GPF Rules: Advance, Recovery & Withdrawal – Amendment | GPF Rules: Advance, Recovery & Withdrawal Amendment

What is General Provident Fund in India?

The General Provident Fund (GPF) is a savings and financial security scheme available to government employees in India. Each month, they can contribute a portion of their salary to the scheme until retirement, at which time they will receive the accumulated sum with nominal interest.

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Amendment in GPF Rules – Advance, Recovery, and Withdrawal

Check Also These Updates on GPF

Amendment in GPF Rules – Advance, Recovery, and Withdrawal

“Only one withdrawal shall be allowed for the same purpose under this rule. But marriage or education of different children or illness on different occasions or a further addition or alteration to a house or flat shall not be treated as the same purpose. Withdrawal for meeting the cost of education of a child may be allowed on an annual basis till the concerned child continues to pursue the course”.

General Provident Fund (Central Services) Amendment Rules, 2022 – Amendment in GPF Advance, GPF Recovery and GPF Withdrawal Rules.

THE GAZETTE OF INDIA : OCTOBER 8, 2022/ASVINA 16, 1944 [PART II—SEc. 3(i)]MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)
New Delhi, the 22nd September, 2022

G.S.R. 141.—In exercise of the powers conferred by the proviso to article 309 and clause (5) of article 148 of the Constitution, and after consultation with the Comptroller and Auditor-General of India in relation to persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rules further to amend the General Provident Fund (Central Services) Rules, 1960, namely:-

1. Short title and commencement.– (1) These rules may be called the General Provident Fund (Central Services) Amendment Rules, 2022.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the General Provident Fund (Central Services) Rules, 1960,-

(I) in rule 2, in sub-rule (1), after clause (d), the following clauses shall be inserted:

“(da) “Head of Department” means an authority specified in Schedule I to the Delegation of Financial Powers Rules, 1978, and includes such other authority or person whom the President may, by order, specify in this behalf as Head of a Department;

(db) “Head of Office” means a Gazetted Officer declared as such under rule 14 of the Delegation of Financial Powers Rules, 1978, and includes such other authority or person whom the competent authority may, by order, specify in this behalf as Head of Office.”

(II) in rule 12, for sub-rules (1) and (1A), the following sub-rules shall be substituted, namely:-

“(1) The Head of Office may sanction the payment to any subscriber of an advance consisting of a sum of whole rupees and not exceeding amount of twelve months of pay or three-fourth of the amount at credit, whichever is less, for one or more of the following purposes namely:-

(1) to pay expenses in connection with the illness (confinement) or any disability, including where necessary, the travelling expenses of the subscriber and members of his family or any person actually dependent on him;

(ii) to meet the cost of primary, secondary or higher education covering all streams and educational institutions and including where necessary, the travelling expenses of the subscriber and members of his family or any person actually dependent on him;

(iii) to pay obligatory expenses in connection with betrothal or marriages, funerals or other ceremonies;

(iv) to meet the cost of legal proceedings instituted by or against the subscriber, any member of his family or any person actually dependent upon him, the advance in this case being available in addition to any advance admissible for the same purpose from any other Government source;

(v) to meet the cost of the subscriber’s defence where he engages a legal practitioner to defend himself in an enquiry in respect of any alleged official misconduct on his part;

(vi) to purchase consumer durables such as Television, washing machines, cooking range, geysers and computers;

(vii) to meet the expenses on pilgrimage and for visiting places of eminence including any travel and tourism related activities;

(1A) The Head of Department may, in special circumstances, sanction the payment to any subscriber of an advance if he is satisfied that the subscriber concerned requires the advance for reasons other than those mentioned in sub-rule (1).

(1B) An advance under sub-rules (I) and (JA) shall be sanctioned and paid not later than fifteen days from the date of submission of the application of advance:

Provided that, in emergent circumstances like illness of the subscriber or a member of his family or any person actually dependent on him, an advance under this sub-rule shall be sanctioned and paid not later than seven days from the date of submission of the application of advance.

(1C) An advance under sub-rules (1) and (1A) shall be sanctioned on the basis of a declaration by the subscriber explaining the reasons for seeking the advance and no documentary proof would be required to be furnished by him for this purpose.”

(III) in rule 13, for sub-rule (1), the following sub-rule shall be substituted, namely:-

“(1)(a) an advance shall be recovered from the subscriber in such number of equal monthly installments as the sanctioning authority may direct:

Provided that such number shall not be less than twelve unless the subscriber so elects, and not more than sixty:

Provided further that a subscriber may, at his option, repay more than one installment in a month;

(b) – each installment shall be a number of whole rupees, the amount of the advance being raised or reduced, if necessary, to admit the fixation of such installments.”

(IV) in rule 15,-

(1) for sub-rule (1), the following shall be substituted, namely:-

“(1) Subject to the conditions specified in rule 16, withdrawals may be sanctioned by the Head of the Department, at any time-

(A) after the completion of ten years of service (including broken periods of service, if any) of a subscriber or within ten years before the date of his retirement on superannuation, whichever is earlier, from the amount standing to his credit in the Fund, for one or more of the following purposes, namely:-

(a) meeting the cost of primary, secondary or higher education covering all streams and educational institutions including, where necessary, the travelling expenses of the subscriber and members of his family or any person actually dependent on him;

(b) meeting the obligatory expenses in connection with betrothal or marriage, funeral or other ceremony of the subscriber, his family member or any other relation dependent on him;

(c) meeting the expenses in connection with the illness (confinement) or any disability, including, where necessary, the travelling expenses of the subscriber and members of his family or any person dependent on him;

(d) meeting the cost of consumer durables such as Television, washing machines, cooking range, geysers and computers;

(B) during the service of a subscriber from the amount standing to his credit in the Fund for one or more of the following purposes, namely:-

(a) building or acquiring a suitable house or ready-built flat for his residence including the cost of the site or any payment towards allotment of a plot or flat by the Delhi Development Authority, State Housing Board or a House Building Society;

(b) repaying an outstanding amount on account of loan expressly taken for building or acquiring a suitable house or ready-built flat for his residence;

(c) purchasing a house-site for building a house thereon for his residence or repaying any outstanding amount on account of loan expressly taken for this purpose;

(d) reconstructing or making additions or alterations to a house or a flat already owned or acquired by a subscriber;

(e) renovating, additions or alterations or upkeep of an ancestral house or a house built with the assistance of loan from Government;

(f) constructing a house on a site purchased under clause (c);

(C) after the completion of ten years of service of a subscriber (including broken periods of service, if any) from the amount standing to his credit in the Fund for one or more of the following purposes, namely:-

(a) purchase of motor car or motor cycle or scooter, or repayment of loan already taken for the purpose;

(b) extensive repairs or overhauling of motor car, making deposit to book a motor car or motor cycle or scooter, moped;

(D) within two years before the date of subscriber’s retirement on superannuation from the amount standing to the credit in the Fund, without linking to any purpose.

Note 1: A subscriber may be permitted to withdraw an amount not exceeding-

(i) three-fourth of the amount standing at credit, under sub-clauses (a), (b) and (d) of clause (A) and an amount not exceeding ninety per cent. of the amount standing at credit under sub-clause (c) of clause (A);

(ii) ninety per cent. of the amount standing at credit, under clause (B);

(iii) three-fourth of the amount standing at credit or cost of the vehicle, whichever is less, under clause (C);

(iv) ninety per cent. of the amount standing at credit under clause (D).

Note 2: A withdrawal under this rule shall be sanctioned and paid not later than fifteen days from the date of submission of the application for withdrawal. However, in emergent circumstances like illness of the subscriber or a member of his family or any person actually dependent on him, a withdrawal under this rule shall be sanctioned and paid not later than seven days from the date of submission of the application for withdrawal.

Note 3: A withdrawal for housing purpose will not be linked with the limits prescribed under House Building Advance rules.

Note 4: A withdrawal under this rule shall be sanctioned on the basis of a declaration by the subscriber explaining the reasons for seeking the withdrawal and no documentary proof shall be required to be furnished by him for this purpose.

Note 5: The amount of withdrawal sanctioned under sub-clause (b) of clause (B) shall not exceed ninety percent of the balance on date of application together with the amount of previous withdrawal under sub-clause (a), reduced by the amount of previous withdrawal. The formula shall be, 90/100 x (balance as on date plus amount of previous withdrawal(s) for the house in question) minus the amount of the previous withdrawal(s).

Note 6: Withdrawal under sub-clause (a) or (d) of clause (B) shall also be allowed where the house-site or house is in the name of wife or husband, provided she or he is the first nominee to receive Provident Fund money in the nomination made by the subscriber.

Note 7: Only one withdrawal shall be allowed for the same purpose under this rule. But marriage or education of different children or illness on different occasions or a further addition or alteration to a house or flat shall not be treated as the same purpose. Withdrawal for meeting the cost of education of a child may be allowed on annual basis till the concerned child continues to pursue the course. Second or subsequent withdrawal under sub-clause (a) or (f) of clause (B) for completion of the same house shall be allowed up to the limit laid down under Note 3.

Note 8: A withdrawal under this rule shall not be sanctioned if an advance under rule 12 is being sanctioned for the same purpose and at the same time.

(ii) in sub-rule (2), for the word ‘President’ wherever it occurs, the words ‘Head of the Department’ shall be substituted.”

(V) in Rule 16,

(i) for sub-rule (1), the following shall be substituted, namely:-

“(1) Any sum withdrawn by a subscriber at any one time for one or more of the purposes specified in rule 15 from the amount standing to his credit in the Fund shall not exceed the limit specified therein.

Note 1: A withdrawal to a subscriber under sub-clause (a) of clause (A) of sub-rule (1) of rule 15, may be permitted annually so long as the concerned child of the subscriber continues to pursue the course.

Note 2: In cases where a subscriber has to pay in installments for a site or a house or flat purchased, or a house or flat constructed through the Delhi Development Authority or a State Housing Board, a House Building Co-operative Society, he shall be permitted to make a withdrawal as and when he is called upon to make a payment in any installment. Every such payment shall be treated as a payment for a separate purpose for the purposes of sub-rule (1) of rule 16.”;

(ii) in sub-rule (2), for the word ‘President’, the words ‘Head of the Department’ shall be substituted;

(iii) in sub-rule (3),-

(a) in clause (a), for the word ‘President’ the words ‘Head of the Department’ shall be substituted;

(b) – clause (c) shall be omitted.

(VI) the Fifth Schedule shall be omitted.

[F. No. 3/2/2017-P & PW (F)]

VISHAL KUMAR, Under Secy.

Note: The principal rules were published in the Gazette of India, vide notification S.O. 3000, dated the 1st December, 1960 and last amended vide number G.S.R 96, dated the 15th June 2022.

Click to view the order in PDF

Check Also These Updates on GPF

How many withdrawals are allowed under the amended GPF rules?

Only one withdrawal is allowed for the same purpose.

Are there any exceptions to the one withdrawal rule?

Yes, there are exceptions. Withdrawals for different purposes such as marriage or education of different children, illness on different occasions, or further addition/alteration to a house or flat are not treated as the same purpose.

Can withdrawals for education costs be made annually?

Yes, withdrawals for meeting the cost of education of a child may be allowed on an annual basis as long as the child continues to pursue the course.

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What is General Provident Fund in India?

Amendment in GPF Rules – Advance, Recovery, and Withdrawal

Check Also These Updates on GPF

How many withdrawals are allowed under the amended GPF rules?

Are there any exceptions to the one withdrawal rule?

Can withdrawals for education costs be made annually?

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