[Act No. 23 of 1968
dated 16th May, 1968]
An Act to provide for the
institution of a provident fund for the general
public.
Be it enacted by Parliament in the Nineteenth Year of the
Republic of India as follows: -
Comment: By passage of this Act, even the general public can now avail of the benefits of a provident fund.
1. Short title and
extent
(1) This Act may be called the Public Provident Fund Act,
1968.
(2)
It extends to the whole of India.
2.
Definitions
In this Act, unless the context otherwise
requires,-
(a) "Fund" means the Public Provident Fund established under
the Scheme;
(b) "minor" means a person who is not deemed to have
attained majority under the Indian Majority Act, 1875;
(c) "Scheme" means the
Public Provident Fund Scheme framed under sub-section (1) of section
3;
(d)
"subscriber" means an individual who makes subscription to the Fund
under section 4 and where such subscription is made by an individual
on behalf of a minor, of whom he is the guardian, such
minor;
(e) "year" means the financial year.
3. Public Provident Fund
Scheme
(1) The Central Government may, by notification in the
Official Gazette, frame a scheme to be called the Public Provident
Fund Scheme for the establishment of a provident fund for the
general public and there shall be established, as soon as may be
after the framing of the Scheme, a Fund in accordance with the
provisions of this Act and the Scheme.
(2) Subject to the provisions of
this Act, the Scheme may provide for all or any of the matters
specified in the Schedule.
(3) The Scheme shall have effect
notwithstanding anything contained in any law for the time being in
force other than this Act or in any instrument having effect by
virtue of any law other than this Act.
(4) The Central Government may,
from time to time, by notification in the Official Gazette, add to,
amend or vary the Scheme.
4. Subscriptions to
Fund
Any
individual may, on his own behalf or on behalf of a minor, of whom
he is the guardian, subscribe to the Fund in such manner and subject
to such maximum and minimum limits as may be specified in the
Scheme.
5.
Interest
All subscriptions made under section 4 shall bear interest
at such rate as may be notified by the Central Government in the
Official Gazette, from time to time, and the interest shall be
calculated in such manner as may be specified in the
Scheme.
6.
Withdrawals
(1) A subscriber shall be entitled to make withdrawals from
the amount standing to his credit in the Fund (including any
interest accrued thereon) to such extent and subject to such terms
and conditions as may be specified in the Scheme:
Provided that such
withdrawals shall be allowed only after the expiry of a period of
five years from the end of the year in which he makes the initial
subscription to the Fund.
(2) Notwithstanding anything
contained in sub-section (1), a subscriber shall be entitled to
withdraw the entire balance standing to his credit in the Fund after
the expiry of a period of fifteen years from the end of the year in
which he makes the initial subscription to the Fund.
(3) Subject to the
provisions of sub-sections (1) and (2), an individual who has made
subscriptions to the Fund on behalf of a minor, of whom he is the
guardian, shall be entitled to withdraw any amount from the Fund
only for the use of the minor.
7. Grant of
loans
A
subscriber may be granted loans out of the amount standing to his
credit in the Fund on such terms and conditions as may be specified
in the Scheme and where the subscriber is a minor, such loans shall
be granted to his guardian only for the use of the
minor.
8. Payment on death of
subscriber
(1) If a subscriber dies and there is in force at the time
of his death a nomination in favour of any person, all amounts
standing to his credit in the Fund shall be payable to the
nominee.
(2) Where the nominee is a minor, the amounts referred to in
sub-section (1) shall be payable to any guardian of the property of
the minor appointed by a competent court, or where no such guardian
has been so appointed, to either parent of the minor, or where
neither parent is alive, to any other guardian of the
minor.
(3) Where there is no nomination in force at the time of the
death of the subscriber, the amounts referred to in sub-section (1)
shall be payable to his legal heirs.
9. Protection against
attachment
The amount standing to the credit of any subscriber in the
Fund shall not be liable to attachment under any decree or order of
any court in respect of any debt or liability incurred by the
subscriber.
10. Protection of action
taken in good faith
No suit, prosecution or other
legal proceeding shall lie against any person for anything which is
in good faith done or intended to be done under this Act or the
Scheme.
11. Power to remove
difficulties
(1) If any difficulty arises in giving effect to the
provisions of this Act or the Scheme, the Central Government may, by
order published in the Official Gazette, make such provisions not
inconsistent with the provisions of this Act, as appear to it to be
necessary or expedient for the removal of the
difficulty:
Provided that no such order shall be made after the
expiration of three years from the commencement of this
Act.
(2)
Every order made under sub-section (1) shall be laid as soon as may
be after it is made before each House of
Parliament.
12. Scheme to be laid
before Parliament
The Scheme shall be laid, as soon as may be, after it is
framed before each House of Parliament while it is in session for a
total period of thirty days which may be comprised in one session or
in two successive sessions, and if, before the expiry of the session
in which it is so laid or the session immediately following, both
Houses agree in making any modification in any provision of the
Scheme or both Houses agree that any provision in the Scheme should
not be made, the provision of the Scheme shall thereafter have
effect only in such modified form or be of no effect, as the case
may be, so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done
under that provision.
THE SCHEDULE
[See section
3(2)]
Matters for which provision may be made in the
Scheme:-
(1) The manner in which subscriptions to the Fund may be made and the maximum and minimum limits of such subscriptions.
(2) The manner in which interest on subscriptions to the Fund may be calculated.
(3) The documents to be issued to subscribers as evidence of the subscriptions made by them to the Fund.
(4) The extent to which and the terms and conditions under which withdrawals may be made by subscribers from the amount standing to their credit in the Fund.
(5) The authority or authorities by or through whom subscriptions to the Fund may be collected or withdrawals therefrom may be made.
(6) The terms and conditions under which loans may be granted to subscribers out of the amounts standing to their credit in the Fund and the authority or authorities by whom such loans may be granted.
(7) The account to be maintained with respect to subscriptions to the Fund, and withdrawals and final payments made and loans granted therefrom and the authority or authorities by whom such account shall be maintained.
(8) The nomination of any person to receive the amount standing to the credit of a subscriber in the Fund in the event of his death and the cancellation or change of such nomination.
(9) The issue of duplicate of any document issued as evidence of any subscription to the Fund in the event of damage, loss or destruction of the original and the fee on the payment of which such duplicate may be issued..
(10) Any other matter
which is to be provided for in the Scheme or which may be necessary
or proper for the purpose of implementing the Scheme.