THE GENERAL PROVIDENT FUND (CENTRAL SERVICE) RULES, 1960

RULES CONTENTS
1 Short title and commencement
2 Definition
3 Constitution of the Fund
4 Conditions of eligibility
5 Nominations
6 Subscribers’ accounts
7 Conditions subscriptions
8 Rates of subscriptions
9 Transfer to foreign service or deputation out of India
10 Realization of subscription
11 Interest
12 Advances from the fund
13 Recovery of advances
14 Wrongful use of advance
15 Withdrawals from the fund
16 Conditions for withdrawal
16-A Conversion of an advance into a withdrawal
17 Payment towards insurance policies and family pension funds
18 Number of policies that can be financed from the fund
19 Payment of difference between substituted payments and minimum
subscription
20 Reduction of subscription in certain cases
21 Government not to make payments to insurer on behalf of subscribers
22 Assignment of policies
23 Bonus of Policies
24 Re-assignment of policies
25 Procedure on maturity of policies
26 Procedure on cessation of interest of the subscriber in the Family Pension
Fund
27 Lapse or wrongful assignment of policies
28 Duty of accounts officer when he receives notices of assignment, charge or
encumbrance of policies
29 Wrongful use of money withheld or withdrawn
30 Restriction of the provisions relating to financing of policies to existing
subscribers in respect of existing policies
31 Final withdrawal of accumulations in the fund
32 Retirement of subscriber
33 Procedure on death of a subscriber
33A Deposit Linked Insurance Revised Scheme
33B 33B- Deposit Linked Insurance Revised Scheme
34 Manner of payment of amount in the fund
35 Procedure on Transfer of a Government servant from one Department to
another
35A Procedure on transfer to Government service of a person from the service
under a body corporate owned or controlled by Government or Autonomous
Organization registered under the Societies Registration
Act, 1960.
36 Transfer of amount to the contributory Provident Fund (India)
37 Relaxation of rules
38 Number of account to be quoted at the time of the payment of
subscription
39 Annual statement of accounts to be supplied to subscriber
40 Interpretation
41 Repealing clause
THE GENERAL PROVIDENT FUND (CENTRAL SERVICE) RULES, 1960

RULE 1: SHORT TITLE AND COMMENCEMENT

1. Short title and commencement.-(a) These rules may be called the General Provident
Fund (Central Services) Rules, 1960.
(b) They shall be deemed to have come into force on the 1st April, 1960.

RULE 2: DEFINITIONS

2. Rule 2- Definitions.-

(1) In these Rules unless the context otherwise requires-

(a) "Accounts Officer" means the officer to whom the duty to maintain the
Provident Fund Account of the subscriber has been assigned by
Government or the Comptroller and Auditor-General of India, as the case
may be.
NOTE- In relation to those subscribers who are officers borne on the cadre of the Indian
Audit and Accounts Department or officers belonging to Group 'A', 'B' or 'C'
Service and borne on the cadres of those Union Territory Administrations where
the Provident Fund Accounts have not been departmentalized, the duty to
maintain the Provident Fund Accounts shall be assigned by the Comptroller and
Auditor-General of India. In relation to the other subscribers, this duty shall be
assigned by Government.
(b) Save as otherwise expressly provided "emoluments" means pay, leave
salary, or subsistence grant as defined in the Fundamental Rules and
includes dearness pay appropriate to pay, leave salary or subsistence
grant, if admissible, and any remuneration of the nature of pay received
in respect or foreign service.
(c) "Family" means-
(i) in the case of a male subscriber, the wife or wives, parents, children,
minor brothers, unmarried sisters, deceased son's widow and children and
where no parents of the subscriber is alive, a paternal grandparent:
Provided that if a subscriber proves that his wife has been judicially
separated from him or has ceased under the customary law of the
community, to which she belongs to be entitled to maintenance she shall
henceforth be deemed to be no longer a member of the subscriber's family
in matters to which these rules relate unless the subscriber subsequently
intimates, in writing to the Accounts Officer that she shall continue to be
so regarded;
 (ii) in the case of a female subscriber, the husband, parents, children,
minor brothers, unmarried sisters, deceased son's widow and children
and where no parents of the subscriber is alive, a paternal
grandparent:

Provided that if a subscriber by notice in writing to the Accounts

Officer expresses her desire to exclude her husband from her family, the
husband shall henceforth be deemed to be no longer a member of the
subscriber's family in matters to which these rules relate, unless the subscriber
subsequently cancels such notice in writing.

NOTE- "Child" means a legitimate child and includes an adopted child, where
adoption is recognized by the personal law governing the subscriber *[or a ward under the
Guardians and Wards Act, 1890 (8 of 1890), who lives with the Government servant and is
treated as a member of the family and to whom the Government servant has, through a
special will, given the same status as that of a natural born child].

(d) "Fund" means the General Provident Fund.

(e) "Leave" means any variety of leave recognized by the Fundamental
Rules or the Civil Service Regulations or the Revised Leave Rules,
1933.
(f) "Year" means a financial year.
(2) Any other expression used in these rules which is defined either in the
Provident Funds Act, 1925 (19 of 1925) or in the Fundamental Rules is used in the
sense therein defined.

(3) Nothing in these rules shall be deemed to have the effect of terminating the
existence of the General Provident Fund as heretofore existing or of constituting
any new Fund.

*Inserted vide Notification No. 13 (5)-P & PW/90-E (GPF), dated the 21st
November, 1990, published as S.O. No. 3272 dated the 8th December, 1990.
__________________________________________________________________________________

RULE 3: CONSTITUTION OF THE FUND

3. Constitution of the Fund. – (1) The Fund shall be maintained in rupees.

(2) All sums paid into the Fund under these rules shall be credited in the books of
Government to an account named "The General Provident Fund". Sums of which payment
has not been taken within six months after they become payable under these rules shall be
transferred to "Deposits" at the end of the year and treated under the ordinary rules relating
to deposits.
RULE 4: CONDITIONS OF ELIGIBILITY

4. Conditions of eligibility - All temporary Government servants after a continuous

service of one year, all re-employed pensioners (other than those eligible for admission to
the Contributory Provident Fund) and all permanent Government servants shall subscribe
to the Fund:

Provided that no such servant as has been required or permitted to subscribe to a

Contributory Provident Fund shall be eligible to join or continue as a subscriber to the
Fund, while he retains his right to subscribe to such a Fund:

Provided further that a temporary Government servant, who is borne on an

establishment or factory to which the provisions of Employees' Provident Funds Scheme,
1952, framed under the Employees' Provident Funds and Miscellaneous Provisions Act,
1952 (19 of 1952), would apply or would have applied but for the exemption granted
under Section 17 of the said Act, shall subscribe to the General Provident Fund if he has
completed six months' continuous service or has actually worked for not less than 120 days
during a period of six months or less in such establishment or factory or in any other
establishment or factory to which the said Act applies, under the same employer or partly
in one and partly in the other.
1
[Provided also that nothing contained in these rules shall apply to Government
servant appointed on or after the 1st day of January, 2004.]

EXPLANATION - For the purposes of this rule "continuous service" shall have
the same meaning assigned to it in the Employees' Provident Funds Scheme, 1952, and
the period of work for 120 days shall be computed in the manner specified in the said
scheme and shall be certified by the employer.

NOTE 1- Apprentices and Probationers shall be treated as temporary Government

servants for the purpose of this rule.

NOTE 2- A temporary Government servant who completes one year of continuous

service during the middle of a month shall subscribe to the Fund from the subsequent
month.

NOTE 3- Temporary Government servants (including Apprentices and

Probationers) who have been appointed against regular vacancies and are likely to
continue for more than a year may subscribe to the General Provident Fund any time
before completion of one year's service.

1. Inserted vide. Notification F. No. 38/16/2003-P. & P.W. (A), dated the 30th December,
2003 published under S.O. 1485 (E) dated 30th December, 2003.

___________________________________________________________________________
RULE 5: NOMINATIONS
5. Nominations - (1) 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, before that amount has become payable or having become payable has not
been paid:

Provided that where a subscriber is a minor, he shall be required to make the

nomination only on his attaining the age of majority:

Provided further that a subscriber who has a family at the time of making the
nomination shall make such nomination only in favour of a member or members of his
family:
Provided further that the nomination made by the subscriber in respect of any other
Provident Fund to which he was subscribing before joining the Fund shall, if the amount to
his credit in such other fund has been transferred to his credit in the Fund, be deemed to be
a nomination duly made under this rule until he makes a nomination in accordance with
this rule.

(2) If a subscriber nominates more than one person under sub-rule (1), he shall
specify in the nomination the amount or share payable to each of the nominees in such
manner as to cover the whole of the amount that may stand to his credit in the Fund at any
time.

(3) Every nomination shall be made in the Form set forth in the First Schedule.

(4) A subscriber may at any time cancel a nomination by sending a notice in

writing to the Accounts Officer. The subscriber shall, along with such notice or separately,
send a fresh nomination made in accordance with the provisions of this rule.

(5) A subscriber may provide in a nomination-

(a) in respect of any specified nominee, that in the event of his

predeceasing the subscriber, the right conferred upon that nominee shall
pass to such other person or persons as may be specified in the
nomination, provided that such other person or persons shall, if the
subscriber has other members of his family, be such other member or
members. Where the subscriber confers such a right on more than one
person under this clause, he shall specify the amount or share payable to
each of such persons in such a manner as to cover the whole of the
amount payable to the nominee.
(b) that the nomination shall become invalid in the event of the happening
of a contingency specified therein:

Provided that if at the time of making the nomination the subscriber has only one
member of the family, he shall provide in the nomination that the right conferred
upon the alternate nominee under Clause (a) shall become invalid in the event of
his subsequently acquiring other member or members in his family.

(6) Immediately on the death of a nominee in respect of whom no special

provision has been made in the nomination under Clause (a) of sub-rule (5) or on the
occurrence of any event by reason of which the nomination becomes invalid in pursuance of
Clause (b) of sub-rule (5) or the proviso thereto, the subscriber shall send to the Accounts Officer a
notice in writing cancelling the nomination, together with a fresh nomination made in accordance
with the provisions of this rule.

(7) Every nomination made, and every notice of cancellation given by a subscriber
shall, to the extent that it is valid, take effect on the date on which it is received by the
Accounts Officer.

NOTE- In this rule, unless the context otherwise requires, "person" or "persons"
shall include a company or association or body of individuals, whether incorporated or not.
It shall also include a Fund such as the Prime Minister's National Relief Fund or any
charitable or other Trust or Fund, to which nomination may be made through the Secretary
or other executive of the said Funds or Trust authorized to receive payments.

RULE 6: SUBSCRIBER'S ACCOUNT

6. 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.

RULE 7: CONDITIONS OF SUBSCRIPTION

7. Conditions of subscriptions

(1) A subscriber shall subscribe monthly to the Fund except during the period when he is
under suspension:

Provided that a subscriber may, at his option, not subscribe during leave which either
does not carry any leave salary or carries leave salary equal to or less than half pay or
half average pay:

Provided further that a subscriber on reinstatement after a period passed under suspension
shall be allowed the option of paying in one lump sum, or in installments, any sum not
exceeding the maximum amount of arrear subscriptions payable for that period.

NOTE 1- Group 'C' and Group 'D' employees of the Survey of India who are
sent on departmental leave need not subscribe to the Fund, during the period of
such leave.
NOTE 2 - The holder of a seasonal post in an establishment need not subscribe to the
Fund, during the period of his unemployment.

NOTE 3- A subscriber need not subscribe during a period treated as dies non.

(2) The subscriber shall intimate his election not to subscribe during the leave referred to
in the first proviso to sub-rule (1) in the following manner:-

(a) if he is an officer who draws his own bills, by making no deduction on account
of subscription in his first pay bill drawn after proceeding on leave;

(b) if he is not an officer who draws his own pay bills, by written communication to
the Head of his Office before he proceeds on leave.

Failure to make due and timely intimation shall be deemed to constitute an election to
subscribe.

The option of a subscriber intimated under this sub-rule shall be final.

(3) A subscriber who has under Rule 32 withdrawn the amount standing to his credit in
the Fund shall not subscribe to the Fund after such withdrawal unless he returns to duty.

(4) Notwithstanding anything contained in sub-rule (1) a subscriber shall not subscribe to
the Fund for the month in which he quits service unless, before the commencement of the
said month, he communicates to the Head of Office in writing his option to subscribe for
the said month.

RULE 8: RATES OF SUBSCRIPTION

(1) The amount of subscription shall be fixed by the subscriber himself, subject to
the following conditions, namely:-

(a) It shall be expressed in whole rupees;

(b) It may be any sum, so expressed not less than 6 per cent of his emoluments and
not more than his total emoluments:
Provided that in the case of a subscriber who has previously been subscribing to a
Government Contributory Provident Fund at the higher rate of 8 ⅓ per cent, it may be any
sum, so expressed, not less than 8 ⅓ percent, of his emoluments and not more than his total
emoluments.
 (c) When a Government servant elects to subscribe at the minimum rate of 6 per
Cent, or 8 ⅓ percent, as the case may be, the fraction of a rupee will be rounded to the
nearest whole rupee, 50 p. counting as the next higher rupee.

(2) For the purpose of sub-rule (1), the emoluments of a subscriber shall be-
(a) in the case of a subscriber who was in Government service on the 31st March of
the preceding year, the emoluments to which he was entitled on that date:

Provided that-
(i) if the subscriber was on leave on the said date and elected not to
subscribe during such leave or was under suspension on the said
date, his emoluments shall be the emoluments to which he was
entitled on the first day after his return to duty;

(ii) if the subscriber was on deputation out of India on the said date or
was on leave on the said date and continues to be on leave and has
elected to subscribe during such leave, his emoluments shall be the
emoluments to which he would have been entitled had he been on
duty in India;

(b) in the case of a subscriber who was not in Government service on the 31st
March of the preceding year, the emoluments to which he was entitled on the
day he joins the Fund.

(3) The subscriber shall intimate the fixation of the amount of his monthly
subscription in each year in the following manner:-

(a) If he was on duty on the 31st March of the preceding year, by the deduction
which he makes in this behalf from his pay bill for that month;

(b) If he was on leave on the 31st March of the preceding year, and elected not to
subscribe during such leave, or was under suspension on that date, by the
deduction which he makes in this behalf from his first pay bill after his return
to duty;

(c) If he has entered Government service for the first time during the year, by the
deduction which he makes in this behalf, from his pay bill for the month
during which he joins the Fund;

(d) If he was on leave on the 31st March of the preceding year, and continues to
be on leave and has elected to subscribe during such leave, by the deduction
which he causes to be made in this behalf from his salary bill for that month;

(e) If he was on foreign service on the 31st March of the preceding year, by the
amount credited by him into the treasury on account of subscription for the
month of April in the current year;
 (4) The amount of subscription so fixed may be-
(a) reduced once at any time during the course of the year;
(b) enhanced twice during the course of the year; or
(c) reduced and enhanced as aforesaid:
Provided that when the amount of subscription is so reduced, it shall not be less
than the minimum prescribed in sub-rule (1):

Provided further that if a subscriber is on leave without pay or leave on half pay or
half average pay for a part of a calendar month and he has elected not to subscribe
during such leave, the amount of subscription payable shall be proportionate to the
number of days spent on duty including leave, if any, other than those referred to
above.

RULE 9: TRANSFER TO FOREIGN SERVICE OR DEPUTATION

OUT OF INDIA

When a subscriber is transferred to foreign service or sent on deputation out of

India, he shall remain subject to the rules of the Fund in the same manner as if he were not
so transferred or sent on deputation.

RULE 10: REALIZATION OF SUBSCRIPTIONS

10. Realization of subscriptions - (1) When emoluments are drawn from a Government
treasury in India or from an authorized office of disbursement outside India, recovery of
subscriptions on account of these emoluments and of the principal and interest of advances
shall be made from the emoluments themselves.

(2) When emoluments are drawn from any other source, the subscriber shall
forward his dues monthly to the Accounts Officer:

Provided that in the case of a subscriber on deputation to a body corporate, owned

or controlled by Government, the subscriptions shall be recovered and forwarded to the
Accounts Officer by such body.

(3) If a subscriber fails to subscribe with effect from the date on which he is
required to join the Fund or is on default in any month or months during the course of a
year otherwise than is provided in Rule 7, the total amount due to the Fund on account of
arrears of subscription shall, with interest thereon at the rate provided in Rule 11, forthwith
be paid by the subscriber to the Fund or in default be ordered by the Accounts Officer to
be recovered by deduction from the emoluments of the subscriber by instalments or
otherwise, as may be directed by the authority competent to sanction an advance for the
grant of which special reasons are required under sub-rule (2) of Rule 12:

Provided that subscribers whose deposits in the Fund carry no interest shall not be
required to pay any interest.
RULE 11: INTEREST
11. Interest -(1) Subject to the provisions of sub-rule (5), Government shall pay to
the credit of the account of a subscriber interest at such rate as may be determined for each
year according to the method of calculation prescribed from time to time by the
Government of India;

Provided that, if the rate of interest determined for a year is less than 4 per cent, all
subscribers to the Fund in the year preceding that for which the rate has for the first time
been fixed at less than 4 per cent, shall be allowed interest at 4 per cent:

Provided further that a subscriber who was previously subscribing to any other
Provident Fund of the Central Government and whose subscriptions, together with interest
thereon, have been transferred to his credit in his Fund under Rule 35, shall also be
allowed interest at 4 per cent, if he had been receiving that rate of interest under the rules
of such other Fund under a provision similar to that of the first proviso to this rule.
(2) Interest shall be credited with effect from last day in each year in the following
manner:-

(i) on the amount to the credit of a subscriber on the last day of the preceding
year, less any sums withdrawn during the current years - interest for twelve
months;

(ii) on sums withdrawn during the current year - interest from the beginning of the
current year up to the last day of the month preceding the month of withdrawal;

(iii) on all the sums credited to the subscriber's account after the last day of the
preceding year - interest from the date of deposit up to the end of the current
year;

(iv) the total amount of interest shall be rounded to the nearest whole rupee (fifty
paise counting as the next higher rupee):

Provided that when the amount standing to the credit of a subscriber has become
payable, interest shall thereupon be credited under this rule in respect only of the period
from the beginning of the current year or from the date of deposit, as the case may be, up
to the date on which the amount standing to the credit of the subscriber became payable.

(3) In this rule, the date of deposit shall in the case of recoveries from emoluments
be deemed to be the first day of the month in which it is recovered, and in the case of
amounts forwarded by the subscriber, shall be deemed to be the first day of the month of
receipt, it is received on or after the fifth day of that month, the first day of the next
succeeding month:

Provided that where there has been delay in the drawal of pay or leave salary and
allowances of a subscriber and consequently in the recovery of his subscription towards
the Fund, the interest on such subscriptions shall be payable from the month in which the
pay or leave salary of the subscriber was due under the rules, irrespective of the month in
which it was actually drawn:
 Provided further that in the case of an amount forwarded in accordance with the
proviso to sub-rule (2) of Rule 10, the date of deposit shall be deemed to be the first day of
the month if it is received by the Accounts Officer before the fifteenth day of that month:

Provided further that where the emoluments for a month are drawn and disbursed
on the last working day of the same month, the date of deposit shall, in the case of
recovery of his subscriptions, be deemed to be the first day of the succeeding month.

(4) In addition to any amount to be paid under Rules 31, 32 or 33, interest thereon
up to the end of the month preceding that in which the payment is made, or up to the end
of the sixth month after the month in which such amount, became payable whichever of
these periods be less, shall be payable to the person to whom such amount is to be paid:

Provided that where the Accounts Officer has intimated to that person (or his
agent) a date on which he is prepared to make payment in cash, or has posted a cheque in
payment to that person, interest shall be payable only up to the end of the month preceding
the date so intimated, or the date of posting the cheque, as the case may be:

Provided further that where a subscriber on deputation to a body corporate, owned

or controlled by the Government or an autonomous organization registered under the
Societies Registration Act, 1860 (21 of 1860), is subsequently absorbed in such body
corporate or organization with effect from a retrospective date, for the purpose of
calculating the interest due on the Fund accumulations of the subscriber, the date of issue
of the orders regarding absorption shall be deemed to be the date on which the amount to
the credit of the subscriber became payable subject, however, to the condition that the
amount recovered as subscription during the period commencing from the date of
absorption and ending with the date of issue of orders of absorption shall be deemed to be
subscription to the Fund only for the purpose of awarding interest under this sub-rule.

NOTE - Payment of interest on the Fund balance beyond a period of 6 months may
be authorized by-

(a) the Head of Accounts Office (which expression includes the Pay and Accounts
Officer, where there is one) up to a period of one year; and
(b) the immediate superior to the Head of Accounts Office (which expression
includes a Controller of Accounts, where there is one or the Financial Adviser
to the concerned Administrative Ministry or Department) up to any period;

after he has personally satisfied himself that the delay in payment was occasioned by
circumstances beyond the control of the subscriber or the person to whom such payment
was to be made, and in every such case the administrative delay involved in the matter
shall be fully investigated and action, if any required taken.

(5) Interest shall not be credited to the account of a subscriber if he informs the
Accounts Officer that he does not wish to receive it; but if he subsequently asks for
interest, it shall be credited with effect from the first day of the year in which he asks for it.
 (6) The interest on amounts which under sub-rule (3) of Rule 10, Rule 31 or Rule
32 are replaced to the credit of the subscriber in the Fund, shall be calculated at such rates
as may be successively prescribed under sub-rule (1) of this rule and so far as may be in
the manner described in this rule.

(7) In case a subscriber is found to have drawn from the Fund an amount in excess
of the amount standing to his credit on the date of the drawal, the overdrawn amount,
irrespective of whether the overdrawal occurred in the course of an advance or a
withdrawal or the final payment from the Fund, shall be repaid by him with interest
thereon in one lump sum or in default, be ordered to be recovered, by deduction in one
lump sum, from the emoluments of the subscriber. If the total amount to be recovered is
more than half of the subscriber's emoluments, recoveries shall be made in monthly
instalments of moieties of his emoluments till the entire amount together with interest is
recovered. For this sub-rule, the rate of interest to be charged on overdrawn amount
would be 2 ½ % over and above the normal rate on Provident Fund balance under sub-
rule(1). The interest realized on the overdrawn amount shall be credited to Government
account, under a distinct sub-head "Interest on overdrawals from Provident Fund" under
the Head "049-Interest Receipts-C-Other interest receipts of Central Government - Other
Receipts".

RULE 12: ADVANCES FROM THE FUND

12. Advances from the fund - (1) The appropriate sanctioning authority
may sanction the payment to any subscriber of an advance consisting of a sum of
whole rupees and not exceeding in amount three months' pay or half the amount
standing to his credit in the Fund, whichever is less, for one or more of the follow-
ing purposes:-

(a) to pay expenses in connection with the illness, (confinement) or a disability,

including where necessary, the travelling expenses of the subscriber and
members of his family or any person actually dependent on him;

(b) to meet cost of higher education, including where necessary, the travelling
expenses of the subscriber and members of his family or any person actually
dependent on him in the following cases, namely:-

(i) for education outside India for academic, technical, professional or

vocational course beyond the High School stage; and

(ii) for any medical, engineering or other technical or specialized course

in India beyond the High School stage, provided that the course of
study is for not less than three years;

(c) to pay obligatory expenses on a scale appropriate to the subscriber's status

which by customary usage the subscriber has to incur in connection with
betrothal or marriages, funerals or other ceremonies;
 (d) 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.

(e) 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.

1
(f) [to purchase consumer durables such as TV, VCRNCP, washing machines,
cooking range, geysers and computers.]

2
(g) [to meet the expenses for visiting places which, to the satisfaction of the
sanctioning authority, are considered as places of pilgrimage or places of
eminence of any religion.]

(1-A) The President 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).

(2) An advance shall not, except for special reasons to be recorded in writing, be
granted to any subscriber in excess of the limit laid down in sub-rule (1) or until repayment
of the last instalment of any previous advance.

(3) When an advance is sanctioned under sub-rule (2) before repayment of last
instalment of any previous advance is completed, the balance of any previous advance not
recovered shall be added to the advance so sanctioned and the instalments for recovery
shall be fixed with reference to the consolidated amount.

(4) After sanctioning the advance, the amount shall be drawn on an authorization
from the Accounts Officer in case where the application for final payment had been
forwarded to the Accounts Officer under Clause (ii) of sub-rule (3) of Rule 34.

NOTE 1- For the purpose of this rule, pay includes dearness pay where admissible.

NOTE 2- The appropriate sanctioning authority for the purpose of this rule is
specified in the Fifth Schedule.

NOTE 3- A subscriber shall be permitted to take an advance once in every six

months under item (b) of sub-rule (1) of Rule 12.
 1. Inserted vide Notification No. 20 (2)/92-P. & P.W (E)/(A), dated the 28th
December, 1995, published as S.O. No. 379 in the Gazette of India, dated the 10th
February, 1996.
2. Inserted videNotification No.13/1/06-P& PW(F), dated the 20th November, 2006,
published as S.O. No.2689 in the Gazette of India, dated the 22 nd September, 2009.
_______________________________________________________________

RULE 13- RECOVERY OF ADVANCES

(1) An advance shall be recovered from the subscriber in such number of equal
monthly instalments as the sanctioning authority may direct; but such number shall not be
less than twelve unless the subscriber so elects and more than twenty-four. In special cases
where the amount of advance exceeds three months' pay of the subscriber under sub-rule
(2) of Rule 12, the sanctioning authority may fix such number of instalments to be more
than twenty-four but in no case more than thirty-six. A subscriber may, at his option, repay
more than one instalment in a month. Each instalment shall be a number of whole rupees,
the amount of the advance being raised or reduced, if necessary, to admit of the fixation of
such instalments.

(2) Recovery shall be made in the manner prescribed in Rule 10 for the realization
of subscriptions, and shall commence with the issue of pay for the month following the
one in which the advance was drawn. Recovery shall not be made, except with the
subscriber's consent while he is in receipt of subsistence grant or is on leave for ten days or
more in a calendar month which either does not carry any leave salary or carries leave
salary equal to or less than half pay or half average pay, as the case may be. The recovery
may he postponed, on the subscriber's written request, by the sanctioning authority during
recovery of an advance of pay granted to the subscriber.

(3) If an advance has been granted to a subscriber and drawn by him and the
advance is subsequently disallowed before repayment is completed, the whole or balance
of the amount withdrawn shall forthwith be repaid by the subscriber to the Fund, or in
default, be ordered by the Accounts Officer to be recovered by deduction from the
emoluments of the subscriber in a lumps urn or in monthly instalments not exceeding
twelve as may be directed by the authority competent to sanction an advance for the grant
of which, special reasons are required under sub-rule (2) of Rule 12:

Provided that, before such advance is disallowed, the subscriber shall be given an
opportunity to explain to the sanctioning authority in writing and within fifteen days of the
receipt of the communication why the repayment shall not be enforced and if an
explanation is submitted by the subscriber within the said period of fifteen days, it shall be
referred to the President for decision; and if no explanation within the said period is
submitted by him, the repayment of the advance shall be enforced in the manner
prescribed in this sub-rule.

(4) Recoveries made under this rule shall be credited as they are made to the
subscriber's account in the Fund.
RULE 14- WRONGFUL USE OF ADVANCE

Wrongful use of advance. -Notwithstanding anything contained in these rules, if the

sanctioning authority has reason to doubt that money drawn as an advance from the Fund
under Rule 12 has been utilized for a purpose other than that for which sanction was given
to the drawal of the money, he shall communicate to the subscriber the reasons for his
doubt and require him to explain in writing and within fifteen days of the receipt of such
communication whether the advance has been utilized for the purpose for which sanction
was given to the drawal of the money. If the sanctioning authority is not satisfied with the
explanation furnished by the subscriber within the said period of fifteen days, the
sanctioning authority shall direct the subscriber to repay the amount in question to the
Fund forthwith or, in default, order the amount to be recovered by deduction in one* sum
from the emoluments of the subscriber even if he be on leave. If, however, the total
amount to be repaid be more than half the subscriber's emoluments, recoveries shall be
made in monthly instalments of moieties of
his emoluments till the entire amount is repaid by him.

NOTE- The term "emoluments" in the rule does not include subsistence grant.

RULE 15- WITHDRAWALS FROM THE FUND

15. Withdrawals from the Fund

(1) Subject to the conditions specified therein, withdrawals may be sanctioned by

the authorities competent to sanction an advance for special reasons under sub-rule (2) of
Rule 12, at any time-

(A) after the completion of 1[ fifteen] 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 higher education, including where necessary, the travelling
expenses of the subscriber or any child of the subscriber in the following
cases, namely:-
(i) for education outside India for academic, technical, professional or
vocational course beyond the High School stage; and
(ii) for any medical, engineering or other technical or specialized course in
India beyond the High School stage;
(b) meeting the expenditure in connection with the betrothal/ marriage of the
subscriber or his sons or his daughters, and any other female relation actually
dependent on him;

(c) meeting the expenses in connection with the illness, including where
necessary, the travelling expenses of the subscriber and members of his
family or any person actually dependent on him;
2
(d) meeting the cost of consumer durables such as TV, VCR/VCP, washing
machines, cooking range, geysers and computers.
 (B) 3[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 4[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;
5
(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)

6
(C) within twelve months before the date of subscriber's retirement on
superannuation from the amount standing to the credit in the Fund, without linking to any
purpose.

(D) Once during the course of a financial year, an amount equivalent to one year's
subscription paid for by the subscriber towards the Group Insurance Scheme for the
Central Government employees on self-financing and contributory basis.

NOTE 1- A subscriber who has availed himself of an advance under the Scheme of
the Ministry of Works and Housing for the grant of advance for house-building purpose, or
has been allowed any assistance in this regard from any other Government source, shall be
eligible for the grant of final withdrawal under sub-clauses (a), (c), (d) and (f) of Clause
(B) for the purposes specified therein and also for the purpose of repayment of any loan
taken under the aforesaid Scheme subject to the limit specified in the proviso to sub-rule
(1) of Rule 16.

If a subscriber has an ancestral house or built a house at a place other than the place
of his duty with the assistance of loan taken from the Government, he shall be eligible for
the grant of a final withdrawal under sub-clauses (a), (c) and (f) of Clause (B) for purchase
of a house-site or for construction of another house or for acquiring a ready-built flat at the
place of his duty.
 NOTE 2- Withdrawal under sub-clauses (a), (d), (e) or (j) of Clause (B) shall be
sanctioned only after a subscriber has submitted a plan of the house to be constructed or of
the additions or alterations to be made, duly approved by the Local Municipal Body of the
area where the site or house is situated and only in cases where the plan is actually got to
be approved.

NOTE 3- The amount of withdrawal sanctioned under sub-clause (b) of clause (B)
shall not exceed 3/4th 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 to be followed is 3/4th of (the balance as on date plus amount of previous
withdrawal(s) for the house in question) minus the amount of the previous withdrawal(s).

NOTE 4- 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.
7
[NOTE 5- 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 covered by a fresh plan duly approved by
the Local Municipal Body of the area where the house or flat is situated 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 technical or
professional 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 6- 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.

(2) Whenever a subscriber is in a position to satisfy the Competent Authority

about the amount standing to his credit in the General Provident Fund Account with
reference to the latest available statement of General Provident Fund Account together
with the evidence of subsequent contribution, the Competent Authority may itself sanction
withdrawal within the prescribed limits, as in the case of a refundable advance. In doing
so, the Competent Authority shall take into account any withdrawal or refundable advance
already sanctioned by it in favour of the subscriber. Where, however, the subscriber is not
in a position to satisfy the Competent Authority about the amount standing to his credit or
where there is any doubt about the admissibility of the withdrawal applied for, a reference
may be made to the Accounts Officer by the Competent Authority for ascertaining the
amount standing to the credit of the subscriber with a view to enable the Competent
Authority to determine the admissibility of the amount of withdrawal. The sanction for the
withdrawal should prominently indicate the General Provident Fund Account Number and
the Accounts Officer maintaining the accounts and a copy of the sanction should
invariably be endorsed to the Accounts Of- ficer. The sanctioning authority shall be
responsible to ensure that an acknowledgement is obtained from the Accounts Officer that
the sanction for withdrawal has been noted in the ledger account of the subscriber. In case
the Accounts Off1cer reports that the withdrawal as sanctioned is in excess of the
amount to the credit of the subscriber shall forthwith be repaid in one lump sum* by the
 subscriber or otherwise inadmissible, the sum withdrawn by the subscriber to the fund and
in default of such repayment, it shall be ordered by the Sanctioning Authority to be
recovered from his emoluments either in a lump sum or in such number of monthly
instalments as may be determined by the President.

(3) After sanctioning the withdrawal, the amount shall be drawn on an

authorization from the Accounts Officer in cases where the application for final payment
had been forwarded to the Accounts Officer under Clause (ii) of sub-rule (3) of Rule 34.

l. Substituted for "twenty" vide Notification No. 20 (2)/ 92-P.& P .W. (E)/(A), dated the
28th December, 1995, published as S.O. No. 379 in the Gazette of India, dated the 10th
February, 1996.
2. Inserted vide Notification No, 20 (2)/92-P, & P,W, (E)/(A), dated the 28th December,
1995, published as S,O, No, 379 in the Gazette of India, dated the 10th February, 1996.
3. Substituted vide Notification No, 20 (11)-P, & P,W.l86 (GPF), dated the 23rd October,
1990, published as S.O. No. 3006 in the Gazette of India, dated the 17th November, 1990

4. Substituted vide Notification No, 20 (II)-P, & P,W.l86 (GPF), dated the 23rd October,
1990, published as S.O. No. 3006 in the Gazette of India, dated the 17th November, 1990,
5. Substituted vide Notification No. 20 (5)/92-E. (Pt.), dated the 18th July, 1995, published
as S.O. No. 377 in the Gazette of India, dated the 10th February, 1996.
6. Substituted vide Notification No. 20 (26)-P. & P.W./ 88-E, dated the 8th November,
1990, published as S.O. No. 3272 in the Gazette of India, dated the 8th December, 1990.

7. Substituted vide Notification No. 45/44/97-P & PW (F), dated the 18th November,
1998, published as S.O. No. 2500 in the Gazette of India, dated the 5th December, 1998.
___________________________________________________________________________

RULE 16- CONDITIONS FOR WITHDRAWAL

(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
ordinarily exceed one-half of such amount or six months' pay, whichever is less. The
sanctioning authority may, however, sanction the withdrawal of an amount in excess of
this limit up to ¾ths of the balance at his credit in the Fund having due regard to (i) the
object for which the withdrawal is being made, (ii) the status of the subscriber, and (iii) the
amount to his credit in the Fund 1[in case of withdrawal under Clause (A) and up to 90%
of balance at credit in cases of withdrawals under Clause (B) of sub-rule (1) of Rule 15].

Provided that in no case the maximum amount of withdrawal for purposes

specified in Clause (B) of sub-rule (1) of Rule 15 shall exceed the maximum limit
prescribed from time to time under Rules 2 (a) and 3 (b) of the Scheme of the
Ministry of Works and Housing for the grant of advances for house-building
purposes:
 Provided further that in the case of a subscriber who has availed
himself of an advance under the Scheme of the Ministry of Works and Housing
for the grant of advances for house-building purposes, or has been allowed any
assistance in this regard from any other Government source, the sum
withdrawn under this sub-rule together with the amount of advance taken under
the aforesaid Scheme or the assistance taken from any other Government
source shall not exceed the maximum limit prescribed from time to time under
Rules 2 (a) and 3 (b) of the aforesaid Scheme:
2
[Provided further that the withdrawal admissible under Rule 15 (1) (C) shall not
exceed 90% of the amount standing to the credit of the subscriber in the fund.]

3. [NOTE l- 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- 1n cases where a subscriber has to pay in instalments for a site or a

house or 11at 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
instalment. Every such payment shall be treated as a payment for a separate purpose for
the purposes of sub-rule (1) of Rule 16.

NOTE 3- In case the sanctioning authority is satisfied that the amount standing to
the credit of a subscriber in the Fund is insufficient and he is unable to meet his
requirements otherwise than by withdrawal, the amount already withdrawn by the
subscriber from the Fund to finance any insurance policy or policies under rule 17, may be
taken into account as an addition to the actual amount standing to his credit in the Fund for
the purpose of the limit laid down in this sub-rule. After the amount of withdrawal
admissible has been so determined-

(i) if the amount so determined exceeds the amount already withdrawn from
the Fund to finance insurance policy or policies under rule 17, the amount
so withdrawn may be treated as final withdrawal and the difference, if any,
between the amount so treated and the total amount of withdrawal
admissible may be paid in cash; and

(ii) if the amount so determined does not exceed the amount already withdrawn
from the Fund to finance any insurance policy or policies under rule 17, the
amount so withdrawn may, irrespective of the limit specified in sub-rule
(1), be treated as final withdrawal.

For the above purpose, the Accounts Officer shall reassign the policy or policies to
the subscriber or to the subscriber and the joint assured, as the case may be, and make it
over to the subscriber who will then be free to utilize the same for the purpose for which it
has been released.
 (2) A subscriber who has been permitted to withdraw money from the Fund under
Rule 15 shall satisfy the sanctioning authority within a reasonable period as may be
specified by that authority that the money has been utilized for the purpose for which it
was withdrawn, and if he fails to do so, the whole of the sum so withdrawn or so much
thereof as has not been applied for the purpose for which it was withdrawn shall forthwith
be repaid in one lump sum by the subscriber to the Fund and in default of such payment, it
shall be ordered by the sanctioning authority to be recovered from his emoluments either
in a lump sum or in such number of monthly installments, as may be determined by the
President.

Provided that, before repayment of a withdrawal is enforced under this sub-rule,

the subscriber shall be given an opportunity to explain in writing and within fifteen days of
the receipt of the communication why the repayment shall not be enforced; and if the
sanctioning authority is not satisfied with the explanation or no explanation is submitted
by the subscriber within the said period of fifteen days, the sanctioning authority shall
enforce the repayment in the manner prescribed in this sub-rule.

(3) (a) A subscriber who has been permitted under sub-clause (a), sub-clause (b) or
sub-clause (c) of Clause (B) of sub-rule (1) of Rule 15 to withdraw money from the
amount standing to his credit in the Fund, shall not part with the possession of the house
built or acquired or house-site purchased with the money so withdrawn, whether by way of
sale, mortgage (other than mortgage to the President), gift, exchange or otherwise, without
the previous permission of the President:

Provided that such permission shall not be necessary for-

(i) the house or house-site being leased for any term not exceeding
three years, or

(ii) its being mortgaged in favour of a Housing Board, *Nationalized

Banks, the Life Insurance Corporation or any other Corporation
owned or controlled by the Central Government which advances,
loans for the construction of a new house or for making additions or
alteration to an existing house.

(b) The subscriber shall submit a declaration not later than the 31st day of
December of every year as to whether the house or the house-site, as the case may be,
continues to be in his possession or has been mortgaged, otherwise transferred or let out as
aforesaid and shall, if so required, produce before the sanctioning authority on or before
the date specified by that authority in that behalf, the original sale, mortgage or lease deed
and also the documents on which his title to the property is based.

(c) If, at any time before his retirement, the subscriber parts with the possession of
the house or house-site without obtaining the previous permission of the President, he shall
forthwith repay the sum so withdrawn by him in a lump sum to the Fund, and in default of
such repayment, the sanctioning authority shall, after giving the subscriber a reasonable
opportunity of making a representation in the matter, cause the said sum to be recovered
from the emoluments of the subscriber either in a lump sum or in such number of monthly
instalments, as may be determined by it.
 NOTE- A subscriber who has taken loan from Government in lieu thereof
mortgaged the house or house-site to the Government shall be required to furnish the
declaration to the following effect, namely:-

"I do hereby certify that the house or house-site for the construction of which or for
the acquisition of which I have taken a final withdrawal from the Provident Fund
continues to be in my possession but stands mortgaged to Government.”

---------------------------------------------------------------------------------------------------------------
1. Inserted vide Notification No. 20(11)-PP&PW/86-GPF dted the 23rd October, 1990
published as S.O No.3006 in the Gazette of India dated the 17th November, 1990.

2. Inserted vide Notification No. 20 (26)-P & P. W./88-E, dated the 8th November, 1990.

3. Substituted vide Notification No. 45/44/97-P & P.W. (F), dated the 18th November,
1998 and published as S.O. 2500 in the Gazelle of India, dated the 5th December, 1998.

----------------------------------------------------------------------------------------------------------------

RULE 16-A: CONVERSION OF AN ADVANCE INTO A WITHDRAWAL

A subscriber who has already drawn or may draw in future an advance under Rule
12 for any of the purposes specified in sub-rule (1) of Rule 15 may convert, at his
discretion by written request addressed to the Accounts Officer through the sanctioning
authority, the balance outstanding against it into a final withdrawal on his satisfying the
conditions laid down in Rules 15 and 16.

NOTE 1- The Head of Office in the case of non-Gazetted subscribers and the
Treasury Officer concerned in the case of Gazetted subscribers may be asked by the
administrative authority to stop recoveries from the pay bills when the application for such
conversion is forwarded to the Accounts Officer by that authority. In the case of Gazetted
subscribers, the administrative authority shall endorse a copy of the letter forwarding the
subscriber's intimation to the Treasury Officer from where he draws his pay in order to
permit stoppage of further recoveries.

NOTE 2- For the purposes of sub-rule (1) of Rule 16, the amount or subscription
with interest thereon standing to the credit of the subscriber in the account at the time of
conversion plus the outstanding amount of advance shall be taken as the balance. Each
withdrawal shall be treated as a separate one and the same principle shall apply in the
event of more than one conversion.
RULE 17: PAYMENT TOWARDS INSURANCE POLICIES AND

FAMILY PENSION FUNDS

17. Payment towards Insurance Policies .- Subject to the conditions hereinafter

contained in rules 18 to 28-

(a) (i) subscription to a family pension fund approved in this behalf by the President;
or

(ii) Payment towards a policy of life insurance, may at the option of a subscriber; be
substituted in whole or part for subscriptions due to the Fund;

(b) the amount of subscriptions with interest thereon standing to the credit of a
subscriber in the Fund may be withdrawn to meet-

(i) a payment towards a policy of life insurance;

(ii) the purchase of a single payment insurance policy;.

(iii) the payment of a single premium or subscriptions to a family pension

fund approved in this behalf by the President:

Provided that no amount shall be withdrawn (1) before the details of the proposed
policy have been submitted to the Accounts Officer and accepted by him as suitable, or (2)
to meet any payment or purchase made or effected more than three months before the date
of application or presentation of claim for withdrawal, or (3) to meet payment of any
premium or subscription more that three months in advance of the due date of payment.

NOTE - Due date of payment for the purpose of this proviso will be the date up to
which payment can be made including the grace period allowed by the insurance
companies.

EXPLANATION- Under clause (3) of this proviso no withdrawal from the

fund for financing a policy of life insurance shall be made after the due date of
payment without production of the premium receipt in token of such payment:

Provided further that payments towards an educational endowment policy may not
be substituted for subscriptions to the Fund and that no amounts may be withdrawn to
meet any payment or purchase in respect of such a policy if that policy is due for payment
in whole or part before the subscriber's age of normal superannuation :

Provided further that amounts withdrawn shall be in whole rupees, but shall not
include fraction of a rupee although such amount is less than the amount actually required.
RULE 18: NUMBER OF POLICIES THAT CAN BE FINANCED FROM
THE FUND
(1) The number of policies in respect of which substitution for subscriptions due
to the Fund or withdrawal of subscriptions from the Fund may be permitted under rule 17,
shall not exceed four;

Provided that where immediately before the 22nd June, 1953, substitution for
subscription due to the Fund or withdrawal of subscriptions from the Fund, was permitted
in respect of more than four policies , such substitution or withdrawal shall continue to be
permitted in respect of those policies.

(2) The premium for a policy [including any policy referred to in the proviso to
sub-rule (1)] in respect of which withdrawal of subscriptions from the Fund may be
permitted under rule 17 shall not be payable otherwise than annually.

EXPLANATION- In computing maximum number of policies specified in sub-

rule (1), policies which. have matured or have been converted into paid up policies shall
be excluded.

RULE 19: PAYMENT OF DIFFERENCE BETWEEN SUBSTITUTED

PAYMENTS AND MINIMUM SUBSCRIPTIONS
(1) If the total amount of any subscriptions or payments substituted under caluse
(a) of rule 17 is less than the amount of the minimum subscription payable to the Fund
under sub- rule (l) of rule 8, the difference shall be rounded to the nearest rupee in the
manner provided in clause (iv) of sub-rule (2) of rule 11 and paid by the subscriber as
subscription to the Fund.

(2) If the subscriber withdraws any amount standing to his credit in the Fund for
any of the purposes specified in clause (b) of rule 17, he shall, subject to his option under
clause (a) of that rule, continue to pay to the Fund the subscription payable under rule 8.

RULE 20: REDUCTION OF SUBSCRIPTION IN CERTAIN CASES

(1) A subscriber who desires to substitute a subscription or payment under clause

(a) of rule 17, may reduce his subscription to the Fund accordingly :

Provided that the subscriber shall-

(a) Intimate to the Accounts Officer on his pay bill or by letter the fact of, and reason
for, the reduction;

(b) Send to the Accounts Officer, within such period as the Accounts Officer may
require, receipts or certified copies of receipts in order to satisfy the Accounts
Officer that the amount by which the subscription has been reduced was duly
applied for the purposes specified in clause (a) of rule 17.
 (2) A subscriber who desires to withdraw any amount under clause (b) of rule 17
shall-

(a) intimate the reason for the withdrawal to the Accounts Officer by letter;

(b) make arrangements with the Accounts Officer for the withdrawal;

(c) send to the Accounts Officer, within such period as the Accounts
Officer may require, receipts or certified copies of receipts in order to
satisfy the Accounts Officer, that the amount withdrawn was duly
applied for the purposes specified in clause (b) of rule 17.

(3) The Accounts Officer shall order the recovery of any amount by which
subscriptions have been reduced or of any amount withdrawn, in respect of which he has
not been satisfied in the manner required by clause (b} of sub-rule (1) and clause (c) of
sub-rule (2), from the emoluments of the subscriber and place it to the credit of the
subscriber in the Fund.

RULE 21: GOVERNMEN NOT TO MAKE PAYMENTS TO INSURER

ON BEHALF OF SUBSCRIBERS
(1) Government shall not make any payments on behalf of subscribers to
Insurance Companies nor take steps to keep a policy alive.

(2) A policy to be acceptable under these rules shall be one effected by the
subscriber himself on his own life, and shall (unless it is a policy effected by a male
subscriber which is expressed on the face of it to be for the benefit of his wife or of his
wife and children or any of them) be such as may be legally assigned by the subscriber to
the President.

EXPLANATION- A policy on type joint lives of the sub- scriber and the
subscriber's wife or husband shall be deemed to be a policy on the life of the
subscriber for the purpose of this sub-rule.

EXPLANATION- A policy which has been assigned to the subscriber's

wife shall not be accepted unless either the policy is first-re-assigned to the
subscriber or the subscriber and his wife both join in an appropriate
assignment.

(3) The policy may not be effected for the benefit of any beneficiary other than the
wife or husband of the subscriber or the wife or husband and children of the subscriber or
any of them:

Provided that subscribers who took out policies under Note 1 to Rule 21 (ii) or
under clause (b) or (C) of Rule 21A of the Rules in force prior to the 1st April, 1934 shall
remain subject to the provisions of those rules in so far as policies so taken out are
concerned.
RULE 22: ASSIGNMENT OF POLICIES

(1) The policy within six months after the first withholding of a subscription or
withdrawal from the Fund in respect of the policy or in the case of an insurance company
whose headquarters are outside India, within such further period as the Accounts Officer,
if he is satisfied by the production of the completion certificate (interim receipt), may
fix, shall-

(a) unless it is a policy effected by a male subscriber which is expressed on the

face of it to be for the benefit of the wife of the subscriber, or of his wife and
children or any of them, be assigned to the President as security for the
payment of any sum which may become payable to the Fund under rule 27,
and delivered to the Accounts Officer, the assignment being made by
endorsement on the policy in Form (1) or Form (2) Or Form (3) of the Forms
in the Second Schedule according as the policy is on the life of the subscriber
or on the joint lives of the subscriber and the subscriber's wife or husband or
the policy has previously been assigned to the subscriber's wife;

(b) if it is a policy effected by a male subscriber which is expressed on the face of

it to be for the benefit of the wife of the subscriber or of his wife and children
or any of them, be delivered to the Accounts Officer.

(2) The Accounts Officer shall satisfy himself by reference to the Insurance
Company where possible, that no prior assignment of the policy exists.

(3) Once a policy has been accepted by an Accounts Officer for the purpose of
being financed from the Fund, the terms of the policy shall not be altered nor shall the
policy be exchanged for another policy without the prior consent of the Accounts Officer
to whom details of the alteration or of the new policy shall be furnished.

(4) If the policy is not assigned and delivered, or delivered, within the said period
of six months or such further period as the Accounts Officer may, under sub-rule (1),
have fixed, any amount withheld or withdrawn from the Fund in respect of the policy
shall, forthwith be paid or repaid, as the case may be, by the subscriber to the Fund, or, in
default be ordered by the Accounts Officer to be recovered by deduction from the
emoluments of the subscriber, by instalments or otherwise, as may be directed by the
authority competent to sanction an advance for the grant of which special reasons are
required, under sub-rule (2) of rule 12.

(5) Notice of assignment of the policy shall be given by the subscriber to the
Insurance Company, and the acknowledgement of the notice by the Insurance Company
shall be sent to the Accounts Officer within three months of the date of assignment.

NOTE 1- Subscribers are advised to send notice of the assignment to the Insurance
Company in duplicate, accompanied in cases in which the notice has to be sent to a
company in Great Britain or Ireland, by a remittance of five shillings, which is the fee for
the acknowledgement authorized by the Policies of Assurance Act, 1867.
 NOTE 2- Subscribers who proceed to Great Britain or Ireland on quitting the
service are advised that under the English Stamp Law assignments or re-assignments are
required to be stamped within 30 days of their first arrival in those countries. Otherwise
penalty will be incurred under the Stamp Act, and difficulties may arise when the policy
matures for payment.

RULE 23: BONUS OF POLICIES

The subscriber shall not during the currency of the policy draw any bonus the drawal
of which during such currency is optional under the terms of the policy, and the amount of
any bonus which under the terms of the policy the subscriber has no option to refrain from
drawing during its currency, shall be paid forthwith into the Fund by the subscriber or in
default recovered by deduction from his emoluments by instalments or otherwise as may
be directed by the authority competent to sanction an advance for the grant of which
special reasons are required under sub-rule (2) of rule 12.

RULE 24: REASSIGNMENT OF POLICIES

1) Save as provided by Rule 28 when the subscriber-

(a) quits the service;

or return of the
policy; or

(b) has proceeded on leave preparatory to retirement and applies to the Accounts
Officer for re-assignment or turn of the policy; of

(c) while on leave has been permitted to retire or declared by a competent

medical authority to be unfit for further service and applies to the Accounts
Officer for reassignment or return of the policy; or

(d) pays or repays to the Fund the whole of any amount withheld or withdrawn from
the Fund for any of the purposes mentioned in sub-clause (ii) of clause {a) of
rule 17 and sub-clauses (i) and (ii) of clause (b) of rule 17.

(e) has been sanctioned withdrawal under rule 15 read with Note 3 below sub-rule
(1) of rule 16.

(f) has completed twenty years of service (including broken periods of service if
any); the Accounts Officer shall-

(i) if the policy has been assigned to the President under rule 22, or under the
corresponding rule heretofore in force reassign the policy in Form I in the
Third Schedule to the subscriber, or to the subscriber, and the joint assured,
as the case may be, and make it over to the subscriber together with a
signed notice of the reassignment addressed to the Insurance Company;

(ii) if the policy has been delivered to him under clause (b) of sub-rule (1) of
rule 22, make over the policy to the subscriber :
 Provided that, if the subscriber, after proceeding on leave, preparatory to
retirement, or after being, while on leave, permitted to retire or declared by a competent
medical authority to be unfit for further service, returns to duty, any policy so reassigned
or made over shall, if it has not matured or been assigned charged or encumbered in any
way, be again assigned to the President and delivered to the Accounts Officer, or again be
delivered to the Accounts Officer, as the case may be, in the manner provided in rule 22,
and thereupon the provisions of these rules shall, so far as may be, again apply in respect
of the policy.

Provided further that, if the policy has matured or been assigned or charged or
encumbered in any way, the provisions of sub-rule (4) of rule 22 applicable to a failure to
assign and deliver a policy shall apply.
(2) Save as provided by rule 28, when the subscriber dies before quitting the
service, the Accounts Officer shall-

(i) if the policy has been assigned to the President under rule 22, or under the
corresponding rule heretofore in force, reassign the policy in Form II in the
Third Schedule to such person as may be legally entitled to receive it, and
shall make over the policy to such person together with a signed notice of the
reassignment addressed to the Insurance Company;

(ii) if the policy has been delivered to him under clause (b) of sub-rule (1) of rule
22, make over the policy to the beneficiary, if any, or it there is no beneficiary,
to such persons as may be legally entitled to receive it.

RULE 25: PROCEDURE ON MATURITY OF POLICIES

(l) If a policy, assigned to the President under rule 22 or under the corresponding rule
heretofore in force, matures before the subscriber quits the service, or if a policy on the
joint lives of a subscriber and the subscriber’s wife or husband assigned under the said
rule, or under the corresponding rule heretofore in force, falls due for payment by reasons
of the death of the subscriber's wife or husband, the Accounts Officer shall, save as
provided by rule 28, realise the amount assured together with any accrued bonuses and
shal1 place the amount so realized to the credit of the subscriber in the Fund :

Provided that if the amount assured together with the amount of any accrued bonus
is more than the whole of the amount withheld or withdrawn, it shall be the duty of the
subscriber to inform the Accounts Officer in writing within a month from the date of
maturity of the policy, whether the difference, or a part of the difference, as specified by
the subscriber, be paid to him; and it shall be the duty of the Accounts Officer to Act in
accordance with the option of the subscriber.

Note: If no option is exercised by the subscriber in writing to the Accounts Officer

within the period prescribed, he shall be deemed to have opted to deposit the difference
in his account in the Fund. Such deposit will be merged in the amount standing to the
subscriber's credit in the Fund.
 (2) Save as provided by rule 28, if a policy, delivered to the Accounts Officer
under clause (b) of sub-rule (1) of rule 22, matures before the subscriber quits the service,
the Account's Officer shall make over the policy to the subscriber:
Provided that if the interest in the policy of the wife of the subscriber, or of his wife
and children, or any of them, as expressed on the face of the policy, expires when the
policy matures, the subscriber, if the policy moneys are paid to him by the Insurance
Company shall immediately on receipt thereof pay or repay to the Fund either-

(i) the whole of any amount withheld or withdrawn from the Fund in respect
of the policy, or

(ii) an amount equal to the amount assured together with any accrued bonuses,
whichever is less, and, in default, the provisions of Rule 29 shall apply as
they apply in relation to cases where money withheld or withdrawn from the
Fund under clause (a) or, clause (b) of rule 17 has been utilised for a purpose
other than that for which sanction was given to the withholding or
withdrawal.

RULE 26: PROCEDURE ON CESSATION OF INTEREST OF THE

SUBSCRIBER IN THE FAMILY PENSION FUND
If the interest of the subscriber in the family pension fund ceases, in whole or part,
from any cause whatsoever, the provident fund account of the subscriber shall forthwith
be reimbursed by the amount of the refund secured by the subscriber from the family
pension fund, which amount shall, in default of reimbursement, be deducted from the
subscriber’s emoluments by instalments or otherwise, as may be directed by the authority
competent to sanction an advance for the grant of which, special reasons are required
under sub-rule (2) of rule 12.

RULE 27: LAPSE OR WRONGFUL ASSIGNMENT OF POLICIES

If the policy lapses, or is assigned, otherwise than to the President under rule 22,
charged or encumbered, the provisions of sub-rule (4) of rule 22 applicable to a failure to
assign and deliver a policy shall apply.

RULE 28: DUTY OF ACCOUNTS OFFICER WHEN HE RECEIVES NOTIES

OF ASSIGNMENT, CHARGE OR ENCUMBRANCE OF POLICIES

If the Accounts Officer receives notice of-

(a) an assignment (otherwise than an assignment to the President under rule 22), or
(b) a charge or encumbrance on, or
(c) an order of a Court restraining dealings with the policy or any amount
realised thereon,
 the Accounts Officer shall not-
(i) reassign or make over the policy as provided in rule 24, or
(ii) realise the amount assured by the policy or reassign, or make over the
policy, as provided in rule 25,
but shall forthwith refer the matter to the Government.

RULE 29: WRONGFUL USE OF MONEY WITHHELD OR WITHDRAWN

Notwithstanding anything contained in these rules, if the sanctioning authority

is satisfied that money withheld or withdrawn from the Fund under clause (a) Or
clause (b) of rule 17 has been utilised for a purpose other than that for which sanction
was given to the withholding or withdrawal of the money, the amount in question,
shall forthwith be repaid or paid, as the case may be, by subscriber to the Fund, or in
default, be ordered to be recovered by deduction in one sum from the emoluments of the
subscriber even if he be on leave. It the total amount to be repaid or paid, as the case
may be, be more than half the sub- scriber's emoluments, recoveries shall be made in
monthly instalments of moieties of his emoluments till the entire amount is repaid or
paid, as the case may be, by him.

NOTE - The term 'emoluments' in this rule does not include subsistence grant.

RULE 30: RESTRICTION OF THE PROVISIONS RELATING TO

FINANCING OF POLICIES TO EXISTING SUBSCRIBERS IN RESPECT OF
EXISTING POLICIES

The provisions of rules 17 to 29 shall apply only to subscribers who before the date
of publication of these rules, have been substituting in whole or in part, payments towards
policies of life insurance for subscriptions to the fund or making withdrawals from the
Fund for such payments:

Provided that such subscribers shall not be permitted to substitute such payments
for subscriptions due to the Fund or to withdraw from Fund for making such payments in
respect of any new policy.

RULE 31: FINAL WITHDRAWAL OF ACCUMULATIONS IN THE FUND

When a subscriber quits the service, the amount standing to his credit in the Fund shall
become payable to him:

Provided, that a subscriber, who has been dismissed from the service and is
subsequently reinstated in the service shall, if required to do so by the Government,
repay any amount paid to him from the Fund in pursuance of this rule, with interest
thereon at the rate provided in Rule 11 in the manner provided in the proviso to Rule 32.
The amount so repaid shall be credited to his account in the Fund.

EXPLANATION I- A subscriber who is granted refused leave shall be deemed to

have quit the service from the date of compulsory retirement or on the expiry of an
extension of service.
 EXPLANATION II- A subscriber, other than one who is appointed on contract or
one who has retired from service and is subsequently reemployed, with or without a break
in service, shall not be deemed to quit the service, when he is transferred without any
break in service to a new post under a State Government or in another department of the
Central Government (in which he is governed by another set of Provident Fund Rules) and
without retaining any connection with his former post. In such case, his subscriptions
together with interest thereon shall be transferred-

(a) to his account in the other Fund in accordance with the rules of that Fund, if the
new post is in another department of the Central Government, or

(b) to a new account under the State Government concerned if the new post is
under a State Government and the State Government consents, by general or
special order, to such transfer of his subscriptions and interest.

NOTE- Transfers shall include cases of resignation from service in order to take
up appointment in another Department of the Central Government or under the State
Government without any break and with proper permission of the Central Government. In
cases where there has been a break in service, it shall be limited to the joining time
allowed on transfer to a different station.

The same shall hold good in cases of retrenchments followed by immediate

employment whether under the same or different Government.

EXPLANATION III- When a subscriber, other than one who is appointed on

contract or one who has retired from service and is subsequently re-employed, is
transferred, without any break, to the service under a body corporate owned or controlled
by Government, or an autonomous organization, registered under the Societies
Registration Act, 1860, the amount of subscriptions together with interest thereon, shall
not be paid to him but shall be transferred with the consent of that body, to his new
Provident Fund Account under that body.

Transfers shall include cases of resignation from service in order to take up

appointment under a body corporate owned or controlled by Government or an
autonomous organization, registered under the Societies Registration Act, 1860, without
any break and with proper permission of the Central Government. The time taken to join
the new post shall not be treated as a break in service if it does not exceed the joining time
admissible to a Government servant on transfer from one post to another.

Provided that the amount of subscription together with interest thereon, of a

subscriber opting for service under a Public Enterprise may, if he so desires, be transferred
to his new Provident Fund Account under the Enterprise if the concerned Enterprise also
agrees to such a transfer. If, however, the subscriber does not desire the transfer or the
concerned Enterprise does not operate a Provident Fund, the amount aforesaid shall be
refunded to the subscriber.
RULE 32: RETIREMENT OF SUBSCRIBER

When a subscriber-

(a) has proceeded on leave preparatory to retirement or if he is employed in a

vacation department, on leave preparatory to retirement combined with
vacation, or

(b) while on leave, has been permitted to retire or been declared by a competent
medical authority to be unfit for further service, the amount standing to his
credit in the Fund shall, 1[ ] upon application made by him in that behalf to the
Accounts Officer, become payable to the subscriber:

Provided that the subscriber, if he returns to duty, shall, except where the
Government decides otherwise, repay to the Fund for credit to his account, the amount
paid to him from the Fund in pursuance of this rule with interest thereon at the rate
provided in Rule 11 in cash or securities or partly in cash and partly in securities, by
installments or otherwise, by recovery from his emoluments or otherwise, as may be
directed by the authority competent to sanction an advance for the grant of which, special
reasons are required under sub-rule (2) of Rule 12.
---------------------------------------------------------------------------------------------------------------
1. Deleted vide Notification No. 20/12/94-P7P&PW(E) dated, the 15th November,
1996 published as S.O. No.3228 in the Gazette of India dated the 23 rd
November, 1996
---------------------------------------------------------------------------------------------------------------

RULE 33: PROCEDURE ON DEATH OF A SUBSCRIBER

On the death of a subscriber before the amount standing to his credit has become
payable, or where the amount has become payable, before payment has been made:

(i) When the subscriber leaves a family-

(a) if a nomination made by the subscriber in accordance with the provisions of

Rule 5 in favour of a member or members of his family subsists, the
amount standing to his credit in the Fund or the part thereof to which the
nomination relates shall become payable to his nominee or nominees in the
proportion specified in the nomination;

(b) if no such nomination in favour of a member or members of the family of the

subscriber subsists, or if such nomination relates only to a part of the amount
standing to his credit in the Fund, the whole amount or the part thereof to
which the nomination does not relate, as the case may be, shall,
notwithstanding any nomination purporting to be in favour of any person or
persons other than a member or members of his family, become payable to
the members of his family in equal shares:
 Provided that no share shall be payable to-

(1) sons who have attained majority;

(2) Sons of a deceased son who have attained majority;

(3) married daughters whose husbands are alive;

(4) married daughters of a deceased son whose husbands are alive;

if there is any member of the family other than those specified in Clauses (1), (2), (3) and
(4):

Provided further that the widow or widows and the child or children of a deceased
son shall receive between them in equal parts only the share which that son would have
received if he had survived the subscriber and had been exempted from the provisions of
Clause (1) of the first proviso.

(ii) When the subscriber leaves no family, if a nomination made by him in

accordance with the provisions of Rule 5 in favour of any person or persons
subsists, the amount standing to his credit in the Fund or the part thereof to
which the nomination relates, shall become payable to his nominee or
nominees in the proportion specified in the nomination.

RULE 33-A: DEPOSIT LINKED INSURANCE REVISED SCHEME

33-A. Deposit-Linked Insurance Scheme –

On the death of a subscriber 1[on or before 30th September, 1991 and to whom Rule
33B does not apply], the person entitled to receive the amount standing to the credit of the
subscriber shall be paid by the Accounts officer, an additional amount equal to the average
balance in the account during the 3 years immediately preceding the death of such
subscriber, subject to the condition that-

(a) The balance at the credit of such subscriber shall not at any time during the 3
years preceding the month of death have fallen below the limits of –

(i) Rs.4000 in the case of a subscriber who has held, for the greater part of
the aforesaid period of three years, a post the maximum of the pay scale
of which is Rs.1300 or more;
(ii) Rs.2500 in the case of a subscriber who has held, for the greater part of
the aforesaid period of three years, a post the maximum of the pay scale
of which is Rs.900 or more but less than Rs.1300;
(iii) Rs.1500 in the case of subscriber who has held, for the greater part of
the aforesaid period of three years, a post the maximum of the pay scale
of which is less than Rs.291 or more but less than Rs.900;
(iv) Rs.1000 in the case of a subscriber who has held, for the greater part of
the aforesaid period of three years, a post the maximum of the pay scale
of which is less than Rs.291.
Provided that nothing in this clause shall apply if the death of such subscriber occurs
before the 1st day of February, 1978.

(b) The additional amount payable under this rule shall not exceed Rs.10,000;

(c) The subscriber has put in at least 5 years service at the time of his death.

NOTE 1- The average balance shall be worked out on the basis of the balance at the credit
of the subscriber at the end of each of the 36 months preceding the month in which the
death occurs. For this purpose, as also for checking the minimum balances prescribed
above-
(a) The balance at the end of March shall include the annual interest credited in
terms of rule 11; and

(b) If the list of the aforesaid 36 months is not March, the balance at the end of the
said last month shall include interest in respect of the period from the beginning
of the financial year in which death occurs to the end of the said last month.

NOTE 2- Payments under this scheme should be in whole repees. If an amount due
includes a fraction of a rupee, it should be rounded to the nearest rupee (50 paise counting
as the next higher rupee.

NOTE 3- Any sum payable under this scheme is in the nature of insurance-money and,
therefore, the statutory protection given by section 3 of the Provident Funds cat, 1925 (Act
19 of 1925) does not apply to sums payable under this scheme.

NOTE 4- This scheme also applies to those subscribers to the Fund who are transferred to
an autonomous organization consequent upon conversion of a Government Department
into such body and who, on such transfer, opt, in terms of option given to them, to
subscribe to this Fund in accordance with these rules.

NOTE 5- (a) In case of a Government servant who has been admitted to the benefits of the
Fund under rule 35 or rule 34-A, but dies before completion of three years service or, as
the case may be, five years service from the date of his admission to the Fund, that period
of his service under the previous employer in respect whereof the amount of his
subscriptions and the employer’s contribution, if any, together with interest have been
received, shall count for purposes of clause (a) and clause (c).

(b) In case of persons appointed on tenure basis and in the case of re-employed
pensioners, service rendered from the date of such appointment or re-employment, as the
case may be, only will count for purposes of this rule.

(c) This scheme does not apply to persons appointed on contract basis.

NOTE 6- The budget estimates of expenditure in respect of this scheme will be prepared
by the Accounts Officer responsible for maintenance of the accounts of the Fund having
regard to the trend of expenditure, in the same manner as estimates are prepared for other
retirement benefits.
 --------------------------------------------------------------------------------------------------------------
1. Notified vide Notification No.13/2/P&PW/88E dated the 1st August, 1989.
--------------------------------------------------------------------------------------------------------------

1
[RULE 33-B: DEPOSIT-LINKED INSURANCE REVISED SCHEME]

On the death of a subscriber, the person entitled to receive the amount standing to
the credit if the subscriber shall be paid by the Accounts Officer, an additional amount
equal to the average balance in the account during the 3 years immediately preceding the
death of such subscriber, subject to the condition that-
2
[(a) the balance at the credit of such subscriber shall not at any time during the 3
years preceding the month of death have fallen below the limits of-

(i) Rs. 25,000 in the case of a subscriber holding a post in the Pay Band-2
(Rs.9,300- 34,800) or above and drawing a Grade Pay of Rs.4,800 p.m. or
more as per Central Civil Service (Revised Pay) Rules, 2008;

(ii) Rs. 15,000 in the case of a subscriber holding a post in the Pay Band-2
(Rs.9,300- 34,800) and drawing a Grade Pay of Rs.4,200 p.m. or more but
less than Rs.4,800 p.m. as per Central Civil Service (Revised Pay) Rules,
2008;

(iii) Rs. 10,000 in the case of a subscriber holding a post in the Pay Band-2, Pay
Band-1 or Pay Band-1S (Rs.4,440-7,440) and drawing a Grade Pay of
Rs.1,400
p.m. or more but less than Rs.4,200 p.m. as per Central Civil Service
(Revised Pay) Rules, 2008;

(iv) Rs.6,000 in the case of a subscriber holding a post in the Pay Band-1S
(Rs.4,440- 7,440) and drawing a Grade Pay of Rs.1,300 p.m. or more but
less than Rs.1,400
p.m. as per Central Civil Service (Revised Pay) Rules, 2008; and

(b) the additional amount payable under this rule shall not exceed Rs.60000;]

(c) the subscriber has put in at least 5 years service at the time of his/her death.

NOTE- Pre-revised Scheme which existed before the Notification published in the
Gazette of India vide SO 826 dated 25-4-1998 shall apply in case of death of subscriber on
or before the publication of this date and to whom aforesaid amended Rule 33-B does not
apply

NOTE 1- The average balance shall be worked out on the basis of the balance at
the credit of the subscriber at the end of each of the 36 months, preceding the month in
which the death occurs. For this purpose, as also for checking the minimum balance
prescribed above-

(a) the balance at the end of March, shall include the annual interest
 credited in terms of Rule 11; and,

( b) if the last of the aforesaid 36 months is not March, the balance at the end of
said last month shall include interest in respect of the period from the
beginning of the financial year in which death occurs to the end of the said
last month.

NOTE 2- Payment under this scheme should be in whole rupee. If an amount due
includes a fraction of a rupee, it should be rounded to the nearest rupee (50 paise counting
as the next higher rupee).

NOTE 3- Any sum payable under this scheme is in the nature of insurance money
and
therefore, the statutory protection given by Section 3 of the Provident Funds Act, 1925
(Act 19 of 1925), does not apply to sums payable under this scheme.

NOTE 4- The scheme also applies to those subscribers to the funds who are
transferred to an autonomous organization consequent upon conversion of a Government
Department into such a body and who, on such transfer, opt in terms of option given to
them to subscribe to the Fund in accordance with these rules.

NOTE 5- (a) In case of a Government servant who has been admitted to the
benefits of the Fund under Rule 35 or 35-A but died before completion of three years of
service or as the case may be, five years of service from the date of his admission to the
Fund, the period of his service under the previous employer in respect whereof the amount
of his subscription and the employer's contribution, if any, together with interest have been
recovered, shall count for purpose of Clause (a) and Clause (c).

(b) In case of persons appointed on tenure basis and in the case of reemployed
pensioners, service rendered from the date of such appointment on re-employment, as the
case may be, only will count for purposes of this rule.

(c) The scheme does not apply to persons appointed on contract basis.

[NOTE 6- The Budget Estimates of expenditure in respect of this scheme will be

prepared by the Accounts Officer responsible for maintenance of the account of the Fund
having regard to the trend of expenditure, in the same manner as estimates are prepared for
other retirement benefits.]
---------------------------------------------------------------------------------------------------------------
1. Inserted vide Notification No.13(2)-P&PW./88-E., dated the 2nd August, 1989,
published as S.O. No.2002 in the Gazette of India, dated the 2 nd September, 1989.
Takes effect from the 1st January, 1989.

2. Clauses (a) and (b) substituted vide Notification No.45/4/2008-P&PW(F), dated the
27th May, 2009, published as S.O. 1529 in the Gazette of India, dated the 6 th June,
2009.
----------------------------------------------------------------------------------------------------------------
RULE 34: MANNER OF PAYMENT OF AMOUNT IN THE FUND

(1) When the amount standing to the credit of a subscriber in the Fund becomes
payable, it shall be the duty of the Accounts Officer to make payment 1[ ] as provided in
sub-rule (3).

(2) If the person to whom, under these rules, any amount or policy, is to be paid,
assigned or reassigned or delivered, is a lunatic for) whose estate a Manager has been
appointed in this behalf under the-Indian Lunacy Act, 1912, the payment or reassignment
or delivery shall be made to such Manager and not to the lunatic:

Provided that where no Manager has been appointed and 'the person to whom the
sum is payable is certified by a Magistrate to be a lunatic, the payment shall under the
orders of the Collector be made in terms of sub-section (1) of Section 95 of the Indian
Lunacy Act, 1912, to the person having charge of such lunatic and the Accounts Officer
shall pay only the amount which he thinks fit to the person having charge of the lunatic
and the surplus, if any, or such part thereof, as he thinks fit, shall be paid for the
maintenance of such members of the lunatic's family as are dependent on him for
maintenance.

(3) Payments of the amount withdrawn shall be made in India only. The persons to
whom the amounts are payable shall make their own arrangements to receive payment in
India. The following procedure shall be adopted for claiming payment by a subscriber,
namely:-
2
[(i) Deleted]

(ii) The Head of Office/Department shall forward the 3[details of the

subscriber retiring or quitting service to the Accounts Officer indicating
the recoveries effected against the advances which are still current and the
number of instalments yet to be recovered and also indicate the
withdrawals, if any, taken by the subscriber after the period covered by
the last statement of the subscriber's account sent by the Accounts
Officer.

(iii) The Accounts Officer shall, after verification with the ledger account,
issue an authority for the amount 4[payable to the subscriber] at least a
month before the date of superannuation but payable on the date of
superannuation.

(iv) The authority mentioned in Clause (iii) will constitute the first instalment of
payment. A second authority for payment will be issued as soon as possible
after superannuation. This will relate to the contribution made by the
subscriber subsequent to the amount mentioned in the 5[details forwarded by
the Head of Office/Department under Clause (ii)] plus the refund of
instalments against advances which were current at the time of the
1
[submission of details by the Head of Office].
 (v) After forwarding the 6[details referred to in Clause (ii)] for final payment to the
Accounts Officer, advance/withdrawal may be sanctioned but the amount of
advance/withdrawal shall be drawn on an authorization from the Accounts Officer
concerned who shall arrange this as soon as the formal sanction of sanctioning
authority is received by him.

NOTE- When the amount standing to the credit of a subscriber has become
payable under Rules 31, 32 or 33, the Accounts Officer shall authorize prompt payment of
the amount in the manner indicated in sub-rule (3).
---------------------------------------------------------------------------------------------------------------
1. The words "on receipt of a written application in this behalf deleted vide
Notification No. 20 (12)/94-P. & PW., (E), dated the 15th November, 1996,
published as S.O. No. 3228 in the Gazette of India, dated the 23rd November,
1996.
2. Deleted vide Notification No. 20 (12)/94-P. & P. W. (E), dated the 15th November,
1996, published as S.O. No. 3228 in the Gazelle of India, dated the 23rd
November, 1996.
3. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide
SO No.3228 dated 23.11.96
4. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide
SO No.3228 dated 23.11.96
5. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide
SO No.3228 dated 23.11.96
6. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide
SO No.3228 dated 23.11.96
7. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide
SO No.3228 dated 23.11.96
----------------------------------------------------------------------------------------------------------------

RULE 35: PROCEDURE ON TRANSFER OF A GOVERNMENT SERVANT

FROM ONE DEPARTMENT TO ANTOHER

(a) If a Government servant who is a subscriber to any other non-Contributory

Provident Fund of the Central Government or of a State Government is permanently
transferred to pensionable service in a Department of the Central Government in which he
is governed by these rules, the amount of subscriptions, together with interest thereon,
standing to his credit in such other fund on the date of transfer shall be transferred to his
credit in the Fund:

Provided that where a subscriber was subscribing to a non-Contributory Provident

Fund of a State Government, the consent of that Government shall be obtained.

(b) If a Government servant who is a subscriber to the State Railways Provident

Fund or any other Contributory Provident Fund of the Central Government or a State
Contributory Provident Fund is permanently transferred to pensionable service in a
Department of Central Government in which he is governed by these rules and unless such
a subscriber elects to continue to be governed by the rules of such Fund, when such an
option is given-
 (i) the amount of subscriptions with interest thereon, standing to his credit in such
Contributory Provident Fund on the date of transfer shall with the consent of
the other Government, if any, be transferred to his credit in the Fund;

(ii) the amount of Government contributions, with interest thereon, standing to his
credit in such Contributory Provident Fund shall, with the consent of the other
Government, if any, be credited to the Central Revenues (Civil); and

(iii) he shall thereupon be entitled to count towards pension, service rendered

prior to the date of permanent transfer, to the e):tent permissible under the
relevant Pension Rules.

NOTE 1- The provisions of this rule do not apply to a subscriber who has retired
from service and is subsequently re-employed with or without a break in service, or to a
subscriber who was holding the former appointment on contract.

NOTE 2- The provisions of this rule shall, however, apply to persons who are
appointed without break, whether temporarily or permanently to a post carrying the
benefits of these rules after resignation or retrenchment from service under another
Department of Central Government or under the State Government.

RULE 35-A: PROCEDURE ON TRANSFER TO GOVERNMENT SERVICE

OFA PERSON FROM THE SERVICE UNDER A BODY CORPORATE
OWNED OR CONTROLLED BY GOVERNMENT OR AN AUTONOMOUS
ORGANISATION, REGISTERED UNDER THE SOCIETIES
REGISTRATION ACT, 1860

If a Government servant admitted to the benefit of the Fund was previously a

subscriber to any Provident Fund of a body corporate owned or controlled by Government,
or an autonomous organization, registered under the Societies Registration Act, 1860, the
amount of his subscriptions and the employer's contribution, if any, together with the
interest thereon shall be transferred to his credit in the Fund with the consent of that body.

RULE 36: TRANSFER OF AMOUNT TO THE CONTRIBUTORY

PROVIDENT FUND (INDIA)

If a subscriber to the Fund is subsequently admitted to the benefits of the

Contributory Provident Fund (India), the amount of his subscriptions, together with
interest thereon, shall be transferred to the credit of his account in the Contributory
Provident Fund (India).

NOTE- The provisions of this rule do not apply to a subscriber who is appointed
on contract or who has retired frcb1 service and is subsequently re-employed with or
without a break in service in another post carrying Contributory Provident Fund benefits.
RULE 37: RELAXATION OF RULES

When the President is satisfied that the operation of any of these rules causes or is
likely to cause undue hardship to a subscriber, he may, notwithstanding anything contained
in these rules, deal with the case of such subscriber in such manner as may appear to him
to be just and equitable.

RULE 38: NUMBER OF ACCOUNT TO BE QUOTED AT THE TIME OF THE

PAYMENT OF SUBSCRIPTION

When paying a subscription in India, either by deduction from emoluments or in

cash, a subscriber shall quote the number of his account in the Fund, communicated to him
by the Accounts Officer. Any change in the number shall similarly be communicated to
the subscriber by the Accounts Officer.

RULE 39: ANNUAL STATEMENT OF ACCOUNTS TO BE SUPPLIED

TO SUBSCRIBER

1) As soon as possible after the 3Ist March of each year, the Accounts Officer shall send to
each subscriber a statement of his account in the Fund showing the opening balance as on
the 1st April of the year, the total amount credited or debited during the year, the total
amount of interest credited as on the 3Ist March of the year and the closing balance on that
date. The Accounts Officer shall attach to the statement of accounts an enquiry whether
the subscriber-

(a) desires to make any alteration in any nomination made under Rule 5;

(b) has acquired a family in cases where the subscriber has made co nomination in
favour of a member of his family under the proviso to sub-rule (1) of Rule 5.

(2) Subscribers should satisfy themselves as to the correctness of the annual

statement and errors should be brought to the notice of the Accounts Officer within three
months from the date of the receipt of the statement.

(3) The Accounts Officer shall, if required by a subscriber once, but not more than
once, in a year inform the subscriber of the total amount standing to his credit in the Fund
at the end of the last month for which his account has been written up.

RULE 40: INTERPRETATION

If any question arises relating to the interpretation of these rules, it shall be

referred to the Central Government whose decision thereon shall be final.

RULE 41: REPEALING CLAUSE

The General Provident Fund (Central Services) Rules are hereby repealed.