Saturday, April 13, 2019

Advances from GPF fund

Advances from the Fund

There are two types of advances from GPF

I. Temporary Advance
A temporary advance is granted to a subscriber from the amount standing to his credit in the Fund by the departmental officers for specified purposes. The advance can be drawn to the  extent of the monetary limits prescribed in the delegation of financial powers of the respective departments subject to a maximum of 75% of the balance at credit or (3a-b)/4 (a = balance at credit, b = amount of consolidated advance outstanding) whichever is less. In the case of part-time contingent employees, it shall not be in excess of 16 months' pay or half the amount at credit of the subscriber in the fund, whichever is less. The sanctions for temporary advances are noted in the subscribers’ accounts.
Temporary advance is to be applied in Form B.
Conditions for Sanction of Temporary Advance
  ü       At least a gap of six months between the drawal of two temporary advances
 ü     At least four months gap between a temporary advance and non-refundable advance taken for the same purpose
  ü       Not to be sanctioned during the last three months of service.
  ü      Not to be sanctioned in the month in which the subscriber proceeds on leave preparatory to retirement.
  ü       Not to be  sanctioned after  a subscriber  elects not to subscribe to the Fund.
  ü       Not to be  sanctioned during leave without allowances if he is not subscribing to the Fund during that period.
Recovery of Temporary Advance
 1. The advances are recoverable from the subscriber in such number of equal monthly installments as the sanctioning authority may direct, but such number shall not be less than 12 unless the subscriber so elects or not more than 36. In the case of part-time contingent employees, the number of instalments in normal cases shall not be less than 15 unless the subscriber so elects for not more than 30.
 2. When there is an advance running and a second advance is sanctioned, the balance of the previous advance not recovered shall be added to the advance so sanctioned and the subsequent installments for recovery of advances shall be fixed with reference to the consolidated amount.
 3. The recovery shall commence with the issue of pay for the month following the month in which the advance was drawn.
 4. A subscriber may at his option repay two or more instalments in a month.
II . Non-Refundable Advance
The Head of Department is competent to sanction non-refundable advance up to 75% of the balance at credit. The quantum of NRA that can be sanctioned by various other administrative authorities is specified in the relevant delegation of financial powers of the respective departments.
Non-Refundable Advance  is to be applied  in Form B1.
Conditions for Sanction of Non-Refundable Advances
 ü       It may be sanctioned at any time for specified purposes after completion of 10 years of service (including broken periods of service, leave without allowances (LWA), suspension, military and war service which are reckoned for the purpose of pension, pensionable service under Government of India/other State Governments/aided educational institutions if  the PF deposits and interest thereon during the service have been transferred  and credited to the Fund) or within 10 years of the date of retirement.
 ü       It may not be sanctioned (i) during the last three months of service (ii) after exercising option under Rule 30 (c) which permits the subscriber to close the account before retirement (iii) after submitting the closure application.
 ü       Only one withdrawal may be allowed for the same purpose.
 ü       When another withdrawal is sanctioned for the purpose of treatment of the same person within a period of six months of the previous withdrawal, it should be specified in the sanction that the treatment is for the illness on a different occasion.
 ü       Advances for education can be permitted for each year for different children.
 ü      When both husband and wife are subscribers to the Fund, withdrawal can be made for the education, marriage of the same child by both.
 ü       When an advance for marriage is sanctioned, the date of marriage is to be specified. (Amount cannot be drawn before three months of the date of marriage).
 ü       Advance for  marriage can be allowed for a second or subsequent marriage of son/daughter.
 ü       Advance is allowed for the marriage of a female relative dependent of the subscriber if he has no daughter.
 ü      Advance for construction of house even permitted for repayment of loan taken for house building from Co-operative Societies or similar agencies.
 ü       Advance can be drawn during the period of suspension also.

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