Public Sector Banks will provide a Composite Salary Account Package to Central Government employees. Government Employees will get enhanced insurance protection, special offers on credit and debit cards, and loans at concessional rate of interest.
The Department of Financial Services, in coordination with Public Sector Banks, is set to unveil the Composite Salary Account Package for Central Government employees on January 14, 2026.
The new initiative aims to provide Central Government employees with a single, unified salary account that combines both banking and insurance benefits. The package has been designed in consultation with public sector banks to ensure uniformity, wide coverage, and ease of use across all employee categories.
According to officials, the Composite Salary Account Package will be applicable to employees of all cadres, including Group A, Group B, and Group C, ensuring that benefits are available without discrimination. The move is expected to bring greater consistency and convenience, while simplifying access to financial and insurance services for government staff.
More details will be released tomorrow.
A big irony unfolds
However, this move has also highlighted a big irony. While banks are ready to give special salary account benefits to government employees, the same benefits are often not given to bank employees themselves, even though bank staff keep their salary accounts in their own banks.
For example, banks have introduced Defence Salary Packages that offer several benefits to defence personnel, including insurance cover of up to ₹1 crore. However, bank employees who receive their salary in the same banks are not given this insurance cover.
Many bank employees say that they handle and manage such salary accounts for others, but do not receive similar insurance cover or account benefits. This has raised questions about fairness, especially when bank employees are facing higher workloads and pressure.
As the new salary package is launched, there is growing discussion on whether bank employees should also get equal salary account benefits, just like other government employees.
