| Integrated Headquarters Ministry of Defence (Navy) |
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MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN
THE INDIAN NAVY AND SYNDICATE BANK
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.
and
Syndicate Bank, 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 Manipal Karnataka and having its Zonal Office at 6,
Bhagwan Das Road, New Delhi – 110 001, hereinafter called ‘Syndicate Bank/Bank’
which expression shall unless the context otherwise requires include its
successors in business of the one Part.
Syndicate Bank 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 Syndicate Bank as one of the Banks
among others.
And Syndicate 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 Syndicate Bank.
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 Syndicate 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 Syndicate Bank, 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 is to be collected by the Syndicate Bank
from the 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 Syndicate 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 Syndicate 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, mobile or Internet.
(c) Tele Banking/Internet Banking facilities at CBS branches.
(d) Free Supplementary Debit-cum-ATM Card.
(e) At par Cheque books for customers at CBS branches with facility of drawing
cash at any other CBS branch, under the existing norms.
(f) Joint Account facility.
(g) Instant credit up to Rs.15,000/- of outstation cheques.
(h) Facility for Standing Instructions.
(j) Free Multi City at Par, Cheque book.
(k) All other facilities being provided to Bank’s normal customer operating
salary accounts.
(l) Free Demand Draft on any of Bank’s location for maintenance expenditure for
family, payment to educational Institutions, Air Force Naval Housing Board,
Canteen Stores Department, Mess etc.
(m) Allotment of Safe deposit lockers wherever available.
(n) Grant of Personal loans, Vehicle Loans, Housing Loans, Education Loans etc.
at very competitive rate of interest.
(p) Temporary overdraft facility upto one month's net salary at personal loan
rates.
(q) Free financial advisory services,
(r) Premium Saving Bank accounts with Sweep-in-Sweep-out facility at CBS
branches.
(s) Sale and purchase of Foreign Currency, FOREX draft and Travelers Cheques at
notified branches.
(t) Public Provident Fund (PPF) Accounts at notified branches.
(u) Acceptance of Income Tax and Sale Tax at Notified branches.
(v) Acceptance of deposits under "Deposit Scheme for Retired Government
Employees" at Nodal branches.
4. Syndicate Bank Visa Global Debit-cum-ATM Card
Syndicate Bank agrees to issue a free Syndicate Bank Visa Global Debit-cum-ATM
Cards to all salary account holders maintaining their accounts at CBS Branches
and also at Branches having ATM facility.
(a) The Syndicate Bank 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
Syndicate Bank.
(b) Free Syndicate Bank Add-on Debit Cards will be issued for joint account
holders on submission of the required application.
(c) The Global Debit-cum-ATM Card can be utilized for drawing Cash at 5000 ATMs
located in the country and at nearly 8.50 lakhs ATMs across the world. The Card
can also be utilized at 56000 Member Establishments in India and at over 1 Crore
Member Establishments World-wide.
(d) Cash withdrawal facility at nominal rates can be availed from Member Banks
at "Cash Tree" Network in India besides VISA ATMs across the World (The
participant bank of "Cash Tree" network at present are Syndicate Bank, Bank of
India, Indian Bank and United Bank of India with a total network of around 500
ATMs.
5. Syndicate Bank Visa Global Credit Card
(a) Syndicate Bank agrees to issue Syndicate Bank Visa Global Credit Card free
of cost to all salary account holders on submission of requisite application.
Add-on Cards will also be issued at the specific request of the applicant.
(b) Syndicate Bank Global Credit Card will have the following features:-
(i) Limited Lost Card Liability. In the event of loss/theft of the card the
liability will be limited upto a maximum of Rs. 1000.00 from the time of
notification of such an event to the bank.
(ii) Personal Accident Insurance. In the unfortunate event of loss of life in a
mishap, Accident Insurance Cover against loss of life, including Add-on Card
holder, will be available for an amount of Rs. 2 lakh for Classic Cards and Rs.
5 Lakhs for Gold Cards.
(iii) Cash Advance. Cash advance upto 10% of credit limits within the overall
credit limit of the card will be available to the card holders. Cash withdrawal
facility round the clock will be available at 5,000 ATMs in India and 8.50 Lakhs
ATMs across the Globe besides ATMs of Syndicate Bank and at all "Cash Tree" ATMs
in India.
(iv) Global Acceptance of Payment. The Card can be used for making payment at
more than 56000 Member Establishments in India and at 1 Crore plus Member
Establishments across the Globe, where VISA Cards are accepted.
(v) Photo Card. Syndicate Bank Global Credit Card will be issued with the
photograph and signatures of the card holder digitally imprinted over the same,
which provides additional security and recognition for the card holder.
(vi) Flexi Payment. The card holder will have flexible option to pay a minimum
of 10% of the outstanding amount every month on due date and avail Revolving
Credit Facility that will help the Card holder to optimize his/her resources.
6. Continuation of facilities after retirement
The Syndicate Bank will continue to extend facilities mentioned under articles 3
and 4 above to the account holders of Indian Navy even after their retirement.
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 Syndicate 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 Syndicate 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, Syndicate Bank will freeze all
transactions to the salary account to prevent fraudulent withdrawals from it.
9. 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.
10. Resolution Mechanism
A standing one-point team comprising a Special Relationship Manager from
Syndicate Bank 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.
11. Termination
In any case of discontinuing the MOU, the Syndicate 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 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
or
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.
or
If the defaulting Party shall cease 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.
12. Provision of ATMs
Bank 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
to Syndicate Bank for setting up of its ATMs at the residential areas of Naval
Personnel under this agreement. If Indian Navy is unable to provide so,
Syndicate Bank shall try to find the suitable place to set up its ATMs. In such
an event, if Syndicate Bank is also unable to get such space, Syndicate Bank
shall not be liable to set up ATMs as contained above.
13. Publicity
Syndicate Bank may publish/market about its services extended to Naval Staff
under this agreement and/ or promote 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 discharged 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 numbers as one
Party may inform the other in writing.
Signed on behalf of Signed on behalf of Syndicate Integrated Headquarters, MoD
(Navy) Bank
New Delhi
___________________________ _____________________________
Vice Admiral DK Dewan, AVSM General Manager
Chief of Personnel Regional Office, New Delhi - 1