The Department of Financial Services (DFS), Ministry of Finance, has launched a comprehensive composite salary account package for central government employees, designed to consolidate banking and insurance services under a single account framework. The initiative targets employees across all cadres — group A, B, and C — as part of the government's broader Viksit Bharat 2047 vision and the ambitious goal of achieving 'insurance for all by 2047'.

Comprehensive Service Integration

The composite salary account package integrates three core service segments to provide holistic financial solutions for government employees:

Banking Benefits and Features

The banking component of the package offers substantial advantages for government employees. Key features include zero-balance salary accounts, eliminating the burden of maintaining minimum balance requirements. The package provides free fund transfers through multiple channels including RTGS, NEFT, and UPI transactions.

Employees can access concessional loan rates across various categories including housing, education, vehicle, and personal loans. Additional banking benefits encompass waivers on locker rentals and extended family banking privileges, enhancing the overall value proposition for government staff.

Insurance Coverage Details

The insurance segment represents a significant component of the composite package, offering comprehensive protection across multiple scenarios:

Digital and Card Benefits

The digital services component focuses on enhancing convenience and lifestyle benefits for government employees. The package includes airport lounge access, providing comfort during official and personal travel. Employees benefit from rewards and cashback programmes, unlimited transaction capabilities, and zero maintenance charges on card services.

Implementation and Migration Strategy

DFS has issued specific directives to public sector banks regarding the package implementation. Banks are required to actively publicise the composite salary account package and organise comprehensive awareness campaigns within government departments. The migration process for existing salary accounts to the new scheme will be facilitated with proper employee consent, ensuring a smooth transition while maintaining account holder preferences.

The launch of this composite salary account package represents a significant step towards financial inclusion and employee welfare, providing central government staff with integrated banking and insurance solutions under a unified platform.

The Department of Financial Services (DFS) conducted a comprehensive performance review of public sector insurance companies on 13 January 2026, setting ambitious targets for profitability enhancement and digital transformation. The review covered financial and business performance for FY 2024-25 and the first half of FY 2025-26, signaling a strategic shift towards customer-centric reforms and technological advancement.

Strategic Focus Areas

DFS Secretary M. Nagaraju chaired the meeting, outlining key priorities for the insurance sector. The review encompassed major public sector insurers including Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), New India Assurance Co. Ltd (NIACL), National Insurance Co. Ltd (NICL), United India Insurance Co. Ltd (UIICL), Oriental Insurance Co. Ltd (OICL), and Agriculture Insurance Company of India Ltd (AICIL).

The Secretary emphasized several critical objectives:

• Increase profitable business operations
• Reduce loss ratios while maintaining market share
• Strengthen retail portfolios systematically
• Design innovative products for younger demographics
• Address emerging market risks through customized solutions

Digital Transformation Initiative

A significant emphasis was placed on technology adoption and complete digitalisation across all operations. The ambitious target includes achieving 100% digital onboarding for retail insurance products, representing a major technological leap for the public sector insurance industry.

The digital push extends beyond onboarding to encompass improved communication strategies, enhanced publicity efforts, and expanded outreach programs. Special attention was given to strengthening brand visibility across multiple platforms, including social media channels.

Performance Highlights

The review acknowledged notable achievements across the sector:

The Bima Sakhi initiative's expansion, particularly in rural and semi-urban areas, was specifically praised for its contribution to financial inclusion and market penetration.

Customer Service Enhancement

The meeting prioritized customer service improvements, with particular emphasis on:

• Timely resolution of public grievances
• Seamless claims processing procedures
• Prompt service delivery mechanisms
• Enhanced customer experience across touchpoints

Leadership Participation

The high-level meeting saw participation from senior executives across the insurance sector, including LIC CEO and MD R. Doraiswamy, NIACL CMD Girija Subramanian, NICL CMD Rajeshwari Singh Muni, UIICL CMD B.S. Rahul, OICL CMD Sanjay Joshi, AICIL CMD Dr Lavanya R. Mundayur, and GIC ED Hitesh Joshi, among other industry leaders.

The comprehensive review reflects the government's commitment to modernizing public sector insurance companies while maintaining their market leadership and expanding their reach to underserved segments.