GPF-Rules-Rajive-Bhatia-20210618161211.ppt

Gpf rule

1. -RAJIVE BHATIA
(Senior Audit Officer)
GENERAL PROVIDENT
FUND (CENTRAL
SERVICES) RULES, 1960

2. SHORT TITLE AND COMMENCEMENT
(a)TheserulesmaybecalledtheGeneralProvidentFund(CentralServices)
Rules,1960.
(b)Theyshallbedeemedtohavecomeintoforceonthe1stApril,1960and
applicabletothoseCentralGovt.employeeswhohavebeenappointedonor
before31.12.2003
CONDITIONS OF ELIGIBILITY
AlltemporaryGovernmentservantsafteracontinuousserviceofoneyear,all
re-employedpensioners(otherthanthoseeligibleforadmissiontothe
ContributoryProvidentFund)andallpermanentGovernmentservantsshall
subscribetotheFund.
NOMINATIONS
(1)Asubscribershall,atthetimeofjoiningtheFund,sendtotheAccounts
OfficerthroughtheHeadofOfficeanominationconferringononeormore
personstherighttoreceivetheamountthatmaystandtohiscreditintheFund
intheeventofhisdeath,beforethatamounthasbecomepayableorhaving
becomepayablehasnotbeenpaid:
Providedthatwhereasubscriberisaminor,heshallberequiredtomakethe
nominationonlyonhisattainingtheageofmajority:

3. Providedfurtherthatasubscriberwhohasafamilyatthetimeof
makingthenominationshallmakesuchnominationonlyinfavourof
amemberormembersofhisfamily:
Providedfurtherthatthenominationmadebythesubscriberin
respectofanyotherProvidentFundtowhichhewassubscribing
beforejoiningtheFundshall,iftheamounttohiscreditinsuchother
fundhasbeentransferredtohiscreditintheFund,bedeemedtobea
nominationdulymadeunderthisruleuntilhemakesanominationin
accordancewiththisrule.
(2)Ifasubscribernominatesmorethanonepersonundersub-rule
(1),heshallspecifyinthenominationtheamountorsharepayableto
eachofthenomineesinsuchmannerastocoverthewholeofthe
amountthatmaystandtohiscreditintheFundatanytime.
(3)EverynominationshallbemadeintheprescribedForm.
(4)Asubscribermayatanytimecancelanominationbysendinga
noticeinwritingtotheAccountsOfficer.Thesubscribershall,along
withsuchnoticeorseparately,sendafreshnominationmadein
accordancewiththeprovisionsofthisrule.

4. (5)Asubscribermayprovideinanomination-
a)inrespectofanyspecifiednominee,thatintheeventofhis
predeceasingthesubscriber,therightconferreduponthat
nomineeshallpasstosuchotherpersonorpersonsasmaybe
specifiedinthenomination,providedthatsuchotherperson
orpersonsshall,ifthesubscriberhasothermembersofhis
family,besuchothermemberormembers.Wherethe
subscriberconferssucharightonmorethanonepersonunder
thisclause,heshallspecifytheamountorsharepayableto
eachofsuchpersonsinsuchamannerastocoverthewhole
oftheamountpayabletothenominee.
b)thatthenominationshallbecomeinvalidintheeventofthe
happeningofacontingencyspecifiedtherein:
Providedthatifatthetimeofmakingthenominationthesubscriberhas
onlyonememberofthefamily,heshallprovideinthenominationthatthe
rightconferreduponthealternatenomineeunderClause(a)shallbecome
invalidintheeventofhissubsequentlyacquiringothermemberor
membersinhisfamily.

5. (6)Everynominationmade,andeverynoticeofcancellationgiven
byasubscribershall,totheextentthatitisvalid,takeeffectonthe
dateonwhichitisreceivedbytheAccountsOfficer.
SUBSCRIBER’S ACCOUNT
An account shall be opened in the name of each subscriber in which
shall be shown-
(i)his subscriptions;
(ii)interest, as provided by Rule 11, on subscriptions;
(iii)bonus, as provided by Rule 11-A on subscriptions; and
(iv)advances and withdrawals from the Fund.
CONDITIONS OF SUBSCRIPTIONS
(1)AsubscribershallsubscribemonthlytotheFundexceptduring
theperiodwhenheisundersuspension:
Providedthatasubscribermay,athisoption,notsubscribeduring
leavewhicheitherdoesnotcarryanyleavesalaryorcarriesleave
salaryequaltoorlessthanhalfpayorhalfaveragepay:

6. Providedfurtherthatasubscriberonreinstatementafteraperiod
passedundersuspensionshallbeallowedtheoptionofpayinginone
lumpsum,orininstallments,anysumnotexceedingthemaximum
amountofarrearsubscriptionspayableforthatperiod.
(2)Thesubscribershallintimatehiselectionnottosubscribeduring
theleavereferredtointhefirstprovisotosub-rule(1)inthe
followingmanner:-
(a)ifheisanofficerwhodrawshisownbills,bymakingno
deductiononaccountofsubscriptioninhisfirstpaybilldrawn
afterproceedingonleave;
(b)ifheisnotanofficerwhodrawshisownpaybills,bywritten
communicationtotheHeadofhisOfficebeforeheproceedson
leave.Failuretomakedueandtimelyintimationshallbedeemed
toconstituteanelectiontosubscribe.Theoptionofasubscriber
intimatedunderthissub-ruleshallbefinal.

7. (3)AsubscriberwhohasunderRule32withdrawntheamount
standingtohiscreditintheFundshallnotsubscribetotheFundafter
suchwithdrawalunlesshereturnstoduty.
(4)Notwithstandinganythingcontainedinsub-rule(1)asubscriber
shallnotsubscribetotheFundforthemonthinwhichhequits
serviceunless,beforethecommencementofthesaidmonth,he
communicatestotheHeadofOfficeinwritinghisoptionto
subscribeforthesaidmonth.
RATES OF SUBSCRIPTION
(1)Theamountofsubscriptionshallbefixedbythesubscriber
himself,subjecttothefollowingconditions,namely:-
(a)Itshallbeexpressedinwholerupees;
(b)Itmaybeanysum,soexpressednotlessthan6percentofhis
BasicPayandnotmorethanhisBasicPay:

8. Providedthatinthecaseofasubscriberwhohaspreviouslybeen
subscribingtoaGovernmentContributoryProvidentFundatthe
higherrateof8percent,itmaybeanysum,soexpressed,notless
than8percent,ofhisemolumentsandnotmorethanhistotal
emoluments.
(c)WhenaGovernmentservantelectstosubscribeattheminimum
rateof6percent,or8percent,asthecasemaybe,thefractionofa
rupeewillberoundedtothenearestwholerupee,50p.countingas
thenexthigherrupee.
(4)Theamountofsubscriptionsofixedmaybe-
(a)reducedonceatanytimeduringthecourseoftheyear;
(b)enhancedtwiceduringthecourseoftheyear;or
(c)reducedandenhancedasaforesaid:

9. TRANSFER TO FOREIGN SERVICE OR DEPUTATION
OUT OF INDIA
Whenasubscriberistransferredtoforeignserviceorsenton
deputationoutofIndia,heshallremainsubjecttotherulesofthe
Fundinthesamemannerasifhewerenotsotransferredorsenton
deputation.
ADVANCES FROM THE FUND
Theappropriatesanctioningauthoritymaysanctionthepaymentto
anysubscriberofanadvanceconsistingofasumofwholerupees
andnotexceedinginamountthreemonths'payorhalftheamount
standingtohiscreditintheFund,whicheverisless,foroneormore
ofthefollowingpurposes:-
(a)topayexpensesinconnectionwiththeillness,(confinement)ora
disability,includingwherenecessary,thetravellingexpensesofthe
subscriberandmembersofhisfamilyoranypersonactually
dependentonhim;

10. (b)tomeetcostofhighereducation,includingwherenecessary,the
travellingexpensesofthesubscriberandmembersofhisfamilyor
anypersonactuallydependentonhiminthefollowingcases,
namely:-
(i)foreducationoutsideIndiaforacademic,technical,
professionalorvocationalcoursebeyondtheHighSchoolstage;
and
(ii)foranymedical,engineeringorothertechnicalorspecialized
courseinIndiabeyondtheHighSchoolstage,providedthatthe
courseofstudyisfornotlessthanthreeyears;
(c)topayobligatoryexpensesonascaleappropriatetothe
subscriber'sstatuswhichbycustomaryusagethesubscriberhas
toincurinconnectionwithbetrothalormarriages,funeralsor
otherceremonies;

11. (d)tomeetthecostoflegalproceedingsinstitutedbyoragainstthe
subscriber,anymemberofhisfamilyoranypersonactually
dependentuponhim,theadvanceinthiscasebeingavailableinaddition
toanyadvanceadmissibleforthesamepurposefromanyother
Governmentsource.
(e)tomeetthecostofthesubscriber'sdefencewhereheengagesalegal
practitionertodefendhimselfinanenquiryinrespectofanyalleged
officialmisconductonhispart.
(f)topurchaseconsumerdurablessuchasTV,VCR,washingmachines,
cookingrange,geysersandcomputers.
(g)tomeettheexpensesforvisitingplaceswhich,tothesatisfactionofthe
sanctioningauthority,areconsideredasplacesofpilgrimageorplacesof
eminenceofanyreligion.
(2)Whenanadvanceissanctionedundersub-rule(2)beforerepaymentof
lastinstalmentofanypreviousadvanceiscompleted,thebalanceofany
previousadvancenotrecoveredshallbeaddedtotheadvanceso
sanctionedandtheinstalmentsforrecoveryshallbefixedwithreferenceto
theconsolidatedamount.

12. RECOVERY OF ADVANCES
(3)Anadvanceshallberecoveredfromthesubscriberinsuch
numberofequalmonthlyinstalmentsasthesanctioningauthority
maydirect;butsuchnumbershallnotbelessthantwelveunless
thesubscribersoelectsandmorethantwenty-four.Inspecial
caseswheretheamountofadvanceexceedsthreemonths'payof
thesubscriberundersub-rule(2)ofRule12,thesanctioning
authoritymayfixsuchnumberofinstalmentstobemorethan
twenty-fourbutinnocasemorethanthirty-six.Asubscribermay,
athisoption,repaymorethanoneinstalmentinamonth.Each
instalmentshallbeanumberofwholerupees,theamountofthe
advancebeingraisedorreduced,ifnecessary,toadmitofthe
fixationofsuchinstalments.
(4)Recoveriesmadeunderthisruleshallbecreditedastheyare
madetothesubscriber'saccountintheFund.

13. WRONGFUL USE OF ADVANCE
Notwithstandinganythingcontainedintheserules,ifthesanctioning
authorityhasreasontodoubtthatmoneydrawnasanadvancefrom
theFundunderRule12hasbeenutilizedforapurposeotherthan
thatforwhichsanctionwasgiventothedrawalofthemoney,he
shallcommunicatetothesubscriberthereasonsforhisdoubtand
requirehimtoexplaininwritingandwithinfifteendaysofthe
receiptofsuchcommunicationwhethertheadvancehasbeenutilized
forthepurposeforwhichsanctionwasgiventothedrawalofthe
money.Ifthesanctioningauthorityisnotsatisfiedwiththe
explanationfurnishedbythesubscriberwithinthesaidperiodof
fifteendays,thesanctioningauthorityshalldirectthesubscriberto
repaytheamountinquestiontotheFundforthwithor,indefault,
ordertheamounttoberecoveredbydeductioninone*sumfromthe
emolumentsofthesubscriberevenifhebeonleave.If,however,the
totalamounttoberepaidbemorethanhalfthesubscriber's
emoluments,recoveriesshallbemadeinmonthlyinstalmentstillthe
entireamountisrepaidbyhim.

14. WITHDRAWALS FROM THE FUND
Theprovisionsintheruleshavebeenreviewedandithasnowbeen
decidedtopermitwithdrawalsfromthefundbythesubscriberforthe
followingpurposes:
(i)Education-Thiswillincludeprimary,secondaryandhigher
education,coveringallstreamsandinstitutions,
(ii)ObligatoryExpensesviz.betrothal,marriage,funerals,or
otherceremoniesofselforfamilymembersanddependants,
(iii)Illnessofself,familymembersordependants,
(iv)Purchaseofconsumerdurables.
3.Ithasbeendecidedtopermitwithdrawalofuptotwelvemonths
payor75%oftheamountstandingatcredit,whicheverisless.For
illness,thewithdrawalmaybeallowedupto90%oftheamount
standingatcreditofthesubscriber.

15. Asubscribermayseekwithdrawalaftercompletionoftenyearsof
service.
(v)Housingincludingacquiringasuitable-houseoraready-built
flat–forhisresidence,
(vi)Repaymentofoutstandinghousingloan,
(vii)Purchaseofhousesiteforbuildingahouse,
(viii)Constructingahouseonasiteacquired,
(ix)Reconstructingormakingadditionsonahousealready
acquired,
(x)Renovating,additionsoralterationsofancestralhouse.
4.Asubscribermaybeallowedtowithdrawupto90%oftheamount
standingatcreditfortheabovepurposes.Itisalsodecideddoaway
withthepresentinstructionswhichlaydownthatsubsequenttothe
saleofhouseforwhichGPFwithdrawalhasbeenavailed,the
amount.withdrawnhastobedepositedback.GPFwithdrawalfor
housingpurposewillnolongerbelinkedwiththelimitsprescribed
underHBArules.

16. Asubscribermaybepermittedtoavailthefacilityatanytimeduring
hisservice.
(xi)Purchaseofmotorcar/motorcycle!scooteretc.or
repaymentofloanalreadytakenforthepurpose,
(xii)Extensiverepairs/overhaulingofmotorcar,
(xiii)Makingdeposittobookamotorcar/motorcycle/scoter,
mopedetc.
5Asubscribermaybepermittedtowithdraw75%oftheamount
standingatcreditorcostofthevehicle,whicheverislessforthe
abovepurposesaftercompletionof10yearsofservice.
6Withdrawalofupto90%ofbalancewithoutassigningreasonsis
allowedforGovernmentservantswhoaredueforretirementon
superannuationwithintwoyears.
7Inallcasesofwithdrawalfromthefundbythesubscriber,the
declaredHoDiscompetenttosanctionwithdrawal.Nodocumentary
proofwillberequiredtobefurnishedbythesubscriber.Asimple
declarationformbythesubscriberexplainingthereasonsfor
withdrawalwouldbesufficient.

17. CONDITIONS FOR WITHDRAWAL
(1)Anysumwithdrawnbyasubscriberatanyonetimeforoneor
moreofthepurposesspecifiedinRule15fromtheamount
standingtohiscreditintheFundshallnotordinarilyexceedone-
halfofsuchamountorsixmonths'pay,whicheverisless.The
sanctioningauthoritymay,however,sanctionthewithdrawalof
anamountinexcessofthislimitupto75%ofthebalanceathis
creditintheFundhavingdueregardto
(i)theobjectforwhichthewithdrawalisbeingmade,
(ii)thestatusofthesubscriber,and
(iii)theamounttohiscreditintheFund1[incaseofwithdrawal
underClause(A)andupto90%ofbalanceatcreditincases
ofwithdrawalsunderClause(B)ofsub-rule(1)ofRule15].

18. CONVERSION OF AN ADVANCE INTO A
WITHDRAWAL
Asubscriberwhohasalreadydrawnormaydrawinfuturean
advanceunderRule12foranyofthepurposesspecifiedinsub-rule
(1)ofRule15mayconvert,athisdiscretionbywrittenrequest
addressedtotheAccountsOfficerthroughthesanctioningauthority,
thebalanceoutstandingagainstitintoafinalwithdrawalonhis
satisfyingtheconditionslaiddowninRules15and16.

19. RETIREMENT OF SUBSCRIBER
Whenasubscriber-
(a)hasproceededonleavepreparatorytoretirementorifheis
employedinavacationdepartment,onleavepreparatoryto
retirementcombinedwithvacation,or
(b)whileonleave,hasbeenpermittedtoretireorbeendeclaredbya
competentmedicalauthoritytobeunfitforfurtherservice,theamount
standingtohiscreditintheFundshall,uponapplicationmadebyhim
inthatbehalftotheAccountsOfficer,becomepayabletothe
subscriber:
Providedthatthesubscriber,ifhereturnstoduty,shall,exceptwhere
theGovernmentdecidesotherwise,repaytotheFundforcredittohis
account,theamountpaidtohimfromtheFundinpursuanceofthis
rulewithinterestthereonattherateprovidedinRule11incashor
securitiesorpartlyincashandpartlyinsecurities,byinstalmentsor
otherwise,byrecoveryfromhisemolumentsorotherwise,asmaybe
directedbytheauthoritycompetenttosanctionanadvanceforthe
grantofwhich,specialreasonsarerequiredundersub-rule(2)ofRule
12.

20. PROCEDURE ON DEATH OF A SUBSCRIBER
Onthedeathofasubscriberbeforetheamountstandingtohiscredithas
becomepayable,orwheretheamounthasbecomepayable,beforepayment
hasbeenmade:(i)Whenthesubscriberleavesafamily-
(a)ifanominationmadebythesubscriberinaccordancewiththe
provisionsofRule5infavourofamemberormembersofhisfamily
subsists,theamountstandingtohiscreditintheFundorthepartthereof
towhichthenominationrelatesshallbecomepayabletohisnomineeor
nomineesintheproportionspecifiedinthenomination;
(b)ifnosuchnominationinfavourofamemberormembersofthefamily
ofthesubscribersubsists,orifsuchnominationrelatesonlytoapartof
theamountstandingtohiscreditintheFund,thewholeamountorthe
partthereoftowhichthenominationdoesnotrelate,asthecasemaybe,
shall,notwithstandinganynominationpurportingtobeinfavourofany
personorpersonsotherthanamemberormembersofhisfamily,
becomepayabletothemembersofhisfamilyinequalshares:
Providedthatnoshareshallbepayableto-(1)sonswhohaveattained
majority;(2)Sonsofadeceasedsonwhohaveattainedmajority;(3)
marrieddaughterswhosehusbandsarealive;(4)marrieddaughtersofa
deceasedsonwhosehusbandsarealive;

21. ANNUAL STATEMENT OF ACCOUNTS TO BE SUPPLIED TO
SUBSCRIBER
1)Assoonaspossibleafterthe3IstMarchofeachyear,theAccounts
Officershallsendtoeachsubscriberastatementofhisaccountinthe
Fundshowingtheopeningbalanceasonthe1stApriloftheyear,the
totalamountcreditedordebitedduringtheyear,thetotalamountof
interestcreditedasonthe3IstMarchoftheyearandtheclosing
balanceonthatdate.
2)TheAccountsOfficershallattachtothestatementofaccountsan
enquirywhetherthesubscriber-(a)desirestomakeanyalterationin
anynominationmadeunderRule5;(b)hasacquiredafamilyincases
wherethesubscriberhasmadeconominationinfavourofamember
ofhisfamilyundertheprovisotosub-rule(1)ofRule5.
3)Subscribersshouldsatisfythemselvesastothecorrectnessofthe
annualstatementanderrorsshouldbebroughttothenoticeofthe
AccountsOfficerwithinthreemonthsfromthedateofthereceiptof
thestatement.

22. 19 March 2023 RAJIVE BHATIA