Govt Launches Composite Salary Account with Banking, Insurance and Card Benefits
The government has introduced a new composite salary account package for central government employees, integrating banking services, insurance coverage and card-related benefits into a single offering. Rolled out by the Department of Financial Services (DFS), the initiative targets employees across all categories—Group A, B and C—and will be implemented through public sector banks. The aim is to simplify financial management while enhancing overall financial security for government staff.
Under the new framework, the salary account will continue to be a zero-balance account and will provide concessional interest rates on home, education, vehicle and personal loans. Processing fees and documentation charges on loans may also be reduced or waived. A key feature is the built-in insurance cover, which includes personal accident insurance of up to ₹1.5 crore, air accident cover up to ₹2 crore, disability cover, term life insurance of up to ₹20 lakh, and comprehensive health insurance for employees and their families, with options to increase coverage through top-ups.
In addition, debit and credit cards linked to the account will offer premium features such as zero annual fees, reward points, cashback benefits and, in some cases, airport lounge access. The finance ministry said the package has been developed in coordination with public sector banks to ensure uniform benefits and smooth rollout. Banks have been directed to promote the scheme, conduct awareness drives and help employees migrate existing salary accounts to the new package, subject to consent.
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