GPF- SOME HINTS TO YOUR KNOWLEDGE

1. What is a GPF Advance ?

GPF Advance is an interest free loan from your savings in General Provident Fund Account for specified reasons. You need to repay the same into your account in equated monthly installments. No interest shall be charged on the amount so taken as advance. However, you will not be paid any interest on GPF amount taken as advance. Such advances are covered under terms as per sub Rule (1) of Rule 12 of GPF (CS) RULES, 1960.

2. What are the reasons for which GPF Advance can be taken ?.

One can take GPF Advance for the reasons of higher education of self, children, legal expenditure, religious vow, obligatory expenses towards betrothal, marriage and other like ceremonies, for purchase of consumer durables such as TV, VCR, washing machines, computers etc.

3. How many times in a year GPF Advance can be taken ? Is there any limit in the same during whole of our service?

One can take GPF Advance any number of times in our career. However, At least 4 months time gap will between two advances and 6 months time gap for withdrawals have to be maintained. The sanctioning authority, may relax this rule in exceptional cases depending on the merits of the application.

4. What is the maximum amount that can be taken as GPF Advance ?

The amount taken as GPF Advance at a time cannot exceed one-half of available balance or three months’ pay, whichever is less. The sanctioning authority may, however, permit advance in excess of this limit (up to 75 % of the available balance), in exceptional cases depending upon the merits of the application.

5. If I am still repaying the GPF advance taken earlier, can I take another GPF Advance ?

One can take another GPF Advance when an earlier advance is yet to be repaid completely. However, the amount pending from earlier advance and the proposed next GPF advance shall be consolidated and installments should be re worked and paid accordingly.

6. Is it possible to convert a GPF Advance to a part final withdrawal ?

Yes. A GPF Advance taken can be converted into part-final withdrawal, subject to the fulfillment of conditions / approval of the competent authority.

7. What is GPF Part-final withdrawal ?

GPF Part final Withdrawal means withdrawal of fund from your savings in GPF Account, for specified reasons. This amount need not repaid back to your account. The amount withdrawn shall stand debited from your account forever. Such withdrawals are covered under terms and conditions as per Rule 15 (1)(A) and (B) of GPF (CS) RULES, 1960.

8. What are the reasons for which GPF Withdrawal can be made ?

One can make GPF withdrawal for the reasons of higher education of self, children, legal expenditure, expenses towards betrothal, marriage, purchase of consumer durables such as TV, VCR, washing machines, computers etc. Moreover, withdrawal can also be made for purchase or construction of house,repairs or renovation of house etc. If the applicant has less than 12 months to retire, there is no need to give any reason for withdrawal.

9. Is there any qualifying service ( or minimum length of service) for an employee to make withdrawal from fund ?

Yes. As per Rule 15 (1)(A) of the GPF Rules, the applicant should have completed 15 years of service, or should have less than 10 years to retire, as the case may be for making withdrawals.

10. Are there any chances of making withdrawal even if the applicant does not posses the qualifying service ?

Yes. As per Rule 15 (1)(B) of the GPF Rules, for purchase of a ready built house/flat, purchase of housing site and/or construction of a house, repairs, reconstruction of housing property already owned by employee, and / or for repaying any loan expressly taken for the above purposes etc. the condition of qualifying service does not apply.

11. Should we submit any utilization certificate or completion certificate after taking GPF withdrawal ?

Yes. One has to furnish a certificate that the amount withdrawn from GPF have been utilized for the purpose for which it was taken. In case of failure to do so, sanctioning authority may recover the entire advance from the pay in one lump, or in as many instalments he decides fit.

12. What is the maximum amount that can be withdrawn from GPF ?

The amount withdrawn from GPF at a time cannot exceed one-half of available balance or six months’ pay, whichever is less. The sanctioning authority /Head of the Department may, however, permit an advance upto 75% of the available balance, in exceptional cases depending upon the grounds of application. The withdrawal upto 90 % of the available balance is permitted in case of purchase/construction of house / arranging marriage of son or daughter etc.

13. How the rate of interest for GPF is fixed?

Rate of Interest for General Provident Fund is fixed every year by the Government. The present rate of interest is 8%.

14. Whether deposits made in General Provident Fund is exempted from attachment?

In terms of Section 60(1) of Civil Procedure Code, 1908 Deposits made in General Provident Fund has got immunity with regard to attachment under a decree or order of a court of law.

15. Whom should be we nominate for receiving the amount remains in our GPF account after our death ?

Every government servant should submit nomination in the prescribed form immediately on joining the Fund. While an employee not having family may nominate any other person, the nomination should be in favour of family member(s) only in the case of one having family. The subscriber may provide in the nomination that the nomination shall become invalid in the event of the happening of a contingency specified therein e.g. a bachelor may nominate his father or mother. He can specify in the nomination that the nomination will become invalid in the event of his subsequently getting married. If the nomination is made in favour of more than one person, the proportionate share in which the amount will be payable should be specified clearly in the relevant column. At any time, the nomination may be canceled by the government servant.

16. Who are all our family members as per General Provident (CS) Rules 1960 ?

‘Family’ includes, spouse, parents, children (including adopted child/ward), minor brothers, unmarried sisters, deceased son’s widow and children and where no parents of the subscriber is alive, a paternal grandparent.