Upto Rs 2 CRORE Cover: Govt Launches Unified Salary Account for Central Employees with Insurance

Central government employees can now access banking, insurance and card-related benefits through a single, unified salary account, following the launch of a Composite Salary Account Package by the Department of Financial Services (DFS) under the Ministry of Finance.Rolled out in partnership with public sector banks, the package offers zero-balance salary accounts, concessional loans, high-value insurance cover and enhanced digital card benefits, aimed at improving financial security and convenience for employees across all cadres.The initiative was formally launched on Wednesday by M. Nagaraju, Secretary, Department of Financial Services, in the presence of the Chairman of State Bank of India, MDs and CEOs of nationalised banks, senior DFS officials

and representatives from the National Payments Corporation of India.One Account, Multiple BenefitsAligned with the government’s Viksit Bharat 2047 vision and the goal of Insurance for All by 2047, the scheme brings together banking, insurance and card services under a single account structure. It has been designed to ensure uniform benefits for Group A, B and C central government employees.The Composite Salary Account Package has three core components: banking facilities, insurance coverage and digital/card benefits, making it a one-stop financial solution.Banking Facilities Offered

• Zero-balance salary account
• Free RTGS, NEFT and UPI transactions, along with cheque facilities
• Concessional interest rates on housing, education, vehicle and personal loans
• Reduced loan processing charges
• Locker rent waivers
• Family banking benefits

Insurance Coverage Under the Scheme

• Personal accident insurance up to ₹1.5 crore
• Air accident insurance up to ₹2 crore
• Permanent total and partial disability cover up to ₹1.5 crore
• In-built term life insurance up to ₹20 lakh, with an option to enhance cover through affordable top-ups
• Comprehensive health insurance for self and family, with base and top-up options

Digital and Card Benefits

• Enhanced debit and credit card features
• Airport lounge access
• Reward programmes and cashback offers
• Unlimited transactions with nil maintenance charges

Migration and Awareness DriveDFS has advised public sector banks to promote the scheme through their websites, conduct awareness camps in government departments and proactively reach out to employees. Banks have also been asked to facilitate the migration of existing salary accounts to the new package, subject to employee consent.The ministry said the initiative strengthens financial protection for central government employees while simplifying access to modern banking services through a single-window system. Complete details of the Composite Salary Account Package are available on the DFS website.