Hi friends, here is the Notes on General Provident Fund Rules 1960 for AAO Exam and other LDC Exams. General Provident Fund (Central Services) Rules, 1960 is a very Important topic for Assistant Accounts Officer (AAO) Exam notified for Postal and Telecom Employees. At the same time this syllabus forms part of various LDC Exams under Central Government including Inspector Posts and PS Group B Exam. Hence we bring you this useful notes on GPF Rules.
Notes on General Provident Fund Rules 1960 for AAO Exam
General Provident Fund (Central Services) Rules, 1960
1. These rules may be called the General Provident Fund (Central Services) Rules, 1960 and are effective from 1st April, 1960.
2. Family for the purpose of General Provident Fund means:-
In case of a male subscriber :-
a) wife or wives,
b) Parents,
c) Legitimate children including adopted children (recognized by the personal law governing subscriber)
d) A ward under the Guardians and Wards Act, 1890 who lives with the Government servant and who was given some status as that of a natural born child.
e) Minor brothers,
f) Unmarried sisters
g) Deceased son’s widow and children
h) Paternal grandparent, where no parents of the subscriber is alive
Provided that if a subscriber proves that his wife has been judicially separated from him, she shall henceforth be deemed to be no longer a member of the subscriber’s family.
In case of a female subscriber :-
a) husband,
b) Parents,
c) Legitimate children including adopted children (recognized by the personal law governing subscriber)
d) A ward under the Guardians and Wards Act, 1890 who lives with the Government servant and who was given some status as that of a natural born child.
e) Minor brothers,
f) Unmarried sisters
g) Deceased son’s widow and children
h) Paternal grandparent, where no parents of the subscriber is alive.
Provided that if a subscriber by notice in writing expresses her desire to exclude her husband from her family, the husband shall henceforth be deemed to be no longer a member of subscriber’s family.
3. All temporary Government servants after a continuous service of one year, all re-employed pensioners (other than those eligible for admission to the CPF) and all permanent Government servants shall subscribe to the Fund.
4. Temporary Government servants 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.
5. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension.
6. 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.
7. Option of the subscriber, not to subscribe while on leave which either does not carry any leave salary or carries leave salary equal to or less than half pay is valid, if a written communication is presented by him 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.
8. The amount of subscription shall not be less than 6% of his emoluments and not more than his total emoluments. Subscription shall be expressed in whole rupees.
9. Emoluments for the purpose of GPF means :-
a) in the case of a subscriber who was in Government service on the 31st March of the preceeding year, the pay, leave salary, subsistence grant and includes dearness pay (w.e.f. 01-04-2004) to which he was entitled to on that date.
b) In the case of subscriber who was not in Government service on the 31st March of the preceeding year, the emoluments to which he was entitled on the day he joins the Fund.
10. Rate of subscription once fixed not to be varied during the year on account of retrospective increase or decrease in rate of pay ordered subsequently.
11. 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.
At the option of the Government servant/subscriber.
12. If a Government servant opts to subscribe at the minimum rate of 6% and if this results in a fraction of a rupee, the fraction should be rounded off to nearest rupee. In cases where this rounding off has to be done to a lower rupee, the subscription may result in less than 6%. In these cases, though, the subscription it is still allowed.
13. The appropriate sanctioning authority may sanction the payment to any subscriber an advance consisting of a sum of whole rupees and not exceeding in amount three month’s pay or half the amount standing to his credit in the Fund, whichever is less.
14. Purposes for which advance from GPF is permissible:
* to pay expenses in connection with the illness, confinement or a disability, including where necessary, the traveling expenses of the subscriber and members of his family or any person actually dependent on him;
* to meet cost of higher education, including where necessary, the traveling expenses of the subscriber and members of his family or any person actually dependent on him (i) for education outside India for academic, technical, professional or vocational course beyond the High School stage; (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;
* 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;
* 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.
* 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.
* To purchase consumer durables such as TV, VCR/VCP, Washing machines, Cooking range, Geysers and Computers.
* 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 above.
15. Subject to the conditions specified therein, withdrawals may be sanctioned by the authorities competent to sanction an advance, at any time –
(A) after the completion of 15 years of service 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 traveling expenses of the subscriber or any child of the subscriber for education outside India for academic, technical, professional or vocational course and for any medical, engineering or other technical or specialized course in India beyond 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 traveling expenses of the subscriber and members of his family or any person actually dependent on him;
d) Meeting the cost of consumer durables such as TV, VCR/VCP, Washing machines, Cooking range, Geysers and Computers.
(B) During the service of a subscriber from the amount standing to his credit in the Fund for one or more of the following purposes, namely
a) building or acquiring a suitable house or ready-built flat for his residence including the cost of the site.
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 alteration to a house or a flat already owned or acquired by a subscriber;
e) Renovating, additions or alterations or upkeep of the ancestral house or a house built with the assistance or loan from Government.
(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 the 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.
16. Withdrawal from the Fund is also permissible after completion of 15 years of service or when there is less than 5 years of service for superannuation for purchase of motor car/motor cycle/scooter or for repayment of a Government loan already taken for this purpose.
17. Grant of withdrawal for extensive repairs or overhauling of motor cars permissible after completion of 28 years of service or who have less than 3 years of service for superannuation.
18. 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.
19. When a subscriber quits the service, the amount standing to his credit in the Fund shall become payable to him.
20. Subscription to be compulsorily discontinued during the last 3 months of service on superannuation.
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