This fund was raised initially by deducting Rs. 30/- per month from approximately 36000 requisite members of the Regular force in 1981, and the minimum contribution was increased up to Rs.100/- in 1996. Subsequently it has increased up to minimum of Rs.500 and made compulsory for every army personnel and the present membership of the fund exceeds 195000.

Eligibility to become a member;

a. Any serving member of the Regular/Volunteer force of the Army.

b. Person who apply to get the membership He/She should have personal/Regimental number.

c. Any person who is commissioned or enlisted in the regular forces of the Army on or after 1st January 1978.

According to the present constitution any member could contribute any sum over and above the minimum at his discretion but such contribution shall be multiples of ten and in addition shall amount of monthly contribution shall be constant throughout the calendar year. The monthly contribution may be varied only at the commencement i.e. in January of a particular year.

The maximum period of contribution in relation to any member shall mean the period commencing on the date on which he becomes a contributor and ending on the date on which he retires from service or any day thereafter a member opts to withdraw his assets from the Fund.

All contribution shall be deducted by the Director Pay & Records on a written request made by each individual member, through DABF.