Indian Overseas Bank (IOB) has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to offer a tailored salary package for state government employees.
The agreement, formalized on May 19, 2025, aims to enhance financial security and banking accessibility for thousands of government workers.
The Tamil Nadu State Government Salary Package (SGSP) includes personal accident insurance, life insurance, loan concessions, and unlimited ATM transactions, reinforcing IOB’s commitment to public-sector banking partnerships.
Key Features of the Salary Package
Under the SGSP, Tamil Nadu government employees will receive exclusive financial benefits, including:
- Personal Accident Insurance Cover – Up to ₹1.2 crore in case of accidental death or permanent disability.
- Group Term Life Insurance Cover – ₹10 lakh for natural death during service.
- Zero Minimum Balance Requirement – Employees can maintain salary accounts without any minimum balance restrictions.
- Free ATM Card Issuance – Includes an additional ₹2 lakh personal accident insurance cover.
- Unlimited ATM Transactions – Employees can withdraw funds from any ATM without incurring additional charges.
- Loan Concessions – Special processing fee discounts and interest rate reductions on personal, housing, and education loans.
These benefits are designed to simplify banking while ensuring financial protection for Tamil Nadu government employees.
Government’s Vision for Employee Welfare
The Tamil Nadu government, under the leadership of Chief Minister M.K. Stalin, has prioritized financial security for state employees.
The SGSP aligns with the state’s budget commitments, ensuring that government workers receive comprehensive financial support.
The MoU was signed in the presence of Finance Minister Thangam Thennarasu, Chief Secretary N. Muruganandam, and IOB Executive Director Joydeep Dutta Roy, highlighting the strategic importance of the partnership.
Industry Trends and Banking Partnerships
IOB’s collaboration with the Tamil Nadu government reflects a growing trend of customized banking solutions for salaried employees.
Other banks, including State Bank of India, Indian Bank, Canara Bank, Axis Bank, Bank of Baroda, and Union Bank of India, have also signed similar agreements to provide salary-linked benefits.
These partnerships aim to enhance financial inclusion, ensuring that government employees have access to secure and affordable banking services.
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