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DFS Launches Unified Salary Account With Built-In Insurance for Central Government Staff

Designed to bolster social security, the initiative supports the Viksit Bharat 2047 vision with a target of insurance for all by 2047.

Overview

  • The Department of Financial Services unveiled the Composite Salary Account on January 14 in New Delhi, with the SBI chair, chiefs of nationalised banks, NPCI leadership via VC, and senior DFS officials present.
  • The single account integrates banking, insurance and card services for employees across Groups A, B and C to provide a consistent, one‑window solution.
  • Insurance features include personal accident cover up to ₹1.5 crore, air accident cover up to ₹2 crore, disability cover up to ₹1.5 crore, in‑built term life up to ₹20 lakh with top‑up options, and comprehensive family health cover.
  • Banking and card benefits include a zero‑balance salary account, free RTGS/NEFT/UPI transfers, concessional loan rates with reduced processing charges, locker rent waivers, cheque facilities, airport lounge access, rewards or cashback, unlimited transactions and no maintenance charges.
  • DFS directed public sector banks to publicise the package, run awareness camps in government departments and facilitate migration of existing salary accounts with employee consent, while separately urging state insurers to speed claims, cut loss ratios, digitise onboarding and innovate products.