Finance Minister Nirmala Sitharaman has revived the "Festival Advance Scheme" on Monday. The special Festival Advance Scheme will provide a one-time interest-free advance of Rs 10,000 to all officers and central government employees, irrespective of their position, ranks, and whether they are gazetted or non-gazetted officers.
The Rs 10,000 advance will come as a pre-paid Rupay card which can be spent by March 31, 2021. The repayment will be in 10 instalments, the FM added.
"Special Festival Advance Scheme is being revived as a one-time measure. All central government employees can now get an interest-free advance of Rs 10,000, recoverable in maximum 10 instalments," FM Sitharaman tweeted.
The finance minister added that the festival advance was abolished on the recommendation of the 7th Pay Commission. "Till the sixth pay commission, there was provision for the "festival advance" which was for Rs 4,500 per non-gazetted officer rank and below. The festival advance was abolished after the sixth pay commission. And, when the 7th pay commission came into force, there was no special festival advance. We are now reviving it as a one-time affair," Sitharaman said.
Special Festival Advance Scheme is being revived as a one-time measure. All central govt. employees can now get interest-free advance of Rs. 10,000, recoverable in maximum 10 installments: Finance Minister @nsitharaman pic.twitter.com/a5GHZ8OJPAPIB India (@PIB_India) October 12, 2020
It is expected Rs 4,000 crore will be disbursed under this scheme, according to the government. "If given by all the state governments, another Rs 8,000 crore is likely to be disbursed," the government added.
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