{"id":3647,"date":"2020-10-13T18:13:13","date_gmt":"2020-10-13T12:43:13","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3647"},"modified":"2021-04-20T10:24:53","modified_gmt":"2021-04-20T04:54:53","slug":"ltc-cash-voucher-scheme","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/ltc-cash-voucher-scheme\/","title":{"rendered":"LTC Cash Voucher Scheme: Decoding The New Announcement"},"content":{"rendered":"

The<\/span><\/i> LTC Cash Voucher Scheme was announced by Finance Minister Nirmala Sitharaman on the 12th of October 2020.\u00a0<\/span><\/i><\/p>\n

With the first full-year economic contraction in decades, there is a risk that India might slip into recession for a while. To control this situation, the government decided to stimulate consumer spending and announced two incentives.\u00a0\u00a0<\/span><\/p>\n

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  1. LTC Cash Voucher Scheme\u00a0<\/span><\/li>\n
  2. Special Festival Advance Scheme\u00a0<\/span><\/li>\n<\/ol>\n

    These incentives were proposed after the indications that the government and organised sector employees\u2019 savings have increased over the past 6 months. The aggregate bank deposits have increased by Rs 6.8 lakh crore since April 2020 as compared to an increase of Rs 1.5 lakh crore in the same period last year.<\/span><\/p>\n

    Since individuals and businesses are adapting to the new normal, it is important for them to be able to spend more. And, that is what our government is enabling.<\/span><\/p>\n

    Let\u2019s discuss the LTC cash voucher scheme and Special Festival Advance Scheme in more detail.<\/span><\/p>\n

    LTC Cash Voucher Scheme – New announcement<\/span><\/h2>\n

    [bctt tweet=”Under the LTC cash voucher scheme, the government employees can opt to receive cash equivalent to the full round trip fare and leave encashment.\u00a0” via=”no”]<\/p>\n

    Here are the features of this scheme.\u00a0<\/span><\/p>\n