| Integrated Headquarters Ministry of Defence (Navy) |
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MEMORANDUM OF UNDERSTANDING BETWEEN
THE INDIAN NAVY AND HDFC BANK
This Memorandum of Understanding (MOU) is made on this 01st
day of Apr 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 – 110 015, hereinafter called the “Indian
Navy” which expression shall unless the context otherwise requires include its
Successors / Legal Heirs / Administrator / Executors and permitted assigns.AND
HDFC BANK LTD, a Banking Company incorporated under the Companies Act 1956 and
carrying on the business on banking under the Banking Regulation Act 1949,
having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower
Parel, Mumbai, India - 400 013, hereinafter called the “Bank”, which expression
shall unless the context otherwise requires include its successors in business
of the other part and assigns of the other part,
HDFC 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 HDFC Bank as one of the Banks among others.
And HDFC Bank possessing technologically advanced infrastructure facilities
having offered to provide banking services as detailed herein below to the Naval
Personnel operating their salary accounts with the Bank.
Now therefore this MOU is witnesseth as under:
Both parties have agreed as follows: -
1. Period of MOU
The MOU shall commence as of the effective date and shall be operative initially
for a period of 3 years w.e.f. 01st day of Apr 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 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 by last working day of the month or on dates as 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 arrangements 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 is to be collected by the HDFC 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 HDFC 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 HDFC Bank undertakes to provide following facilities/services to personnel
of 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 International Debit-cum-ATM card
(d) Free Multi City at Par Cheque Book.
(e) Free Supplementary Debit-cum-ATM card.
(f) Joint Account / Nomination facility.
(g) Free collection of outstation cheques drawn on HDFC Bank locations.
(h) Facility for Standing Instructions
(j) All other facilities being provided to Bank’s normal customer operating
salaries account.
(k) Free Demand Draft upto Rs. 50,000/- drawn on any HDFC Bank locations.
(l) Preferential allotment of safe deposit lockers.
(m) Preferential interest rate on Personal loans and Auto Loans
(n) Financial Advisory services
(p) Sweep in from Fixed Deposits into the Salary Savings Account.
4. HDFC Bank International Debit-cum-ATM Card
HDFC Bank agrees to issue an International Debit-cum-ATM Card to all Naval
Personnel maintaining their salary accounts with the Bank. The International
Debit-cum-ATM Card will be issued to the Naval Personnel absolutely free of cost
and at no charge along with a Saving Account with HDFC Bank.
(a) One free Add-on Debit Card will be issued for joint
account holders on submission of the required application.
(b) Limited Lost Card Liability. HDFC bank covers Naval Personnel against any
fraudulent point of sale txn arising out of a lost/stolen card for upto 30
days prior to reporting the loss to the Bank. This is subject to a maximum cap
of Rs.1 Lakh. The cover is applicable for transactions done on merchant
outlets and does not cover cash withdrawals.
(c) Personal Accident Cover upto Rs.200000.00: Personal Accident insurance
cover is extended to only Primary account holders in the event of loss of life
due to Road, Rail or Air accident only. For Naval Personnel, the coverage will
be effective only under civilian conditions (off duty). Claim to be reported
within one month of the event.
5. HDFC Bank Credit Card
HDFC Bank agrees to issue HDFC Bank credit card free of cost to Naval Personnel
on submission of requisite application. Add-on Card will also be issued at the
specific request of the applicant.
6. Continuation of Facilities after Retirement
The HDFC Bank will continue to extend facilities mentioned under articles 3 to 4
above to Naval Personnel even after their retirement. Naval Pay Office will
provide to HDFC Bank list of such personnel who have retired from the services
on periodic intervals, which will be at least once in 3 months.
7. Reconciliation
Bank undertakes to provide to Naval Pay Office reconciliation Statement of
salary disbursed by 10th of the following month.
8. 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 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 will not be liable or held
accountable for any consequential or related actions arising from the act of
debiting the specified amount and refund of amount to the Indian Navy.
Pending refund of the amount recalled, HDFC Bank will freeze all transactions to
the salary account to prevent fraudulent withdrawals from it.
9. Confidentially
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.
10. Resolution Mechanism
A standing one-point team comprising a Special Relationship Manager from the
Bank and a member from the Indian Navy (Naval Pay Office, Mumbai) will be
constituted to resolve all operational issues.
In the odd occasions of a difference of opinion between the parties, the same
one-point team can address and resolve the issues at hand.
11. Termination
In any case of discontinuing the MOU, the Bank 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
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 term of
this agreement then the contract may be terminated without any further notice.
or
If the defaulting Party shall cease to carry on its business or substantially
the whole of this business:
or
If there is a material adverse change in any applicable law affecting Banks
generally.
12. Provision of ATMs
Bank will make all efforts to provide ATMs with 1 kilometer of workspaces and
residential areas of Naval Personnel. This will be on a best effort basis & will
depend upon the business merits of each case.
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 withdrawal, 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 HDFC Bank for setting up of its ATMs at the residential
areas of Naval Personnel under this agreements. If Navy is unable to provide so,
the Bank shall try to find a suitable place to set-up its ATMs. In such an
event, if HDFC Bank is also unable to get such space, HDFC Bank shall not be
liable to set-up ATMs as contained above. The Bank shall use its best efforts to
procure such spaces, should Navy fail to provide the space.
13. Publicity
HDFC Bank may publish / market about its services extended to Naval Staff under
this agreement and/ or promotes its business objectives from time to time.
14. 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 discharges without the other
Party’s written agreement thereto.
15. 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 number as one
Party may inform the other in writing.
Signed on behalf of Indian Navy Signed on behalf of HDFC Bank Ltd
Integrated Headquarters, MoD (Navy)
New Delhi
______________________________ _________________________________
Vice Admiral DK Dewan, AVSM Seshan Ramakrishnan
Chief of Personnel Branch Banking Head - North