Cheer for Central staff : Cabinet nod for 4% DA hike

New Delhi: The Union Cabinet on Friday decided to increase the dearness allowance (DA) by four per cent for all central government employees and pensioners. The government said the new rates will become effective from January 1, 2019.

In a press briefing about the Cabinet's decision, Union minister Prakash Javadekar said, "The Cabinet has approved a four per cent hike in DA for 48 lakh government employees and 65 lakh pensioners."

Owing to the hiked DA, the government will incur an additional expense of Rs 14,595 crore, Javadekar said. The four per cent hike in DA is over the existing rate of 17 per cent of the basic pay/pension, he added.

Besides this, the Union Cabinet has approved the reconstruction of crisis-hit Yes Bank as per the scheme proposed by Reserve Bank of India, Finance Minister Nirmala Sitharaman told media on Friday.

As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan by infusing capital of Rs 2,450 crore.

During the moratorium period, Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.