Patna: The Bihar Finance Department has renewed its memorandum of understanding (MoU) with nine major public sector banks for another year, extending the salary package scheme available to permanent and contractual state government employees.
The agreement was signed on Tuesday during a meeting at the Finance Department, chaired by Secretary (Expenditure) Rachna Patil. General Managers and Zonal Managers representing the participating banks attended the signing ceremony.
One-Year Extension Of Existing Agreement
The previous agreement between the Bihar government and the nine banks was signed on July 7, 2025, and was due to expire on July 6, 2026. The latest extension takes effect immediately, ensuring the continuity of banking services and employee benefits under the salary package scheme.
According to the Finance Department, the renewal aims to safeguard the financial interests of government employees while ensuring uninterrupted access to banking facilities.
Salary Package Benefits Continue
Employees maintaining salary accounts under the scheme will continue to receive a range of benefits offered by the participating banks. These include zero-balance salary accounts, complimentary accidental insurance cover, concessional interest rates on loans and overdraft facilities, subject to the respective bank’s terms and conditions.
Government employees may choose to maintain their salary accounts with any of the following banks covered under the renewed agreement:
- State Bank of India
- Punjab National Bank
- Bank of Baroda
- Bank of India
- Union Bank of India
- Central Bank of India
- Canara Bank
- Indian Bank
- UCO Bank
Finance Department Issues Directions To Banks
During the MoU signing ceremony, Rachna Patil instructed the participating banks to ensure that all benefits under the salary package are extended to eligible employees in a transparent and timely manner.
She also directed the banks to issue instructions to their branches following the renewal of the agreement so that government employees do not face inconvenience arising from transaction-related or technical issues while operating their salary accounts.
