Conditions for Advances from the General Provident Fund

A temporary advance may be granted to a subscriber from the amount standing to his credit in the Fund at the discretion of the authority specified in Fifth Schedule subject to the following conditions:

• No advance shall be granted unless the sanctioning authority is satisfied that the applicant’s pecuniary circumstances justify it and that it will be expended on the following objects and not otherwise.
• To pay expenses incurred in connection with the prolonged illness of the applicant or any person actually dependent on him.
• To pay for the overseas passage for reasons of health or education of the applicant or any person actually dependent on him.
• To pay obligatory expenses on a scale appropriate to the applicant’s status which by customary usage the applicant has to incur in connection with marriages / funerals or other ceremonies of persons actually dependent on him.

Provided that the condition of actual dependency shall not apply in the case of a son or daughter of the subscriber.

Note – Advances under sub-clause (iii) are also permissible for meeting expenditure connection with marriage and other ceremonies of the subscriber himself /herself

To meet the cost of higher education of the applicant himself or of any person who is a member of the subscriber’s family and is actually dependent on him-

For education within India whether for medical, engineering or other technical or specialised course subsequent to passing the Final Examination held by the Board of Secondary Education, West Bengal, or other equivalent  examination, provided that the course of study is for not less than three years.

(b) The sanctioning authority shall record in writing its reason for granting the advances

(c) An advance shall not, except for special reasons –

(i) Exceed three months’ pay or half the amount at the credit of the subscriber in the Fund whichever is less, or

(ii) Unless the amount already advanced does not exceed two-thirds of the amount admissible under sub-rule(i) be granted until at least twelve months after the final repayment of all previous advances together with interest thereon.

Provided that if the reason is of a confidential nature it may be communicated to the Account Officer personally and or confidentially.

Explanation 1 – The expression “amount already advanced” in clause (c) (ii) shall be construed as referring to the first advance that may be granted not exceeding two-thirds of the amount admissible under clause (c) (i).  Thus under clause (c)(ii) if a subscriber who has already been granted an advance not exceeding two-thirds the amount admissible under clause (c) (i) applied for a second advance (not exceeding the limit specified in that clause) within twelve months of the final repayment of the first advance or while it is still current, the authority who sanctioned the first advance will be competent to sanction the second advance without a reference to higher authority.  Where the amount of the first and the second advance does not exceed two-thirds of the amount admissible under clause (c) (i) the subscriber may apply for a third advance within twelve months of the final repayment of the two previous advances or while one or both of them is or are still current.  In such a case, the original sanctioning authority shall not sanction the third advance except without the sanction of the next higher administrative authority.

Explanation 2 – In determining whether a particular advance prayed for is the third or the second advance, any advance which has been completely repaid more than 12 months ago shall be totally ignored.  The original sanctioning authority can grant a third advance (which is actually the second advance) if the second advance (which is actually the first advance) did not exceed two-thirds of the amount admissible under the rules and if the first advance (which has to be totally ignored) had been completely repaid more than 12 months ago.

Explanation 3 – In determining the amount of the second advance, the limit of 3 months pay shall operate separately without referring to the balance due against the first advance.

(2)  In fixing the amount of an advance the sanctioning authority shall pay due regard to the amount at the credit of the subscriber in the Fund.

Related G.O.s :

1. Order No.6116-F dated 23rd December,1965

2. Order No.10959-F dated 28th September,1993

3. Order No.307-F dated 13th January,1987