RKVIBPF Rules 16

Section 16 · Advances from the Fund

(a)

The Chairman of the Board may sanction, temporary advance from the amount of the Provident Fund to a subscriber up to three month's pay and provided that such advances shall in no case exceed half of the amount of subscriber's own subscription to the Fund and the interest thereon standing at his credit.

(b)

No advance shall be granted unless the Chairman of the Board is satisfied that the subscribers pecuniary circumstances justify it and that it will be expended on the following purposes and for no other purpose:-

(i)to defray expenses incurred in connection with prolonged illness of the subscriber, or a member of his family actually dependent on him, or

(ii)to pay obligatory expenses in connection with marriage or funerals or other ceremonies which by religion it is incumbent upon him to perform.

(c)

Provided that when an advance has already been granted to a subscriber, a subsequent advance shall not be granted to him until complete repayment of the last advance and the interest thereon, has been made except for very special reason to be judged and recorded by the Chairman of the Board.

(d)

The amount of an advance shall be repayable in such manner of equal monthly installments not exceeding twenty four, as may be fixed by the Chairman when sanctioning the advance and such installments shall be recovered alongwith the subscription in the manner provided in rule 8. A subscriber may at his option, repay more than one installment in one month. Each installment shall be a number of whole rupee, the amount of the advance being raised or reduced if necessary to admit of the fixation of such installments.

(e)

If under the provisions of clause (a) or (b) to rule 9 the Board's contribution is to be withheld when a subscriber's account is closed, and any portion of an advance made to such subscriber is still outstanding then the amount of the advance outstanding plus the amount of interest last calculated on the monthly outstanding balance of the advance shall be added to the amount standing at credit of the account in form P.F.I. for the purpose of calculating the Board's share of the total at the credit of the account.

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