Indian Railways & State Bank of India Sign MoU for Enhanced Insurance Benefits to Railway Employees

Railway Employees Maintaining Salary Accounts with SBI to Get Enhanced Insurance Coverage of ₹1 Crore for Accidental Death

Railway Employees to Get ₹1.6 Cr Air Accident (Death) Cover Plus an Additional up to ₹1 Cr on RuPay Debit Card

Personal Accident (Permanent Total Disablement) Cover of ₹1.00 crore & Personal Accident (Permanent Partial Disability) Cover of up to ₹80 lakh

A Compassionate, Employee-Centric MoU to Deliver Exclusive Benefits, Particularly For Frontline Group C Railway Personnel & Others

Sept 2025 : A landmark Memorandum of Understanding (MoU) was signed today between two of India’s leading institutions – Indian Railways (IR), one the largest rail networks in the world, and the State Bank of India (SBI), the country’s largest public sector bank. The ceremony was honoured by the August presence of the Hon’ble Minister for Railways, Information & Broadcasting, Electronics & Information Technology, Shri Ashwini Vaishnaw;  the Chairman, Railway Board, Shri Satish Kumar; and the Chairman, SBI, Shri C.S. Setty.

Under this MoU, insurance coverage for Railway employees maintaining salary accounts with SBI has been significantly enhanced. In case of accidental death, the insurance benefit has been increased to ₹1 crore, compared to the current coverage of ₹1.20 lakh, ₹60,000 and ₹30,000 for Group A, B, and C employees respectively covered under CGEGIS.

Additionally, all Railway employees holding only a salary account with SBI will now be eligible for natural death insurance coverage of ₹10 lakh—without the need for paying any premium or undergoing any medical examination.

With nearly 7 lakh Railway employees maintaining salary accounts with SBI, this agreement marks a major step towards employee welfare, reflecting a caring and constructive partnership between Indian Railways and SBI.

Some of the key complimentary insurance covers under this MoU include: Air Accident Insurance (Death) Cover of ₹1.60 crore plus an additional up to ₹1.00 crore on RuPay Debit Card; Personal Accident (Permanent Total Disablement) Cover of ₹1.00 crore; and Personal Accident (Permanent Partial Disability) Cover of up to ₹80 lakh.

This MoU between two leading entities is employee-centric, compassionate, and designed to bring exclusive benefits to the workforce—especially frontline railway personnel in Group C and others.

Some of the main benefits are detailed below:

• Complimentary Insurance Covers:

Add- on Covers:

• Banking & Transactional Advantages:

• SBI Rishtey Family Savings account available for 4 family members with tailored benefits.

• Access to Personal, Home, Car, and Education Loans at attractive interest rates, with 50% to 100% off on processing fees.

• Up to 50% discount on annual locker rental charges for salary account holder and his 4 family members.

• Zero balance requirement and free unlimited ATM transactions, including across any bank’s ATM network.

• Auto Sweep / eMulti Option Deposit facility: Automatically moves surplus funds to multioption deposits for better interest.
• Zero fee drafts, multicity cheques, SMS alerts, and zero charges on NEFT/RTGS.

• Airport Lounge access – domestic& International up to 03 free visits a quarter on Debit Cards

• Free issuance of demand drafts, multicity cheques, and SMS alerts.

• Demat & online trading account available right at onboarding.

• For a family of 4 (2 adult+2 Child), SBI offers Health insurance coverage up to Rs.30 lakhs at a discounted premium of Rs.800/- Approx per annum which translates to Rs.2.20 per day.

This proposed arrangement purely voluntary in nature for all SBI account holders (Railway Employees) and also Railway Administration continue to enter similar / more attractive scheme with the other Banks

Team Maverick