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8th Pay Commission Big Update: In a major development, the Department of Financial Services, which falls under the Finance Ministry, has introduced a Composite Salary Account Package for central government employees. Through this account, central government employees will get benefits of banking, insurance and cards, all under a single salary account framework. Major features of the Composite Salary Account are a zero-balance salary account, insurance cover of up to Rs 2 crore, airport lounge access and concessional interest rates on loans. Let’s know more about the Composite Salary Account.
Any central government employee, across all cadres of Group A, B and C, can open the account. The government is encouraging central government employees to upgrade their salary accounts to composite Salary Accounts to avail its benefits. Employees can upgrade or migrate their salary accounts to the new scheme through their respective public sector banks, as per a release by the Finance Ministry.
As per the Ministry’s release, this policy does not cover Group D employees. There is also a big question mark on whether it also covers the employees of the central government autonomous bodies.
| Category | Benefits Under Composite Salary Account |
|---|---|
| Account Features | Zero-balance salary account; single framework covering banking, insurance and card benefits |
| Banking Facilities | Free remittances via RTGS, NEFT and UPI; cheque facilities; unlimited transactions with no maintenance charges |
| Loan Benefits | Concessional interest rates on housing, education, vehicle and personal loans; reduced loan processing charges |
| Locker & Family Benefits | No locker charges; additional family banking benefits |
| Personal Accident Insurance | Cover up to Rs 1.50 crore |
| Air Accident Insurance | Cover up to Rs 2 crore |
| Disability Cover | Up to Rs 1.50 crore for permanent total or partial disability |
| Term Life Insurance | In-built term life cover up to Rs 20 lakh; option to enhance via top-up |
| Health Insurance | Comprehensive health insurance for self and family; optional top-up facility |
| Card & Digital Benefits | Enhanced debit and credit card benefits; airport lounge access; reward programmes; cashback offers |
The Composite Salary Account is a zero-balance salary account that comes with additional facilities. The account will allow free remittances through RTGS, NEFT and UPI along with cheque facilities. The account also offers lower interest rates on categories like – housing, education, vehicle and personal loans. Additionally, employees will also get reduced loan processing charges. There are no locker charges for the account holder and it also offers other family banking benefits.
It is to be noted that some features of the Composite Salary Account may differ depending on the level of an employee and his/her bank.
With the account, the employees get a personal accident insurance cover up to Rs1.50 crore. They are also eligible for an air accident insurance cover up to Rs 2 crore. In case of permanent total and partial disability, the employees are eligible to get a cover up to Rs. 1.50 crore.
The account has an in-built term life insurance protection of up to Rs 20 lakh. Those who want to enhance their insurance coverage can avail for additional top-up facility.
It has a comprehensive health insurance cover plan for – self and family. Central government employees can also select an additional top-up facility to enhance the insurance coverage.
The account offers enhanced benefits on debit and credit cards, including airport lounge access, reward programs, and cashback offers. It also gives employees access to unlimited transactions with no maintenance charges.
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