FinMin meets public sector financial institutions to support 'Agniveers' after 4-year tenure

Representative image of Indian Army soldiers patrol at the Line of Control (LoC) between India and Pakistan in Poonch, about 250 kilometres from Jammu. (Image: AP Photo/Channi Anand)

The finance ministry's Department of Financial Services on June 16 met with public sector banks, insurance companies, and other financial institutions to identify ways to support 'Agniveers' – or those hired under the recently-announced Agnipath scheme – after their four-year term ends.

"During the meeting, it was decided that PSBs (public sector banks), PSICs (public sector insurance companies), and FIs (financial institutions) would explore employment opportunities for 'Agniveers' in suitable capacities based on their educational qualifications and skills through suitable benefits/relaxations, etc," the government said in a statement.

"It was also decided that Banks would explore possibilities of supporting 'Agniveers' through suitable credit facilities for skill upgradation, education for setting up businesses, and to take up self-employment. The existing Government schemes such as MUDRA, Stand Up India, etc. would be leveraged for extending such support to 'Agniveers'."

Approved on June 14, the Agnipath scheme allows a four-year serving term to the youth in the armed forces. The scheme has been ostensibly introduced to make the armed forces more youthful and offer employment opportunities, although critics have said it is a way to lower the government's pension bill.

While recruits under Agnipath will get a monthly salary of Rs 30,000 rising to Rs 40,000 in the fourth year, they will not receive any gratuity or pension benefits. After the four-year term ends, only 25 percent may be retained for regular service, depending on organisational requirements and policies.

Varun Gandhi, Member of Parliament for Bharatiya Janata Party, has also warned that the scheme could give rise to further disaffection among the youth.

At the meeting on June 16, the Department of Military Affairs made a presentation on the salient aspects of the Agnipath scheme.