THE MUMBAI Police have informed personnel and staff that their salary accounts are being transferred from Axis Bank to HDFC Bank. With 50,000 salary accounts, Mumbai Police was a high-value customer of Axis Bank since 2003. The annual police salary bill runs up to Rs 3,000 crore.
In 2015, the Opposition took on the then chief minister Devendra Fadnavis for renewing a five-year contract with Axis Bank as his wife Amruta held a senior position in the bank. When contacted, Joint Commissioner of Police (admin) Rajkumar Vhatkar said, “The decision was made purely on merit.”
According to police sources, personnel were informed about the shift to HDFC and asked to cooperate with bank employees who would visit them individually to effect the transfer.
“We have been asked to submit our document to bank officials in order to open an account; however, we have not been told when they will start depositing our salaries into our new bank accounts,” a police official said.
Sources in the department said the contract of handling salary accounts of Mumbai Police as well as home department employees working for the police force was with Axis Bank in 2003. In 2015, the agreement was renewed and extended to July 31, 2020.
After the contract expired, Mumbai Police called for a proposal from banks and, accordingly, multiple banks submitted their applications at the police headquarters. A senior IPS officer said as HDFC Bank’s proposal seemed more profitable and facilities offered were better than the rest, Mumbai Police inked an agreement of three years with an option of extending it up to two more years.
Police sources said HDFC was offering the police department an insurance cover of Rs 10 lakh in case of death under natural circumstances or due to any other disease, and coverage of up to Rs 1 crore in case of accidental death, plus some other benefits.
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