Anyone ever transferred from one ministry to another?

I started off with a diploma in one ministry 12 years ago. Along the way, my ministry sponsored my degree studies. Now I applied for another ministry and the HR is telling me that my degree will not considered as it is termed as an Inter Ministry Transfer and I may face a pay cut even as the ministry I am applying for is of a lower tier.

Is this the norm? And if i apply for a Stat Board, is it the same story?

Thanks