In a big announcement for government employees, Modi government on Monday announced the revival of Special Festival Advance Scheme for festivals up to 31 March 2021. The government has revived it as a one-time scheme for all gazetted and the non-gazetted employees and up to the sum of Rs 10,000, Finance Minister Nirmala Sitharaman said.

In a big announcement for government employees, Modi government on Monday announced the revival of Special Festival Advance Scheme for festivals up to 31 March 2021. The government has revived it as a one-time scheme for all gazetted and the non-gazetted employees and up to the sum of Rs 10,000, Finance Minister Nirmala Sitharaman said. This will be an interest-free advance in that will be repaid in 10 instalments, the FM added.

This advance will be given as a prepaid Rupay Card. The employees will be able to use it for any festival falling up to 31 March 2021, the FM said. The finance minister further said that the government was not limiting it to one festival of the “GST only shops”.

The scheme which was abolished in the recommendations given by the 7th pay Central Pay Commission (CPC) was originally present during the time of the sixth pay commission, Sitharaman today said while addressing a media briefing. However, this scheme was available only for the non-gazetted and lower level employees and up to the amount of Rs 4,500, she said.

This scheme was abolished after the sixth pay commission.   The government will bear the bank charges on this.  

Sitharaman was addressing a press conference on economic issues and the state of economy along with Anurag Thakur who is the Minister of State (MoS) for Finance and Corporate Affairs. The pandemic has adversely affected the economy, she said adding that the needs of the poor and weaker sections have been addressed in various announcements made by the government.  She said that though the supply constraints have somewhat eased, consumer demand still needed to be given a boost.

F.No.l2(2)/2020-EII(A)
Ministry of Finance
Department of Expenditure
EII(A) Branch

North Block, New Delhi
12th October, 2020

Office Memorandum

Sub: Grant of Advance – Special Festival Package to Government Servants.
The undersigned IS directed to say that with a view to enable Government servants to meet expenses relating to festivals and to encourage spending thereby giving a boost to economic activities, in pursuance of decision taken by the Government, it has been decided that a special festival package of advance will be accorded to all Government servants for any important festivals
up to 31st March, 2021.


2. A Head of Office may sanction this special package on the eve of any important festival to any Central Government Servant under his administrative control. The term “important festival” is clarified as such festivals or one of such festivals as Head of Department may declare in respect of establishments under his/her administrative control.
3. The amount of the package is Rs. 10,000/- to be paid as advance to Government servant. This amount is interest free. The amount would be released through pre-loaded Rupay Card from SBI. DDOs, on receipt of application from Government servants for this package may process and acquire the prepaid cards from SBI for issue among the applicants. A detailed SOP for DDOs for obtaining these cards would be separately issued.
4. The festival package may be granted to a Government servant if he/ she is on Government duty or on leave excluding leave preparatory to retirement, on the date on which the advance is disbursed. The amount paid under this package is recoverable in not more than ten ( 1 0) instalments.


5. These orders will take effect from the date of issuance of this Office Memorandum and will be in force during the current financial year till 31st March, 2021.
6. All the Ministries/Departments are requested to bring the contents of this OM to the notice of all its Attached and Subordinate offices for their ‘information/necessary action.


(B.K.Manthan)
Deputy Secretary to the Govt. of India
All the Ministries/ Departments of the Government of India.