As part of its Special Festival Advance Scheme festival advance was doled out to employees till 6th Pay Commission recommendations were being implemented. Now amid the crisis, festival advance is being restored by the finance ministry as a one-time scheme and this shall be available to all of the employees, FM said.
Now central government employees will be provided Rs. 10000 interest free loan that needs to be repaid in 10 installments.
The sum will be given as Rupay prepaid card up to March 31, 2021.
The amount cannot be used for any transaction but cannot be withdrawn from the ATM.
Under the scheme, Rs. 400 crore are expected to be disbursed.
If given by all state governments, another Rs 8,000 crore is likely to be disbursed. Assuming 50% adoption by states, the estimate is another Rs 4,000 crore.