Strengthening Defense Pension Administration: The SPARSH Initiative (GS Paper 3, Economy)
Strategic Collaboration for Improved Services
- In a strategic move to enhance the efficiency and accessibility of its SPARSH (System for Pension Administration, RAKSHA) program, the Defense Accounts Department (DAD) of the Ministry of Defense has partnered with four leading banks.
- The Bank of India, Canara Bank, Central Bank of India, and Utkarsh Small Finance Bank have signed Memorandums of Understanding (MoUs) to establish SPARSH service centers in 1,128 branches nationwide.
- This collaborative effort aims to streamline pension administration and ensure direct payments to beneficiaries without intermediaries.
Understanding SPARSH: Simplifying Pension Claims
- SPARSH is a web-based platform designed to simplify the process of pension claims for defense personnel.
- Through a direct deposit system, SPARSH ensures timely and secure disbursement of pensions.
- The recent expansion via new MoUs seeks to provide comprehensive coverage, allowing access to services even in remote locations.
Services Offered by SPARSH Centers
- The newly established SPARSH service centers at bank offices offer a range of vital services for pensioners.
- These services include updating profiles, filing complaints, issuing digital IDs annually, and providing detailed pension information monthly.
- These centers bridge the gap for pensioners who may face challenges in accessing the web-based system directly.
Benefits and Accessibility
- SPARSH services at these centers are provided free of charge, with the DAD covering any nominal service fees.
- This initiative is part of a larger plan, including over 199 DAD-only service centers nationwide and more than 26,000 branch sites of 15 different banks.
- Additionally, there are over 3.75 lakh shared service centers across the country, significantly expanding the network of assistance available to defense pensioners.
Strategic Impact of SPARSH
- The SPARSH initiative represents a significant advancement in defense pension management.
- By prioritizing efficiency, responsiveness, and transparency, SPARSH empowers pensioners with greater control over their benefits.
- This centralized platform simplifies the process of pension administration and ensures timely disbursement of benefits, supporting former service members and optimizing the use of national resources.
