As the Indian Army started its recruitment drive under the new Agnipath scheme, it signed agreements with 11 banks including the private sector banks like HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank for providing the Agniveers with banking facilities on enrolment. The first batch of the Agniveers will report for training at Training Centres by January 2023, the defense ministry said.

The Union Ministry of Defense informed that a memorandum of understanding (MoU) was signed between Lt Gen V Sreehari, DG (MP & PS) and senior officials of the banks in a ceremony presided over by Lt Gen C Bansi Ponappa, Adjutant General of the Indian Army on Friday.

“The features and benefits offered under Agniveer Salary Package are similar to the Defence Salary Package. In addition, the banks have offered soft loans to exiting Agniveers to promote and enhance their entrepreneurial skills," the ministry said in a statement.

The Agnipath scheme is a major reform in the defense policy of the country under which persons below the officer rank (PBOR) will be hired for a service duration of four years. The Ministry of Defense believes that the new policy will usher in a new era in the human resource policy of the Army, Air Force and Navy.

The recruits under the new recruitment policy will have a distinct rank in the three services and will also wear a distinct insignia as part of their uniform.

“AGNIPATH scheme allows patriotic and motivated youth to serve in the Armed Forces for four years. Soldiers who are recruited under this scheme will be known as Agniveers. The AGNIPATH Scheme has been designed to enable a youthful profile of the Armed Forces and provide a fresh lease of 'Josh' and 'Jazba' whilst at the same time bringing about a transformational shift towards a more tech-savvy Armed Forces - which is indeed the need of the hour," the ministry said in a statement.

After the implementation of the scheme, it is expected that the average age profile of the Indian Army will come down by 4-5 years.

Agniveers will be paid ₹33,000 in the second year, ₹36,500 in the third year, and ₹40,000 in the fourth. After four years, they will receive ₹11.71 lakh as part of the Seva Nidhi Package, which will be exempted from Income Tax.

They will also be provided with non-contributory Life Insurance Cover of Rs. 48 lakh for the period of their service in the Armed Forces. The Agniveers will not receive any kind of entitlement to gratuity and pensionary benefits.

Agniveers will get military skills and experience, as well as discipline, physical fitness, leadership qualities, courage, and patriotism during their tenure in the Armed Forces and their skills will also be recognized in a certificate which they can add to their resume.

Some state governments have even offered reservations in government recruitment for Agniveers, after their tenure.