With which bank Indian army signed an mou on the defence salary package?

Appeared in: NCL (MP) Nursing Officer - 2019

Explanation

The Indian Army signed a Memorandum of Understanding (MoU) with the State Bank of India (SBI) for the Defence Salary Package (DSP).
SBI is the primary and largest provider of salary accounts to Indian Army personnel, both serving and retired.
The DSP is a specific product name for SBI's offering, which includes benefits like zero-balance accounts, free insurance, and loan concessions.
The MoU between the Indian Army and SBI is periodically renewed to enhance the features and benefits for the soldiers.

Option A: While the Union Bank of India (UBI) may offer salary accounts to defence personnel, the specific 'Defence Salary Package' mentioned in the question is not their flagship product.
Option C: Allahabad Bank has been merged with Indian Bank since April 1, 2020. Therefore, it no longer exists as a separate entity to sign new MoUs.
Option D: UCO Bank also has provisions for salary accounts for government and defence employees, but the 'Defence Salary Package' is a term specifically associated with SBI.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain General Knowledge: Banking and Defence Agreements as background academic context rather than a clinical decision trigger.
Understanding these partnerships is important for general awareness of the support systems available to the armed forces.
These MoUs provide significant financial security and benefits to soldiers and their families, including insurance, loans, and other banking facilities.
Knowledge of these schemes can be beneficial for individuals associated with the defence sector to make informed financial decisions.

How to Approach the Question

First, identify the key terms in the question: 'Indian Army', 'MoU', and 'Defence Salary Package'.
The term 'Defence Salary Package' is a specific product name, not a generic term. This is the most critical clue.
Recall or look for information linking this specific package name to a particular bank.
Evaluate the options provided. SBI is widely known for its extensive network and specific packages for government and defence employees.
Eliminate other banks that either have different package names or are less prominently associated with this specific MoU.
Confirm the answer by recognizing that while other banks have defence-related accounts, 'Defence Salary Package' is SBI's brand.

Concept Tested & Keywords

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