Relaxing rules for withdrawing money from the General Provident Fund (GPF), the Central government yesterday said employees can withdraw up to 90% of their amount for housing needs and 75% for buying vehicles.
There is no need for documentary proof for taking out money and requests will be settled in 15 days. A simple declaration by the employee would be enough, an official statement said.
This will help employees encash their funds for activities like building houses and children’s education. The statement added that these changes will make the rules more employee-friendly. The time limit for sanction and payment of money would not be more than 15 days. In case of an emergency like illness, it would only be seven days.
Considering the importance of education, it said, the definition of education for the purpose of withdrawal of the GP Fund has now been widened to include primary, secondary and higher education, covering all streams and institutions.
“Not only this, GPF advance can now also be applied for travel and tourism-related activities,” Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh said announcing the new rules.
The existing GP Fund (Central Service) Rules came into force in 1960 and amendments have been made from time to time to address concerns.
But, the Minister said, it was felt that there is a need to bring in some more changes for the convenience of government employees.
This post was published on March 21, 2017 6:57 pm