Department of Financial Services
Composite Salary Account Package 2026
Department of Financial Services (DFS)
Composite Salary Account 2026: ₹1.5 Cr Insurance & Zero Balance Benefits
- Status: Active (MoU Signed)
- Authority: DFS / Bank MoUs
- Key Benefit: Free Term Insurance up to ₹1.5 Crore
- Eligibility: All Central Govt Employees (Gazetted/Non-Gazetted)
What Changed: The MoU Update
The Department of Financial Services has renewed Memorandums of Understanding (MoUs) with major public sector banks for 2026. Most government employees continue to hold standard savings accounts, unaware that they are losing out on free insurance coverage worth crores. The Composite Salary Account Package converts your standard account into a power account with specific salary codes.
✅ Official Benefits Confirmed
Authority: DFS & SBI/PNB/BoB MoU 2026
Subject: Salary Package Benefits for Central Govt Employees
The New Protocol: Salary Code Mapping
The bank system does not automatically upgrade your account. You must submit a request to map your account under the specific Salary Package Code (e.g., SGSP for SBI, Rakshak for PNB). Without this code, your account remains a general savings account, and the insurance claim will be rejected in case of an accident.
✔ Approved Benefits
- Personal Accident Insurance: ₹40 Lakhs to ₹1.5 Crore (Death/Disability).
- Air Accident Cover: Up to ₹1 Crore.
- Overdraft Facility: Up to 2 months’ net salary.
✖ Common Mistakes
- Zero Balance: Keeping ₹1,000 min balance (Not required).
- Debit Card Fees: Paying annual charges (Waived in package).
- Code Mapping: Assuming it is automatic.
Financial Impact Calculation
See the difference between a standard account and a converted Salary Package account below.
| Feature | Standard Savings A/c | Composite Salary A/c |
|---|---|---|
| Accident Insurance | ₹0 (Nil) | ₹50,00,000 (Free) |
| Air Accident Cover | ₹0 (Nil) | ₹1,00,00,000 (Free) |
| Overdraft (Loan) | Not Available | Up to ₹75,000 (Instant) |
| ATM Transactions | Limit 5/Month | Unlimited Free |
How to Respond (Draft Application)
Submit this letter to your branch manager immediately to activate the benefits. Do not delay.
To,
The Branch Manager,
State Bank of India,
Parliament Street Branch, New Delhi.Subject: Application for Conversion of Savings Account to CGSP Salary Package.
Sir,
I am maintaining a Savings Bank Account bearing number 12345678901 in your branch. I am currently employed as Section Officer in the Ministry of Home Affairs, which is a Central Government Department.
I request you to convert my existing savings account into the Central Government Salary Package (CGSP) account as per the existing MoU. I am enclosing my latest pay slip and departmental ID card for your reference.
Kindly map the correct product code to ensure I am eligible for the complimentary insurance and other benefits associated with the salary package.
Thanking You,
Rahul Sharma
Section Officer
Ministry of Home Affairs
Date: January 21, 2026
Frequently Asked Questions
Is this applicable to retired employees?
Yes, pensioners are eligible for similar benefits under the Pension Account Packages (e.g., SBI Pension Seva), though the insurance coverage amounts may differ from serving employees.
Which bank offers the highest insurance cover?
Currently, the State Bank of India (SBI) and Punjab National Bank (PNB) offer the most competitive packages, with PAI coverage often exceeding ₹40 Lakhs for higher pay levels.