The Jharkhand government on Tuesday signed a Memorandum of Understanding (MoU) with Bank of India to provide a consolidated salary and pension account package for state government employees, pensioners, and contractual staff, with a strong emphasis on social security, administrative efficiency and financial inclusion.
The MoU was signed in the presence of Chief Minister Hemant Soren at the Jharkhand Secretariat. Under the agreement, salary and pension accounts maintained with the bank will be linked with insurance and other banking facilities, aimed at providing financial protection during service as well as after retirement.
As per the terms of the MoU, beneficiaries will be entitled to accidental insurance cover of up to Rs 1 crore, which will extend to Rs 2 crore in case of death due to air accidents, along with multiple banking services without additional charges. Officials said the arrangement brings predictability and security to income and pension disbursement, addressing long-standing concerns related to delays and procedural bottlenecks.
Speaking on the occasion, the Chief Minister said the state government was committed to ensuring a secure working environment and economic stability for its employees. He said the initiative reflected a move towards structured welfare mechanisms instead of ad hoc assistance, particularly in situations involving accidents or loss of life.
The social security aspect of the scheme was highlighted when the Chief Minister handed over a cheque of Rs 50 lakh to Manju Lakra, wife of late Jharkhand Bijli Vitran Nigam Limited employee Pramod Lakra, who died in an accident. The assistance was provided under the government salary package scheme.
Officials said the unified banking framework would improve administrative efficiency by streamlining payroll and pension management, reducing paperwork across departments and enhancing transparency in financial transactions. The inclusion of contractual staff and pensioners was described as a significant step towards widening the coverage of formal financial services.
The MoU also underlines the role of public sector banks as partners in governance. The Chief Minister said banks play a key role in the state’s inclusive development by acting as channels for welfare delivery, particularly in rural and semi-urban areas where government employees often serve as the primary link to formal banking.
From a fiscal standpoint, officials said the package does not impose a direct additional burden on the state exchequer, as the benefits are routed through bundled banking services rather than budgetary payouts.
The agreement was signed on behalf of the state government by Finance Department Special Secretary Sandeep Singh and by Deputy General Manager (Ranchi Zone) Sanjeev Kumar for the bank. Finance Minister Radha Krishna Kishore, Chief Secretary Avinash Kumar, Development Commissioner Ajay Kumar Singh, Finance Secretary Prashant Kumar, senior bank officials and state officers were present.