As per Rule 11(4) of General Provident Fund (Central Service) Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.
[Note: See the Government of India’s Guidelines in this regard.]
The same rule should apply in respect of termination of service also.
It may also be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide Ministry of Personnel, PG & Pensions, Department of Pension & Pensioners’ Welfare Notification No. 20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.1996.
Further, please note that Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment.
In case of delay in payment of the GPF amount, if any additional interest is required to be paid to the subscriber, the Government orders require action to be taken against Government servant or servants who are found responsible for the delay in the payment of General Provident Fund.
In view of these provisions, you can request for payment of interest till the date of final settlement of your GPF amount.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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