Support Agniveers after tenure completion: FinMin to PSBs, insurance firms

The centre has asked public sector banks (PSBs), public sector insurance companies and financial institutions to support Agniveers through employment and credit facilities on completion of their tenure of duty.

With the Union Cabinet approving the Agnipath scheme for armed forces recruitment on Tuesday, the Department of Financial Services (DFS) Secretary Sanjay Malhotra held a meeting with heads of PSBs, insurance companies and financial institutions for identifying ways to support Agniveers on completion of their tenure of duty.

The Agnipath scheme aims to recruit Indian youth for armed forces, and terms the prospective candidates as Agniveers. The employment in the forces would be for a period of four years, and the monthly salary of an Agniveer in the first year of employment would be Rs 30,000, of which Rs 9,000 would go to a corpus with an equal contribution of the government. The monthly salary in the second, third and fourth year will be Rs 33,000, Rs 36,500 and Rs 40,000. Each Agniveer will get an amount of Rs 11.71 lakh as 'Seva Nidhi Package' and it will be exempted from income tax.

In order to support Agniveers, banks would explore possibilities of providing credit facilities for skill upgradation, education, setting up businesses through various central government schemes such as MUDRA, Stand Up India, among others. All PSBs, insurance companies and financial institutions have also been asked to explore employment opportunities in suitable capacities based on their educational qualifications and skills, said a statement by the Ministry of Finance.

Post the announcement of the scheme protests have erupted across several states with the Opposition slamming the centre for hastily drawing up the plan. Former Union Minister P. Chidambaram on Thursday said, "The Agnipath scheme is controversial, carries multiple risks, subverts the long-standing traditions and ethos of the armed forces and there is no guarantee that the soldiers recruited under the scheme will be better trained and motivated to defend the country."