Section 14 in The M.P. General Provident Fund Rules, 1955
14. Interest.
(1)Subject to the provisions of sub-rule (5) below, Government shall pay to the credit of the account of a subscriber interest at such rate as may be determined for each year according to the method of calculation prescribed from time to time by the State Government :Provided that, if the rate of interest determined for a year is less than 4 per cent all existing subscribers to the fund in the year preceding that for which the rate has for the first time been fixed at less than 4 per cent shall be allowed interest at 4 per cent:Provided further that if the rate of interest determined for a year is less than that guaranteed by the former States prior to the 1st November, 1956 the affected Government servant shall be allowed interests at the guaranteed rate (vide General Administration Department Memo No. 3024-I-Int., dated 13th August, 1958).Note. - The rate of interest was for the first time fixed at less than 4 per cent from 1st April, 1938.(2)Interest shall be credited with effect from the last day in each year in the following manner :-(i)on the amount at the credit of a subscriber on the last day of the preceding year, less any sums withdrawn during the current year-interest for twelve months;(ii)on sums withdrawn during the current year-interest from the beginning of the current year up to the last day of the month preceding the month of withdrawal;(iii)on all sums credited to the subscriber's account after the last day of the preceding year-interest from the date of deposit up to the end of the current year;(iv)the total amount of interest shall be rounded to the nearest whole rupee (eight annas counting as the next higher rupee):Provided that when the amount standing at the credit of a subscriber has become payable, interest shall thereupon be credited under this sub-rule in respect only of the period from the beginning of the current year or from the date of deposit, as the case may be, up to the date on which the amount standing at the credit of the subscriber became payable.(3)In this rule, the date of deposit shall, in the case of a recovery from emoluments, be deemed to be the first day of the month in which it is recovered; and in the case of an amount forwarded by the subscriber, shall be deemed to be the first day of the month of receipt, if it is received by the Accounts Officer before the fifth day of that month, but if it is received on or after the fifth day of that month, the first day of the next succeeding month :Provided that where the emoluments for a month are drawn and disbursed on the last working day or on any other day in the last week of the same month, the date of deposit shall, in the case of recovery of his subscription, be deemed to be the first day of the succeeding month.(4)In addition to any amount to be paid under Rule 29,30 or 31, interest thereon up to the end of the month preceding that in which the payment is made, shall be payable to the person to whom such amount is to be paid :Provided that where the Accounts Officer has intimated to that person (or his agent) a date on which he is prepared to make payment, interest shall be payable only up to the end of the month preceding the date so intimated :Provided further that where a subscriber on deputation to a body corporate, owned or controlled by the Government, is subsequently absorbed in such body corporate with effect from a retrospective date, for the purpose of calculating the interest due on the fund accumulations of the subscriber, the date of issue of the orders regarding absorption shall be deemed to be the date on which the amount to the credit of the subscriber became payable subject, however, to the condition that the amount recovered as subscription during the period commencing from the date of absorption and ending with the date of issue of orders of absorption shall be deemed to be subscription to the Fund only for the purpose of awarding interest under this sub-rule.(5)Interest shall not be credited to the account of a Muhammadan subscriber if he informs the Accounts Officer that he does not wish to receive it; but if he subsequently asks for interest, it shall be credited with effect from the first day of the year in which he asks for it.(6)[ The interest on amounts which under Rule 29 or Rule 30 are replaced at the credit of the subscriber in the Fund, shall be calculated at such rates as may be successively prescribed under sub-rule (1) of this rule and so far as may be in the manner described in the rule.(6-A) For advances under sub-rule (5) of Rule 15, the rate of interest to be charged on overdrawn amount would be 2% over and above the normal rate of Provident Fund balances under sub-rule (1). The interest shall be compounded annually and recovered before the principal of the advance. The interest realised on the overdrawn amount shall be credited to Government account under a distinct sub-head "Interest on overdrawal from Provident Fund."] [Substituted by Notification No. G-25/31/95/C/IV, dated 1-3-1996.]Note 1. - Deductions from pay or leave salary paid in arrears in consequence of promotion with retrospective effect or suspension followed by reinstatement with retrospective effect or for any other reason should be considered as having been made on the first of the month in which the arrears of pay or leave salary are drawn.Note 2. - No interest shall be allowed on the amount recovered on account of the subscriptions to the Fund in excess of the actual amount due.When the excess payment of subscription is adjusted by short payments in subsequent months, interest should be allowed for the later months on the full amount due, the balance having been already received in the former months.(7)[ In case a subscriber is found to have drawn from the fund an amount in excess of the amount standing to his credit on the date of the drawal, the overdrawn amount, irrespective of whether the overdrawal occurred in the course of an advance or a withdrawal or the final payment from the fund, shall be repaid by him with interest thereon, in one lump-sum, or in default, be ordered to be recovered, by deduction in one lump-sum, from the emoluments of the subscriber. If the total amount to be recovered is more than half of the subscriber's emoluments, recoveries shall be made in monthly instalments of moieties of his emoluments till the entire amount together with interest, is recovered. For this rule, the rate of interest to be charged on overdrawn amount would be 2 ½% over and above the normal rate of Provident Fund balances under sub-rule (1). The interest realised on the overdrawn amount shall be credited to Government account under a distinct sub-head "Interest on overdrawal from Provident Fund".] [Inserted by Notification No. F.B. 9/1/87/R-II/IV, dated 31-3-1987.]
