DFS, PSBs Launch Composite Salary Package for Govt Employees

Current Context: The Department of Financial Services (DFS), Ministry of Finance, has launched a new Composite Salary Account Package on 14 January 2026 for Central Government employees in collaboration with 12 Public Sector Banks.

• This package is designed to provide a unified salary account with enhanced benefits, including free accident insurance cover of ₹1.5 crore and term life insurance of ₹20 lakh.
• Employees will enjoy zero balance accounts, unlimited free transactions, and concessional loan facilities for housing, vehicles, and personal needs.
• By integrating salary, insurance, and credit services into one framework, the scheme aims to improve financial security and convenience for over 50 lakh government staff.
• It also promotes digital banking adoption and strengthens welfare measures for employees.

Question:

Q.1 The Composite Salary Account Package launched on 14 January 2026 is a joint initiative of which bodies?
a) Reserve Bank of India and Public Sector Banks
b) Department of Financial Services, Ministry of Finance and 12 Public Sector Banks
c) Ministry of Labour and private banks
d) Department of Expenditure and State Bank of India

Answer: b) The scheme was launched by the Department of Financial Services (DFS), Ministry of Finance, in collaboration with 12 Public Sector Banks (PSBs). RBI is not a partner in this initiative.