The government on Thursday announced that the central government employees up to Group ‘C’ now can draw salary advance up to ₹10,000 in cash that’ll be adjusted against their November salaries.
Economic Affairs Secretary Shaktikanta Das said Finance Minister Arun Jaitley in his Budget speech stated that interim provisions have been made.
“The existing exchange limit of ₹ 4,500 will be reduced to Rs 2,000 with effect from Friday,” Economic Affairs Secretary Shaktikanta Das told reporters.
The government has discontinued interest free advances, including salary advance on October 7 in pursuance of recommendations of the 7th Pay Commission.
Since then a lot of representations have come to Prime Minister and Finance Minister from central government employees unions that the lower paid employees have to stand in queue in the banks to withdraw their salary in parts which ultimately amounts to spending the time they would use in their offices to serve the public. So, the government complied with this decision.
Among other measures, the government has allowed up to Rs 2.5 lakh cash withdrawal from bank account of a bride or groom or their parents for a marriage during the ongoing wedding season.
However, government lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective tomorrow.
“To enable larger number of people to get benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow,” Economic Affairs Secretary Shaktikanta Das told reporters.
