Zonal Railway Training Institute, C. Rly.

, Bhusawal

ADVANCES FROM PROVIDENT FUNDS

( Para 922 to 926 IREC Part-I )

Railway Employees can withdraw advances from their P.F. Account for following
purpose.

( A ) Temporary Withdrawal :
1. Employee to apply in proper printed application form.
2. Amount so sanctioned should not exceed 90% of the balance at his credit.
3. One loan is sanctioned at a time for one purpose, but in case of marriage one can
apply for betrothal as well as marriage of same individual.
4. Next advance will not be sanctioned unless the 50% of the previous advance is
deducted.
5. For calculation of amount the basic pay is taken into consideration which
includes GP as defined in RS(RP) Rule -2008
( RBE No: 02/2009 dtd. 05.01.2009 )

Purpose of Advance :(Temporary)

1. If Employee is going abroad on medical leave or returning to India.
2. To compensate the expenditure of Serious illness.
3. For Higher education of the dependents wards beyond Hr. Secondary within
India & Abroad.
4. For engagement & Marriage of Self/Children’s & dependents.
5. For purchasing of Movable properties like T.V., Fridge, Washing Machine etc.
6. For purchase the Plot, House/Flat or to compensate the construction expenses if
allotted by Housing Board of Co-operative Society.

Recovery :
Number of installment is decided by sanctioning authority, but in any condition it should
not be less than 12 months and maximum 24 months but if the amount of advance is
more the 03 months then the nos of installments could be 60 in number.

( 1 ) Purpose :
(a) House Building. (e) Medical Expenses
(b) House site. (f) Purchase of Conveyance.
(c) Marriage Expenses.
(d) Education Expenses.
TEMPORARY WITHDRAWAL

Purpose Limit Instalments Remarks

1. On Medical 06 months Basic pay 24 nos. For self, family
Grounds including GP or 50% of memb, dependent
For Gazetted & Non amount at the credit parents minor
Gazetted whichever is less brothers,

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Zonal Railway Training Institute, C. Rly., Bhusawal

unmarried &
widow sisters.
2. Marriage & 06 months BP in case of 60 nos. For self, children
betrothal betrothal/marriage of his & dependent
son/daughter or any other relative
dependent on him/her.
NB: in spl. Case may
relax the limit for self
daughters marriage, upto
15 months pay
(RBE:188/05)

3. Education 24 nos. For education of

(A) Gazetted Rs.1000/- any person
(B) Non-Gaz. Rs.500/- actually
Can be raised upto 03 dependent for
months emolument for specialized course
education abroad & 1 ½ beyond High
in India. school stage.
4. Passage Actual cost of passage 24 nos. Passage of
subscriber on
medical
certificate or
returning after
such absence.
5. House Building 03 mths. Emolument or 60 nos. To meet cost of
in Spl. Case upto 06 flat or const. of a
mths. Or ½ the amt. house or flat or
balance, which ever is repayment of loan
less. for plot/flat by
DDA or State
hsg. Board.
6. For opening Book Rs.3000/- 24 nos. Stall by
stall unemployed
sons/daughters.

( B ) Final Withdrawal from P.F. Advance :

A railway employee can withdraw advance from his Provident Fund not recoverable as
final withdrawal is permissible after 15 years of service. ( Para 925 R-I )
FINAL WITHDRAWLS
Purpose Limit Remarks
1. On Medical Grounds 06 months Basic pay including GP or For meeting
After completion of 15 50% of amount at the credit whichever expenditure of
yrs service is less self or any person
NB: in spl case in view of type of actually
(RBE: 188/05 & illness may relax the limit, but in no dependent on

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Zonal Railway Training Institute, C. Rly., Bhusawal

5/1996) case should not be more than 3/4th of him.

the amount credit in PF.
2. Marriage & 06 months BP in case of For self, children
betrothal betrothal/marriage of his son/daughter & dependent
or any other dependent on him/her. relative
NB: in spl. Case may relax the limit
for self daughters marriage, upto 15
months pay (RBE:188/05)

3. Education 03 months emolument for education For higher

(C) Gazetted abroad & 1 ½ in India or 50% of education of
(D) Non-Gaz. balance in the credit, whichever is children for
less. specialized course
NB: in spl. Case, may relax the limit, beyond High
but in no case should be more than school stage.
3/4th of the amount balance in the PF.
4. Funeral expenses 02 months pay or Rs.500/- whichever ---
is less.
5. House Building (a)Amount at credit or actual cost or To meet cost of
re-payment of loan, which ever is less. flat or const. of a
Provided that the advance received house or flat or
under the scheme & the sum of repayment of loan
withdrawal shall not exceed the for plot/flat by
maximum limit. DDA or State
(b)In case of const. of house, hsg. Board etc.
withdrawal may be permitted only in
equal inst., of not less than 02 & more
than 04.
(c)in case of co-op. societies the
withdrawal is permissible, as & when
demanded by the societies.

50% of the amount credit or actual

(b) House Site
(c)Reconstruction/Renov
ation or addition or
alteration & upkeep of
ancestral house/flat etc.
cost of site, which ever is less
(i)Actual cost or Rs.10,000/- For purchase of
whichever is less house site, for
(ii)Second withdrawal upto building a house.
Rs.10,000/- is allowed for the same ---
purpose, provided the total of both the
withdrawal does not exceed the
amount as it stood at the credit of fund
at the time of 1st withdrawal.

6. For opening Book Rs.3000/- Stall by

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Zonal Railway Training Institute, C. Rly., Bhusawal

stall unemployed
sons/daughters.
7. Conveyance
Advance:
a) Booking of Car
I. Pay Rs.19530/- Upto Rs. 10,000/- or 50% of amount The amount of
(excluding G P) or credit in PF or Actual amount of advance shall be
more. registration which ever is less. taken into account
for determining
over all ceiling
for with drawl i.e.
Rs. 1,10,000/-
only.

II. Motor Upto Rs. 5,000/- or 50% of amount The amount of

cycle/Scooter credit in PF or Actual amount of advance shall be
Pay Rs. 8560/- or registration which ever is less. taken into account
more excluding GP for determining
over all ceiling
for with drawl i.e.
Rs. 20,000/- only

b) Purchase of Car: Upto Rs.1, 10,000/- or 50% of amount

Pay Rs.19530/- credit in PF including amount of
excluding G P or more. registration or actual prize of car,
Who have completed 15 which ever is less.
years of service or have
less than five years of
service to attain
superannuation.

c) Purchase of Rs. 20,000/- or 50% of amount credit

Scooter: in PF or the actual cost whichever is
Pay Rs.8560/- less.
excluding G P or more.
Who have completed 15
years of service

d) Repair of car Rs.10,000/- or 1/3rd of the amount of Such car should

Extensive repair or repairing /overhauling which ever is be more than 05
overhauling once in less yrs old. In case of
service carrier of officer IInd hand car the
who has completed 28 yrs initial date of
of service or whop has purchase by 1st
less than 03 yrs of service, purchaser shall be
where pay is Rs.19530/- taken into

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Zonal Railway Training Institute, C. Rly., Bhusawal

excluding G P or more. account.

8) Miscellaneous Actual cost of land/ Business premises R.B.L.No: F(E)

a) Acquisition of Farm II-71 PF1/35 of
land /or Business 01.21972
premises with in 06
mths. Of date of
retirement.
b) To meet the cost of 03 mths pay or 50% of the amount
Legal Proceeding credit in the account whichever is less.
c) Pilgrimage & place of 03 mths pay or 50% of the amount The place
Eminence of all credit in the account whichever is less. proposed to be
Religion visited is
( RBE No: dt. Pilgrimage or a
28.12.2006) place of
Eminence of all
Religion
d)Purchasing of House 03 mths pay or 50% of the amount Money receipt to
hold Goods credit in the account whichever is less. be submitted
within 01 month
of receipt.
e) On Superannuation Allowed to withdraw 90% of the
amount from P.F. before one year of
his superannuation without any
reason.

Competant authority to Sanction Advance

i) General Manager : Officers of Rlys./ Production Units

ii) CPO : Powers is exercised in respect of Gaz. Officer upto J.A.G level

iii)JAG/Sr.Scale/Asst : Group ’C’ employees.

Officer in Independent
Charge

iv) Group B Officers/APO : Gp C staff upto Rs.2800/- GP & Group D staff.

For computing pay of Running staff for grant of PF, the pay should be deemed as
Basic pay + 30% thereof. Applicable from 25.11.1994 ( RBE 103/1994 dt. 25.11.94)
*****

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