Integrated Headquarters
Ministry of Defence (Navy)

Indian Navy



This Memorandum of Understanding (MOU) is made on this 25th day of Feb 2008 between President of India acting through the Integrated Headquarters of Ministry of Defence (Navy) through Vice Admiral DK Dewan, AVSM, Chief of Personnel, Integrated Headquarters of 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.andBank of India, a Banking Company incorporated under the Companies Act 1956 and carrying on the business of banking under the Banking Regulation Act 1949, having its Head Office at Express Towers, Nariman Point, Mumbai – 400 021, hereinafter called ‘Bank of India/Bank’ which expression shall unless the context otherwise requires include its successors in business of the one Part.

Bank of India and Indian Navy are collectively referred to as “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 and has decided to accept the proposals submitted by Bank of India as one of the Banks among others.

And Bank of India 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 Bank of India.

Now therefore this MOU 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 25th day of Feb 2008 which period 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 Bank of India 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 Bank of India, by last working day of the month or on dates communicated in writing by the 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 arrangement to collect from Naval Pay Office, Mumbai, a consolidated cheque in advance together with salary details of personnel on magnetic media on format mutually decided by both the parties. The consolidated salary cheque as well as the Bank account/salary details are to be delivered by 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 Bank of India will not charge any commission or service charges either from the individual or Indian Navy for this service.

3. Facilities to Account holders

The Bank of India 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, mobile or Internet through Bank's network branches. Bank's own on-line ATM facility wherever existing will be made available. However, charges as applicable for using other Bank's ATM in the shared ATM network will be levied. Phone Banking available at existing Centre will be made available.
(c) Free self/Supplementary Debit-cum-ATM Card.
(d) Free Multi City at par Cheque books for customers at CBS branches with facility of drawing cash at any other CBS branch, under the existing norms.
(e) Joint Account facility.
(f) Instant credit up to Rs.15,000/- of outstation cheques.
(g) Facility for Standing Instructions.
(j) All other facilities being provided to Bank’s normal customer operating salary accounts.
(k) Facility for Standing Instructions as per the extant guidelines in this regards.
(l) Free Demand Draft on any of Bank's location.
(m) Preferential allotment of Safe deposit lockers wherever available.
(n) Preferential loans @ 0.25% concession in rate of interest may be considered at the sole discretion of the Bank.
(p) Temporary overdraft facility upto two month's net salary at personal loan rates i.e. @ loan under BOI Star Suvidha Scheme, will be considered on case to case basis.
(q) Free financial advisory services,
(r) Premium Saving Bank accounts with Sweep-in-Sweep-out facility at CBS branches.

4. Bank of India International Debit-cum-ATM Card

Bank of India agrees to issue a free Bank of India International Debit-cum-ATM Cards to all salary account holders. The card will have a "Zero Lost Card Liability" in that the liability on misutilization of lost card on POS terminals, from the time of reporting of loss is covered under an insurance policy obtained by the Bank. Protection under the policy is available to BOI Debit Card holders subject to compliance with the terms and conditions of the policy, which includes filing of complaint with the police.

5. Continuation of facilities after retirement

The Bank of India will continue to extend facilities mentioned under articles 3 and 4 above to the account holders of Indian Navy 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 Bank of India will comply with the request and refund the amount by a Bank Draft to the Indian Navy (Naval Pay Office, Mumbai) for crediting the Government account. The Bank of India 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, Bank of India 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 Bank of India and a member from the 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, the Bank of India will not withdraw the facilities of salary disbursal till alternate arrangements are made by Integrated Headquarters.

This MOU may be terminated with immediate effect by either party giving 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 MOU and has failed to remedy such breach (if capable of remedy) within thirty (30) days after notice from the other party to do so

If the Defaulting party repeatedly commits the same breach of any of the term of this MOU then the MOU may be terminated without any further notice.


If the defaulting Party shall cease to carry on its business or substantially the whole of its business:

If there is a material adverse change in any applicable law affecting Banks generally.

11. Provision of ATMs

Bank of India will make all efforts to provide ATMs within 1 km 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 Bank of India for setting up of its ATMs at the residential areas of Naval Personnel under this agreement. If Indian Navy is unable to provide so, Bank of India shall try to find the suitable place to set up its ATMs. In such an event, if Bank of India is also unable to get such space, Bank of India shall not be liable to set up ATMs as contained above.

12. Publicity

Bank of India may publish/market about its services extended to Naval Staff under this agreement and/ or promote its business objectives from time to time.

13. Amendment

Any provisions of this Agreement 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 Agreement by either Party may be waived or discharged without the other Party’s written agreement 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 Signed on behalf of Bank of Integrated Headquarters, MoD (Navy) India
New Delhi

___________________________ _____________________________

Vice Admiral DK Dewan, AVSM Shri JS Kanawar
Chief of Personnel Asstt General Manager
Bank of India, New Delhi Zone