General Provident Fund – FAQ

These are frequently asked questions on General Provident Fund applicable to employees joined in the government service prior to 1.1.2004.  GPF is covered by General Provident Fund (CS) Rules, 1960 and Office memorandums issued by Government from time time.

GPF FAQ

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.

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.

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.

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.

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.

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

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 The amount withdrawn shall stand debited from your account forever.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.

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.

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.

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.

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.

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.

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

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.

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.

‘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.

42 Comments

  1. this is good job and it’s useful for all gove.emplo. but one FAQ is important . Que: what is minimum amount should deposit in GPF A/C per month?

    1. Dear bharath patel
      Presently 6% of your Revised Basic as on March of that F/y as minimum and maximum you can subscribe not more than your Revised basic as on March of that year

      1. Kindly clarify whether a Government Employee can be exempted from Minimum subscription (6% of Basic Pay) of GPF if he is subscribing to his PPF a/c being maintained in SBI or other banks.

        Kindly clarify .

  2. A GOOD INFORMATIVE ARTICLE IN THE FORM OF FAQs. PRESENTED IN A LUCID STYLE THAT COULD BE UNDERSTOOD BY EVERYONE. BEST WISHES FOR EFFORTS TO KEEP THE CENTRAL GOVERNMENT EMPLOYEES TO BE AWARE OF ALL RULES AND REGULATIONS THAT GOVERNS THEM. THANK YOU.

  3. tell me the procedure regarding GPF when I change the job on technical resignation

    1. as per iknow you could transfer your fund from the parent organisation to the new one

      1. Dear Nirbhay, After you join the new office, give a representation stating that you resigned on technical grounds and that your past service be counted for all purposes ie., for pension, leave, gpf etc. Give your old gpf ac. no. in the representation. The new Office will call for your service book and all other details. Your gpf balance in the old office will then be credited into the new account opened in the new office. Hope this reply will help you.

  4. PLEASE LET ME KNOW IF THERE IS ANY RULE WHICH PERMITS A SUBSCRIBER TO PAY THE BALANCE GPF AMOUNT AT ONE STORKE.

    1. Dear satish
      If you have taken part final withdrawal for a purpose and which you could not utilise for that purpose at that time, you should re credit the same by explaining the reason to the Sanctioning Authority.
      But if you have taken an advance, which has been recovered in certain instalments as per a sanction order. There is no provision to deviate such Sanction order. You may apply to your GPF sanctioning authority explaining your grounds for preclosure and if approved by a written order, you may recredit the same vide challan into the Govt A/c in GPF head then only your PAO/accounts officer may accept the same.

  5. hi sir plz help me on gpf rules i want to know when some body quits service to join other organisation and he appliess for final payment of his gpf balance in prescribed form what is the maximum period in which his case is to be dealt, where could i get the copy of the order for that?

  7. Sir, I’ve completed 13 years of service of Dept.of Posts. I’ve applied for 90% withdrawal 2 years before for ‘Purchase of Site’ and got sanctioned. Now I’ve applied for ‘Repayment of outstanding housing loan’. Am I eligible for the same ? If so, kindly mention the rule and reference.

  8. What is the procedure for claiming GPF final payment when Subscriber died without exercising nomination and the only claiment is his unmarried duaghter (no body else in family) The office is asking for succession certificate. In my opinion, succession certificate is required only when the claimant is other than legal hier. In this case, the claimant is legal hier, is it necessary to obtain succession certificate. Plz. clarify with reference to specific rules.

  11. Sir, I’ve completed 13 years of service of Dept.of Posts. I’ve applied for 90% withdrawal 2 years before for ‘Purchase of Site’ and got sanctioned. Now I’ve applied for ‘Repayment of outstanding housing loan’. Am I eligible for the same ? If so, kindly mention the rule and reference.

  12. Dear  sir/madam,

    “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.”

    under the aforesaid provision of GPF rules can any subscriber apply for the purpose of purchasing flat/ house in the name of his/her spouse. i.e where the house is being purchased by husband and wife can apply for the 90% from her office or not.

  13. i applied for gpf withdrawal on 7/6/2011 for rs 50000 for medical expenses. thereafter i changed my reason to addition alteration of house  for urgent house repairs and enhanced my  withdrawal amount to rs 2 lakhs. As i have taken f/w for the same reason the claim was returned for municipal permission. Since it is very difficult to obtain permission from a state govt office i withdrew the claim and moreover my reason as addition alteration  of house didnt fit  as it came under renovation of existing house for which f/w is not available. i again presented the claim for medical reason however i had not attached details of expenditure. The office has put an office note  to the group officer for discussion. My claim is still pending as on date (21/6/2011). please clarify whether changing of reason is an offence? The delay has caused a lot of mentally agony to me . I am a patient of blood pressure, diabetes, chronic depression, anxiety neurosis. I am really in need of money for my treatment. A case of malicious and malafide intention has been found and my case is being delayed to harass me as i had made a rti query for a tuition fee claim earlier in the month. Is the office acting in a fair manner? Can i go  to the human rights commission for being treated like this? Kindly clarify with details? i work for the defence accounts department.

  14.  HOW MUCH TIME SHOULD AN ADMIN SECTION USUALLY TAKE TO PASS A FINAL WITHDRAWAL  CLAIM. IS CHANGING  THE REASON OBJECTIONABLE? DURING MEDICAL EMERGENCIES  IS IT MANDATORY TO FURNISH THE DETAILS OF EXPENDITURE FIRST? 

  15. NORMALLY HOW MUCH TIME DOES IT TAKE FOR AN ADMINISTRATION SECTION TO PASS A FINALWITHDRAWAL. IS  EXPENDITURE DETAILS MANDATORY EVEN DURING MEDICAL EMERGENCIES.  IS CHANGING REASONS FOR GENUINE REQUIREMENTS  AN OFFENCE IN GPF RULES?

  16. AS PER RULE  IN HOW DAYS SHOULD AN ADMIN SECTION DISBURSE A FINAL WITHDRAWAL CLAIM. HOW MUCH IMPORTANCE IS GIVEN TO THE DETAILS OF EXPENDITURE IN MEDICAL CASES ESPECIALLY WHEN THE ESTIMATE IS NOT AVAILABLE. CAN THE ADMIN WITHHOLD THE CLAIM FOR SUCH REASONS. IS CHANGING THE REASON DURING THE COURSE OF SUBMISSION  FOR A GENUINE ALTERNATE REASON BE CONSIDERED OBJECTIONABLE?

    1. AS PER RULE  IN HOW DAYS SHOULD AN ADMIN SECTION DISBURSE A FINAL WITHDRAWAL CLAIM. HOW MUCH IMPORTANCE IS GIVEN TO THE DETAILS OF EXPENDITURE IN MEDICAL CASES ESPECIALLY WHEN THE ESTIMATE IS NOT AVAILABLE. CAN THE ADMIN WITHHOLD THE CLAIM FOR SUCH REASONS. IS CHANGING THE REASON DURING THE COURSE OF SUBMISSION  FOR A GENUINE ALTERNATE REASON BE CONSIDERED OBJECTIONABLE

  17. I have been working for 9 years in postal deparment.Now I propose to buy a flat in chennai.I have availed gpf advance and outstanding amount of advance is 2,80,000.Now i require the amount of advance to be converted into gpf withdrawal for purchase of flat.whether it is permissible and how can i apply and what are the documents to be attached

  18. We get income tax benefit for the amount deducted from salary towards GPF contribution. Is the deduction of the GPF advance ( monthly installments) also comes under this?

  19. sir,
    is there any rule that gpf partial and final withdrawal has to be taken only once for one cause? example i have taken partial and withdrawal for purchasing house site and again i applied for it. my office rejected request stating that it can not be given second time. is there any strong for the office to do so? please clear my doubt.

  20. I have applied for 4lac GPF adv[refundable] it is less than the 75% of my total GPF amount for repair &reconstruction of my inlaw’s home where i am living. Please tell me what are the necessary documents which I have to attach with my form.

  21. can any one define ruleb 15 1 (B) can any one who has  withdrawn from gpf under the above rule for example for purchase of plot , withdraw for purchase of flat ?, if so any circular in this regard may be given

  22. Sir,

    I am working in Central Govt. Department. I took GPF advance of an amount of Rs. 202000/- to meet the cost for purchase of consumer durables on 12.05.2011 at the service length of 12 years. Can I convert the advance to final withdrawl? Please clear my doubt.
    with regards, mahesh prasad

  23. Dear Sir/Madam

    As per provisions of GPF RULE can any subsciber withdraw 90% of the GPF amount for the constuction of house where the land is in the name of his/her spouse ie,where the house is to be built by husband the land is of wife

  24. i am a esic hospital staff in chennai,if i wish to get a non refundable gpf loan of 75 percentage of  my accumulated amount  for the purpose of purchasing house hold things like tv is it needed to submit a cash bill to the office   please clarify

  25. If an officer under suspension, he can withdrawal from his GP Fund for the purpose of Higher education of children ?

  26. 1. How long can the application be kept idle in office without taking any action (i.e. sanction) 2. If applied for medical reasons how long can the officer prolong without giving any specific reasons 3. If the officer kept the application without taking any action where can we complain. 4. Is a temporary advance granting depends on the whims and fancies of the officer 5. Due to intentional delay of the officer in sanction if something happens wrong; is the officer who had delayed is held responsible and can action be taken against the officer concerned

  27. I want to take GPF withdraw for purchase of agricultural land in Bihar for plantation of Tree of Mango, Lichi and others.
    But there are no rule for take GPF withdrawal for purchase of agricultural land. I want to represent to the same for making provision for withdrawl of GPF for purchase of agricultural land.
    Please tell me, which Ministry makes the rule of GPF or modify the GPF rule.

  29. rajendra singh I joined cisf in 11.03.2ooo as constable.In cisf i were contributing gpf and also entitle for penson.I applied cpo si exam 2007 through proper channel and obtain noc from cisf after selection in cpo siexam i was alloted crpf on accepting technikal resignation under rule 26(2) from cisf on 19.11.2009.i joined crpf 20.11.2009.it is also submitted that above individual not get gpf final payment. In view of above Please clarify whether past service of cisf will be counting for penson and other benifit&clarify whether above individual entitle to contribute towards gpf or otherwise.

  30. Pawan Thawait

    22.09.214 at 22.14 PM

    Sir,

    I am working in Central Govt. Department. I took GPF advance of an amount of Rs. 475000/- to meet the cost for purchase of consumer durables on 25.07.2013 at the service length of 14 years. Can I convert the advance to final withdrawal? Please
    clear my doubt.

    with regards,

    Pawan Thawait

  31. if loan is not taken from teachers provident fund for 3 years bonus 1% is given to addition to the normal intrest rates. it is given in the G.O.NO.920 DATED 1.11.1983. please sent me if any information known regarding to it. my contact no.9092478293

  32. I was appointed as senior auditor in the state audit department on 14-8-1995 Now I am working as district audit officer in chittoor district. I have submitted application for GPF part final with drawl of Rs 100000/-to alternate of my own house and for conversion already sanctioned as temporary advance for medical treatment. But my request is rejected by the Director of state audit, Andhra Pradesh Hyderabad vide Memo Roc.No. 1358/O/2014, dated 16/10/2014., Reasons As per Rule 15-A of the APGPF rules issued Part-final withdrawal can be sanctioned by the competent authority subject to completion of (20) years of service of the subscriber or within ten years before the date of his retirement on superannuation which ever is earlier.
    As verified from the representation furnished by the individual it came to know that the date of the appointment of the employee is 14-08-1995 and date of superannuation is 31-03-2032. Thus , the conditions laid down for sanction of the Part Final Withdrawal is not fulfilled. Hence my application rejected by the Director of state audit, AP, Hyderabad whether correct or not kindly explain.

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