Composite Salary Account Package Introduced for Central Government Employees

The Department of Financial Services, under the Ministry of Finance, has launched a Composite Salary Account Package for Central Government employees, offering a unified set of banking, insurance, and digital benefits through public sector banks.

The new salary account package was unveiled by Shri M. Nagaraju, Secretary, Department of Financial Services, in the presence of senior officials from public sector banks. The details were shared through an official press release issued by the Press Information Bureau.

The initiative aims to improve financial inclusion and social security for Central Government employees in Group A, Group B, and Group C, by providing enhanced facilities linked directly to their salary accounts.

What Is the Composite Salary Account Package?

The Composite Salary Account Package is designed as a one-stop financial solution that combines modern banking services with insurance protection and digital conveniences. The package will be offered by public sector banks to serving Central Government employees drawing salary through bank accounts.

Banking Facilities Offered

Employees opting for the composite salary account will be provided zero-balance salary accounts with several additional benefits. These include free transactions through NEFT, RTGS, and UPI, free cheque book facilities, and waivers or concessions on locker rentals.

The package also offers preferential interest rates and reduced processing charges on various loans, including housing loans, education loans, vehicle loans, and personal loans. Family banking facilities are included to extend benefits to dependents of employees.

Insurance Coverage for Central Government Employees

A major highlight of the package is the comprehensive insurance coverage attached to the salary account. This includes:

• Personal accident insurance coverage of up to ₹1.50 crore
• Air accident insurance cover of up to ₹2 crore
• Permanent total or partial disability cover up to ₹1.50 crore
• In-built term life insurance cover of up to ₹20 lakh, with optional top-up plans
• Health insurance coverage for employees and their families, with provision for additional coverage

These insurance benefits are intended to provide financial security to employees and their families at affordable costs.

Digital Banking and Card Benefits

The Composite Salary Account Package also includes enhanced debit and credit card facilities. Employees may receive higher transaction limits, waiver of maintenance charges, reward points, cashback offers, and access to airport lounges, depending on the bank’s offerings.

The initiative encourages greater use of digital banking services while improving overall customer experience for government employees.

Government’s Vision and Implementation

According to the Department of Financial Services, the launch of the Composite Salary Account Package aligns with the Government’s long-term vision of Viksit Bharat 2047 and the objective of achieving Insurance for All by 2047.

Public sector banks have been instructed to actively promote the scheme, organise awareness programmes in government offices, and assist employees who wish to migrate their existing salary accounts to the new composite package, subject to consent.

Central Government employees are advised to contact their respective public sector banks for detailed terms and eligibility under the Composite Salary Account Package.

Source: PIB