ABSTRACTED FROM G.P.FUND RULES 1978
Part VIII — Advances from the Fund
1.14. (1) A temporary advance may be granted to the subscriber from the amount standing to his credit in the Fund at the discretion of the competent authority subject to the following conditions:
(a) No advance shall be granted unless sanctioning authority is satisfied that the applicant’s
pecuniary circumstances justify it, and that it will be expended on the following object or objects
and not otherwise:
i) to pay expenses incurred in connection with the prolonged illness of the applicant or applicant’s spouse or any person actually dependent upon the applicant;
ii) to pay for the overseas passage for reasons of health or education of the applicant or any person actually dependent on him;
iii) to pay obligatory expenses on a scale appropriate to the applicant’s status in connection with the marriages, funerals or ceremonies which by his religion it is incumbent on him to perform;
iv) to purchase a plot of land for the construction of a house or to purchase a house or to construct one for the occupation of the subscriber himself or his family on a piece of land owned by the subscriber or to make additions to or alterations in an existing house owned by the subscriber, whether or not constructed Compendium 2008 G.P.Fund Rules or purchased with a house building advance;
v) to purchase a conveyance (car, scooter, motor cycle or bicycle);
(vi) to meet other expenditure which is considered by the sanctioning authority to
be essential and unavoidable.
Explanation– A temporary advance may be granted to the subscriber for the performance of Haj.
Note: In case falling under item (i) above, advances may be granted by the sanctioning authority to pay debts incurred; provided an application is made within a reasonable time after the event to which it relates. What is a reasonable time will be determined on the merits of each case. Advances to pay debts incurred in cases falling under item (ii) and (iii) require the
sanction of Government.
(b) The sanctioning authority shall record in writing its reasons for granting the advances:
Provided that if the reason is of a confidential nature, it may be communicated to the Accounts Officer personally and/or confidentially.
(c) An advance other than that covered by clause (a) (iv) and (v) shall not except for special reasons to be recorded in writing by the sanctioning authority:-
(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 clause (c) (i), be granted until at least twelve months after the final repayment of all
Compendium 2008 G.P.Fund Rules previous advances together with interest thereon:
Provided that the above conditions shall not be relaxed in the case of an advance falling under clause (a) (vi) above:
*Provided further that in no case the second advance shall be granted before the final repayment of the previous advances together with interest thereon;
Provided further that a second non-refundable advance shall not be granted until a period of one year has elapsed since the drawl of the previous advance.
(d) an advance under clause (a) (iv) shall be subject to the following special conditions:
i) Advance shall in no case exceed twenty four months pay of the subscriber or eighty per cent
of the amount at the credit of the subscriber in the Fund, whichever is less;
ii) Advance granted for construction of a house shall be paid in two equated installments;
iii) If the first installment is not utilized for the purpose of construction of the house within eight
months of its drawl, it shall be refunded unless the sanctioning authority extends this period;
iv) For the purpose of drawl of the second installment the subscriber shall be required to
give under his hand a certificate to the effect that he has actually utilized the first installment on
the construction of the house;
v) The subscriber shall not dispose of the house purchased or constructed with an advance from
the Fund until the advance has been repaid or the subscriber retires from Government service;
*Added vide notification No. FD/SRI2-3/83 (Prov) dated 02.04.1989. Compendium 2008 G.P.Fund Rules
vi) Recovery shall be made at the rate of seven per cent of the subscriber’s pay commencing from
the fourth issue of pay after the first installment of the advance is drawn;
vii) In case a subscriber also draws or has drawn a house building advance from Government, the recovery on account of the advance from the Fund shall commence immediately after the
advance obtained from Government has been fully repaid with interest thereon.
(e) i) An advance for the purchase of car, scooter/ motor cycle or a bicycle shall not exceed:
In the case of car-12 months’ pay of the subscriber or half the balance at his credit in the Fund whichever is less;
In case of scooter/motor cycle — six months pay of the subscriber or half the balance at credit in the Fund, whichever is less;
In the case of a bicycle — four months pay of the subscriber or half the balance at his credit in the Fund, whichever is less.
ii) The subscriber shall give under his hand a certificate to the effect that he has actually utilized the advance for the purchase of the conveyance for which the advance was applied for.
iii) The subscriber shall not dispose of the conveyance so purchased unless the advance
has been repaid or the subscriber retires from Government service.
iv) In all cases in which the conveyance is sold before the advance has been fully repaid with
interest, the sale proceeds must be applied, so Compendium 2008 G.P.Fund Rules far as may be necessary, towards the repayment of any outstanding balance.
v) The recovery shall be made at the rate of seven per cent of the subscriber’s pay commencing
from the fourth issue of pay after the drawl of the advance.
# *vi) Advance drawn for conveyance (i.e. balance thereof) shall become non-refundable on the subscriber attaining the age of 50 years.
(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.
Explanation I–In sanctioning advances the instructions given in Appendix-II and III ***should be carefully observed by the authority competent to sanction the advances.
Explanation II– The authorities competent to grant advances under this rule are give in Appendix-IV *****((to this Chapter)).
1.15. After a subscriber has attained the age of fifty years, the competent authority may, in its discretion, grant him an advance for any of the purposes specified below subject to the conditions mentioned against each purpose:
a) For construction of a house on a piece of land owned by the subscriber or to make additions to or alternation in an existing house owned by him.
(1) The advance shall mutatis mutandis be governed by the same terms and conditions as applicable to an advance under clause (a) (iv) of sub rule (1) of rule 1.14.
Provided that, subject to condition (3) no recovery of the advance shall be made from
*Added vide F.D. notification No. FD-SRIV-2-15/79 dated 4th August 1980.
**Deleted vide notification No. FD/SRI-2-3/83 (Prov) dated 02.04.1989.
***Deleted vide notification No. FD/SRI-2-3/83 (Prov) dated 02.04.1989.
Compendium 2008 G.P.Fund Rules
the subscriber and the amount advanced shall be treated as part of the final payment of the amount standing at the credit of the subscriber when the final payment becomes due.
(2) The first installment of the advance shall be drawn only after an agreement is executed
between the subscriber and the Governor in Form P.F.9.
(3) In case the house is sold or otherwise alienated by the subscriber without repayment of the advance and before his retirement from service, the subscriber shall forthwith repay
into the Fund the entire amount of the advance together with the interest accrued thereon, in a lumpsum.
(b) For purchase of a house for his residence.
(1) The amount of the advance shall not exceed eighty per cent of the amount standing to his credit in the fund.
(2) Subject to conditions (1), (3) and (4) the advance shall, mutatis mutandis, be governed by the same terms and conditions as applicable to an advance under sub rule(a).
(3) In case the house is not purchased within three months of the drawl of the advance the
subscriber shall forth with repay into the Fund the entire amount of the advance together with the interest accrued thereon, in a lumpsum.
(4) The Advance may be drawn in full at once but satisfactory evidence shall be produced before the Audit Officer to show that the Advance for the purchase of the house has been spent within three months of its drawl. This can be done by showing to the Audit Officer a duly executed receipt for the amount paid. in Form P.F.10.
(c) For purchase of agricultural (1) The amount of the advance Compendium 2008 G.P.Fund Rules land from Government.
(d) For any of the following purposes, namely:
(i) to defray expense in connection with the prolonged illness of the subscriber or a member of his family actually dependent upon him.
(ii) To pay for the overseas passage of the subscriber for reason of health or for the performance of Haj.
(iii) To pay for the overseas passage for reasons of education of any member of the subscriber’s family actually dependent on him and such other lump sum expenditure as admission or advance tuition fees of any such members.
shall not exceed eighty percent of the amount standing at his credit in the Fund.
(2) Subject to condition (1) the advance shall mutatis mutandis, be governed by the
same terms and conditions as applicable to an advance under sub rule(a).
Provided that the advance may be drawn in lump sum if so desired by the subscriber.
(3) The advance shall be drawn only after an agreement is executed by the subscriber and the Governor in form P.F.11.
@(1) The amount of the advance shall not exceed 12 months pay of the subscriber or 80 per cent of the amount standing to his credit in the Fund whichever is more).
(2) No recovery of an advance under this clause shall be made from the subscriber and the amount shall be treated as part of the final payment of the amount standing at the credit of the subscriber when the final payment becomes due.
(iv) To pay obligatory expenses on a scale appropriate to the subscriber’s status in connection with funerals or ceremonies which by his religion it is incumbent upon him to perform on in connection with the marriage of any member of his family actually dependent on him.
♦@@1.16. A subscriber who has attained the age of 50 years may draw non-refundable advance to the extent of 100% balance in the account on the date of application for the grant of advance, without assigning any reason.
♣@@@1.17. A subscriber shall be entitled to draw a second advance, at any time, on non-refundable basis.
1.18. (1) The competent authority may in its discretion, grant an advance for the construction of a house on non–refundable basis to a subscriber* who has attained the age of 45 years. The rule shall also be applicable to such of the subscribers who have already incurred a liability to discharge to a financial institution in connection with the construction of their house.
(2) The advance shall mutatis mutandis be governed by the terms and conditions applicable to an advance under sub-rules (a) and (b) of Rule 1.15.
1.19. (1) An advance shall be recovered from the subscriber in such number of equal monthly installments as the sanctioning authority may direct, but such number shall not be less than twelve unless the subscriber so elects, or in any case more than thirty six. A
@Rule 1.16 substituted vide Notification No. FD.SR.I-2-1/2000 dated 12th December 2002
@@Rule 1.17 substituted vide Notification No. FD.SR.I-2-1/2000 dated 29th May 2003
*Deleted vide notification No. FD.SR-1-2-1/76 dated 20th September