Section 14(6) in The M.P. General Provident Fund Rules, 1955
(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.
