Section 11 in The General Provident Fund (U.P.) Rules, 1985
11. Interest.
(1)Subject to the provisions of sub-rule (5) Government shall pay to the credit of the account of a subscriber interest at such rate as may be determined for each year by the Government of India.(2)(a)Interest shall be credited to the account of a subscriber on 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 up to the end of the current year;(ii)On all sums credited to the account after the last day of the preceding year from the date of deposit up to the end of the current year.(b)No interest shall be admissible on any sum withdrawn during the current year from the first day of the month in which such a sum was withdrawn up to the end of the current year.(c)The amount of interest, determined as aforesaid, if such amount is not in whole rupees, shall be rounded off to the nearest whole rupee, a part of the rupee less than fifty paise shall be ignored and any other Part shall be counted as next higher rupee.Explanation. - The amount at the credit of a subscriber on the last day of the preceding year will include the amount of bonus if any, payable for such preceding year :Provided that when the amount standing to 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 to the credit of the subscriber became payable.(3)In this rule, the date of deposit shall, in the case of recovery from emoluments, be deemed to be the first day of the month in which it is recovered:Provided that where there has been delay in the drawal of pay or leave salary and allowances of a subscriber and consequently in the recovery of his subscription towards the Fund, the interest on such subscriptions shall be payable from the month in which the pay or leave salary of the subscriber vyas due under the rules irrespective of the month in which it was actually drawn :Provided further that where the emoluments for a month are drawn and disbursed on the last working day of the same month the date of deposit shall, in the case of recovery of his subscriptions, be deemed to be the first day of the succeeding month.(4)In addition to any amount to be paid under Rules 20, 21 or 22 interest thereon up to the end of the month preceding that in which the payment is authorised, shall be payable to the person to whom such amount is to be paid :Provided that where the application required under sub-rules (4) and (5) of Rule 24 is submitted complete in all respects to the Head of Office or Department, whose duty it is to forward the same to the Account Officer, after the expiry of six months from the date the amount claimed became payable, interest shall be payable only to the end of the month preceding that in which the payment is authorized or up to the end of the twelfth month after the month in which such amount became payable whichever is earlier except where it is proved to the satisfaction of the Head of Office or Department concerned that the submission of the said application was delayed by circumstances beyond the control of the applicant in which case the restriction of this proviso shall not apply :Provided further that where a subscriber, on deputation to an Undertaking, subsequently absorbed in such Undertaking with effect from a retrospective date, then, for the purpose of calculating interest due on the Fund accumulation 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 subscriber became payable.(5)Interest shall not be credited to the account of a subscriber if he informs the Drawing and Disbursing Officers that he does not wish to receive it, but if he subsequently asks for interest, he shall be credited with effect from the first day of the year in which he asks for it.(6)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 final payment from the Fund shall be repaid by him with interest thereon, or in default, be ordered to be recovered by deduction from the emoluments or other dues of the subscriber. In case the subscriber is still in service, the amount shall ordinarily be repaid by him or recovered from him in one lump sum, but if the total amount to be recovered is more than half of the subscriber's emoluments, recoveries may be made in monthly instalments as may be determined taking into consideration the period left before the retirement of the subscriber. In case of a subscriber no longer in service, the entire amount with interest shall be repaid by him or recovered from him in one lump sum. In all cases of overdrawals where the overdrawn amount or a part thereof, with interest, cannot be recovered by other means, it shall be recovered as arrears of land revenue. The overdrawn amount, after recovery, shall be credited to Government account under the receipt Head of the Department concerned.(7)The rate of interest to be charged on overdrawn amount referred to in sub-rule (6), would be 2½% over and above the normal rate on Provident Fund balance under sub-rule (1). The interest realised on the over drawn amount shall be credited to Government account under the sub-head "Interest on overdrawals from Provident Fund" under the head "049 - Interest Receipts - Interest receipt of State/Union Territory Governments - Other receipts Interest on other miscellaneous loans".(8)In case any excess or wrong payment is made, under Rule 23, the amount so paid together with interest as mentioned in sub-rule (6) above shall be recovered from the emoluments or other dues of the deceased subscriber and credited to Government account in the manner prescribed in the aforesaid sub-rule. If there be no such dues or the over-paid amount with interest cannot be recovered in full therefrom, the outstanding amount shall be recovered, if necessary as arrears of land revenue, from the person who had received excess or wrong payment.Note. - All requests for advances/withdrawals/final payments/payments under Rule 23 shall be closely scrutinized and in cases where over-payments occur, responsibility should be fixed and, if necessary, action shall be taken both against the administrative and the accounts authorities.
