In a major step toward strengthening financial security and welfare of public servants, the Department of Financial Services (DFS), Ministry of Finance, has launched a Composite Salary Account Package for Central Government Employees in collaboration with Public Sector Banks. The unified framework offers a one-stop solution combining enhanced banking facilities, comprehensive insurance coverage, and digital benefits under a single salary account.
Launched by DFS Secretary in Presence of Top Banking Leadership
The package was formally launched by Shri M. Nagaraju, Secretary, Department of Financial Services, at a high-level event attended by the Chairman of SBI, MDs & CEOs of all nationalised banks, CEO of NPCI (via VC), and senior DFS officials.
The initiative aligns with the national vision of Viksit Bharat 2047 and the government’s commitment to “Insurance for All by 2047”. It has been designed in consultation with banks to ensure uniformity, wide coverage, and ease of access for employees across Group A, B, and C cadres.
One-Stop Financial Solution: Banking, Insurance and Cards
The Composite Salary Account Package integrates three essential segments into a single offering:
-
Banking Facilities
-
Insurance Coverage
-
Digital & Card Benefits
This structure ensures that employees receive not just salary services, but a comprehensive financial ecosystem that supports savings, protection, borrowing, and lifestyle convenience.
Key Banking Benefits for Employees
Under the new framework, Central Government employees will receive several enhanced banking privileges, including:
-
Zero-balance salary account with premium facilities
-
Free digital and physical transactions (RTGS, NEFT, UPI, cheque usage)
-
Concessional interest rates on loans for:
-
Housing
-
Education
-
Vehicle
-
Personal needs
-
-
Concessions on loan processing charges
-
Waiver on locker rentals
-
Family banking benefits extending advantages to dependents
These features aim to improve access to affordable credit and modern banking services.
Strong Insurance Cover for Financial Protection
A standout feature of the package is its enhanced insurance coverage, providing robust financial protection:
-
Personal Accident Insurance: Up to ₹1.50 crore
-
Air Accident Insurance: Up to ₹2 crore
-
Permanent Disability Cover (total/partial): Up to ₹1.50 crore
-
Term Life Insurance:
-
In-built cover up to ₹20 lakh
-
Option for additional top-up at affordable premium
-
-
Health Insurance:
-
Comprehensive cover for self and family
-
Base plan with optional top-up for higher protection
-
This integrated model ensures that employees are covered against health risks, accidents, and life uncertainties through a single linked account structure.
Digital and Card Benefits Enhance Convenience
The package also includes several modern lifestyle and digital advantages:
-
Enhanced benefits on debit and credit cards
-
Airport lounge access
-
Reward programmes and cashback offers
-
Unlimited transactions
-
Nil maintenance charges
These features bring Central Government salary accounts at par with premium private banking products.
Strengthening Employee Welfare and Bank–Employee Relationship
The DFS noted that this reform is aimed at ensuring that Central Government employees — the backbone of public administration — receive modern financial services and strong social security.
By integrating banking, insurance, and healthcare protection into one framework, the package offers:
-
Ease of access
-
Greater financial stability
-
Long-term security
-
Peace of mind
This initiative also strengthens the long-term relationship between employees and Public Sector Banks.
Banks Directed to Promote and Facilitate Adoption
DFS has advised Public Sector Banks to actively promote the scheme through:
-
Publicising on official bank websites
-
Organising awareness camps in government departments
-
Proactive outreach to employees with detailed product information
-
Facilitating smooth migration of existing salary accounts to the new package with employee consent
All Central Government employees have been encouraged to avail the benefits of this comprehensive scheme through their existing PSU bank salary accounts.
Conclusion
The launch of the Composite Salary Account Package marks a significant reform in employee welfare architecture. By combining banking convenience, strong insurance protection, and digital lifestyle benefits into one integrated framework, the government has created a future-ready financial ecosystem for its workforce. This initiative not only enhances individual financial security but also reflects the broader commitment to inclusive growth and social protection under the vision of Viksit Bharat 2047.
For more real-time updates, visit Channel 6 Network.
Source: PIB
