Rule 299 of The General Financial Rules 2017 Provident Fund Advance Withdrawal Sanction Currency
Original Rule Text
Visual Summary
Lapses after 3 months if not renewed or paid.
Rule does not apply to installment payments.
Sanctioning authority specifies validity date.
Executive Summary
Rule 299 of The General Financial Rules, 2017, governs the currency and lapse of sanctions for Provident Fund (PF) advances and non-refundable withdrawals. It stipulates that such sanctions generally lapse after three months if no payment has been made, unless specifically renewed. An important exception is made for withdrawals effected in installments, where the sanction remains valid until a date specified by the sanctioning authority.
In-Depth Analysis of the Rule
Rule 299 provides clarity on the validity period of sanctions related to Provident Fund transactions, aiming to ensure timely processing and prevent indefinite liabilities. This rule is crucial for both government employees seeking PF benefits and the authorities responsible for their administration.
Breakdown of the Rule
- **Lapse of Sanction:** A sanction for an advance or a non-refundable part withdrawal from a Provident Fund will lapse after three months from its issue date if no payment, in whole or in part, has been made.
- **Renewal:** The sanction can be specifically renewed to extend its validity beyond the initial three-month period.
- **Installment Exception:** The three-month lapse period does not apply to withdrawals that are effected in installments. For such cases, the sanction remains valid until a specific date determined and stated by the sanctioning authority in the sanction order.
- **Purpose:** This rule ensures that financial commitments related to PF advances and withdrawals are managed efficiently and do not remain open indefinitely without action.
Practical Example
Consider an employee who receives sanction for a non-refundable PF withdrawal on January 15th. If no part of this withdrawal is processed or paid by April 15th, the sanction will automatically lapse. However, if the withdrawal was approved to be disbursed in three monthly installments, the sanctioning authority would specify an end date for the validity of the sanction, for example, July 15th, overriding the three-month lapse rule.
Related Provisions
Understanding Rule 299 is enhanced by considering other rules related to financial sanctions and employee benefits:
- Rule 295 of The General Financial Rules 2017 Arrear Claims: Deals with the settlement of arrear claims of government servants, which might include delayed PF payments.
- Rule 30 of The General Financial Rules 2017 Lapse of Sanctions: Provides general rules for the lapse of sanctions for any fresh charge, which Rule 299 specifically applies to PF advances/withdrawals.
- Rule 285 of The General Financial Rules 2017 Digitised Service Matters: Emphasizes maintaining service matters in a digitised format, which would include records of PF sanctions and withdrawals.
Learning Aids
Mnemonics
- **PF-3M-Lapse:** Provident Fund sanctions lapse in 3 Months, unless it’s an installment.
Process Flowchart
Multiple Choice Questions
1. According to Rule 299 of The General Financial Rules, 2017, what is the default lapse period for a Provident Fund advance sanction if no payment is made?
- A) One month
- B) Two months
- C) Three months
- D) Six months
Show Answer
Correct Answer: C) Three months
2. Under Rule 299 of The General Financial Rules, 2017, which type of Provident Fund withdrawal is NOT subject to the three-month lapse rule?
- A) Non-refundable lump sum withdrawals
- B) Advances for medical emergencies
- C) Withdrawals effected in installments
- D) Withdrawals for house construction
Show Answer
Correct Answer: C) Withdrawals effected in installments
3. For Provident Fund withdrawals effected in installments, as per Rule 299 of The General Financial Rules, 2017, who specifies the validity period of the sanction?
- A) The employee
- B) The Accounts Officer
- C) The Ministry of Finance
- D) The sanctioning authority
Show Answer
Correct Answer: D) The sanctioning authority
4. If a sanction for a non-refundable Provident Fund withdrawal is issued on June 1st, and no payment is made, by what date would it typically lapse under Rule 299 of The General Financial Rules, 2017?
- A) July 1st
- B) August 1st
- C) September 1st
- D) October 1st
Show Answer
Correct Answer: C) September 1st
5. Rule 299 of The General Financial Rules, 2017, primarily deals with the ‘currency of sanction’ for what specific financial instrument?
- A) Government bonds
- B) Provident Fund advance/withdrawal
- C) Inter-departmental loans
- D) Foreign aid grants
Show Answer
Correct Answer: B) Provident Fund advance/withdrawal
Frequently Asked Questions
What does ‘currency of sanction’ mean in the context of Rule 299 of The General Financial Rules, 2017?
It refers to the period during which a sanction for a Provident Fund advance or non-refundable withdrawal remains valid and can be acted upon. Beyond this period, the sanction lapses unless renewed or falls under an exception.
Can a lapsed Provident Fund sanction be revived under Rule 299 of The General Financial Rules, 2017?
Rule 299 states that a sanction lapses ‘unless it is specifically renewed’. This implies that a sanction can be renewed, effectively reviving its currency, but this requires explicit action from the competent authority.
Why are installment withdrawals treated differently under Rule 299 of The General Financial Rules, 2017?
Installment withdrawals are treated differently because their nature involves multiple payments over an extended period. Applying a strict three-month lapse would be impractical. Instead, the sanctioning authority sets a specific, longer validity date to accommodate the installment schedule.
Key Takeaways
- Provident Fund advance/withdrawal sanctions lapse after three months if no payment is made.
- Sanctions can be explicitly renewed to extend their validity.
- Withdrawals made in installments are exempt from the three-month lapse rule; their validity is determined by the sanctioning authority.
- The rule ensures timely processing and prevents indefinite financial liabilities related to PF transactions.
Conclusion
Rule 299 of The General Financial Rules, 2017, is a vital administrative provision that brings discipline and clarity to the processing of Provident Fund advances and withdrawals. By setting clear timelines for sanction validity and providing for specific exceptions, it helps streamline financial operations and ensures that both employees and administrative bodies adhere to established procedures, contributing to overall financial propriety and efficiency within the government framework.