Haryana Cabinet which met under the Chairmanship of Chief Minister Sh. Nayab Singh Saini here today accorded approval to a proposal regarding shifting back of loan portfolio facility in respect of Government employees from Punjab National Bank to State Government as per previous system. Prior to implementation of the notification, the State Government was providing these loans/advances to its employees directly by making annual budget provision under Major Head-7610.
Thereafter, vide approval of the Council of Ministers the State government has decided to shift the loan portfolio to Punjab National Bank (hereinafter PNB). Accordingly, the Scheme for shifting of the loan portfolio to PNB in respect of loans to employees was circulated. The State Government had entered into Memorandum of Understanding/Agreement for the purpose.
Now it is proposed to revert back to the old system of loaning directly to the State Government employees i.e. the one prior to 04.11.2016. In this system, loans to the employees will be given at the simple rate of interest @ GPF rate or as decided from time to time, directly by the State Government and the loan accounts will be maintained by Principal Accountant General (A&E). This is being done because the current system is posing operational difficulties.
Now the Cabinet has approved to shift back to the old system in two parts for fresh disbursal of loans to employees as per old practice by the State Government. As per the approval, the disbursement of loans by the State Government directly from the State Budget will be initiated with effect from June 1, 2026.
Furthermore, a budgetary provision of Rs. 375.52 crore for financial year 2026-27 has already been made to enable the Government to dispense fresh loans directly to its employees with effect from June 1, 2026. Fresh loans through PNB will be stopped w.e.f. June 1, 2026.
Also all existing loans (including those created till May 31, 2026) shall continue to be repaid by the employees to PNB till the completion of reconciliation exercise. At the end of this reconciliation exercise, the remaining loan amount of all employees existing with PNB will be paid to the PNB and all the loan accounts will be transferred to Principal Accountant General (A&E), Haryana.