General Provident Fund - FAQ

1. What is a GPF Advance ? 

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. 

2. What are the reasons for which GPF Advance can be taken ?

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. 



3. How many times in a year GPF Advance can be taken ? Is there any limit in the same during whole of our service? 

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. 

4. What is the maximum amount that can be taken as GPF Advance ? 

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.

5. If I am still repaying the GPF advance taken earlier, can I take another GPF Advance ? 



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. 

6. Is it possible to convert a GPF Advance to a part final withdrawal ? 

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

7. What is GPF Part-final withdrawal ? 

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 The amount withdrawn shall stand debited from your account forever.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



8. What are the reasons for which GPF Withdrawal can be made ? 

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. 

9. Is there any qualifying service ( or minimum length of service) for an employee to make withdrawal from fund ? 



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. 

10. Are there any chances of making withdrawal even if the applicant does not posses the qualifying service ? 

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. 

11. Should we submit any utilization certificate or completion certificate after taking GPF withdrawal ? 



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. 



12. What is the maximum amount that can be withdrawn from GPF ? 

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. 

13. How the rate of interest for GPF is fixed? 

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

14. Whether deposits made in General Provident Fund is exempted from attachment? 

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.



15. Whom should be we nominate for receiving the amount remains in our GPF account after our death ? 

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. 

16. Who are all our family members as per General Provident (CS) Rules 1960 ? 

‘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

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GPF--CONDITIONS FOR WITHDRAWAL



Withdrawals from the Fund

Withdrawals may be sanctioned by the authorities competent to sanction, at any time after the completion of Fifteen years of service of the subscriber or within Ten years before the date of his superannuation, whichever is earlier, from the amount standing to his credit in the Fund.

Conditions for withdrawal :

Only one withdrawal is allowed for the same purpose.

The amount shall ordinarily not exceed 60 % of the balance at credit subject to a maximum of Rs 2.5 lakhs or 75 times of the Basic Pay, which ever is lesser.

In one financial year, a subscriber can draw either the temporary advance or the part final withdrawal after a gap of 6 months of drawal of any one, so that there would be only two withdrawals in a year.

The authority competent to sanction part final withdrawal can sanction the withdrawal up to 90% of the balance at credit of the subscriber when it is applied for within 12 months before retirement. This can be availed of only once, without assigning any reason for withdrawal and without any authorization from A.G. even if it is applied for within the last 4 months of service.

The balances under V pay commission arrears, UGC arrears and IDA credited prior to one year can be taken in to account for computing 90% of the balance. VI pay commission arrears not to be included.

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