Rule 28 - GPF Policy Referral
Original Rule Text
RULE 28- DUTY OF ACCOUNTS OFFICER WHEN HE RECEIVES NOTIES OF ASSIGNMENT, CHARGE OR ENCUMBRANCE OF POLICIES
If the Accounts Officer receives notice of-
(a) an assignment (otherwise than an assignment to the President under rule 22), or
(b) a charge or encumbrance on, or
(c) an order of a Court restraining dealings with the policy or any amount realised thereon,
the Accounts Officer shall not-
(i) reassign or make over the policy as provided in rule 24, or
(ii) realise the amount assured by the policy or reassign, or make over the policy, as provided in rule 25, but shall forthwith refer the matter to the Government.
What This Means
This rule tells the Accounts Officer what to do when there's a problem or a legal claim against a government employee's General Provident Fund (GPF) policy. Normally, the Accounts Officer handles things like giving the policy back to the employee or cashing it out when they retire or leave service. However, this rule puts a stop to those normal actions under specific circumstances.
Specifically, if the Accounts Officer finds out that an employee has tried to transfer their GPF policy to someone else (other than the President, which is a standard procedure), or if there's a debt or claim placed on the policy, or if a court has ordered them not to touch the policy or any money from it, then the Accounts Officer must immediately stop. They are not allowed to proceed with handing over the policy or realizing its value as they normally would.
Instead of taking any further action on their own, the Accounts Officer's duty is to immediately inform the higher government authorities about the situation. This ensures that any external claims or legal issues involving a GPF policy are handled properly by the Government, protecting both the employee's fund and the government's procedures.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Accounts Officer must act when they receive notice of certain issues concerning a GPF policy.
- 2These issues include unauthorized assignments (transfers of ownership), charges or encumbrances (claims or liabilities) on the policy, or court orders restricting dealings.
- 3Upon receiving such notice, the Accounts Officer is strictly prohibited from reassigning the policy or realizing its assured amount.
- 4The Accounts Officer's mandatory action is to immediately refer the entire matter to the Government for further instructions and decision.
- 5This rule prevents unauthorized or legally challenged dealings with GPF policies and ensures proper governmental oversight.
Practical Example
Imagine Mr. Anil Kumar, a government employee, takes a personal loan of ₹5,00,000 from a private bank. As part of the loan agreement, he attempts to use his GPF policy as collateral and sends a notice of this 'assignment' to the Accounts Officer, Ms. Rina Sharma. Ms. Sharma reviews the notice and immediately recognizes that this is an assignment to a private entity, not to the President as per standard GPF rules.
According to Rule 28, Ms. Sharma must not proceed with any request from Mr. Kumar to reassign or realize the policy's value. Her immediate action is to draft a detailed memo, attaching the bank's notice, and forward it to the Joint Secretary of her department (who represents 'the Government' in this context). This ensures that the department is aware of the situation and can take appropriate steps, such as advising Mr. Kumar on the impermissibility of using GPF as private collateral, or seeking legal opinion if necessary, thereby preventing any unauthorized encumbrance on the GPF policy.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Cross References
Frequently Asked Questions
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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 28 of the General Provident Fund Rules, what action must an Accounts Officer take if they are unable to reassign a life insurance policy as per Rule 24?