Recently a pensioner died in an accident, his family could not get the benefit of DSP Pension Account because his account in the bank was DSP serving instead of DSP Pension. So friends, in this article we will know what is DSP Pension Account. How will you or your family get its benefit, what are its benefits and how can you apply for it, so read this article completely.
One mistake of the pensioner proves costly
In the initial stage, when the pension of ESM starts, there is no information about converting Serving DSP Account to DSP Pension Account, resulting in delay / rejection in acceptance of PAI claim, nomination claims etc., because DSP code is different for serving and retired personnel.
For changing DSP code from serving to pension, one can approach the concerned branch with personal application from the date of their discharge / pension.
What is DSP Pension Account
DSP Pension Account or “Defense Salary Package” Account is a special salary and pension account scheme for defense personnel of Indian Army, Indian Navy, Indian Air Force, Assam Rifles, Rashtriya Rifles (RR) and CAPFs, Border Roads Organization (BRO).
Types of DSP Pension Accounts
There are three types of DSP Pension Accounts:
1) DSP Pension Gold: This account is for retired officers.
2) DSP Pension Silver: This account is for Junior Commissioned Officers (JCOs).
3) DSP Pension Bronze: This account is for Other Ranks (OR).
Eligibility for DSP Pension Account
1) Personnel currently serving in Indian Army, Indian Navy, Indian Air Force, Assam Rifles, Rashtriya Rifles (RR) and GREF (Border Roads Organisation (BRO)).
2) Retired defence personnel who already hold a DSP salary account or wish to convert it to a DSP pension account.
How to open DSP Pension Account
To open a DSP pension account, retired servicemen require the following documents:
1) Retirement certificate
2) Identity proof
3) Address proof
4) Photograph
State Bank of India (SBI) offers special DSP pension account for retired defence personnel under the Defence Salary Package (DSP). There are many benefits of this account.
Benefits of DSP Pension Account
Attractive interest rates:-
DSP pension accounts offer higher interest rates than regular savings accounts.
Toll Tax Exemption:-
Defence personnel and retired personnel can avail exemption in toll tax on their personal vehicles.
Other Benefits:-
DSP Pension Accounts also come with several other benefits, such as free debit card, free mobile banking and internet banking facilities, discounts at railway stations and airports, etc.
Low Account Maintenance Charges:-
DSP pension accounts usually have low account maintenance charges.
Free Debit Card:-
You get a free debit card that you can use to make purchases, withdraw cash and pay bills.
Online Banking:-
You can use SBI’s online banking facility to manage and transact your account.
Other Discounts and Benefits:-
Get discounts and other benefits from various merchants and service providers.
Insurance Coverage:-
1) From January 1, 2022, personal accident (death) insurance of ₹30 lakh is available for DSP, CAPF and ICGSP pensioners. It provides financial security to your family.
2) Family pensioners also get this insurance coverage. Gold, Diamond and Platinum accounts come with accidental death insurance coverage of ₹10 lakh, ₹20 lakh and ₹30 lakh respectively.
Important Points
1) DSP Pension Account is available only to defence personnel and retired defence personnel.
2) The type of account is determined based on your designation.
3) DSP Pension Account benefits may change from time to time.
This information is for general awareness only and should not be construed as professional financial advice. Please read this article and contact the bank branch for latest information.