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According to the finance ministry, the salary account package has been finalised after consultations with public sector banks to ensure uniformity, wide coverage and convenience.
On the banking front, the package offers a zero-balance salary account with upgraded features, free remittances through RTGS, NEFT and UPI, along with cheque facilities.
The Department of Financial Services (DFS), under the finance ministry, has rolled out a new composite salary account package for central government employees, aimed at offering an integrated set of banking, insurance and card-related benefits through a single account.
Announcing the initiative, the finance ministry said, “The Department of Financial Services (DFS), Ministry of Finance, has taken a significant step towards enhancing the financial well-being and social security of Central Government employees by advising Public Sector Banks to introduce a composite ‘Salary Account Package for Central Government Employees’.”
The package has been designed as a one-stop financial solution covering employees across all cadres — Group A, B and C.
DFS, which functions under the Ministry of Finance, is responsible for overseeing the country’s banking, insurance and pension ecosystem, including public sector banks, insurers and key regulators such as the RBI, IRDAI and PFRDA.
According to the ministry, the salary account package has been finalised after consultations with public sector banks to ensure uniformity, wide coverage and convenience. It brings together three core components — banking facilities, enhanced insurance cover and digital and card-based benefits.
Zero-Balance Salary Account
On the banking front, the package offers a zero-balance salary account with upgraded features, free remittances through RTGS, NEFT and UPI, along with cheque facilities. Employees will also be eligible for concessional interest rates on housing, education, vehicle and personal loans, reduced loan processing charges, waivers on locker rentals and access to family banking benefits.
Free Insurance Up To Rs 2 Crore
The insurance component significantly enhances financial protection. The package provides personal accident insurance cover of up to Rs 1.50 crore and air accident insurance cover of up to Rs 2 crore. It also includes permanent total and partial disability cover of up to Rs 1.50 crore. In addition, there is in-built term life insurance protection of up to Rs 20 lakh, with an option to increase coverage through a top-up at affordable premiums. A comprehensive health insurance cover for self and family is also included, again with a base plan and optional top-up facility.
Card-Related Features
Digital and card-related features form the third pillar of the package. These include improved benefits on debit and credit cards, airport lounge access, reward programmes, cashback offers, unlimited transactions and nil maintenance charges.
Highlighting the broader objective of the initiative, the ministry said, “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.”
DFS has advised public sector banks to actively promote the new product through their official websites, conduct awareness camps in government departments and proactively engage with central government employees. Banks have also been asked to facilitate the migration of existing salary accounts to the new composite package, subject to employee consent.
The Salary Account Package was formally launched by DFS Secretary M Nagaraju. The launch event was attended by the Chairman of State Bank of India, managing directors and chief executive officers of all nationalised banks, the CEO of National Payments Corporation of India via video conference, and senior officials of the Department of Financial Services.
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January 16, 2026, 12:40 IST
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