Government Launches Composite Salary Account Package for Central Government Employees with PSBs

Government Launches Composite Salary Account Package for Central Government Employees with PSBs

Government has introduced a Composite Salary Account Package for Central Government Employees, offering a unified, one-stop financial solution through Public Sector Banks (PSBs).

The initiative has been launched by the Department of Financial Services under the Ministry of Finance, with the objective of enhancing financial well-being and social security of Central Government staff across all cadres.

ALSO READ:- SBI, PNB, BOB Merger Update: Government Evaluates Big Merger Plans for PSU Banks

The package was formally launched on January 14, 2026, by M. Nagaraju, Secretary, Department of Financial Services. The launch was attended by the Chairman of State Bank of India, MDs and CEOs of nationalised banks, and senior officials of DFS. The initiative aligns with the Government’s vision of Viksit Bharat 2047 and the goal of Insurance for All by 2047.

One Account, Multiple Benefits

The Composite Salary Account Package integrates banking, insurance, and card benefits into a single salary account framework, ensuring uniformity and convenience for Group A, B and C employees.

Key Banking Facilities include:

• Zero-balance salary account with enhanced features
• Free digital remittances through RTGS, NEFT and UPI
• Cheque book facility and unlimited transactions
• Concessional interest rates on housing, education, vehicle and personal loans
• Waiver or concession on loan processing charges
• Locker rent concessions and family banking benefits

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
• In-built term life insurance up to ₹20 lakh with optional top-up
• Comprehensive health insurance for self and family with base and top-up options

Digital & Card Features:

• Enhanced debit and credit card benefits
• Airport lounge access, reward programmes and cashback offers
• Nil maintenance charges and seamless digital banking access

Implementation and Awareness

Public Sector Banks have been advised to publicise the package widely through their websites, conduct awareness camps in government offices, and proactively assist employees in migrating existing salary accounts to the new composite package with their consent.

According to the Ministry, this reform strengthens employee–bank relationships while ensuring easier access to modern banking services and robust financial protection. Detailed information on the Composite Salary Account Package is available on the DFS website.

Central Government employees are encouraged to explore and avail the benefits of this comprehensive salary account framework through their respective Public Sector Banks.