Employees' State Insurance Corporation (General Provident Fund) Rules, 1995

17. Withdrawal from the fund

(1) Subject to the conditions specified therein, withdrawals may be sanctioned to the subscriber in the prescribed form as specified in Schedule II by the authorities competent to sanction and advance for special reasons under sub-rule (2) of rule 14, at any time, after the completion of twenty years of service (including broken period of service, if any) of a subscriber or within ten years before the date of his retirement on superannuation, whichever is earlier, from the amount standing to his credit in the fund, for one or more of the following purposes, namely:-

(a) meeting the cost of higher education, including where necessary, the traveling expenses of the subscriber or any child of the subscriber in the following cases, namely:-

(i) for the education outside India for academic, technical, professional or a vocational course beyond the High School stage; and

(ii) for any medical, engineering or other technical or specialized course in India beyond the High School stage;

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

(c) meeting the expenses in connection with the illness, including where necessary, the traveling expenses of the subscriber and members of his family or any person actually dependent on him.

(2) After the completion of ten years of service (including broken periods of service, if any) of subscriber or within ten years before the date of his retirement on superannuation, whichever is earlier, a subscriber will be allowed withdrawals from the amount standing to his credit in the fund for one or more of the following purposes, namely:-

(i) building or acquiring a suitable house or ready built flat for his residence including the cost of the site;

(ii) repaying an outstanding amount on account of loan expressly taken for building or acquiring a suitable house or ready built flat for his residence;

(iii) purchasing a house-site for building a house thereon for his residence or repaying any outstanding amount on account of loan expressly taken for this purpose;

(iv) reconstructing or making additions or alterations to a house or a flat already owned or acquired by a subscriber;

(v) renovating, additions or alterations or upkeep of an ancestral house at a place other than the place of duty or to a house built with the assistance of loan from government at a place other than the place of duty;

(vi) constructing a house on a site purchased under clause (iii);

(vii) within six months before the date of the subscriber's retirement for the amount standing to his credit in the fund for the purpose of acquiring a farm land or business premises or both;

(viii) once during the course of a financial year, an amount equivalent to one year's subscription paid for by the subscriber towards the Group Insurance Scheme for the corporation employees on self financing and contributory basis.

Note 1 : A subscriber who has availed himself of an advance under the scheme of the Ministry of Urban Development for the grant of advance for house building purpose, or has been allowed any assistance in this regard from any other government source shall be eligible for the grant of final withdrawal under clauses (i), (ii), (iii), (iv), (v) and (vi) of sub-rule (2) for the purpose specified therein and also for the purpose of repayment of any loan taken under the aforesaid scheme subject to the limit specified in the proviso to sub-rule (1) of rule 18.

If a subscriber has an ancestral house or built a house at a place other than the place of his duty with the assistance of loan taken from the government he shall be eligible for the grant of a final withdrawal under clauses (i), (iii) and (vi) of sub-rule (2) for purchase of a house-site for construction of another house or for acquiring a ready built flat at the place of his duty.

Note 2: Withdrawal under clauses (i), (iv) or (vi) of sub-rule (2) shall be sanctioned only after a subscriber 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 house is situated and only in cases where the plan is actually got to be approved.

Note 3: The amount of withdrawal sanctioned under clause (ii) of sub-rule (2) shall not exceed 3/4th of the balance on the date of application together with the amount of previous withdrawal under clause (i) reduced by the amount of previous withdrawal. The formula to be followed is 3/4th of (the balance as on date plus amount of previous withdrawal (s) for the house in question) minus the amount of the previous withdrawal (s).

Note 4 : Withdrawal under clause (i) or (iv) of sub-rule (2) shall also be allowed where the house-site or 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.

Note 5 : Only one withdrawal shall be allowed for the same purpose under this rule. But marriage or education of different children or illness on different occasions or a further addition or alteration to a house or flat covered by a fresh plan duly approved by the local municipal body of the area where the house or flat is situated shall not be treated as the same purpose. Second or subsequent withdrawal under clause (i) or (vi) of sub-rule (2) for completion of the same house shall be allowed up to the limit laid down under Note 3.

Note 6: A withdrawal under this rule shall not be sanctioned if an advance under rule 14 is being sanctioned for the same purpose and at the same time.

(3) After sanctioning the withdrawal the amount shall be drawn on an authorization from the accounts officer in cases where the application for final payment had been forwarded to the accounts officer under clause (ii) of sub-rule (3) of rule 25.