Big Update for Central Government Employees: Ministry of Finance Launches New Composite Salary Account Package
If you are a Central Government employee, your banking experience is about to get a major upgrade.
In a significant move to boost financial well-being and social security, the Department of Financial Services (DFS), under the Ministry of Finance, has officially launched the Composite Salary Account Package .
Launched formally on January 14, 2026, by the DFS Secretary, Sh. M. Nagaraju, this initiative is designed to be a "one-stop financial solution" . The goal is simple: to provide a unified, seamless banking experience that combines modern banking facilities with comprehensive insurance coverage for employees across all cadres (Group A, B, and C) .
Here is a breakdown of what this new package offers and why it matters for you.
1. Banking Benefits: More Savings, Less Fees
The new package advises Public Sector Banks to offer a standardized set of enhanced banking features. Key highlights include:
- Zero-Balance Account: You won't need to worry about maintaining a minimum balance .
- Free Transactions: Unlimited transactions and free remittances via RTGS, NEFT, and UPI, along with free cheque facilities .
- Cheaper Loans: Employees will have access to concessional interest rates on housing, education, vehicle, and personal loans .
- Reduced Charges: Expect concessions on loan processing charges and waivers on locker rentals .
2. Massive Insurance Coverage
Perhaps the most critical part of this package is the safety net it provides. The scheme aligns with the national "Insurance for All by 2047" commitment, offering robust coverage:
- Accident Insurance: Personal Accident Insurance coverage of up to Rs. 1.50 crore and Air Accident Insurance up to Rs. 2 crores .
- Disability Cover: Permanent Total & Partial Disability cover up to Rs. 1.50 crore .
- Life Insurance: An in-built term life insurance protection of up to Rs. 20 lakh, with an option to top-up the coverage at an affordable premium .
- Health Insurance: Comprehensive cover for self and family, also with top-up options .
3. Digital and Lifestyle Perks
The package isn't just about safety; it’s about convenience too.
- Card Benefits: Enhanced benefits on debit and credit cards, including airport lounge access, reward programs, and cashback offers .
- Zero Maintenance: There are nil maintenance charges on these card services .
How to Avail This?
The Department of Financial Services has advised Public Sector Banks to proactively reach out to Central Government employees. Banks will be organizing special awareness camps in Government Departments to explain the product details .
If you already have a salary account with a Public Sector Bank, you can migrate to this new package with your consent .
This initiative is seen as a step towards "Viksit Bharat 2047," ensuring that the employees who form the backbone of public administration have financial peace of mind .