Central government employees can now access banking, insurance and card benefits under a single, unified framework, the Finance Ministry has said in a release.
The Department of Financial Services under the Ministry of Finance has launched a Composite Salary Account Package in association with public sector banks, offering zero-balance accounts, concessional loans, high-value insurance cover and enhanced digital card benefits.
The move is aimed at improving financial security, convenience and overall well-being of employees across all cadres, the ministry said.
The Salary Account Package was formally launched yesterday, by M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance. The launch event was attended by Chairman State Bank of India, MD & CEOs of all Nationalized Banks, CEO, National Payments Corporation of India through VC and all senior officers of DFS.
One salary account combining banking, insurance and card benefits
This initiative is aligned with the Government’s vision of Viksit Bharat 2047 and the national commitment towards Insurance for All by 2047. It seeks to provide central government employees with a comprehensive suite of banking and insurance benefits under a single, seamless account structure.
The packages have been carefully designed in consultations with banks to ensure maximum coverage, uniformity and convenience for employees across all cadres [Group A, B and C].
The product has three core segments – banking, insurance and cards – making it a one-stop financial solution for employees.
Banking facilities under the composite salary account
-Zero-balance salary account with enhanced facilitates
-Free remittances i.e. RTGS/ NEFT/ UPI along with cheque facilities
-Concessional interest rate on loan for housing, education, vehicle and personal requirements
-Concession in loan processing charges
-Waivers on locker rental
-Family banking benefits
Enhanced insurance coverage for government employees
-Personal Accident Insurance up to Rs 1.50 crore
-Air Accident Insurance up to Rs 2 crores
-Permanent Total & Partial Disability Cover up to Rs 1.50 crore
-Term Life Insurance – In-built term life insurance protection of up to Rs 20 lakh, with additional top-up facility to enhance the insurance coverage at an affordable premium
-Health Insurance – Comprehensive health insurance cover for self and family with a base plan and additional top-up facility to enhance the insurance coverage at an affordable premium
Digital and card benefits bundled with salary account
-Enhanced benefits on debit and credit cards
-Airport lounge access, reward programmes and cashback offer
-Unlimited transactions & Nil maintenance charges
How the scheme benefits central government employees
This initiative ensures that Central Government employees, who form the backbone of public administration, gain access to modern banking services and comprehensive financial protection through a single window solution. By integrating insurance, medical cover and enhanced banking facilities into one composite Salary Account Package, the scheme provides employees with ease of access, financial security and peace of mind.
This reform reflects the Government’s continued commitment to employee’s welfare and financial security, while also strengthening the employee–bank relationship.
Awareness drive and migration of existing salary accounts
DFS has advised Public Sector Banks to widely publicize these products through their official websites, organize special awareness camps in Government Departments, proactively reach out to Central Government employees with detailed product information and facilitate the migration of existing salary accounts to this new package with employees’ consent.
All Central Government employees are encouraged to avail the benefits of this comprehensive scheme through their salary accounts with the Public Sector Banks.
Complete details of the Composite Salary Account Package are available on the DFS website.