DFS secretary encourages composite salary package to boost PSU banks' CASA

DFS Secretary M Nagaraju inaugurates a composite salary account camp in Delhi as public sector banks seek to strengthen CASA balances and deepen customer relationships

In a bid to strengthen banking outreach among government employees, M Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance, on Tuesday inaugurated a Composite Salary Package Accounts Opening Camp at Kartavya Bhavan in New Delhi.

 

The camp was jointly organised by State Bank of India (SBI) and Canara Bank, with participation from all 12 public sector banks (PSBs).

 

Addressing the gathering, Nagaraju highlighted the importance of salary accounts at a time when PSBs are facing pressure on current account savings account (CASA) balances. He said salary accounts offer significant potential to improve savings balances and deepen long-term customer relationships.

 

 

With greater focus on relationship management and customer lifetime value, such initiatives could serve as a guiding principle for PSBs, he noted.

 

SBI New Delhi Circle Chief General Manager Debasish Mishra outlined the value proposition of the Central Government Salary Package, describing it as beneficial for both employees and banks. He referred to the recent settlement of a Rs 1 crore claim under the Railway Salary Package Scheme to the spouse of a deceased railway employee at the Divisional Railway Manager’s office, Northern Railway. The employee, who maintained his account with SBI, had died in an off-duty accident, and the claim provided financial support to his family.

 

The initiative aims to offer comprehensive financial solutions to central government employees under the Composite Salary Package framework, including banking, insurance and investment products. Vikram Duggal, Chief General Manager, Canara Bank, delivered the vote of thanks.

 

Under the Central Government Salary Package model, PSBs provide bundled benefits such as up to 50 per cent concession on locker rent, free term insurance cover up to Rs 20 lakh, personal accident cover up to Rs 2 crore, and access to health insurance and card-based offers.

 

For example, SBI delivers these benefits through its subsidiaries, including SBI Life Insurance, SBI General Insurance and SBI Card. Other PSBs offer similar benefits through group entities or third-party tie-ups.

 

Amid intensifying CASA competition, PSBs are increasingly focusing on central and state government employees as a stable and high-quality deposit base to strengthen low-cost liabilities.