7th CPC recommendations on Interest free advances
Advances Chapter 9.1
9.1.1 Two types of advances are granted to government employees: Interest-free and Interestbearing.
Interest-free Advances
9.1.3 There is a general demand from the JCM-Staff Side to increase all interest-free advances to three times their present value.
Analysis and Recommendations
9.1.4 As can be seen from the table above, the amount of most of the advances is quite low. With the increased salary packages provided after successive Pay Commissions, these advances have lost their relevance. Hence, to do away with outdated provisions and thereby save on the costs involved in administering these advances, it is recommended that all Interestfree advances should be abolished
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Abolition of advances by 7th cpc shows their coservative mindedness. These advances sould be raised instead of abolishing. Afterall money taken by the empliyees is recovered also.
Should not be abolished actually amounts has to increased