The government has introduced Composite Salary Account among the Central Government employees, which has provided superior banking, insurance and digital benefits.
The new plan would enhance the financial security and convenience via Public Sector Banks.
The ministry of finance has officially introduced the so-called Composite Salary Account Package in a move aimed at standardizing the financial perks across the board. This project was announced on Tuesday, this week by the Department of Financial Services (DFS), and it is not a rebranding effort, but a fundamental change to the way the public serves the bank.
There are no more days of bargaining with various banks over better rates or minimum balances. The new framework will enforce a “gold standard of benefits in all Public Sector Banks (PSBs), which means that in case you bank in SBI, PNB or Canara bank you will receive the same quality services.
Composite salary account package for central government employees: The government has introduced a unified banking and insurance scheme to provide enhanced financial security and modern digital benefits.
More Than Just a Paycheck
Government employees have traditionally been forced to go mall shopping to get the best deal on a salary account. There were those banks who had lower rates of loans and those had better service.Ministry of Finance DFS news, The government has launched a composite salary account that provides better banking and insurance benefits to the Central Government employees.
It is a one-stop solution, and based on the Viksit Bharat 2047 vision of the government. The concept is quite straightforward: the citizens that manage the administration of the country should not have to be concerned about the fees in the bank or the insurance shortcomings.
According to the statement of the Ministry, this initiative will provide Central Government employees with the opportunity to access modern banking services and have adequate financial protection, referring to the workforce as the mainstay of the public administration.
The Safety Net: A Massive Insurance Boost
The insurance coverage is the most conspicuous of this package. The accidental death covers provided under most standard salary accounts in the private or government sector allow ₹5 lakh to ₹40 lakh.
The new Composite Package shoots that number to out of this world with a coverage that offers true family security:
- Personal Accident Cover: It is now fixed at 1.50 Crore.
- Air Accident Insurance: Enormous 2 Crore air travel insurance.
- Term Life Insurance: A default 20 Lakh cover (unusual in the normal bank accounts) with the possibility of a top up.
- Disability cover: 1.50 Crore each on permanent total or partial disability.
This literally translates to the fact that every deserving government employee has a high-value safety net built into his/her finances automatically without having to pay rupee in premiums.
Lifestyle & Loans: The Stuff You’ll Never Hey
On top of the safety net, the package deals with the daily financial irritation which aggravates all.
1. The Zero Balance Promise The account has an amount of Zero Balance requirement. No punishment should be experienced when your account gets to the bottom at the end of the month. Moreover, debits and credit cards maintenance fees have been eliminated.
2. Low- Rate Loans Intending to purchase a car or a house? The package requires concessional interest rates on loans in housing, education, vehicle, and personal loans. The compromise over processing costs which sometimes goes into thousands of rupees might also be worth more.
3. In a reference to the modern lifestyle requirements, the debit and credit cards of this package will include Airport Lounge Access (local and international), which is a privilege that is normally enjoyed by high level credit cards with high fees.
What Should You Do Now?
In the case of a Central Government employee (Group A, B, or C), you will not have to change the bank, but you will have to maintain your status.
Government employee insurance cover: Central Government staff will receive enhanced life, accident and disability insurance under the new composite salary account scheme.
DFS has recommended all Public Sector Banks to:
- Introduce sensitization in government departments.
- Migrate the current accounts to this new package.
Our Advice: Do not wait till the bank calls you. Visit your branch manager this week in case you have a salary account with a PSU bank. Specifically request the upgrading of the Salary Account Package of composite type to make sure that the next month the salary will be provided with these new benefits.