General Provident Fund is a compulsory savings scheme introduced by the Government for the benefit of its employees and their Family members, which comes to their rescue in their financial crisis during the service and also at the end of the service.

Immunity has been provided by sub-section (1) of section 3 of the Provident Fund Act, 1925 against giving effect to the recovery of government dues from accumulation in the General Provident Fund account of the employee.

Constitutional provisions were made empowering the President of India to formulate the rules regulating the General Provident Fund for the central government employees and similarly powers were conferred on the Governors of the States to make the rules regulating the GPF for the state government employees.

Majority of the State Governments have entrusted the custody and maintenance of the GPF of their state to the C&AG of India who, through his field offices spread across the country, discharges this function. The Comptroller & Auditor General of India is the Head Of the Department of IA&AD and derives his powers under Article 149 of the Constitution of India as well as the C& AG’s (Duties, Power and Conditions of Service) Act 1971.

All transactions of Receipts and Payments made to and from the General Provident Fund are classified in government account under Part-III- Public Account I- Small Savings, Provident Funds etc. (b) Provident Funds-8009 State Provident Funds. This Major Head is closing to balances hence the balances under this head are carried forward from year to year in the Financial Accounts of the State government concerned.

The custodians of the GPF

In the State of Maharashtra the Governor of Maharashtra in exercise of the powers conferred on him by the proviso to Article 309 of the Constitution of India has made the rules regulating the General Provident Fund relating to Government Servants under the Government of Maharashtra. GPF Rules were amended from time to time and the present form of the rules are named as the Maharashtra General Provident Fund Rules, 1998

The Office of the Accountant General (A & E ) II Maharashtra, Nagpur is maintaining GPF accounts of around 1.42 lakh employees pertaining to Vidarbha and Marathwada regions and the Office of the Pr. Accountant General (A & E ) I Maharashtra, Mumbai is maintaining GPF accounts of around 2.05 lakh employees pertaining to Western Maharashtra region and Mumbai region.

A Unique Account number is allotted to each GPF subscriber. The Number is prefixed with Department’s code followed by Region code e.g. e.g. GA/MH, M/MAH, BR/BN, J/BN i.e. GA- General Administration, M-Medical, PH- Public Health, PW- Public Works etc. and MH or MAH for government servants working in Western Maharashtra Region and their GPF accounts are maintained by Pr. A.G (A & E)-I. Mumbai and BN for government servants working in Nagpur Region whose accounts are maintained by A G (A &E) II Nagpur. 






Rule 4; 7; 8 & 11 of the MGPF Rules 1998 defines the conditions of eligibility, conditions and rates of subscription; realization of subscription.

As it is a compulsory savings scheme introduced by the government for the benefit of employees and their family, there is restriction of membership to the Fund.

All the temporary government servants after the period of continuous service of one year, all re-employed pensioners and all permanent Government servants, are eligible to subscribe to GPF. All are required to subscribe monthly contribution to their GPF account.

As per Govt. of Maharashtra FD GR dated 31st October 2005 this scheme would NOT be applicable to the government servants who are recruited on or after 1st November 2005.

Minimum & Maximum subscription.

GPF monthly subscription should not be less than 6% of the emoluments and not more than the maximum emolument. Percentage is based on the emoluments to which the government servant is entitled as on the 31st of March of the preceding year. Monthly subscription can be enhanced twice or reduced once during the course of the year. The GPF account can be credited by the subscriber by way of monthly subscription and by government by way of general or special orders to credit the arrears of pay and allowances due and admissible to the government servant’s GPF account. As it is the liability of the government to pay interest to the subscriber on the accumulation in GPF account hence any amount credited to GPF account, other than those described above, are treated as unauthorized credits to GPF account hence no interest is admissible on such amounts.

Sources from which transaction takes place in GPF account:

as pay & allowances of government servants are debited to the Consolidated Fund of the State and the emoluments are drawn from a government treasury /PAO, the recovery of GPF subscription shall be made form emoluments itself and when the pay & allowances are drawn from a source other than the Consolidated Fund of the state, the GPF subscription shall be credited into government account by remitting the amount into treasury through Chalan or through DD drawn in favour of the “Accounts Officer” o/o the State AG who is maintaining the GPF account of the subscriber. Each Head of Office/Department has to send a statement to the Accountant General concerned in the prescribed format every month indicating the particulars of all such subscribers (except for Gr-D employees) in his office who are required to subscribe to GPF compulsorily. This statement will be in a form of GPF Schedule prepared in ascending order of GPF a/c number allotted to each Subscriber. ( guidelines given in subsequent paragraphs)




Rule 5 of the MGPF Rules 1998 defines the rules regarding the facility for Nomination in the GPF scheme. The subscriber shall at the time of joining the Fund, send to the Head of the Office, nomination conferring on one or more persons the right to receive the amount that may stand to his credit in the fund in the event of his/her death. He/ She shall specify in the nomination form the amount or share payable to each of the nominees in such manner that it will cover the whole amount that may stand to his credit in the fund at any time. Nomination becomes invalid in the event of the happening of contingency provided therein





Rule 28
of the MGPF Rules 1998




When the amount standing to the credit of the subscriber in the fund becomes payable, payment is made on receipt of a written application as provided in relevant rules.


If the recipient is lunatic, the payment will be made to the manager appointed under Indian Lunacy Act, 1912 for his estate.


Payment of the amount withdrawal shall be made in India only and the recipient shall make his own arrangement to receive the payment in India