Liberalization of provisions for withdrawal/ drawal of advance from the General Provident Fund by the subscribers – Master circular: DOPPW OM dated 20.10.2023
F.No. 21/05/2023-P&P W(F)
Government of India
Ministry Of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi,
Subject: Master circular-Liberalization of provisions for withdrawal/ drawal of advance from the General Provident Fund by the subscribers.
This Department has issued various instructions from time to time regarding General Provident Fund (Central Service) Rules, 1960. It is now decided to consolidate these instructions at one place for better understanding and guidance, as under:
2. Withdrawals from the General Provident Fund by the subscribers
2.1. The provisions in the rules have been reviewed and it has been decided to permit withdrawals from the General Provident Fund by the subscriber for the following purposes:
i. Education- This will include primary, secondary and higher education, covering all streams and institutions,
ii. Obligatory Expenses viz. betrothal, marriage, funerals, or other ceremonies of self or family members and dependants,
iii. Illness of self, family members or dependants,
iv. Purchase of consumer durables.
2.2. Withdrawal of upto twelve months pay or three-fourth of the amount standing at credit, whichever is less, is permitted. However, for illness, the withdrawal may be allowed upto 90% of the amount standing at credit of the subscriber. A subscriber may seek withdrawal after completion of ten years of service.
2.3 (i) Housing including building or acquiring a suitable house or a ready built flat for his residence,
(ii) Repayment of outstanding housing loan,
(iii) Purchase of house site for building a house,
(iv) Constructing a house on a site acquired,
(v) Reconstructing or making additions on a house already acquired, .
(vi) Renovating, additions or alterations of ancestral house.
A subscriber may be allowed to withdraw upto ninety percent of the amount standing at credit for the above purposes. 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instructions which lay down that subsequent to the sale of house for which GPF withdrawal has been availed, the amount withdrawn has to be deposited back.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 rules. A subscriber may be permitted to avail the facility at any time during his service.
2.4 (i) Purchase of motor car/motor cycle/ scooter etc. or repayment of loan already taken for the purpose,
(ii) Extensive repairs/overhauling of motor car.
(iii) Making deposit to book a motor car/motor cycle/scooter, moped etc.
A subscriber may be permitted to withdraw three-fourth of the amount standing at credit or cost of the vehicle, whichever is less for the above purposes. Withdrawal for the above purpose will be permitted after completion of 10 years of service.
2.5 Withdrawal of upto 90% of balance without assigning reasons 1s allowed for Government servants who are due for retirement on superannuation upto two years before superannuation.
2.6 In all cases of withdrawal from the fund by the subscriber, the declared Head of Department 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.
2.7 As per the GPF(CS) Rules, 1960, no time limit has been prescribed for sanction and payment of withdrawal amount. Therefore, 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.
DoPPW OM No. 3/2/2017-P&PW(F)(ii) dated 07-03-2017
3. Drawal of Advance from the General Provident Funds by the subscribers
3.1. The provisions in the rules have now been reviewed and it has been decided to permit the subscriber to prefer an 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.
3.2 It has been decided to enhance the limit of advance upto 12 months of pay or three-fourth of the amount at credit, whichever is less. Amount of advance will be recoverable in a maximum of 60 installments. The advance may be sanctioned by the declared Head of Office.
3.3 The declared Head of Department is competent to sanction an advance from the fund for reasons not covered above.
3.4 Maximum time limit of fifteen 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 seven days.
3.5 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.
DoPPW OM No. 3/2/2017-P&PW(F)(i) dated 07-03-2017
4. All Ministries/Departments are requested to bring the instructions/guidelines to the notice of all concerned.
Under Secretary to the Government of India
Copy to: All Ministries/Department of the Govt. of India.