Eligibility of Private Sector Employees

• Yes, salary accounts can be opened for private sector employees.
• Most private companies collaborate with banks to offer salary account facilities.
• The employee must be on the company’s official payroll.
• Banks may require an official letter from the employer or HR confirmation.
• Contractual and permanent staff are both eligible depending on company policy.

Employer-Bank Tie-Up Requirement

• A tie-up or corporate agreement between the private company and a bank is essential.
• The employer provides a list of employees and authorizes the bank to open accounts.
• This enables bulk processing and activation of salary benefits.
• Banks customize account features based on the company’s size and profile.
• Without employer initiation, banks may treat the account as a regular savings account.

Features Provided to Private Employees

• Zero balance facility with no minimum maintenance required.
• Free ATM/debit cards, cheque books, and mobile/internet banking access.
• Preferential loan offers and higher transaction limits.
• Timely salary credit and easy tracking of payments.
• Some banks also offer health insurance or accidental cover.

Account Setup Process

• Employer shares employee KYC details or provides a digital onboarding link.
• Employees submit PAN, Aadhaar, and address proof for verification.
• Account is activated with unique account number and credentials.
• Salary is credited monthly by the employer via bank’s salary portal.
• Some banks conduct account opening drives at office premises.

Sustainability and Usage

• Continued monthly salary credit is needed to maintain salary account status.
• Inactive accounts may be converted into savings accounts by the bank.
• Employees changing jobs must inform the bank or switch to a new salary account.
• Old salary accounts can be retained as savings accounts after employment change.
• Banks allow transfer of account to another branch on request.