NEW DELHI: Government has discontinued seven interest free advances, including those for purchase of bicycle and warm clothing, in pursuance of recommendations of the 7th Pay Commission.
Finance Ministry said bicycle advance, festival advance and natural calamity advance have been abolished.
Also, advance of pay on transfer, advance of leave salary, advance for law suits as well as for training in Hindi through correspondence course have been discontinued.
All interest free advances stand discontinued with the exception of interest free advance for medical treatment, travelling allowance for family of deceased, travelling allowance on tour or transfer and leave travel concession (LTC), according to an office memorandum.
“The interest bearing advances relating to motor car advance and motorcycle/scooter/moped advance will stand discontinued,” the Expenditure department said.
The Pay Commission had recommended abolition of all interest free advances, except four — advances for medical treatment, travel allowance on tour/transfer, travel for family of deceased employees and LTC.