Sanjay Sahay | TNN
Ranchi: State government employees in Jharkhand will soon gain access to salary advances and other financial services through a non-banking financial company (NBFC), following cabinet approval of a resolution on Monday.
Digital Platform for Employee Benefits
Under the plan, the state government will empanel an NBFC to establish and manage a digital platform for employees. The platform will offer salary advances, saving instruments, insurance schemes, credit products, and other value-added services aimed at improving their financial well-being.
Officials noted that the move was proposed because employees often require additional funds for urgent or essential needs but face difficulties in the absence of a reliable alternative. In many cases, they are compelled to borrow at high interest rates to meet such expenses.
Alternative Financing Channel
The NBFC will provide an alternative financing channel through the platform. The government has also left open the possibility of other reputable financial service providers joining the system to expand the range of services available to employees.
Among the proposed facilities, employees will be able to avail of a 30-day salary advance online. They will also have the option of taking salary advances for periods ranging from two months to 60 months, repayable on a long-term basis.
Model from Other States
The proposed arrangement will be similar to advance salary and related facilities offered by the state governments of Goa and Rajasthan through NBFCs. The Jharkhand government will select the NBFC through a tender process before rolling out the platform for its workforce.
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About the Author: Sanjay Sahay, with over a decade of experience in journalism, primarily covers crime, security, central agencies, and civil courts in Ranchi. He also takes interest in education reporting and regularly writes on higher education policies in the state.
