In a significant employee-centric initiative, the Department of Financial Services (DFS), Ministry of Finance, has launched a comprehensive Salary Account Package for all Central Government employees, effective 14 January 2026. The initiative has been rolled out through all twelve Public Sector Banks (PSBs), with the aim of offering enhanced financial security, improved service delivery and greater banking convenience to employees across Ministries and Departments.
The development was communicated through a DO letter dated 16 January 2026, issued by M. Nagaraju, Secretary, Department of Financial Services, addressed to all Secretaries to the Government of India.
One-Stop Financial Solution for Employees
According to the DFS, the Salary Account Package has been designed as a holistic financial solution, integrating banking, insurance and card-related benefits into a single package. The scheme is intended to ensure robust financial protection for Central Government employees and their families, while also simplifying access to essential financial services.
Key Features of the Salary Account Package
The major benefits available under the package include:
- Zero-balance salary account with enhanced facilities
- Free remittances through RTGS, NEFT and UPI, along with cheque book facilities
- Concessional interest rates on housing, education, vehicle and personal loans
- Waiver of locker rental and loan processing charges
- Personal Accident Insurance cover up to ₹1.50 crore
- Air Accident Insurance cover up to ₹2.00 crore
- Permanent total and partial disability cover up to ₹1.50 crore
- Term life insurance benefits up to ₹20 lakh, with additional top-up options
- Comprehensive health insurance cover for self and family, with base and top-up plans
- Enhanced benefits on debit and credit cards
DFS noted that the package offers a comprehensive insurance suite, covering life, medical and accident-related risks, thereby strengthening social and financial security for employees.
Choice Among All 12 PSBs
A key feature of the initiative is employee choice. Central Government employees are free to select any one of the twelve PSBs for opening their salary account, based on individual preference and suitability. Detailed information on bank-wise offerings has been made available on the DFS website to facilitate informed decision-making.
On-Site Facilitation Camps
To ensure effective and smooth implementation, banks have been advised to conduct on-site facilitation camps within the premises of Ministries and Departments. These camps will assist employees with account opening and provide guidance on the benefits available under the package. The camps are to be organised jointly by banks in consultation with the concerned Ministry or Department.
All Ministries and Departments have been requested to extend full cooperation to banks by facilitating the organisation of these camps within office premises.
Wide Dissemination Directed
DFS has requested that the information be widely disseminated among officers and staff, including those in attached and subordinate offices. An e-banner has also been developed for display on internal webpages, e-office dashboards and HRM portals, with a hyperlink to the DFS webpage for broader awareness.
Pan-India Coverage Across Ministries
The communication has been circulated to 85 Ministries, Departments and constitutional bodies, including major Ministries such as Finance, Defence, Home Affairs, Railways, Education, Health, Agriculture, Power, Law and Justice, and organisations such as NITI Aayog, Department of Space and the President’s Secretariat, ensuring nationwide coverage of Central Government employees.
Government’s Employee-Centric Push
Concluding the communication, DFS expressed confidence that the initiative would receive full support from all Ministries and Departments, enabling smooth and effective implementation of the Salary Account Package across the country. The move is seen as part of the government’s broader effort to modernise service delivery and enhance the financial well-being of its workforce.
