GPF (General Provident Fund) Rules.pptx

Rules and procedure regarding General Provident Fund Rules

1. Short title and commencement These rules may be called the General Provident Fund (Central Services) Rules, 1960. They shall be deemed to have come into force on the 1st April, 1960. In the General Provident Fund, the government employees contribute a small part of their salaries to the GPF account. They can get their accumulated funds at the time of retirement (maturity date). 

2. Conditions of eligibility and nomination All the temporary Government servants after a continuous service of one year and all permanent Government servants shall subscribe to the fund. The GPF will be applicable to the officers who were joined on or before 31-12-2003. A subscriber shall, at the time of joining the fund send to the Accounts Officer through the Head of Office, a nomination conferring on one or more persons the right to receive the amount that may stand to his credit in the fund in the event of his death. Nominations of GPF should be submitted in the Form 1 of the Central Civil Services (Pension) Rules, 1972.

3. Subscription The subscription of the GPF should be minimum 6% of the basic pay and maximum of one basic pay. Now in terms of the F.No.3/6/2021-P&PW(F) dt. 11-10-2022 the sum of the monthly subscription by a subscriber under the GPF during a financial years together with the amount of arrears subscription deposited in that financial year shall not exceed the Rs.5 lakhs. The amount of subscription can be reduced once at any time during the course of the year. The amount of subscription can be enhanced twice at any time during the course of the year.

4. Discontinuation of subscription A Government servant due to retire on superannuation shall be exempted from making any subscription to the GPF during the last three months of his service. The discontinuance of subscription would be compulsory and not optional.

5. Interest Subject to the provisions, Government shall pay to the credit of the account of a subscriber interest at such rate as may be determined for the each year according to the method of calculation prescribed from time to time by the Government of India. The GPF interest rate is revised periodically as per government regulations. It was 7.1% per annum from 01 April 2022 to 30 June 2022. 

6. GPF Withdrawal rules The non-refundable GPF withdrawal rules are about when and how much a subscriber can withdraw the funds. The basic criterion for the non-refundable withdrawal is that you should have completed at least 15 yrs of service or within 10 yrs of the date of retirement or superannuation (whichever is earlier). The GPF withdrawal rules are as follows.  You can withdraw 75% of the outstanding PF account balance to fund education or any event like marriage (self or dependent family members).  You can withdraw 90% of the outstanding amount in the case of any medical emergency for yourself or a dependent family member. In 7 days you can receive the amount you want to withdraw. 

7. You can withdraw 75% of the account balance to purchase a new house or land, renovate/repair it or repay an existing home loan.  You can withdraw 75% of the balance or 3/4th of the vehicle value (whichever is lower) to purchase a vehicle, pay off a car loan, or repair the car.   You can withdraw 90% of the balance before 2 yrs of retirement without providing any reason.  You can withdraw funds to purchase large home appliances like air conditioners or washing machines. However, the funds must be used only to purchase the products you state on the withdrawal form. 

8. The nominee can withdraw the outstanding amount in the event of the subscriber’s death. They are also entitled to an additional amount of an average of 3 yrs PF balance preceding the event. This additional amount should not be more than Rs. 60,000. Also, as per the GPF part final withdrawal rules, the nominee will be eligible for the additional fund only if the subscriber has been in service for a minimum of 5 yrs.  At the time of retirement or superannuation, the subscriber is allowed to withdraw the entire amount.   

9. GPF Advance Rules The GPF contributors can get an advance of 3 months’ pay or half the account balance (whichever is lower). The GPF temporary advance rules are as follows:  You can get an advance to fund the higher education of a dependent family member or any event like a marriage.  You can get an advance in the case of any medical emergency for yourself or a dependent family member.  You can get an advance to purchase large home appliances like TV, air conditioners or washing machines. Note that funds must be used only for the reason stated. 

10. You can get an advance to meet the costs of legal proceedings put on or against yourself or a dependent family member.  The advance provided should be paid back in equal instalments for up to 12-24 months. The recovery tenure can be extended to 36 months only if the advance payment is more than 3 months’ pay.  The monthly contributions made, interest rate accrued, and the returns provided from the GPF account are eligible for the tax-exemption category under  Section 80C of the Income Tax Act .