN
THE INDIAN NAVY AND AXIS BANK
This Memorandum of Understanding (MOU) is made on 07th day of Feb 2008 between
President of India acting through Integrated Headquarters of Ministry of Defence
(Navy) through Vice Admiral, DK Dewan, AVSM, Chief of Personnel, Integrated
Headquarters, Ministry of Defence (Navy) having its offices at Sena Bhavan, New
Delhi- 110 105 hereinafter called the “Indian Navy” which expression shall
unless the context otherwise requires include its successors/legal
heirs/administrator/Executors and permitted assigns. and Axis Bank Ltd., a
Banking Company incorporated under the Companies Act 1956 and carrying on the
business of banking under the Banking Regulation Act 1949, having its registered
office at ‘Trishul’, Opposite Samartheswar Temple, Law Garden Ellis Bridge,
Ahmedabad – 380 006 (Gujrat) and having its Central Office at Maker Tower ‘F’,
13th Floor, Cuffe Parade, Colaba, Mumbai (hereinafter called “Axis Bank” which
expression shall unless the context otherwise requires to include its successors
in business of the one Part;
Axis Bank and Indian Navy are collectively referred to as the “the parties”.
And Whereas
The Indian Navy in its efforts to simplify and streamline the salary
disbursement procedure and to make available modern banking facilities to its
personnel has called for and evaluated proposals from various banks have decided
to accept the proposals submitted by Axis Bank as one of the Banks among others.
And Axis Bank possessing technologically advanced infrastructural facilities
having offered to provide banking services as detailed herein below to the Naval
Personnel operating their salary accounts with the Axis Bank.
Now therefore this agreement witnesseth as under:
Both parties have agreed as follows: -
1. Period of MOU
This MOU shall commence as of the Effective date and shall be operative
initially for a period of 3 years w.e.f. 07th day of Feb 2008 which may be
extended for a further period of 3 to 5 years or longer, as mutually agreed by
both the parties.
2. Credit of Salary
The Axis Bank undertakes to credit salary into account of all Naval Personnel
who may be holding their accounts in the various branches, at various stations
of the Axis Bank, by last working day of the month or on dates communicated in
writing by the Indian Navy through Naval Pay Office, Mumbai.
Indian Navy undertakes to issue a consolidated cheque payable at Mumbai towards
total salary of Naval personnel having their accounts in the bank and the bank
will make arrangements to collect from Naval Pay Office, Mumbai, a consolidated
cheque in advance together with salary details of personnel on magnetic media
and format mutually decided by both the parties. The consolidated salary cheques
as well as the bank account/ salary details is to be collected by the Axis Bank
from the Indian Navy (Naval Pay Office, Mumbai) two or three working days before
the date of actual disbursement of salary. The bank will arrange timely
clearance of the cheque from the Reserve Bank of India and ensure that the
salary is credited to respective accounts and is available for withdrawal at the
start of the normal banking hours on the scheduled date of disbursement of
salary.
The Axis Bank will not charge any commission or service charges either from the
individual or Indian Navy for this service.
3. Facilities to Account holders
The Axis Bank undertakes to provide following facilities/services to personnel
of the Indian Navy drawing their salary through any of its branches.
(a) Facility of Zero minimum balance in the account at no extra cost/
charges.
(b) Anywhere Banking via ATM, phone or Internet.
(c) Free Debit-cum-ATM Card.
(d) Free Multi City at Par, Cheque book.
(e) Free Supplementary Debit-cum-ATM Card.
(f) Joint Account facility.
(g) Instant credit up to Rs. 30,000/- of outstation cheques.
(h) Facility for Standing Instructions.
(j) All other facilities being provided to Bank’s normal customer operating
salaries account.
(k) Free Demand Draft on any of Bank’s location.
(l) Preferential allotment of safe deposit lockers wherever available.
(m) Preferential loans and interest rates on loans.
(n) Overdraft facility up to 50% of salary credited at personal loan rates.
(p) Free Financial Advisory Service.
(q) Sweep in/Sweep out fixed deposit accounts.
(r) Axis Bank has been authorised to disburse pension to the defence personnel
and agrees to open zero balance pension accounts with all the features of
power salute.
4. International Debit cum ATM Card
Axis Bank agrees to issue a free Axis Bank International Debit cum ATM card to
all salary account holders as under:-
(a) The Axis Bank Debit card will be issued to the Naval personnel
absolutely free of cost and at no charge along with a Savings Account with
Axis Bank.
(b) The Debit Card from Axis Bank will be personalised for the Naval
Personnel. It will carry a photograph and signature of the individual.
(c) The Axis Bank International Debit –cum- ATM Card will have the following
features: -
(i) Zero Lost Card Liability. The Naval Personnel will be
protected against loss due to fraudulent use of a lost/ stolen/ missing
Debit Card. Naval Personnel will have to communicate the loss of their Axis
Bank International Debit-cum-ATM Card at Customer Service Number
91-22-67987700 and the liability will be Nil from then on.
(ii) Purchase Protection up to Rs 50,000/-. All consumer duration goods
purchased using the Debit Card are insured against Fire, Natural Calamity,
Burglary and House Breaking upto 90 days from the date of purchase. There is
a combined limit of Rs. 50,000/- per card for zero lost card liability and
purchase protection.
(iii) Personal Accident Cover up to Rs 2,00,000/-. In the unfortunate event
of loss of life in a mishap, insurance cover for the accident leading to the
loss of life is available to Debit Card holders up to Rs. 2,00,000/- subject
to submission of proper claim (excluding war risk).
5. Continuation of facilities after retirement
The Axis Bank will continue to extend facilities mentioned under articles 3 and
4 above to the account holders of Naval personnel even after their retirement.
6. Reconciliation
Bank undertakes to provide to Naval Pay Office Reconciliation Statement of
salary disbursed by 10th of the following month.
7. Recall of Salary Disbursed
In exceptional circumstances, the Indian Navy may recall the salary erroneously
disbursed to deserters or delinquent personnel. Upon written request of the
Indian Navy (Naval Pay Office, Mumbai), communicating specific details of
personnel, bank account, period and amount, and further subject to availability
of funds in the specified account, the Axis Bank will comply with the request
and refund the amount by a Bank Draft to the Indian Navy (Naval Pay Office,
Mumbai) for crediting into the Government account. The Axis Bank will not be
liable or held accountable for any consequential or related action arising from
the act of debiting the specified amount and refund of amount to the Indian
Navy.
Pending refund of the amount recalled, the bank will freeze all transactions to
the salary account to prevent fraudulent withdrawals from it.
8. Confidentiality
Each party shall treat as confidential all information obtained as a result of
entering into or performing this MOU but shall be bound to disclose if needed by
operation of law or by judicial authorities.
9. Resolution Mechanism
A standing one-point team comprising a Special Relationship Manager from Axis
Bank and a member from the Indian Navy (Naval Pay Office, Mumbai) will be
constituted to resolve all operational issues.
In the odd occasion of a difference of opinion between the parties, the same
one-point team can address and resolve the issue at hand.
10. Termination
In any case of discontinuing the MOU, Axis Bank will not withdraw the facilities
of salary disbursal till alternate arrangements are made by Integrated
Headquarters of Ministry of Defence (Navy).
This MOU may be terminated by either party giving advance notice of termination
to the other Party (the “Defaulting Party”) provided:-
If the Defaulting Party has committed a material breach of any term of this
agreement and has failed to remedy such breach (if capable of remedy) within
thirty (30) days after notice from the other party to do so
or
If the Defaulting party repeatedly commits the same breach of any of the terms
of this MOU then the MOU may be terminated without any further notice.
If the defaulting Party ceases to carry on its business or substantially the
whole of its business:
or
If there is a material adverse change in any applicable law affecting Banks
generally.
11. Provision of ATMs
Bank will make all efforts to provide ATMs within 01 K.M of workspaces and
residential areas of Naval Personnel.
ATMs so provided by the Bank will not be merely cash dispensing machines but
will have all the features of a mini branch as can be technically provided
through an ATM Viz. cash with-drawl, cash and cheque deposit, balance enquiry,
mini statement etc.
Indian Navy on its part will make efforts to provide space for setting up ATMs
that will be governed by the Bank and local Naval Administrative Authority.
Indian Navy agrees that it shall on best efforts basis provide appropriate place
wherever feasible to Axis Bank for setting up of its ATMs at the residential
areas of Naval Personnel under this MOU. If Indian Navy is unable to provide so,
Axis Bank shall try to find the suitable place to set up its ATMs. In such on
event, if Axis Bank is also unable to get such space, Axis Bank shall not be
liable to set up ATMs as contained above.
12. Publicity
Axis Bank may publish/market about its services extended to Naval personnel
under this MOU and/ or promote its business objectives from time to time.
13. Amendment
Any provisions of this MOU may be amended, waived, discharged or terminated (in
each case) only by an instrument in writing signed by or on behalf of the Party
against whom enforcement of the amendment, waiver, discharge or termination is
sought. No breach of or default under any of the provisions of this MOU by
either Party may be waived or discharged without the other Party’s written
consent thereto.
14. Notices
Each notice, demand or other communication to be given or made hereunder shall,
except as otherwise provided herein, be given or made in writing and may be sent
by one Party to the other Party by Registered Post, telex, facsimile or hand to
the address or numbers mentioned above or such other address and numbers as one
Party may inform the other in writing.
Signed on behalf of Indian Navy Signed on behalf of Axis
Integrated Headquarters, MoD (N) Bank Ltd
New Delhi
___________________________ ___________________
Vice Admiral DK Dewan, AVSM Authorised signatory
Chief of Personnel