New Banking System: The Department of Financial Services (DFS), Government of India, has launched a revolutionary “Composite Salary Account Package” for central government employees. Launched in collaboration with public sector banks, the scheme aims to provide employees with banking, insurance, and card premium benefits within a single account. Features such as accident insurance up to ₹1.5 crore and loans at low interest rates will enhance employees’ financial security and quality of life.
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New Banking System: The Central Government has given its employees a significant gift. Keeping their welfare and social security in mind, the government has taken a significant decision. The Department of Financial Services has directed all public sector banks to introduce a special ‘Composite Salary Account Package’ for central government employees.
This scheme was launched on January 14, 2026, by Secretary M. Nagaraju. This initiative is part of a larger vision that envisions universal insurance and a developed India by 2047.
What is the Composite Salary Account Package?
Government employees often had to separate banking and insurance-related work. Now, a new package the government is considering will change all this. No more trips to different locations, and central government employees will receive a “one-stop solution.” The government has designed this plan to address the needs of all categories of employees, including Groups A, B, and C. Now, along with a salary account, they will also receive the best services: banking, insurance, and cards.
1- First, let’s talk about banking benefits.
- A zero-balance salary account offers a wide range of benefits.
- Free money transfers – RTGS, NEFT, UPI, and even a free checkbook.
- Low interest rates on home loans, education loans, auto loans, and personal loans.
- Loan processing fees are also waived.
- Locker rent discounts or waivers.
- Family banking benefits (family members also benefit).
2- Better 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 – Built-in life cover of up to ₹20 lakh, which can be expanded with a top-up at a low premium.
- Health Insurance – Health cover for self and family, with a base plan and top-up option.
3- Digital and Card Facilities
- Exclusive benefits on debit and credit cards
- Airport lounge access, reward points, and cashback offers
- Unlimited transactions and no maintenance charges
You can transfer your account
The government has ordered all public sector banks to aggressively promote this new scheme. Government departments have also been asked to organize awareness camps to make everyone aware of it. Employees who already maintain salary accounts with public sector 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 to further strengthen the relationship between the government and its employees. Employees are the backbone of the administration, and if they have peace of mind regarding their finances, their productivity will increase, and the government will benefit. This package will provide a one-stop solution to all financial problems, saving employees time and securing their future.
Conclusion
This new composite salary account package from the Central Government is set to be a game-changer for government employees. This combination of banking and comprehensive insurance cover will not only provide financial security but will also modernize the banking experience through digital facilities. All central government employees are advised to contact their respective banks and avail of this excellent scheme.
