Big Gift for Government Employees: Banking and Insurance Facilities Now Available in a Single Salary Account. Learn About the Plan

The Department of Financial Services (DFS) of the Government of India has launched a revolutionary 'Composite Salary Account Package' for central government employees. This scheme, launched in collaboration with public sector banks, aims to provide employees with premium banking, insurance, and card facilities in a single account. It includes features such as accidental insurance coverage up to Rs. 1.50 crore and loans at low-interest rates, which will enhance the financial security and living standards of the employees.

The central government has given a major gift to its employees. The government has taken an important decision keeping in mind their welfare and social security. The Department of Financial Services has instructed all public sector banks to offer a special 'Composite Salary Account Package' for central government employees.

This scheme was launched on January 14, 2026, by Secretary M. Nagaraju. This step is part of a larger vision to achieve insurance for all and a developed India by 2047.

What is the Composite Salary Account Package?

Government employees often had to handle banking and insurance-related tasks separately. The new package the government is considering will change all that. Now, there will be no need to go to different places, and central government employees will get a 'one-stop solution'. The government has designed this package keeping in mind the needs of employees of all categories – Group A, B, and C. Now, along with the salary account, excellent banking, insurance, and card facilities will be available.

1- First, let's talk about banking facilities

• Zero balance salary account with numerous facilities. 1- Free Money Transfer Facility - RTGS, NEFT, UPI and Cheque Book absolutely free
• Low interest rates on Home Loans, Education Loans, Auto Loans and Personal Loans
• Waiver on loan processing fees
• Discount or waiver on locker rentals
• Family Banking Benefits (benefits for family members as well)

2- Enhanced Insurance Coverage

• Personal Accident Insurance - up to ₹1.50 crore
• Air Accident Insurance - up to ₹2 crore
• Permanent Total and Partial Disability Cover - up to ₹1.50 crore
• Term Life Insurance - In-built life cover of up to ₹20 lakh, which can be increased by topping up at a low premium.
• Health Insurance - Health cover for self and family, with base plan and top-up options.

3- Digital and Card Facilities

• Special benefits on Debit and Credit Cards
• Airport lounge access, reward points and cashback offers
• Unlimited transactions and no maintenance charges
• You can transfer your existing account

The government has ordered all public sector banks to rapidly promote this new scheme. Awareness camps have also been instructed to be set up in government departments so that everyone is aware of it. Employees who already have salary accounts in government banks can also convert their existing accounts to the new 'Composite Salary Account Package'.

What will be the benefit of this scheme?

This reform is not just a banking product, but a step towards strengthening the relationship between the government and its employees. Employees are the backbone of the administration, and if they get financial peace of mind, their productivity will increase, which will ultimately benefit the government. This package will provide a one-stop solution for all financial problems, saving employees' time and securing their future.

Conclusion

This new Composite Salary Account Package from the central government is going to be a game-changer for government employees. This combination of banking and comprehensive insurance coverage will not only provide financial security but also modernize the banking experience through digital facilities. All central government employees are advised to contact their respective banks and take advantage of this excellent scheme.

Frequently Asked Questions (FAQs)

1. Is there a minimum balance requirement for this account?

No, this is a completely zero-balance account; there is no minimum balance requirement.

2. What is the maximum accidental insurance coverage offered under this package?

Under this package, personal accident insurance coverage is up to ₹1.50 crore and air accident insurance coverage is up to ₹2 crore.

3. Can existing employees convert their current account to this one?

Yes, existing employees can migrate their current salary account to this new package by giving their consent.

4. Will the interest rates on loans be lower?

Yes, loans for home, car, and education will have lower interest rates and processing fee waivers compared to regular customers.

5. Which employees are eligible for this scheme?

This scheme is designed for all levels of central government employees, including Group A, B, and C.