GENERAL PROVIDENT FUND

(CENTRAL SERVICES) RULES,

1960
 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 and applicable to those Central Govt. employees who have been
appointed on or before 31.12.2003
 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).
 All permanent Government servants shall subscribe to the Fund.
 NOMINATIONS

 An employee can nominate one or more of his family,to receive

the accumulation in the fund in the event of his death.
 If the employee does not have a family,he can nominate any
person/Institution.
 Where the employee nominates more than one person,he shall
specify the amount or share payable to each of the nominee.
 An employee can cancel/change the nomination at any time, but
the change will take effect from the date of receipt of the same
by Accounts Officer.
 The nomination can be changed even after retirement but before
the amount is actually paid.
 A nomination submitted to the Head Of Office is valid even if the
Subscriber dies before it reaches the Accounts Officer.
 Family
o Wife/wives except judicially separated wife or wives.
o Husband,unless expressly excluded. 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.
o parents,and where no parents of the subscriber is alive, a paternal
grandparent
o children including adopted children.
o minor brothers
o unmarried sisters
o deceased son's widow and children
o If both husband and wife are Govt. Servants,either of them
separately taken their family members.
 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)advances and withdrawals from the Fund.
 CONDITIONS OF SUBSCRIPTIONS
 A subscriber shall subscribe monthly to the Fund except during the
period when he is under suspension.However,on reinstatement the
employee has option to pay the arrear subscription in one lumpsum
or in instalments.
 At the option of the Govt. Servant during leave on HPL,Leave
Without Pay and dies non.
 No Subscription shall be recovered during the last 3 months prior
to retirement.
 RATES OF SUBSCRIPTION
Minimum: 6% of emoluments on the 31st March of the preceding
year and in the case of new subscribers to the emoluments
on the date joining the fund.
 8⅟3 % in case of an employee who has previously been subscribing
to CPF rounded off to the next higher rupee.
Maximum: Equal to total Emoluments.
 Emoluments: Pay plus grade pay,Leave Salary and any remuneration
of the nature of pay received in Foreign Service.Does not include DA.
 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

Fixation of Subscription at the time of Leave:

 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.
 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;
Fixation of Subscription at the time Foreign Service:
 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;
 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.
ADVANCES FROM THE FUND(Rule12)
Advance from General Provident Fund (Central Service) Rules 1960
for the following purposes:
(i) Illness of self, family members or dependents,
(ii) Education of family members or dependent of the subscriber.
Education will include primary, secondary and higher education,
covering all streams and educational institutions,
(iii) Obligatory Expenses viz. betrothal; marriage, funerals, or other
ceremonies,
(iv) Cost of Legal proceedings, .
(v) Cost of defence,
(vi) Purchase of consumer durables,
(vii) Pilgrimage and visiting places of eminence. This will include any
travel and . tourism related activities.

Amount of Advance:
 Advance upto 12 months of pay or three-fourth
of the amount at credit, whichever is less.
Recovery of Advance:
 Minimum 12 instalments unless the subscriber so elects and
Maximum 60,equal monthly instalments.
 An employee may opt for less than 12 months or may repay more
than one instalment in a month.
 Recovery will commence from the month next to the month in
which the advance was drawn.
 Other Conditions:
 Normally,second advance is not granted until repayment of the
previous advance.
 However,in special cases,advance may be granted in excess of the
limit aforesaid and before repayment of previous advance.
 No advance shall be granted within last 3 months of service before
retirement.
 The advance may be sanctioned by the declared Head of Office.
 The declared Head of Department is competent to sanction an
advance from the fund for reasons not covered above.
 Maximum time limit of 15 days is being prescribed for sanction and
payment of an advance from the Fund. In case of emergencies like
illness etc., the time limit maybe restricted to 7 days.
 In all the above cases of advance, no documentary proof is required
to be furnished by the subscriber. A simple declaration by the
subscriber explaining the reasons for advance would be sufficient.
 Consolidation of advances:
 When an advance is granted before complete repayment of an
earlier advance,the outstanding balance will be added to the new
advance and instalments for recovery refixed with reference to
the consolidated amount.
 When consolidation is done,recovery as per first advance will be
done in the month of consolidation and recovery as per
consolidation will be done from the next month onwards.
Suspension of Recovery of Advance:
 In case of Suspension: Recovery not to be made except with
Official’s consent or on leave for 10 days on HPL or Leave Without
Pay(LWP) in a calendar month.
 If the employee requests in writing,recovery of GPF advance may
be postponed,when the pay advance is being recovered.
Note:
The advance for education can be drawn once in 6 months

Note: The appropriate sanctioning authority for the purpose of this

rule is specified in the Fifth Schedule.

Note: Separate advances can be taken for betrothal ceremony and

marriage.
Recovery on misuse of Advance:
 If the sanctioning authority has a reason to doubt that the
advance for a specific purpose,granted to an employee has been
utilised for some other purpose,he may call for an explanation from
the employee within 15 days.
 If the sanctioning authority is not satisfied with the explanation,
he may direct the employee to repay the advance immediately.
 If the employee fails to repay,the advance shall be recovered from
the employee’s emoluments upto 50% of his emoluments.
 WITHDRAWALS FROM THE FUND
SL. Purpose of Withdrawl Condition Permissible
NO Amount
1. Illness(Employee orFamily . Illness:Upto
Member or For(1),(2),(3) 90% of the
Any person dependent on &(4): balance at his
him) credit.
After completion
2. Education:Primary,Secondar of 10 years
y & Higher Education(Same
Above)
3. Obligatory expenses i.e., For (2),(3) &(4):
Betrothal,Marriage, funerals, or withdrawal of
upto twelve
other ceremonies of self or family months pay or
members and dependants. three-fourth of
the amount
standing at
4. Purchase of consumer durables. credit, whichever
is less.
SL. Purpose of Withdrawl Condition Permissible
NO Amount
5. Housing including
acquiring a suitable-house
or a ready-built flat –for 5 to 10:
his residence, withdraw upto
5 to 10: 90% of the
6. Repayment of outstanding Any time during amount
housing loan, the service standing at
credit
7. Purchase of house site for
building a house,
SL. Purpose of Withdrawl Condition Permissible
NO Amount
8. Constructing a house on
a site acquired, 5 to 10:
withdraw upto
Reconstructing or 5 to 10: 90% of the
9. making additions on a Any time during amount
house already acquired, the service standing at
credit
10. Renovating, additions or
alterations of ancestral
house.
Instructions:
 It is also decided do 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(House Building Advance)
rules.
SL. Purpose of Withdrawl Condition Permissible
NO Amount
11. Purchase of motor (11),(12) & (13):
car/motor cycle! scooter (11),(12) & (13):
etc. or repayment of loan A subscriber
already taken for the after completion may be
purpose, of 10 years of permitted to
service. withdraw 75%
12. Extensive repairs of the amount
/overhauling of motor car, standing at
credit or cost of
Making deposit to book a the vehicle,
13. motor car/motor whichever is less
cycle/scoter, moped etc.
Instructions:
 Withdrawal of upto 90% of balance without assigning reasons is
allowed for Government servants who are due for retirement on
superannuation within two years.
 In all cases of withdrawal from the fund by the subscriber, the
declared HoD is competent to sanction withdrawal. No documentary
proof will be required to be furnished by the subscriber. A simple
declaration form by the subscriber explaining the reasons for
withdrawal would be sufficient.
Conditions of Withdrawl:
 it has been decided to prescribe a maximum time limit 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.
 Only one withdrawl can be allowed for the same purpose.
 Betrothal and marriage are treated as separate purposes
 Both advance and withdrawl should not be sanctioned for one and
the same purpose at the same time.
 Withdrawl for the purpose of higher education may be drawn on
annual basis till the child continues the technical/professional
course.
 Normally withdrawl for more than one house is not permissible.
However,withdrawl for building.acquiring,constructing a house/flat
at the employees’s place of duty is also permissible,even if he has
an ancestral house or his own built house at a place other than his
place of duty.
 CONVERSION OF AN ADVANCE INTO A WITHDRAWAL

A subscriber may have the balance outstanding against an advance

sanctioned to him converted into final withdrawl on his satisfying the
conditions laid down for such withdrawl.