IREC Rule No.925(4): Final Withdrawal From Provident Fund For Educational Expenses

925(4).Final Withdrawal From Provident Fund For Educational Expenses:-

(a)   Withdrawal from the fund may also be allowed for the purpose of higher education of the subscriber or of his children in the circumstances mentioned and under the terms and conditions laid down in Rule 923 except that the amount sanctioned shall not be refundable to Government.

Railway Board’s Decision: The withdrawal for higher education may be utilized to meet the cost of college-kit, special clothing and educational tours etc, which may be in the nature of direct obligatory expenditure incurable by the student on account of his education. The cost of bicycle cannot, however, be met from the above withdrawals as the same cannot be considered as an obligatory expenditure associated directly with education.

[Authority: No.F(E)56 Adv. 6/1, 06.03.1956]

(b)  These withdrawals may be permitted once in every 6 months i.e., twice in any financial year.

(c)   In special cases, keeping in view the course of study, status of the subscriber and the amount standing to his / her credit in the Fund, the sanctioning authority may relax the limit of three months pay or half the amount standing to the credit of the subscriber in the Fund, whichever is less, as laid down in proviso to Rule 923, but in no case should more than three fourths of the amount standing to the credit of the subscriber in the Fund be sanctioned.

(d)  The railway servant concerned should satisfy the sanctioning authority within a period of 6 months from the date of drawing the money that it has been utilized for the purpose for which it was intended otherwise, the whole amount of withdrawal shall be refunded in one lump sum together with interest thereon at the rate provided for in Rule 920 from the month of withdrawal. In cases where a portion of the money withdrawn is not likely to be spent within 6 months of the date of withdrawal and the railway servant contemplates making a further withdrawal during the following half year, he may, by notifying in writing to the sanctioning authority before the expiry of the said period of 6 months, adjust the excess amount in the proposed withdrawal, provided that such excess amount is not more than 10% of the amount utilized and action to withdraw the further amount is taken within one month of the expiry or the 6 months period. If no further withdrawal is contemplated, the excess amount should be recovered forthwith together with interest thereon for being credited to his account in the Provident Fund.