Defence Ministry Signed MoU with 4 Banks to Strengthen Reach of SPARSH Initiative

On June 05, 2024, the Ministry of Defence (MoD) took a significant step towards enhancing accessibility for defence pensioners by signing Memoranda of Understanding (MoUs) with 4 leading banks. This strategic collaboration expands the reach of the SPARSH (System for Pension Administration Raksha) initiative by onboarding the Bank of India, Canara Bank, Central Bank of India, and Utkarsh Small Finance Bank as SPARSH Service Centres.

Objective of MoU

The MoUs encompass a network of 1,128 branches spread across the four banks, specifically focusing on providing last-mile connectivity for pensioners residing in remote locations. These individuals may lack the technical resources to access the online SPARSH portal. By establishing SPARSH Service Centres within these bank branches, the MoD ensures that all pensioners have a convenient and accessible touchpoint for interacting with the system.

Empowering Pensioners through Service

The designated SPARSH Service Centres will function as a comprehensive interface for pensioners. Key functionalities include:

• Profile Management: Pensioners can readily update and maintain their personal information within the SPARSH system.
• Grievance Redressal: A dedicated channel for registering and resolving any pension-related issues or concerns.
• Digital Annual Identification: This crucial process ensures continued eligibility for pension benefits.
• Data Verification: Streamlined procedures for verifying and updating pensioner data.
• Pension Information Access: Pensioners can obtain detailed information regarding their monthly pension amounts and payment history.

Enhanced Convenience and Transparency

Importantly, pensioners will have free access to these SPARSH Service Centres. The MoD will cover any nominal service charges incurred by the banks, ensuring a cost-effective and convenient solution. With the addition of these new service centres, SPARSH services are now available at over 26,000 branches across 15 banks nationwide. This extensive network, coupled with the existing 199 dedicated MoD service centres and a vast network of over 3.75 lakh Common Service Centres, underscores the MoD’s commitment to providing pensioners with unparalleled access and support.

The SPARSH initiative represents a significant transformation in defence pension management. This web-based system prioritises efficiency, responsiveness, and transparency. By offering a centralised platform for managing pension administration and providing pensioners with multiple access points, SPARSH empowers them with greater control and simplifies the process of receiving their well-deserved benefits.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.