Rule 23 - GPF Bonus Rules | KartavyaDesk
Original Rule Text
RULE 23- BONUS OF POLICIES The subscriber shall not during the currency of the policy draw any bonus the drawal of which during such currency is optional under the terms of the policy, and the amount of any bonus which under the terms of the policy the subscriber has no option to refrain from drawing during its currency, shall be paid forthwith into the Fund by the subscriber or in default recovered by deduction from his emoluments by instalments or otherwise as may be directed by the authority competent to sanction an advance for the grant of which special reasons are required under sub-rule (2) of rule 12.
What This Means
Rule 23 of the General Provident Fund (GPF) Rules deals with bonuses received from insurance policies that are linked to your GPF account. Essentially, it states that if you have an insurance policy and it offers you the *option* to withdraw a bonus while the policy is still active, you *cannot* withdraw that bonus. This is because the policy is linked to your GPF, and the intention is to build long-term savings. The rule ensures that the funds remain within the GPF system for your retirement.
However, if the insurance policy *requires* you to receive a bonus during its term (meaning you don't have a choice), then you must immediately deposit that bonus amount into your GPF account. If you fail to do so, the government can recover the amount by deducting it from your salary in installments or through other means, as decided by the relevant authority. This authority is the same one that approves advances requiring special reasons under Rule 12(2).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Optional policy bonuses cannot be withdrawn during the policy's term.
- •Mandatory policy bonuses must be deposited into the GPF immediately.
- •Failure to deposit mandatory bonuses will result in recovery from salary.
- •The authority for recovery is the same as for advances under Rule 12(2).
- •This rule aims to maximize long-term savings within the GPF.
Practical Example
Mrs. Sharma, a government employee, has a life insurance policy linked to her GPF. This policy offers an optional annual bonus. According to Rule 23, Mrs. Sharma cannot withdraw this bonus each year. Instead, it remains within the policy, contributing to its overall value and indirectly benefiting her GPF savings.
On the other hand, Mr. Verma has a different policy linked to his GPF that automatically pays out a guaranteed bonus every five years. Mr. Verma *must* deposit this bonus amount (say, ₹10,000) into his GPF account immediately upon receiving it. If he doesn't, the department can deduct ₹2,000 per month from his salary for five months to recover the ₹10,000 and deposit it into his GPF.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if I forget to deposit a mandatory bonus into my GPF?▼
Does this rule apply to all types of insurance policies?▼
Who is the 'authority competent to sanction an advance' mentioned in the rule?▼
If I have an optional bonus, can I ever withdraw it before the policy matures?▼
Where can I find the official text of Rule 23?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Rule 23 of the General Provident Fund Rules, what is the subscriber's obligation regarding a bonus from an insurance policy linked to their GPF, if the policy terms allow them to optionally draw the bonus during the policy's currency?
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