Insurance cover, loan and card perks: Inside the new Govt salary account
New Delhi, Jan 15, 2026
A single-window banking solution offering enhanced salary account fearutes, extensive insuranace coverage and premium card benefits for Central Government employees.
If you are a central government employee, your salary account is about to do much more than just credit your monthly pay.
The Department of Financial Services (DFS) on Wednesday announced that it has introduced a new composite salary account package that brings banking, insurance and card benefits together under one account, making it a one-stop financial solution designed specifically for central government staff across all levels—Group A, B and C.
Instead of managing multiple products separately, employees will now be able to access insurance cover, loan benefits, and premium card features automatically linked to their salary account at public sector banks.
What’s included in the new package?
At the core of the new offering are three integrated benefits:
1. Banking benefits
Your salary account will remain zero-balance, but with enhanced features. You will be eligible for concessional interest rates on loans—including home loans, education loans, vehicle loans and personal loans—making large life expenses more affordable.
2. Insurance cover built into your account
The package offers personal accident insurance of up to ₹1.5 crore and air accident insurance of up to ₹2 crore, providing significant financial protection for you and your family without the need to buy separate policies.
Permanent Total & Partial Disability Cover up to Rs. 1.50 crore
Term Life Insurance – In-built term life insurance protection of up to Rs. 20 lakh, with additional top-up facility to enhance the insurance coverage at an affordable premium.
Health Insurance – Comprehensive health insurance cover for self and family with a base plan and additional top-up facility to enhance the insurance coverage at an affordable premium.
3. Card and lifestyle benefits
Debit or credit cards linked to the account will offer airport lounge access, reward points, cashback offers, unlimited transactions and zero maintenance charges, bringing features usually associated with premium accounts to salaried government employees.
Why this matters
Until now, many employees had to rely on separate insurance policies, standalone cards or higher-cost loans. By combining these into a single salary account, the government aims to provide greater financial security, ease of access and peace of mind, without increasing complexity or cost.
According to the finance ministry, the package has been designed in consultation with public sector banks to ensure uniform benefits across banks and ease of use, regardless of where an employee holds their salary account.
How will you get it?
Public sector banks have been advised to:
• Display details of the package on their websites
• Organise awareness camps in government offices
• Proactively reach out to employees with information
• Help employees migrate existing salary accounts to the new package, with consent
The package was formally launched by DFS Secretary M Nagaraju, in the presence of senior leadership from State Bank of India, nationalised banks and NPCI.
Major Highlights
1. Insurance Coverage
Banks offer personal accident insurance and air accident insurance at varying levels depending on the account type and employee grade (Group A, B, C).
2. ATM & Card Benefits
• Unlimited free debit card transactions
• Free ATM withdrawals (own bank usually unlimited; other bank ATMs may vary)
• Debit card variants like RuPay Platinum or Select depending on salary level
• Some accounts include airport lounge access at set frequencies per year (both domestic and international).
3. Fee Waivers & Banking Perks
• Zero minimum balance account
• Free cheque books
• Free or waived charges for IMPS/RTGS/NEFT/SMS
• Waived annual maintenance charges (AMC) on debit cards
• Locker fee concessions for a range of years
Processing and documentation fee concessions on loans like home, car, education, and personal loans.
4. Loan & Overdraft Facilities
The chart includes overdraft limits tied to salary and concessions on loan processing fees and interest rates for:
• Housing loans
• Car loans
• Education loans
• Personal loans
5. Family & Additional Benefits
Some banks include family banking benefits, such as zero-balance accounts for spouses or children, free debit cards for family members, and extended insurance coverage for dependants.
[The Business Standard]
