Interest bearing advances

 
G.I. Min. of  Fin. (Dep. Of  Exp.) F.No. 12(I)/E.II-A/2008
Dated 24th October, 2008
 
Interest bearing advances / Sixth Central Pay Commission recommendation
 

The undersigned is directed to state that the implementation of the recommendations of the Sixth Central Pay Commission relating to interest bearing advances granted to Government employees is under consideration of the Government.

2. Meanwhile, pending finalization of the new arrangement, the existing provisions for interest bearing advances relating to purchse of Motor Car,Motorcycle, Scooter, Moped and Personal Computer would continue to be in operation. The eligibility criteria will be as follows:

 
ADVANCE ELIGIBLITY  CRITERIA
Motor Car (Including Personal Computer) Pay in the Pay Band of Rs.19,530 or more
Scooter, Moped Pay in the Pay Band of Rs.8,560 or more
 
 

3. The quantum of advances would be determined with reference to pay in the pay band and existing ceiling would remain unchanged.

4. Advances for purchase of Bicycle and Warm Clothing (provided for in Rule 31 and 35 respectively of the Compendium of Rules on Advances to Government Servants) are to be treated as interest free advances in terms of this Department’s OM of even number dated 7th October,2008.

1 thought on “Interest bearing advances”

  1. Sir, i have taken an advance of Rs 1.50 lakhs towards the purchase of Motor Car. The Govt deducted the principal amt in equal installments but not the the interest. That they have deducted at the time of retirement as lump sum charging the interest till the date of retirement. I also took advance of Rs 30000 on computer. They recovered the Principal amount but not the interest. which they are recovering at the time of my retirement. On asking why they didnt deduct at that time in continuation of my Intallment of principal? the reply was that they are doing the same for all employees. Why should i pay more interest? This was done intentionally, it seems.The sanction issued doesnt speak that interest shouldnt be deducted after Principal amy. This shear blackmail. I learnt that this is the practise P&AO(IRLA) Min of I&B is following.
    Is this correct? Please reply to me.

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