Indian Railways

INDIAN RAILWAY ESTABLISHMENT CODE (Vol - I)

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Chapter 9
Provident Fund Rules

 925. Other fina1 withdrawa1s.--Withdrawal under this rule for the various purposes mentioned below, shall be subject to the condition laid down in rule 922.  

(1)  House building. -- Withdrawal may be restricted for house building purposes on the following terms and conditions: -

(a)  The withdrawal may be either for the purpose of building or acquiring a suitable house or ready built flat for residence, including the cost of the site for re-payment of any outstanding amount on account of loans expressly taken for the purpose or any payments towards allotment of a plot or flat by the Delhi Development Authority, State Housing Board or House Building Societies and Indian Railway Welfare Organisation (lRWO).  

Note . - In cases where a subscriber has to pay in instalments for a site or a house or flat purchased or a house or flat constructed through the DDA or a State Housing Board or House Building Cooperative Societies and Indian Railway Welfare Orgnaisation, he shall be permitted to make a withdrawal as and when he is called upon to make a payment in any instalment subject to the condition that the amount of withdrawal does not exceed the amount actually subscribed by the subscriber alongwith interest thereon standing to his credit in the fund at the time of each withdrawal. Every such payment shall be treated as a payment for a separate purpose.   

(b) Withdrawals shall not exceed :--  

(i)  the amount actually subscribed by him alongwith interest thereon standing to his credit, or  

(ii)  the actual cost of the house including the cost of site or repayment of the loan  in that behalf, whichever is less. Provided that in no case the maximum amount of withdrawal for the purposes specified in Rules 925(1) and 925(2) shall exceed the maximum limit prescribed from time to time under Rules 2(a) and 3(b) of the scheme of the Ministry of Works and Housing for the grant of advances for house building purposes.  

(Railway Ministry's letter No. F(E)III/80/PF-1/2 dt. 31-7-80).  

      If the amount withdrawn exceed the actual expenditure or repayment, as aforesaid, the excess shall be refunded to Government forthwith in one lumpsum together with interest thereon at the rate provided for in Rule 920(1), from the month of the withdrawal, for being credited to his account in the  Provident Fund. The actual expenditure incurred in connection with the sale or transfer deeds may be reckoned as part of the cost of the house.  

(iii)in the case of a subscriber who has availed himself of an advance under the scheme of the Ministry of Works and Housing for the grant of advance for house-building purposes, or has been allowed any assistance in this regard from any other Government source, the sum withdrawn under this sub-rule together with the amount of advance taken under the aforesaid Scheme or the assistance taken from any other Government source shall not exceed the maximum limit prescribed from time to time under rules 2(a) and 3(b ) of  the aforesaid Scheme.  

(Railway Ministry’s' letter No. F(E)III/80/PF-1/2 dt. 31-7-80).  

(c) The house proposed to be acquired or redeemed by the railway servant with the help of the amount withdrawn, as aforesaid, shall be situated at the place of his duty or his intended place of residence after retirement. 

(d) A withdrawal shall be permissible for the building, acquisition or redemption of one house only, provided the railway servant does not already own a house at the place referred to in clause (c) above. 

Note.-(1) Withdrawal may also be permitted for reconstructing/renovating or for making additions of alterations or for upkeep of an ancestral house at a place other than the place of duty provided the amount of withdrawal does not exceed the limits mentioned in clause (b) or Rs. 10,000/- whichever is less and provided further that the competent authority is satisfied that the reconstruction/renovation etc. are necessary for the railway servant's reasonable comfort and are not being made by him for purposes of letting out the building.  

Note.- (2) Withdrawal may also be allowed for reconstructing/renovating or making additions or alterations to a house or f1at already owned or acquired by a subscriber, with or without the assistance of a withdrawal/loan from SRPF or other Government source, upto 90% of the amount subscribed by him along with interest thereon standing to his credit and also subject to the limits laid down in clause (b) provided that the competent authority is satisfied, that the reconstruction/renovation are necessary for the railway servant's reasonable comfort and are not being made by him for the purpose of letting out the building.  

Note.- (3)A second final withdrawal may also be allowed for the above purposes in respect of a house/flat acquired with the help of a withdrawal already made or which may be made in future from the provident fund or other Govt. sources subject to the condition that the total of both withdrawals does not exceed the amount actually subscribed by the Railway servant alongwith interest thereon as it stood at his credit in the end at the time of the first withdrawal. The second withdrawal should not exceed 90% of the amount subscribed by him alongwith interest thereon standing to his credit subject also to the limits laid down in clause (b) above.  

(e)  The construction of the house should be commenced within six months of withdrawal of money and should be completed within a period of one year from the date of commencement of construction; if, however, the house is to be purchased or redeemed or a private loan previously raised for the purpose has to be repaid, this should be done within three months of the withdrawals ; 

 Note. - The sanctioning authority may at their discretion, relax the limit of six months prescribed above for commencement of the house to one year. -  

(f) In the case of construction of a house withdrawal will be permitted only in equal instalments (not less than two and not more than four), the instalments after the first being authorised by the administrative authority after verification regarding progress of construction of the house.  

Note. - While authorising the disbursement of the second and subsequent instalments,  as prescribed above the administrative authority shall attach a certificate to the effect that the required formalities in regard to the construction of the house, in pursuance of which the instalment has become due, have been complied with.  

(g) The railway servant shall submit an annual declaration in the prescribed form on or before the 31st December in each year and satisfy the sanctioning authority if called upon to do so, by the production of tax receipts, title-deeds, etc., that the house remains in his sole ownership and that while he is still in service, he has not parted with the possession thereof by way of transfer, sale, mortgage, (other than mortgage to the President), gift, exchange lease for a term exceeding three years or otherwise howsoever without the previous permission of the sanctioning authority in writing. Provided that such permission shall not be necessary for its  being mortgaged in favour of a Housing Board, the Life Insurance Corporation or any other Corporation own or controlled by the Central Government which advances loans for the construction of a new house, or for making additions or alterations to an existing house.  

(Railway Ministry's letter No. F(E)III /74PF2/6 dt. 6-12-74).  

In the case of a railway servant who has availed of a loan from Government for house building purposes it should be certified that the house/house site for the construction of which he had taken a final withdrawal from the Provident Fund continues to be in his possessions and it stands mortgaged to Government.  

(Railway Ministry's letter No. F. (E)III/69 PF 1/4 dt. 19-5-69).  

The amount withdrawn shall be repayable forthwith in one instalment together with interest thereon at the rate provided for in rule 920(1), from the month of the withdrawal, for being credited to his account in the Provident Fund, if the house is sold or encumbered at any time before retirement without such permission;  

(h) The administrative authority should satisfy itself that: -  

(i)   the amount is actually required for the purpose of building, acquiring or redeeming a house, as mentioned above ;  

(ii)  the railway servant possesses or intends to acquire forthwith the right to build on the site on which the house is proposed to be built;  

(iii) the amount withdrawn together with such other private saving, if any, as the railway servant may have, would be sufficient to build, acquire or redeem the  house of the type proposed;  

(iv) The applicant has submitted a plan of the house to be constructed or of the  additions or alterations to be made duly approved by the local Municipal body of the area where the site or the house is situated and also has permits, where necessary, from the local authorities for the purchase of building materials to the extent required and at controlled rates.  

Note .-A withdrawal for additions and alterations would be admissible only where such additions or alterations require approval of the local municipal body.  

(Railway Ministry's letter No. F (E)III-77 PF 1/3 dt. 27-5-1977).

(v) in the case of withdrawal for the purchase of a ready built house the applicant secures an undisputed title to the house and the land on which the house is built within a period of three months from the date of drawal of the amount. This condition does not preclude withdrawals for the purpose of building houses on plots of land on lease or purchasing houses constructed on lease land by the Central or State Government, as the case may be, on production of a  certificate from the concerned authority that the building on the plot leased has been built in accordance with the agreed conditions.  

(Railway Ministry's letter No. F(E)III/69PF-l/4 dt. 19-5-69).  

Government of India's decision.-Subject to other conditions being satisfied, withdrawals may be permitted also for acquiring  on ownership basis a flat in a building,  even though the flat and the land on which it is built, do not become the property of the railway servant concerned, provided that the railway servant produces within 3 months of the receipt of the amount a proof to the effect that :  

(a)  he has made payment for the flat:  

(b) he has  become a member of the Limited Company, Society or any other incorporated body (recognised in law) formed by the purchasers of the flats in the building; and  

(c)  the builder  has transferred the legal title of the building to the said Company, Society or incorporated body.  

(Railway Ministry's letter No. F(E) III/73PF 1/11, dt.10-12-73).  

(vi) before withdrawals are permitted for the repayment of loan taken from private parties expressly for the purpose of acquiring a house, the applicant has acquired or will acquire an un-encumbered title to the house thus acquired.  

Note.-The Railway servant should, however, produce necessary deeds and papers to the sanctioning authority proving his title in respect of the property within a period of three months of the drawal at of the amount.  

(vii) the applicant has signed an undertaking in the prescribed form.  

(Railway Ministry's letters No. F(E)III/77/PF 1/3  dated 27-5-1977 and  26-11-1977).  

Government of India's decision 1 -- Railway servants who have availed themselves of an advance under the scheme of the Ministry of Works and Housing for house-building purposes or have been allowed any assistance in this regard from any other Government source, shall be e1igible for the grant of withdrawal under this rule and also for the purpose of repayment of any loan taken the aforesaid scheme subject to the limit specified in clause (b) of this sub-rule. In the case of withdrawals  for repayment of loans, where the amount sanctioned is less   than the loan taken under the above scheme for house building purposes, the provisions  of clause (g) of this rule will not be enforced since it is already provided in that scheme that the house for the construction of which a loan is taken should be mortgaged to Government. However, where such loan is completely repaid at any time during the service the railway servant concerned, the  provision of clause (g) shall become operative and the authorities competent to sanction a final withdrawal should ensure that these provisions are invariably complied with, as and when necessary.

Government of India’s decision 2 -- Railway servants who had already drawn refundable advances for house-building purposes under the orders contained in the Ministry of Finance Office Memorandum No. F-50 (14) EV51, dated 30th July, 1951 or No. F50 (12)EV/52, dated 26-5-1952, as amended from  time to time and who are eligible to avail of the concessions under this sub-rule, the outstanding balance of the advances can be converted into final withdrawal on satisfying the conditions necessary for the grant of such withdrawals.  

(Railway Ministry's letter No. F (E)54 ADV. 3/1, dt. 9-6-59).

Note: 1. If a railway servant has an ancestral house or a built house at a place other than the place of his duty with the assistance of loans taken from the Government, he shall be eligible for the grant of a final withdrawal under this Rule for purchase of a house site or for construction of another house or for acquiring a ready built flat at the place of his duty.

Note: 2. Withdrawal under this Rule shall also be allowed where the house site or the house is in the name of wife or husband provided she or he is the first nominee to receive Provident Fund money in the nomination made by the subscriber .  

(Railway Ministry's letters No. F(E)III/77PF. 1/3 dt. 27-5-1977 and 26-11-1977).  

(2) House site.- (a) Withdrawal may be either for the purpose of purchasing a house site for building a house thereon for his residence or for payment of any outstanding amount on account of a loan expressly taken for the purchase of a house site before the receipt of the application for the withdrawal.  

(Railway Ministry's letter No. F(E)III/77PF- 1/3 dt. 27-5-1977.)  

Note.-The provisions of this clause shall be deemed to cover acquisition of plots of land on lease from the central or State Governments.  

(Railway Ministry's letter No. F(E)ml 73 PF-1/18 dt. 20-10-1973).  

(b) The amount of withdrawal shall not exceed-  

(i)  one-half of the amount actually subscribed by him alongwith interest thereon standing to his credit in the fund; or  

(ii)  the actual cost of the site,  

whichever is less:  

Provided that in no case the maximum amount of withdrawal for the purpose specified in this Rule shall exceed the maximum limit prescribed from time to time under rules (2) (a) and 3(b) of the scheme of the Ministry of Works and Housing for the grant of advances for house building purposes :  

Provided further that in the case of a subscriber who has availed himself of an advance under the Scheme of the Ministry of Works and Housing for the grant of advances for house-building purposes, or has been allowed any assistance in this regard from any other Govt. source, the sum withdrawn under this sub-rule together with the amount of advance taken under the aforesaid Government source shall not exceed the maximum limit prescribed from time to time under Rules 2(a) and 3(b) of the aforesaid Scheme.  

If the amount withdrawn exceeds the actual cost of the site the excess shall be refunded to the Government forthwith in one lump sum together with interest thereon at the rate provided for in rule 920 from the month of each withdrawal by the railway servant for being credited to his account. The actual expenditure incurred in this connection with the sale or transfer deeds may be reckoned as part of the cost of the site.  

(Railway Ministry's letter No. F (E)III/80 PF-1/2 dt. 31-7-80.)

(c )The amount of withdrawal may be allowed in one instalment in cases of outright purchase of a house site or for repayment of a loan earlier taken for the purpose and in not more than three instalments if payment for the site is to be made on an instalment basis. The sanction will be issued for the entire amount of the withdrawal, the number of instalments in which it is actually to be drawn being specified therein.

 

President decision.—In the case of house sites purchased from recognised house-building co-perative Societies where the cost of land is recovered in a number of instalments and the total amount required is not susceptible of being firmly decided withdrawals may be made in instalments as and when the society sends a requisition for the amount payable subject to the condition that the amount of the instalment does not exceed 50% of the amount actually subscribed by the subscriber along with the interest thereon standing to his credit in the Fund at the time of each withdrawal.  

(Railway Ministry's letter No. F(E)III /69 PF-1/4 dt. 19-5-69.)   

(d)  The house-site purchased or proposed to be purchased by the railway servant shall be   situated at the place of his duty or his intended place of residence after retirement.   

(e)  Withdrawal will be permitted for the purchase or redemption of one house-site only and will be admissible, where the railway servant does not already own a house at the place referred to in clause (d) above.  

(f)   The house-site shall be purchased within a period of one month of the withdrawal, or the withdrawal of the last instalment, as the case may be. In fulfilment of this condition, the sanctioning authority may require the production of receipts  issued by the seller, the house building society etc. in token of the amount of the withdrawal instalments having been utilised for making payment towards purchase of the site.

 (g) A railway servant shall submit an annual declaration in the prescribed form on or before the 31st December of each year and satisfy the sanctioning authority, if  called upon to do so, by the production of tax receipts, title deeds, etc. that the house-site remains in his sole ownership and that while he is still in service, he has not parted with the possession thereof by way of transfer; sale, mortgage (other than mortgage to the President) gift, exchange lease etc. for  a term exceeding three years or otherwise without the previous permission of the sanctioning  authority in writing. Provided that such permission shall not be necessary for its being mortgaged in favour of a Housing Board, the Life Insurance Corporation or any other Corporation owned or controlled by the Central Government which advance loans for the construction of a new house or for making additions or alterations to an existing house.   

(Railway Ministry's letter No. F (E) III/74-PF-2/6 dt. 6-12-74.} 

The amount withdrawn shall be repayable forthwith in one instalment together with interest thereon from the month of such withdrawal by the railway servant if the house-site is sold or encumbered at any time before retirement without such permission .  

(h) The Administrative Authority should satisfy— 

(i)   that the size and the cost of the house site are not disproportionate to the status of the railway servant concerned and the resources available in his Provident Fund Account.  

(ii)  that the amount is actually required for the purpose of purchasing the house-site or for repayment of a loan expressly taken for the purpose, as the case  may be, and   

(iii) that the railway servant will acquire full title to the house-site proposed to be   purchased.

(i)  Withdrawals for the purpose of eventual construction of a house on the site purchased may be permitted under the following terms and conditions:-  

(a) the withdrawal shall not exceed the amount actually subscribed by him together with interest thereon standing to his credit in the fund or the actual cost of construction of the house, whichever is less :  

Provided that in the case of a subscriber who has availed himself of an advance under the scheme of the Ministry of Works and Housing for the grant of advances for house building purposes, or has been allowed any assistance in this regard from any other Govt. source, the sum withdrawn under this sub-rule together with the amount of advance taken under the aforesaid scheme or the assistance taken from any other Govt. source shall not exceed the maximum limit prescribed from time to time under rules 2(a) and 3(b) of the aforesaid Scheme.  

(Railway Ministry's letter No. F(E)III 80 PF-I/2 dt. 31- 7-80).  

(b) the railway servant concerned should commence the construction of the house within a period of six months of the withdrawal of money and complete it within a period of one year from the date of commencement of the construction.  

Note.-- The sanctioning authorities may at their discretion, relax the limit of six months for commencement of construction of the house to one year. 

(c) the withdrawal will be permitted in instalment not less than two and not more than four in number, the instalments after the first being authorised by  the sanctioning authority after verification regarding the progress of the construction of the house.  

Note. - (1) Other conditions as mentioned in clauses (g) and (h) of sub-rule (I) will also apply .

Note .- (2) Notes I and 2 appearing at the end of sub-rule 925 (I) (h) shall also apply in cases falling under this rule.  

(Railway Ministry's letters No. F(E)III 77 PF. 1/3 dt. 27-5-77 and 26-11-77.)  

(j)  Withdrawals may also be permitted within six months before the date of the Railway servant's retirement, from the amount standing of his credit in the fund for the purpose of acquiring a farm land or business premises or both.  

(Railway Ministry's letter No. F. (E)III 77 PF. 1/3 dt.27-5-77).  

(3) Marriage expenses.-Withdrawals may be permitted for meeting marriage ex- penses subject to the following terms and conditions :-  

(a) meeting the expenditure in connection with the betrothal/marriage of the subscriber or his sons or daughters., and any other female relation actually dependent on him.  

(Railway Ministry's letter No. F(E)III 77 PF 1/3 dt. 27-5-77.)  

(b) the amount of withdrawal in respect of each marriage will normally be limited to-  

(i)            Six months pay in the case of betrothal/marriage of subscriber or his/her son or daughter, or any other female actually dependent on him/her.
 
(ii) the amount actually subscribed by a Railway servant along with interest thereon standing to his credit, whichever is less.  

Note 1.--lf two or more marriages are to be celebrated simultaneously, the amount admissible in respect of each marriage will be determined as if withdrawals  are sanctioned separately one after the other.  

Note 2.--In special cases, the sanctioning authority may relax the limit at (i) above for marriage of subscriber’s daughter keeping in view the status of the subscriber and the amount standing to his/her credit in the Fund , but in no case should more than 15 months’ pay be sanctioned.

Note 3.-ln the case of subscribers to the State Provident Fund where the balance in the Provident Fund account, consisting of his own contribution and interest thereon, does not exceed Rs.10,000/- and where the amount available as the final withdrawal for marriage purposes within the existing provisions of the rule, is less than 90% of such amount, final withdrawal upto 90% of the balance  may be granted by the sanctioning authority. Where however, the entitlement of a subscriber under the existing rules for a final withdrawal from the fund for marriage purposes, is higher than the maximum ceiling of 90% referred to above, the higher amount will be permissible.

(Railway Ministry's letter No. F(E) III 79 PF. 1/2 dt. 10-3-80.)  

(c)  in respect of the same marriage, a subscriber may either withdraw the money in terms of this rule or draw an advance under rule 923 above.  

(d)  the withdrawal may be allowed to the subscriber not earlier than three months preceding the months in which the marriage actually takes place.  

(e)  the subscriber shall furnish a certificate to the sanctioning authority within the period of one month from the date of the marriage, or if he is on leave on the date of the marriage, within one month on return from leave, that the money withdrawn has actually been utilised for the purpose for which it was intended. If the subscriber fails to furnish the requisite certificate, or if the amount withdrawn is utilised for a purpose other than that for which sanction was given the  entire amount shall be recovered forthwith from him in one lumpsum together with interest thereon at the rate provided for in rule 920 (1) from the month of the withdrawal, for being credited to his account in the Provident Fund.  

(f)   any amount actually withdrawn from the fund which is found to be in excess of that actually utilised by the subscriber for the purpose shall be recovered forthwith in one lumpsum together with interest thereon as in (e) above.  

(g)  A subscriber shall be permitted to make a final withdrawal both on the occasion of the betrothal ceremony and marriage ceremony treating each occasion as a separate purpose. 

(M/o letter No.F(E)III/2001/PF1/1 dt. 26-02-2001) 

(4)  Educational expenses .- (a) Withdrawal from the fund may also be allowed for the purpose of higher education of the subscriber or of his children in the circumstances mentioned and under the terms and conditions laid down in rule 923 except that the amount sanctioned shall not be refundable to Government.  

Railway Board's decision.--The withdrawal for higher education may be utilised to meet the cost of college-kit, special clothing and educational tours etc., which may be in the nature of direct obligatory expenditure incurrable by the student on account of his education. The cost of bicycle cannot, however, be met from the above withdrawals as the same cannot be considered as an obligatory expenditure associated directly with education.  

(Railway Ministry's letter No. F (E) 56 Adv. 6/1 dt. 6.3.1956.)

(b)  These withdrawals may be permitted once in every six months i.e., twice in any financial year.   

( c ) In special cases, keeping in view the course of study, status of the subscriber and the amount standing to his/her credit in the Fund, the sanctioning authority may relax the limit of three months pay or half the amount standing to the credit of the subscriber in the Fund, whichever is less, as laid down in proviso to Rule 923, but in no case should more than three fourths of the amount standing to the credit of the subscriber in the Fund be sanctioned.

(d)  The railway servant concerned should satisfy the sanctioning authority within a period of six months from the date of drawing the money that it has been utilised for the purpose for which it was intended otherwise, the whole amount of withdrawal shall be refunded in one lumpsum together with interest thereon at the rate provided  for in rule 920 from the month of withdrawal. In cases where a portion of the money withdrawn is not likely to be spent within six months of the date of withdrawal and the railway servant contemplates making a further withdrawal during the following half year, he may, by notifying in writing to the sanctioning authority before the expiry of the said period of six months, adjust the excess amount in the proposed withdrawal, provided that such excess amount is not more than ten per cent of the amount utilised and action to withdraw the further amount is taken within one month of the expiry or the six months period. If no further withdrawal is contemplated, the excess amount should be recovered forthwith together with interest thereon for being credited to his account in the Provident Fund.  

(5) Medical Expenses . -- Withdrawals from the fund may also be, allowed for meeting expenses in connection with the illness including, where necessary, the travelling expenses, of the subscriber or any person actually dependent on him subject to the following conditions ;  

(a)  the amount withdrawn shall be limited to six months' pay of the subscriber or fifty per cent of the amount of his own subscription alongwith interest thereon, standing to his credit in the fund. whichever is less :  

(b)      In special cases, keeping in view the type of illness, status of the subscriber and the amount standing to his/her credit , the sanctioning authority may relax the limit laid down in proviso to Rule 923, but in no case should more than three - fourths of the amount standing to the credit of the subscriber in the Fund be sanctioned.

(c)  in respect of illness of the same person only one withdrawal shall be permissible. Only either a withdrawal under this rule or an advance under rule 923, shall be allowed at a time; and  

(d)  the subscriber shall furnish a certificate to the sanctioning authority within one month after the course of treatment is over that the amount withdrawn has actually been utilised for the purpose for which it was intended; any unspent amount being refunded forthwith. If the subscriber fails to give the requisite certificate or fails to refund the unspent amount, the same shall be recovered from him forthwith in Iumpsum together with interest thereon at the rate provided for in rule 920 (I) from the month of the withdrawal, for being credited to his account in the provident fund.  

(6) (A) Purchase of conveyance.-- Part final withdrawal from the fund may also be allowed for purchasing a Motor-Car, Motor-cycle, Scooter, Moped, etc. or for repaying the Government loan already taken by the Railway servant for the purpose subject to the following conditions :-

(i)   The Railway Servant's basic pay should be Rs 10,500/- p.m. or above in the case of purchase of motor-car and Rs. 4,600/- p.m. or above in the case of motor-cycle, scooter, etc. (Basic pay as defined in Rule 2003 (21) (a) (i)-R. II [FR.9(21) (a) (i)]  without special pay, dearness pay and such other additions to pay but  including non-Practicing Allowance).  

(ii)  The amount of withdrawal is limited to Rs. 1,10,000/- for purchase of motor-car  and Rs. 20,000/- for purchase of motor-cycle, scooter, moped, etc. In cases where railway servants have already been allowed a withdrawal for the purpose of making a deposit for booking these vehicles, they will be eligible only for the  balance amount for the purchase of such vehicles on allotment. The amount of withdrawal is further subject to the condition that this amount (amount of withdrawal for booking plus the amount of withdrawal for purchase) should not exceed 50 per cent of the amount standing to the credit of the subscriber  in his Provident Fund account on the date of application for withdrawal for purchase, or the actual price of the vehicle, whichever is less.  

(iii)  Railway servants who have been allowed advance for the purpose may be  permitted to convert the outstanding amount of advance into final withdrawal after completion of 15 years of service   

(iv)  Such withdrawal shall be allowed only on one occasion.   

(B) Booking of Car/Motor cycle/Scooter/Moped etc.--Railway servants who have completed 15 years of service (including broken period of service, if any) or who have  less than five years to attain the age of superannuation may make a part final withdrawal for booking a motor car/motor cycle/moped etc. subject to the following conditions--   

(i)   Railway servant's basic pay of Rs. 1,500/-  per month or above for registration of motor car and a basic pay of Rs. 500/- per month or above in the case of motorcycle/scooter etc.  

(ii)  The amount of withdrawal is limited to Rs. 10,000/- in the case of car and Rs. 500/- in the case of motor cycle/scooter etc. or 50 per cent of the amount standing to  the credit of the subscriber in the State Railway Provident Fund (non-contributory) or 50 per cent of the amount of subscription with interest thereon standing to the credit of the sl:1bscriber in the State Railway Provident Fund (contributory) as the case may be, or the actual amount of the registration of the car/ motor cycle/scooter, whichever is less.  

(iii)  the amount of withdrawal shall not exceed the amount required  for booking car or motor cycle/scooter, etc. as the case may be.  

(iv)  the deposit receipt must be produced for verification by the concerned administrative authority within a period of one month from the date of drawal. Failure to do so would involve refund of the total amount of the withdrawal.  

(v)  If the Railway servant does not purchase a car/motor cycle Scooter, etc. or opts out of   the scheme he should immediately deposit the amount of final withdrawal together with interest received thereon from the manufacturer/dealer into the Provident Fund account.  

(vi)  Railway servants who have been allowed an advance for the purpose may be permitted to convert the outstanding amount of advance into final withdrawal after completion of 15 years of service.

(vii)  Such withdrawal shall be allowed only on one occasion; and  

(viii) The amount of Rs. 10,000/- or Rs. 500/- as the case may be, referred to above, shall be taken into account for determining the overall ceiling [at present] fixed for withdrawal from the Provident Fund i.e. Rs. 25,000/- for purchase of Motor car and Rs. 4,000/- for motor cycle/scooter etc."  

6 (C)    Railway servants who have completed 28 years of service  or who have less than 3 years to attain the age of superannuation may be permitted to make final withdrawals from SRPF account for the extensive repairs or overhauling of their Motor Cars subject to the following conditions:-  

(i)   The officer’s pay is Rs. 10,500/- or more under the Railway Service (Revised Pay) Rules, 1997. 

(ii)  The amount of withdrawal is limited to Rs. 10,000/- or  1/3rd  of the amount standing to the credit of the subscriber in the SRPF account or the actual amount of repairing /overhauling, whichever is the least.  

(iii)  Not less than 5 years should have elapsed since the car was purchased by the officer concerned.  In the case of a second-hand car, the initial date of purchase by the first purchaser will be taken into account. 

(iv)  Such withdrawal shall be allowed only once in the service career of the subscriber.    

            The authority competent to sanction an advance for special reasons under the Provident Fund Rules may sanction a final withdrawal in terms of these orders subject to the fulfillment of the condition mentioned above. The procedural details will be as in the case of other withdrawals. 

(M/o letter No.F(E)III/98/PF1/2 dt. 30-03-98) 

(7) For meeting the cost of consumer durables such as TV, VCR/VCP, Washing machine, Cooking range, Geyser, Computer, a final withdrawal not exceeding six months pay or one half of the amount standing to his credit in the fund whichever is less, may also be allowed.   

(M/o letter No.F(E)III/96/PF1/1 dt. 27-02-96) 

 926. Recovery of advances.-(1) An advance under rule 923 shall be recovered from the subscriber in such number of equal monthly instalments as the authority sanctioning the advance may direct; but such number shall not be less than twelve unless the subscriber so elects,  or more  than twenty four unless the Railway Ministry so direct. Where, however the amount of advance under provision (c) to sub-rule (g) of Rule 923 exceeds 3 months' emoluments of the subscriber, the sanctioning authority may suitably increase the number of instalments provided that in no case the number shall exceed sixty. A subscriber may, at his option, repay more than one instalment in a month. Each instalment shall be a number of whole rupees, the amount of the advance being raised or reduced, if necessary to admit of the fixation of such instalments.  

(2) Recovery shall be made in the manner prescribed in rule 910 for the realisation of subscriptions, and shall commence with the issue of  pay for the month following the one in which the advance was drawn.  Recovery shall not be made, except with the subscriber's written consent, while he is on leave exceeding 4 days other than leave on average pay or on subsistence grant and may be postponed by the sanctioning authority on the subscriber's written request when he is repaying an advance of at least a full month's pay in not more than three instalments and the recovery of advance of pay (in addition to provident fund and other recoveries) will result in his getting less than fifty per cent of his basic pay.  

(3) Recoveries made under this rule shall be credited as they are made to the subscriber's account in the fund.  

PAYMENT TOWARDS INSURANCE POLICIES 

 927. Subject to the conditions laid down in rule 928 to 938 and the restriction in rule 939 

(a) (i) Subscriptions to a family pension fund approved in this behalf by the President, or  

     (ii) Payments towards a policy of life insurance ;  

may at the option of a subscriber, be substituted in whole or in part for his subscriptions due to the State Railway Provident Fund, and  

(b) The amount of subscriptions with interest thereon standing to the credit of a subscriber in the fund may be withdrawn to meet--- 

(i) a payment towards a policy of Life Insurance ;  

(ii) the purchase of a single payment insurance policy; or  

(iii) the payment of a single premium of subscriptions to a family pension fund approved in this behalf by the President :  

Provided that no amount shall be withdrawn--  

(1) before the details of the proposed policy have been submitted to the Accounts Officer and accepted by him as suitable, or

(2) to meet any payment or purchase made or effected more than three months before the date of application or presentation of claim for withdrawal, or   

(3) to meet payment of any premium or subscription more than three months in advance of the due date of payment.  

Note 1.-Due date of payment for the purpose of this proviso will be date upto which payment can be made including the grace period allowed by the insurance companies.  

Note 2.-The following certificate should be endorsed on the bill by the bill drawing officer in the case of payments under clause (2) above :-  

"Certified that the presentation of this claim/application for withdrawal of this amount was made within three months from the date of payment to the Life Insurance Corporation" .  

Explanation.-- Under clause (3) of this proviso no withdrawal from the fund for financing a policy of life insurance shall be made after the due date of payment without production of the premium receipt in token of such payment :  

Provided further that payments towards an educational endowment policy may not be substituted for subscriptions to the fund and that no amounts may be withdrawn to meet any payment or purchase in respect of such a policy if that policy is due for payment or in whole or part before the subscriber's age of normal superannuation :  

Provided further that amounts of substituted payment or amounts withdrawn shall be rounded to the rupee below, paise, if any, being met by the subscriber.  

Note.-The following family pension funds have been approved by the President: -

(1) Superior Services (India) Family Pension Fund;  

(2) Bengal Uncovenanted Service Family Pension Fund; 

(3) Bombay Government Service Family Pension Fund;   

(4) The General Family Pension Fund;   

(5) The Hindu Family Annuity Fund; and

(6) Bengal Christian Family Pension Fund.

 928. (1) The number of policies in respect of which substitution for subscriptions due to the fund or withdrawal of subscriptions from the fund may be permitted under rule 927 shall not exceed four:  

Provided that where immediately before the 20th August, 1953, substitution for subscription due to the fund or withdrawal of subscription from the fund is permitted in respect of more than four policies, such substitution or withdrawal shall continue to be permitted in respect of those policies.  

(2) The premium for a policy (including any policy referred to in the proviso to sub-rule (I) in respect of which withdrawal of subscription from the fund may be permitted under rule 927 shall not be payable otherwise than annually.  

Explanation.-In computing the maximum number of policies specified in sub-rule (1) policies which have matured or have been converted into paid-up ones shall be excluded.  

 929. (1) If the total amount of any payments substituted under sub-rule (a) of rule 927 is less than the amount of the compulsory subscription payable, to the fund, the difference shall be paid by the subscriber as subscription to the fund.  

(2) If the subscriber withdraws any amount standing to his credit in the fund for any of the purposes specified in sub-rule (b) of rule 927, he shall, subject to his option under sub-rule (a) of that rule, continue to pay to the fund the subscription payable under the rules of the Fund.  

 930. (1) A subscriber who desired to substitute payment under sub-rule (a) of rule 927 may reduce his subscription to the fund accordingly:  

Provided that the subscriber shall --  

(a)  intimate, if he is a gazetted railway servant, to the Accounts Officer; otherwise to his bill preparing authority; by letter, the fact of, and reason for, the reduction;  

(b)  send to the Accounts Officer, within such period as the Accounts Officer may require, receipts or certified copies of receipts in order to satisfy the Accounts Officer that the amount by which the subscription has been reduced was duly applied for the purposes specified in sub-rule (a) of rule 927.  

(2)  A subscriber who desire to withdraw any amount under sub-rule (b) of rule 927 shall, through his bill preparing officer  

(a)  intimate the reason for the withdrawal to the Accounts Officer;-  

(b)  make arrangements with the Accounts Officer for the withdrawal; and  

(c)  send to the Accounts Officer, within such period as the Accounts Officer may require receipts or certified copies of receipts in order to satisfy the Accounts Officer that  the amount withdrawn was duly applied for the purposes specified in sub-rule (b) of rule 927.

(3)  The Accounts Officer shall order the recovery of any amount by which subscriptions have been reduced, or of any amount withdrawn, in respect of which he has not been satisfied in the manner required by proviso (b) of sub-rule (1) and clause (c) of sub-rule (2), with interest thereon at the rate laid down in rule 920 from the emoluments of the subscriber and place it to the credit of the subscriber in the fund.

 931. (1) (a) Government shall not make any payments on behalf of subscribers to Insurers nor will they accept any responsibility for delays in payment of premia or for keeping the policy alive and will not enter into any correspondence with the Insurer in regard to a policy, premia or allied matters.  

(b) Premia in respect of policies taken out from the Post Office Insurance Fund shall be paid in accordance with the rules of that fund. In cases in which it has been arranged that the premia shall be deducted from pay, if the premium due for any month is not deducted from the salary bill of the insured person, or from the establishment bill of the office in which his pay is drawn, by an oversight, whether on his own part or on the part of the officer whose duty it is to draw his salary, he should pay the premium in cash into the nearest post office and obtain the Post Master's receipt book.  

(2)  A policy to be acceptable under these rules shall be on the life of the subscriber , and shall (unless it is a policy effected by male subscriber which is expressed on the face of it to be for the benefit of his wife, or of his wife and children or any of them) be such as may be legally assigned by the subscriber to the President:  

Provided that a policy which has been assigned to the subscriber's wife shall not be accepted unless either the policy is first re-assigned to the subscriber or the subscriber and his wife both join in the appropriate assignment.  

Explanation. -A policy on the joint lives of the subscriber and the subscriber's wife or husband shall be deemed to be a policy on the life of the subscriber for the purpose of this sub-rule.

 932. (1) The policy within six months after the first withholding of a subscription or withdrawal from the fund in respect of the policy shall ----  

(a)  unless it is a policy effected by a male subscriber which is expressed on the face of it to be for the benefit of the wife of the subscriber, or of his wife and children, or any of them, be assigned to the President, as security for the payment of any sum which may become payable to the fund under these rules, and delivered to the Accounts Officer, the assignment being made by endorsement on the policy in the prescribed form, according as the policy is on the life of the subscriber and the subscriber's wife or husband or the policy has previously been assigned to the subscriber's wife ;  

(b)  if it is a policy effected by a male subscriber which is expressed on the face of it to be for the benefit of the wife of the subscriber, or of his wife and children or any of them, be delivered to the Accounts Officer .  

(2) The Accounts Officer shall satisfy himself by reference to the Insurer where possible, that no prior assignment of the policy exists.  

(3) Once a policy has been accepted by an Accounts Officer for the purpose of being financed from the fund, the terms of the policy shall not be altered, nor shall the policy be exchanged for another policy, without the prior consent of the Accounts Officer to whom the details of alteration, or of the new policy shall be furnished.  

(4) If the policy is not assigned and delivered, or delivered within the said period of six months or such further period as the Accounts Officer may, under sub-rule (1), have fixed, any amount withheld or withdrawn from the fund in respect of the policy shall, with interest thereon at the rate determined under rule 920, forthwith be paid or repaid, as the case may be by the subscriber to the fund or, in default, be ordered by the Accounts Officer to be recovered by deduction from the emoluments of the subscriber, by instalments or otherwise, as may be directed by the authority competent to sanction an advance under rule 923.

(5) Notice of assignment of the policy shall be given by the subscriber to the Insurer, and the acknowledgement of the notice by the Insurer shall be sent to the Accounts Officer within three months of the date of assignment.  

Note.-Subscribers are advised to send notice of the assignment to the Insurer in duplicate.  

 933. The subscribers shall not, during the currency of the policy draw any bonus, the drawal of which during such currency is optional under the terms of the policy, and the amount of any bonus which, under the terms of the policy the subscriber has no option to refrain from drawing during its currency, shall be paid forthwith into the fund by the subscriber or, in default, recovered by deduction from his emoluments by instalments or otherwise as the authority competent to sanction an advance under Rule 923 may direct.  

 934. (1) Save as provided in rule 937, when the subscriber- - 

(a)  quits service; or  

(b)  has proceeded on leave preparatory to retirement and applies to the Accounts Officer for re-assignment or return of the policy; or  

(c)  while on leave has been permitted to retire, or declared by a competent medical authority to be unfit for further service, and applies to the Accounts Officer for re- assignment or return of the policy; or.  

(d)  pays or repays to the fund the whole of any amount withheld or withdrawn from the fund for any of the purposes mentioned in rule 927 with interest thereon, the Accounts Officer shall----  

(i)   if the policy has been assigned to the President under rule 932 reassign the  policy to the subscriber or the subscriber and the joint assured, as the case may be, in the prescribed form of re-assignment and make it over to the subscriber together with a signed notice of the re-assigned addressed to the Insurer .  

(ii)  if the policy has been delivered to him under clause (b) of sub-rule (1) of rule 932 make over the policy to the subscriber :

Provided further that, if the policy has matured or been assigned or charged to retirement, or after being, while on leave, permitted to retire or declared by a competent medical authority to be unfit for further service, returns to duty, any policy so re-assigned, or made over shall, if it has not matured or been assigned or charged or encumbered in any way, be again assigned to the President  and delivered to the Accounts Officer in the manner provided in rule 932 and  thereupon, the provisions of these rules shall, so far as may be, again apply in respect of the policy.

Provided further that, if the policy has matured or been assigned or charged or encumbered in any way, the provisions of sub-rule (4) of rule 932 applicable to a failure to assign and deliver a policy shall apply.  

Government of India's decision.-The amount mentioned in clause (d) above may be repaid in convenient instalments, the number of which should be settled between the subscriber and the Accounts Officer. The policy will, however, be re-assigned only after the re-payment of the amount with interest is completed.  

(Railway Ministry's letter No. F (E) 59/PF-43-2, dt. 19-8-1959.)  

(2)  Save as provided in rule 937 when the subscriber dies before quitting service, the  Accounts Officer shall---

 (i)  if the policy has been assigned to the President under rule 932 re-assign the policy  to such person as may be legally entitled to receive it, and shall make over the  policy to such person together with a signed notice of the re-assignment addressed  to the Insurer ;  

(ii)  if the policy has been delivered to him under clause (b) of sub-rule (1) of rule 932, make over the policy to the beneficiary, to such person as may be legally entitled to receive it. 

Government of India's decision. -Sub-rule (2) of rule 934 provides that a policy, which has been assigned to Government should be re-assigned to the subscriber, beneficiary or to such a person “as may be legally entitled to receive it". No difficulty arises in a case in which a subscriber and his wife are jointly assured or where they have joint interest in the policy, and the husband and wife are joint assignors as the survivor in such cases as the surviving co-assignor, is legally entitled to have the policy re-assigned to him or her. In all other cases, however, where the subscriber dies in service the problem arises as to who is legally entitled to re-assignment. To be on the safe side, therefore, it is essential that Government should satisfy themselves in all cases that the person  to whom they re-assign the policy is the person who is legally entitled to receive it and this can be achieved only on production of letter of administration, probate or succession certificate. This requirement, however, has given rise to some degree of inconvenience as production or legal representation involves the expenditure of an appreciable sum of money which in many cases may be out of all proportion to the balances standing to the credit of a deceased subscriber. To minimise the degree of inconvenience the following method will be available to the subscribers by which re-assignment can be secured by them without production of probate or letters of  administration :-  

(i)   Re-assignment of the policy in favour of the subscriber if an assignment in the prescribed form in favour of Government is already in existence ;  

(ii)  Execution of an assignment in favour of the subscriber and his wife/husband, and/or major son(s) and/or daughter(s) as joint tenants in the prescribed form;  

(iii) Execution of an assignment by the subscriber and his wife/her husband and/or major son(s) and/or , major daughter(s) in the prescribed form in favour of Government.   

Such an assignment has the effect of creating a joint tenancy in favour of the wife/husband, and/or major, son(s) and/or major daughter(s) with the result that she/he/they is/are entitled to claim the policy in her/his/  their own right as surviving tenant or co-tenants on the death of the subscriber .  

Railway Ministry's letter No. F(E) 57/PF-43(2), dated 12-6-1958.

 935. (1) If a policy assigned to the President under clause (a) of sub-rule (1) of rule 932 matures before the subscriber quits service, and before his death, or if a policy on the joint lives of a subscriber and the subscriber's wife or husband assigned under the said rule, falls due for payment by reason of the death of the subscriber's wife or husband, the Accounts Officer shall, save as provided by rule 937 proceed as follows: -  

(i)   if the amount assured, together with the amount of any accrued bonuses, is greater than the whole of the amount withheld or withdrawn from the fund in respect of the policy with interest thereon, the Accounts Officer shall re-assign the policy in the prescribed form, to the subscriber or to the joint assured as the case may be and make it over to the subscriber, who shall immediately, on receipt of the policy monies from the Insurers pay or repay to the fund the whole of any amount withheld  or withdrawn with interest, and in default, the provisions of the rule 938 shall apply  as they apply in relation to cases where money withheld or withdrawn from the fund  under clause (a) or clause (b) of rule 927 has been utilised for a purpose other than  that for which sanction was given to the withholding or withdrawal;   

(ii)  if the, amount assured, together with the amount of any accrued bonuses is less than the whole of the amount withheld or withdrawn" with interest, the Accounts Officer  shall realise the amount assured together with any accrued bonuses and shall place  the amount so realised to the credit of the subscriber in the fund.  

(2) Save as provided by rule 937 if a policy delivered to the Accounts Officer under clause (b) of sub-rule (1) of rule 932 matures before the subscriber quits service, the Accounts Officer shall make over the policy to the subscriber:  

Provided that if the interest in the policy of the wife of the subscriber, or of his wife and children or any of them, as expressed on the face of the policy,expires when the policy matures, the subscriber, if the policy monies are paid to him by the Insurer, shall immediately on receipt thereof. pay or repay to the fund either---  

(i)   the whole of any amount withheld or withdrawn from the fund in respect of the  policy with interest thereon, or  

(ii)  any amount assured together with any accrued bonuses, whichever is less, and in default, the provisions of rule 938 shall apply as they apply in relation to cases where money withheld or withdrawn from the fund under clause (a) or clause (b) of rule 927 has been utilised for a purpose other than that for which sanction was given to the withholding or withdrawal. 

Note.-ln the case of the Insurer going into liquidation, the expression "amount assured together with the amount of any accrued bonuses" occurring in this rule shall be taken to mean the amount payable by the liquidated Insurer to the insured. In cases where the policies require to be re-assigned to the subscriber, the necessary re-assignment should be made in the normal manner and a notice of re-assignment sent to the Insurer. In the case of an Insurer under liquidation the liquidator takes the place of the management for all practical purposes and his powers include the power to receive such notices.  

 936. If the policy lapses or is assigned, otherwise than to the President under rule 932, charged or encumbered, the provisions of sub-rule (4) of rule 932 applicable to a failure to assign and deliver a policy shall apply. 

 937. If the Accounts Officer receives notice of---  

(a) an assignment (otherwise than an assignment to the President under rule 932); or  

(b) a charge or encumbrance on; or   

(c) an order of a Court restraining dealings with the policy or any amount realised thereon;    

 the Accounts Officer shall note---    

(i)  re-assign or make over the policy as provided in rule 934; or 

(ii) realise the amount assured by the policy as provided in rule 935.   

but shall forthwith refer the matter to the Railway Board.  

Government of India's decision.-Cases in which life-insurance policies financed from provident fund lapse or become encumbered by means of loan advanced under the non-forfeiture clause owing to subscribers' default in paying the premium need not be referred to the Railway Board. In all cases where policies have lapsed, the provisions of rule 936 would apply and the Account Officer can recover the amount of the provident fund advance under sub-rule (4) of rule 932 and re-assign or make over the policy in term of rule 934.  

In cases where under the operation of the non-forfeiture clause of a policy, premia within the limit of surrender value are advanced by the Life Insurance Corporation of India to keep policies in force, the Accounts Officer after receiving notice or the encumbrance arising out of the advance of the premium shall, in terms of rule 936 read with rule 932(4), proceed to recover the provident fund advance. Then one of the following three events may happen and the procedure indicated against each may be followed in that event :---  

(a)  if the recovery is complete before the policy becomes a claim by maturity or death, the Account Officer shall re-assign or make over the policy as above, without referring the matter to the Railway Board.  

(b)  If the policy matures before the completion of the process of recovery, the Account Officer shall, without referring the matter to the Railway Board proceed in the following manner : --                               

(i)   when the net proceed under the policy (i.e. the claim amount payable by Life Insurance Corporation of India minus the accumulated premia advanced by the Corporation) exceed the unrecovered advance given from the provident fund the Account Officer shall re-assign the policy or make it over to the subscriber and then ask for repayment of the unrecovered provident fund advance.  

 (ii) If the net proceed under the policy as explained above fall short of the unrecovered provident fund advance, the Account Officer shall realise the net proceed and then try to recover the  balance of the unrecovered provident fund advance from the subscriber.   

(c)  If the policy becomes a claim by death before the completion of the process of recovery, the Accounts Officer shall, without referring the matter to the Railway Board re-assign or make over the policy as in rule 934(2).  

The cases of encumbrance arising out of the operation of the non-forfeiture clause of a policy would not come within the purview of rule 937, but rule 936 would continue to apply to such case.  

(Railway Ministry's letter No. F(E)59/PF-43/8. dt. 23-6-60.) 

 938. Notwithstanding anything contained in rules 921 to 937, if the sanctioning authority is satisfied that money withheld or withdrawn from the fund under clause (a) or clause (b) of rule 927 has been utilised for a purpose other than that for which sanction was given to the withholding or withdrawal of the money, the amount in question, shall, with interest, forthwith be repaid or paid, as the case may be, by the subscriber to the fund or, in default, be ordered to be recovered by deduction in one sum from the emoluments of the subscriber, even if he be on leave. If the total amount to be repaid or paid, as the case may be, be more than half the subscriber's emoluments recoveries shall be made in monthly instalments of moieties of his emoluments till the entire amount recoverable be repaid or paid, as the case may be, by him. 

Note.- The term "emoluments" used in this rule does not include "subsistence allowance".  

Government of India's decision.-Subscribers whose postal life insurance policies are financed from the Provident Fund, may pay the premia towards such policies in substitution for subscriptions to the fund by deduction from their salary bills. In case where the monthly premium payable on a policy is not wholly covered by the amount of monthly subscription to the fund or where a subscriber has suspended his subscription to the fund as permitted under the rules the balance of the amount or the whole amount as the case may be, may, at the request of the subscriber, be adjusted monthly by the Accounts Officer against the accumulation in the fund through the salary bill in accordance with the following procedure-  

(i)   If the subscription to the State Railway Provident Fund be more than the amount of monthly premium-say, the subscription is Rs.50/- and postal life insurance is Rs. 40/- , the net amount to be credited  to the fund will be Rs.10/- .  

(ii)   If the subscription1 to the fund  less  than the amount of the  monthly premium say, the  subscription is Rs. 30./- and  postal life insurance is Rs. 45/- , the net amount which will be debited to the fund will be  Rs. 15/-.  

(Ministry of Finance O.M. No. F.30(9)/EV/53, dt.7-11-95, and Comptroller and Auditor-General's letter No. T.1109-NGE/235/33, dated 7-9-1933.)  

 939. The provision of Rules 927 to 938, shall apply only in respect of those insurance policies, the payments to which had been made either by withdrawal from the. State Railway Provident Fund or by substituting the subscription therefore, at any time  prior to 8-3-1962.  

 940. Withdrawal of Ninety percent.-(l) When a subscriber, while on leave, has been permitted to retire at the end of his leave or been declared by a competent medical authority, to be unfit for further service, the controlling officer, or in the case of a non-gazetted servant, the Divisional Officer, under whom the subscriber is for the time being employed, may, on the application of the subscriber, permit him to withdraw any amount not exceeding the total amount of his subscription and interest thereon.  

Railway Board's decisions.-(i) Withdrawals under the above rule should normally be permitted only in one instalment. Withdrawals for a second time (total withdrawals not exceeding the limit laid down in the rule may, however, be a1lowed in a few exceptional cases on the recommendations of the sanctioning authorities and with the concurrence of the Financial Adviser and Chief Accounts Officer.

(Railway Ministry’s letter No. F (E)6/5, dt. 16-5-1956.)  

(ii) When a subscriber under suspension who is not permitted to retire from service in terms of rule 2046(j) (F.R. 56) attains the age of superannuation and there is no early prospects of settling him up, the controlling officer or in the case of a non-gazetted servant the Divisional Officer under whom the subscriber is for the time being employed may, on his application, permit him to withdraw any amount not exceeding 90 per cent of his own subscription plus interest thereon.  

(Railway Board's case No. E-51 RG/6-18.)  

(2) If the subscriber returns to duty, he shall, as a condition of continued employment, repay to the fund for credit to his account the whole of the amount withdrawn by him under sub-rule (1) either in a lumpsum or in such instalments as may be fixed by the controlling officer.

 941. Nominations.-(1) The Accounts Officer shall, as soon as the account is opened, invite every subscriber to make a nomination conferring the right to receive the whole or part of the amount, excluding the amount of special contribution admissible under rule 915 that may stand to his credit in the fund in the event of his death before the amount standing to his credit has become payable, or where the amount has become payable, before payment has been  made:  

Provided that a subscriber who has a family at the time of making the, nomination shall make such nomination only in favour of a member or members of his, family.  

Provided further that a nomination made by a subscriber in respect of any other provident fund to which he was subscribing before joining the Fund shall, if the amount to his credit in such other fund has been transferred to his credit in the Fund, be deemed to be a nomination made under this rule until he makes a nomination in accordance with this rule.  

(2) A subscriber shall, at the time of joining the Fund, make a nomination and send it, if a railway servant belongs to Group ‘A' or Group 'B' to the Accounts Officer, otherwise, to his immediate superior.   

(3) A subscriber may in his nomination distribute the amount that may stand to his credit in the fund amongst his nominees at his own discretion.  

(4) A nomination made under sub-rule (2) or a declaration made before these rules came into force, may be cancelled by a subscriber by sending a notice in writing if a railway servant is in Group 'A' or Group 'B' to the Accounts Officer, otherwise, to his immediate superior.  

(5) On the marriage or re-marriage of a subscriber who is not a Hindu, Muslim, Buddhist or any other person exempted from the operation of the Indian Succession Act, 1925 (XXXIX of 1925), any nomination already made by him shall forthwith become null and void.  

(6) A subscriber may provide in a nomination---  

(a)  in respect of any specified nominee, that in the event of his predeceasing the , subscriber the right conferred upon that nominee shall pass to such other persons as may be specified in the nomination ;          

(b)  that the nomination shall become invalid in the event of happening of a       contingency specified therein.  

(7)  Immediately on the death of a nominee in respect of whom no special provision has been made in the nomination under clause (a) of sub-rule (6) the nomination being thereon rendered partially or wholly null and void or on the occurrence of any event by reason of which the nomination becomes invalid in pursuance of sub-rule (5) or of clause (b) of sub-rule (6), the subscriber may send to the Accounts Officer an intimation of this occurrencey and may also send a fresh nomination made in accordance with the provisions of this rule.

(8) A nomination or its cancellation shall take effect to the extent that it is valid, on the date on which it is received by the Accounts Officer or in the case of a non-gazetted railway servant on the date on which it is received by his immediate superior.

(9) Nothing in these rules shall be deemed to invalidate a nomination duly made before these rules came into force but their validity will be subject to the provisions of sub-section (1) of Section 5 of the Provident Funds Act, 1925.  

 942. Circumstances in which-accumulations are payable. -(1) When a subscriber quits railway service, the amount standing to his credit in the fund, shall, subject to the provisions of sub-rule (2) below and rule 944, become payable to him.

 Note.-A subscriber who is granted leave preparatory to retirement under rule 540 shall be deemed to have quit service on the date of compulsory retirement or date of the expiry of the extension of service, if any, where extension, as such, has been granted to him.  

(2) If a subscriber, other than one who is appointed on contract or one who has retired and is subsequently re-employed with or without a break in service, is permanently transferred without any break from Railway service to any other service under the  Central Govt., a State Government or is absorbed permanently in a body corporate, owned or controlled by Government or an autonomous organisation registered under the Societies Registration Act, 1860, he shall cease to subscribe to the fund and the disposal  of the accumultation in his account shal1 be made in the following manner:-                   

(i)   lf he is transferred to a post under the Central Government--  

(a)  the amount of his own subscription together with interest thereon shall be transferred to his account in the Provident Fund administered by the Ministry/ Department concerned ;  

(b)  The amount of Government contribution, if any, together with interest thereon may be resumed and credited to Railway Revenues. The liability for pension including Gratuity will be borne in full by the Department to which the government servant permanently belongs at the time of retirement. If, in any case, the subscriber is permitted by his new employers to continue to be governed by the rules of a contributory provident fund, the amount of Government contribution together with interest thereon shall also be transferred to his account in the provident fund administered by that Ministry/Department.  

Note:.- This clause is also applicable in the case of Railway employee transferred to civilian posts paid from Defence Services Estimates Including Ordnance  Factories.  

(ii)   If he is transferred to a post under a State Government the amount of his  subscription together with interest thereon shall be transferred with the consent of that Government, to his account in the provident fund administered by that  Government. The Government contribution, if any, together with interest thereon  shall be resumed to the Railway Revenues or transferred to the State Government according as the proportionate liability for retirement benefits in respect of railway service is mutually agreed to be borne by the railway or State Government.  

(iii) If he is absorbed in the service under a body corporate, owned or controlled by Government or an autonomous organisation registered under the Societies Registration Act, 1860----

(a)  the amount of his own subscription together with interest thereon shall be  transferred, with the consent of that body/organisation, to his new Provident Fund Account under that body /organisation.

(b)  the amount of Government contribution, if any, due to him on the date of his permanent absorption in that body/organisation together with the interest  thereon shall also be transferred, with the consent of that body/organisation to his Provident Fund Account under that body/organisation.  

Note.--The provision of sub-rule (2) above applies also to cases of resignation from Railway service to take up appointment under the Central or State Government or a body corporate or an autonomous organisation, registered under the Societies Registration Act, 1860, without any break and with proper permission of the Railway Administration except that in the case of persons governed by the Contributory Provident Fund system, the amount of Government contribution together  with interest thereon shall also be transferred to the new Provident Fund in the same way as the subscriber's own subscriptions. In cases, where there has been a break in service it shall be limited to joining time allowed on transfer to join the new post. The same shall hold good in cases of retrenchments from railway service followed by immediate employment.  

 942 A. Transfer of balances in other Provident Funds to the State Railway Provident Fund .--lf an employee of the Central Government, a State Government or a body corporate owned or controlled by Government or an autonomous organisation registered under the Societies Registration Act, 1860, who is a subscriber to any other Government Provident Fund/Provident Fund administered by a body corporate owned or controlled by Government or an autonomous organisation registered under the Societies Registration Act, 1860 is permanently transferred to a post under the administrative control of the Ministry of Railways (Railway Board), except one who is appointed on contract or one who has retired from service and is subsequently re-employed with or without a break in service, the accumulations in his old  Provident Fund shall be disposed of in the following manner:--  

(1)  in the case of a Central Government emp1oyee:---  

(a)  if he was subscribing to a non-contributory Provident Fund the amount of his own subscriptions together with interest thereon shall be credited to his account  in the State Railway Provident Fund (Non-contributory);  

 (b)  if he was subscribing to a contributory provident fund-  

(i)   the amount of his own subscription together with interest thereon shall be credited to his account in the State Railway Provident Fund (Non-contri butory) ;  

(ii)  the amount of Government contribution together with interest thereon  shall be resumed by his previous Ministry/Department. The liability for Pension including gratuity will be borne in full by the Department to which the Government servant belongs at the time of retirement ;  

(iii)  the employee shall, thereupon, be entitled to count towards pensionary benefits qualifying service as verified and rendered prior to the date  of  permanent transfer to the extent permissible under the relevant pension rules.

Note. -- This sub-clause is also applicable in the case of civilians paid from Defence Service  Estimates including Ordnance Factory Personnel.

(2)  In the case of a State Government employee---  

(a)  if he was subscribing to a non-contributory provident fund, the amount of .his own subscriptions together with interest thereon shall, with the consent of  that Government, be credited to his account in the State Railway Provident Fund (non-Contributory);  

(b)   if he was subscribing to a contributory provident fund-     

(i)   the amount of his own subscriptions together with interest thereon shall, with the consent of the other Government, be credited to his account in  the State Railway Provident Fund (non-contributory) ; and  

(ii)  the amount of Government contribution with interest thereon shall, with the consent of the other Government, be credited to Railway Revenues  and the employee shall be entitled to count towards pensionary benefits, that period of his previous service during which he had subscribed to the contributory provident fund. If, however, the state Government concerned is willing to bear the proportionate liability on service share basis taking  into account the entire service under them, the Government contribution for such service credited by them shall be resumed by them.  

(3)  in the case of an employee of a body corporate owned or controlled by Government or an autonomous organisation registered under the Societies Registration Act, 1860, the amount of his own subscriptions and the employer's contribution, if any, together with interest thereon shall with the consent of that body/organisation, be transferred and credited to his Account in the State Provident  Fund (non-contributory).

Note 1. -This rule is/not applicable in the case of temporary officers appointed to unclassified gazetted service on the Indian Railways. On absorption in the permanent cadre of the Railways, the cases of such of these officers as hold a lien on a post under the Central or the State Government will be considered on merits by the Railway Board.  

Note 2.-The provisions of clauses (a) and (b) of sub-rules (1) and (2) apply also to cases of resignations from service .under the Central Government or a State Government to take up Railway service without any break and with proper permission of the former employer. In cases where there has been a break in service it should be limited to joining time allowed on transfer to join the new post. The same shall hold good in cases of retrenchment  followed by immediate employment under the Railways.  

In such cases the amount of Government contribution together with interest thereon, shall also be credited to the Subscriber's State Railway Provident Fund account like his own subscriptions as referred to in clause (b) of these Sub-rules.  

     943. Persons to whom accumulations are payable.-(1) Subject to the provisions of rule 944 on the death of a subscriber before the amount standing to his credit has become payable, or where the amount has become payable, before payment has been made-  

(i)   the amount of the special contribution credited to the subscriber's account under rule 915 shall become payable to the widow or widows or/and dependent children of the deceased subscriber in such shares as the controlling officer may determine, if there is no widow or/and no dependent child of the deceased subscriber, the amount of special contribution to provident fund account shall be treated as an amount in respect of which no nomination subsists ;  

(ii)  if a nomination made by the subscriber in accordance with Rule 941 subsists, the amount standing to his credit in the fund, excluding any amount which becomes  payable under clause (i), or that part thereof to which the nomination relates, shall  become payable to his nominee or nominees in accordance with such nomination.  

(iii)  if no nomination subsists, or if the nomination relates only to a part of the amount standing to his credit in the fund, the whole amount or the part thereof to which the  nomination does not relate, as the case may be, shall, subject to the provisions of  clause (i) become payable to the members of his family in equal shares, and if there are no such members shall become payable:--                                 

 (a) if the amount does not exceed rupees five thousand to any person appearing to the Accounts Officer to be entitled to receive it ;  

 (b) if the amount exceeds rupees five thousand, to any person who produces probate or letters of administration evidencing the grant to him of administration to the estate of the deceased or a succession certificate entitling him to the payment of the amount :  

Provided that no share shall be payable to-  

(1) sons who have attained legal majority ;  

(2) sons of deceased sons who have attained legal majority ;   

(3) married daughters whose husbands are alive ;  

(4) married daughters of a deceased son whose husbands are alive ;  

if there is any member of the family other than those specified in clauses (1), (2), (3) and(4) :  

Provided further that the widow or widows and the child or children of a deceased son shall receive between them in equal parts only the share which that son would have received if he had survived the subscriber and had not attained the age of  legal majority at the time of the subscriber's death.  

(2) The General Manager may delegate powers under sub-rule (1) (i) of this rule to a head of a department or a Divisional Railway Manager, as the case may be or in respect of  non-gazetted subscriber's to a Divisional Officer.  

Government of India's decisions.-(1) For the purpose of this rule a subscriber's posthumous child, if  born alive, shall be treated in the same way as a surviving child born before the subscriber's death.  

(Railway Ministry's letter No. F(E) 44PF-8(5), dt. 31-7-45).  

(2) A divorced daughter who is dependent on the subscriber, is not excluded from receiving a share from the provident fund dues of the subscriber provided the  divorce was effected by a decree absolute.  This is, however, subject to the personal law of the community to which the subscriber belongs.  

(Railway Ministry's letter No. F(E) 54/PF-6/1 dt. 29-5-54.)  

(3) The share payable to a widow in terms of sub-rule (1) (iii) above, who re-marries before payment of the Provident Fund dues of the deceased subscriber, shall be paid to her irrespective of the re-marriage. Similarly, the share of special contribution to Provident Fund that has been sanctioned by the controlling officer in her favour under sub-rule (1) (i), has also to be paid to her irrespective of her re-marriage.  

(Railway Ministry's letter No. F(E) 56PF-6/1 dt. 29-1-1957.)

 944. Deductions.-(1) Subject to the condition that no deduction may be made which reduces the credit by more than the amount of any contribution made from railway revenues with interest thereon before the amount lying to the credit of the subscriber in the fund is paid out of the fund, deduction may be ordered therefrom :-  

(i)  by the President in the case of Group A or  Group B servants and the controlling officers in other cases,-  

(a)  of any amount, if a subscriber has been dismissed from the service for grave  misconduct; provided that if the order of dismissal is subsequently cancelled,  the amount so deducted shall on his reinstatement in the service be replaced at  his credit, In the fund;  

(b) of any amount, if a subscriber resigns his employment under the Governments  within five years of the commencement thereof otherwise than by reason of superannution, or declaration of competent medical authority that he is unfit for further service:-  

Provided that no order regarding the withholding or deductions from the amount of Government contribution to provident fund shall be made unless the Railway servant  has been given a reasonable opportunity for making a representation in the matter :  

(Railway Ministry's letter No. F(E) III/75-PFl/9 dt. 27-8-76.)  

Railway Ministry's decision 1.-The dismissal from service of  railway servant consequent on his conviction by a criminal court for  an offence which is neither against the Railway nor connected with his work as a railway servant is really  for  grave  misconduct and is covered by sub-rule 1 (i) above.  

(Railway Ministry's letter No. E (D&A) 57/RG/6-31, dt. 19-6-57.)  

(ii)   by the controlling officer of any amount due under a liability incurred by the subscriber to the Government. In respect of Group C and Group D railway servants, the powers of the controlling officer may be exercised by heads of departments, Divisional Railway Managers and Deputy Chief Mechanical Engineers holding  independent charge of workshops provided the deduction does not exceed 10 percent of the contribution made from railway revenues with interest thereon lying to  the credit of the subscriber in the fund :  

Provided that in the case of recovery of a house building advance, the amount advanced, with interest thereon, outstanding and remaining unpaid, when the sum standing to the credit of any subscriber/creditor falls due for payment (including the amount of special contribution to Provident Fund credited to the subscriber's account at the time of his retirement), shall be deducted therefrom by the Controlling Officer; but such deduction shall not exceed the total amount of any contribution, including special contribution to Provident Fund, credited from Railway revenues to the account of a subscriber .  

(Railway Ministry's letter No. F(E)III/72 ADV. 3/13 dt. 25-1-79 and F(E) III.78PF 1/1  dt. 23-1- 79).  

Railway Board's decision 2.-The position in regard to making deductions in case of dismissal, removal or resignation from service is as follows :-                       

(i)   The words 'grave misconduct' appearing in sub-rule (1) (i) (a) above embrace cases of dismissal and not merely cases of dismissal for reasons of 'serious misconduct'. While a particular offence may be serious enough to merit dismissal by itself it may not be grave enough to justify the forfeiture or the whole or part of the Government Contribution in addition to dismissal from service and loss of special contribution to provident fund in consequence thereof. The question as to which case is grave enough to merit forfeiture of Government contribution to Provident Fund and to what extent this should be done is, therefore, one which must be decided by the Controlling Officer on the merits of each individual case. The relevant provisions in the Act/Rules are only of a permissive nature and the Controlling Officer can exercise his discretion in the matter.

(ii)  Government contribution cannot be withheld in cases of removal from service whatever the reasons for such removal may be, as it would be ultra vires of the Provident Funds Act to do so ;  

(iii)  Case of a Subscriber who quits service within five years of the commencement of his service by resigna- tion, should be regulated by the provision of sub-rule (1) (i) (b). The question regarding the types of cases in which the Government Contribution should be withheld and the quantum thereof is to be   decided by the Controlling Officer on the merits of each case. No deductions should normally be made under this rule in cases where the resignation (a) is on grounds accepted by the Controlling Officer as good and sufficient from the point of view of the Administration or (b) has been caused by circumstances clearly beyond the control of the Railway servant ; and  

(iv)  A subscriber cannot be said to have incurred a liability unless the loss caused to Government by his carelessness is or has become legally recoverable. The term "legally recoverable" would mean that the amount due under a liability should either be indisputable or admitted. This would mean that the claim should be of such a nature as a Court or Law would have no difficulty in entertaining and passing a decree thereon, should it go before it in the form or an action for recovery. If, on the other hand,  the claim were to be of a nature that can be successfully challenged by the defendant sought to be made liable meaning thereby that the action be thrown out by a Court of Law, the Government will not  be advised in treating the claim as a liability incurred by the subscriber within the meaning or Section 6 of the Provident Funds Act, 1925. Whatever is sought to be recovered should also be an ascertained sum and not a liability that mayor may not arise out of a disputed set of circumstances.  

(Railway Ministry letter No. F (E) 52/PF-43(8), dt. 5-11-1953 and 21-6-1956 and No. F(E)57/PF 43(2) dt. 5-7-1958 and No. E(D&A) 57/RG-6-57, dt. 19-6-1958.)  

(2) The head of the department in the case of a Group A or Group B servant and a Group A or Group B railway servant in the case of a Group C or Group D railway servant may order that the payment of any contribution by Government to the Account of a subscriber and the interest thereon be postponed for a period of 15 months, if commercial debits are involved, and 6 months, if the commercial debits are not involved, so as to enable the recovery of any sums due under sub-rule (1) (ii), which may not have been ascertained and advised to the Accounts Officer in time to enable him to make the recovery before the payment falls due. In no case the amount of railway servant's own subscription along with interest thereon may be so withheld.  

(Railway Ministry's letter No. F(E)III/68/PF-1/16  dt. 12-5-1969).  

(3) If the subscriber's conduct is under inquiry for an alleged irregularity or loss of railway funds, no part of the contribution to his account from railway revenues together with interest thereon shall be paid before orders are passed on the report of inquiry unless the controlling officer directs otherwise.  

 945. Payment of Provident Fund.-(1) The amount standing at the credit of a subscriber, or the balance thereof after any deduction under rule 944 shall ordinarily be tendered for  payment within two months of the date when it becomes payable under rule 942 unless in the of case of death of the subscriber satisfactory proof of title of the claimants has not been received  by the Accounts Officer within that time, in which case the amount shall ordinarily be  tendered for payment within a fortnight of the receipt of such proofs by the Accounts Officer .  

(2) Payment of Amounts standing to the credit of a subscriber shall be made in India only.  

(3) If the Accounts Officer has received notice of any assignment, attachment or encumbrance affecting a subscriber's assets in the fund or any portion thereof, he shall make payment only of that portion which is not affected by the assignment, attachment or encumbrance and obtain the orders of the Government of India regarding the disposal of the balance.  

 946. Annual Statement of account.-(1) As soon as possible after the close of each year the Accounts Officer shall send to each subscriber a statement of his account in the fund showing the opening balance at the beginning of the year, the total amount credited or debited during the year, the total amount of interest credited at the end of the year, and closing balance at the end of the year.  

(2) The Accounts Officer shall attach to the statement of account an enquiry whether the subscriber desires to make any alteration in any nomination made under rule 941 or under the corresponding rule heretofore in force.  

(3) Subscribers should satisfy themselves as to the correctness of the annual statement, and errors should be brought to the notice of the Accounts Officer within three months of the receipt of the statement.  

(4) The Accounts Officer shall, if required by the subscriber inform him not more than once a year, of the total amount standing to his credit in the fund at the end of the last month for which his account has been written up.  

(Railway Ministry's letter No. F (P)65PF-1/14, dt. 25-1-68) (A/cs 248-RI  dt. 25-1-1968.)

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