7th Central Pay Commission – Amendment to the provisions of general Provident Fund (Central Service) Rules,1960 – liberalization of provisions for drawal of advance from the Fund by the subscribers
Seventh Central Pay Commission
F.No. C/7026/ VII CPC/ 73/ 423 / D(Pay / Services)
Government of India
Ministry of Defence
New Delhi, the 22 May 2019
The Chief of the Army Staff
The Chief of the Air Staff
The Chief of the Naval Staff
Subject: Amendment to the provisions of general Provident Fund (Central Service) Rules, 1960 – liberalization of provisions for drawal of advance from the Fund by the subscribers – regarding.
I am directed to refer to Ministry of Personnel, PG & Pension’ OM No. 3/2/2017-P&PW (F)(i) & OM No. 3/2/2017-P&PW (F)(ii) dated 7th March, 2017 on the above subject. The provisions of the said letter will mutatis-mutandis be applicable to Armed Forces Personnel.
This letter issues with concurrence of Defence (Finance) vide their Dy. No 209/ AG/ PD/ 2019 dated 17.05.2019.
Encl. As above.
Under Secretary to the Government of India
The General Provident Fund (Central Service)Rules came into. force in 1960 and Rule 15 of the said rules provide tor withdrawals by the subscribers. Some amendments have been made from time to time to. address the concerns raised by the subscribers. However, the previsions, largely remain restrictive. There is a felt need to liberalize provisions, raise limits and simplify the procedure.
The previsions in the rules have been reviewed and it has now been decided to permit withdrawals from the fund by the subscriber for the following purposes:
(i) Education – This will Include primary, secondary and higher education, covering all streams and institutions
(ii) Obligatory Expenses viz, betrothal, marriage, funerals, or other ceremonies of self or family members and dependants
(iii) Illness of self, family members or dependants
(iv) Purchase of consumer durables.
It has been decided to permit withdrawal of upto twelve months pay or three -fourth of the amount standing at credit, whichever is less. For illness, the withdrawal may be allowed upto 90% of the amount standing at credit of the subscriber. A subscriber may seek withdrawal after completion of ten years of service.
(v) Housing including building or acquiring a suitable house or a ready built flat for his residence,
(vi) Repayment of outstanding housing loan,
(vii) Purchase of house site for building a house,
(viii) Constructing a house on a site acquired,
(ix) Reconstructing or making additions on a house already acquired, .
(x) Renovation, additions or alterations of ancestral house.
A subscriber may be allowed to withdraw upto ninety percent of the amount standing at credit for the above purposes. It is also decided de away with the present instructions which lay down that subsequent to the sale of house for which GPF withdrawal has been availed, the amount, withdrawn has to be deposited back. GPF withdrawal for housing purpose will no longer be linked with the limits prescribed under HBA rules . A subscriber may be permitted to avail the facility at any time during his service.
(xi) Purchase of motor car/ motorcycle/ scooter etc, or repayment of loan already taken for the purpose,
(xii) Extensive repairs / overhauling or motor car,
(xiii) Making deposit to book a motor car/ motor cycle/ seater, moped etc.
A subscriber may be permitted to withdraw three- fourth of the amount standing credit or cost of the vehicle, whichever is less for the above purposes, Withdrawal for the above purpose will be permitted after completion of 10 years of service.
Presently, withdrawal cif upto 90% of balance without assigning reasons is aliowed for Government servants who are due for retirement on superannuation within a year, It is proposed that this may be allowed, for upto two years before superannuation.
In all cases of withdrawal from the fund by the subscriber, the declared Head of the Department is competent to sanction withdrawal. No documentary proof will be required to be furnished try the subscriber: A simple declaration form by the subscriber explaining the reasons for withdrawal would be sufficient.
As per the GPF(CS) Rule 1960, no time limit has been prescribed for, sanction and payment of withdrawal amount. Therefore, it has been decided to prescribe a maximum time linnit of fifteen days for sanction and payment of withdrawal from the Fund. In case of emergencies like illness etc., the time limit maybe restricted to seven days.
Neeessary amendment to the GPF(Centrai Service) Rules 1960, giving effect to the above provisions will be issued in due course.
In so far as persons. serving in Indian Audit and Accounts Department are
concerned, these orders issue in consultation with the Comptroller and Auditor General of India.
This issues with approval of Department of Expenditure, vide their ID. No. 4(1) / EV/2017 dated 28.02.2017.
Hindi version of this OM will follow
Related to Your Search:
- Amendment to the provisions of General Provident Fund (Central Service) Rules 1960 : liberalization of provisions for withdrawals from the Fund by the subscribers
- Several relaxations brought in GP Fund rules
- Provision and rules for NPS part withdrawal
- EPF Members to Withdraw upto 90 % Fund for Purchase of House
- PF Withdrawal Made Easier, 2 Crore Employees to Benefit: 10 Facts
- Amendment in EPF scheme for buying homes
- GPF Rules
- New Benefits announced for NPS Subscribers in Union Budget 2017-18
- Changes in National Pension System (NPS)