PROVIDENT FUND
Every employee at the time of confirmation in the Bank's service will become a member of the Indian Bank Staff Provident Fund. At the time of joining the Fund, a declaration in the format as per annexure should be given by the member and forwarded to CO: HRM Department by the Branch Manager/Head of the Department in Administrative Office. An employee must remain a member till he leaves the services of the Bank and must abide by all the rules of the Fund.
An employee may nominate any one or more than one person to whom the amount standing to his credit in the Fund may be paid in the event of his death while in service. The nomination may be changed by the employee at any time after giving written notice to the Trustees in the form prescribed.
Employees can contribute Voluntary Contribution to the P.F. a/c and the employee's total subscription comprising "Compulsory Subscription" and "Voluntary Contribution" shall not exceed 20% of salary.
An option exercised by the employee for voluntary contribution shall not be cancelled or varied in amount for a minimum period of six months from the date of option.
Withdrawals are permitted from the PF amount standing to the credit of the employees on the following grounds:
Various Loans against PF
Withdrawals are permitted from the PF amount standing to the credit of the employees on the following grounds:
Loan against PF:
All confirmed employees are eligible for loan against PF for medical, marriage, ceremoniesand education expenses upto 3 times oftheir Basic Pay + Special Allowance ranking for PF.
The repayment of the loan will be in 24 monthly instalments for Principal and 2 equal monthly instalments for interest. The Rate of Interest is 10.5% (Simple) (Subject to change).Loans can be renewed after 6 months of the previous loan. The loan should be applied in the prescribed format to CO HRM through Branch Manager/Head of the Department at Administrative Offices. Branches/Offices have to maintainMirrorAccount. .
No. of ordinary PF Loans that can be availed / Though PF Loan can be availed/renewed once in 6 months there can be only one loan at any one time
Particulars to be furnished for early sanction of PF Loan / Previous PF Loan Particulars viz.
1. Sanction No.
2. Date of Sanction.
3. Amount Sanctioned.
4. Amount Availed.
5. Last Instalment Recovered Date
6. Amount of Instalment
7. Present Balance.
Special(Clean) Loan against Provident Fund:
All confirmed employees are eligible for Special(Clean) Loan against PF on the following terms and conditions:
Eligibility:
All confirmed employees who have got sufficient balance in their own PF contribution after providing for
a. 3 times of their Basic Pay + special alloawance ranking for P.F to enable the employee to avail PF Loan
b. Outstading liability under RWPF Loan
c. Lien Amount (Limit) for having availed Term Loan.
Rate of interest : 12.50 % (Compounded) (subject to change)
Repayment : 36 equal monthly instalments besides interest with quarterly rests. Interest to be recovered then and there
Quantum of Loan:
SNo / Purpose / Quantum of Loan *1 / Medical Treatment of Employee or his dependents / 3 Times of Basic + Spl.Allowance ranking for PF
2 / Additions, alteration of house of the employee/spouse and for improvement of house under SHL Scheme
To repay instalments if house/flat purchased from co-op. housing society or state housing board(proof to be produced) / Rs. 15000/-
3 / Marriage of self(Invitation card to be submitted) / Rs 10000/-
* Subject to availability of sufficient balance in PF
The loan can renewed after repayment of 10 monthly instalments.
The loan should be applied in the prescribed format to HO:HRM Department through Branch Manager/Head of the Dept at Administrative Offices.
Particulars to be furnished for early sanction of Special Clean Loan / Besides personal data, outstanding balance in Refundable Withdrawal account to be furnished in the prescribed application form.
Loan can be availed / Special Clean Loan can be availed/renewed once in 10 months from previous availment. However, Special Clean Loan cannot be availed within 6 months from the date of availment of Non-Refundable Withdrawal
REFUNDABLE WITHDRAWAL
All confirmed employees who have completed more than 5 years of service are eligible to Refundable withdrawal loan on the following terms & conditions:
Purpose :
Refundable withdrawal loan from PF can be sanctioned for the purpose of
a. marriage expenses of self/daughter/son/wholly dependent sisters
b. purchase/repair of house or flat and
c. for repayment of loan availed from any person for the purpose of marriage/purchase of house/flat (Proof to be enclosed)
Amount of loan : 6 times of Basic + Special Allowance ranking for PF.
Repayment : Principal in 48 monthly instalments and Interest in 4 equal monthly instalment thereafter
The loan should be applied in the prescribed format to HO HRM through Branch Manager/Head of the Department atAdministrative Offices.
Maximum eligible amount and repayment period / 6 times Basic Pay + Special Allowance Ranking for PF.Repayable in 48 monthly instalments and interest in 4 monthly instalments.
New Refundable Withdrawal can be availed / New Refundable Withdrawal can be availed only after adjusting existing liability including interest and not before expiry of 4 years from the date of previous availment.
Particulars to be furnished for early sanction of Refundable Withdrawal / Besides personal data such as name, SR No., Basic Pay, etc. Balance in Special Clean Loan a/c. is to be furnished in the prescribed application form.
NON-REFUNDABLE WITHDRAWAL
All confirmed employees who have completed 5 years of service or who are due to retire within next 10 years are also eligible for non refundable withdrawal from PF for purpose of house building expenses and marriage of self and dependents.
Purpose :
i. For purchase of land for construction of house
ii. For purchase/construction of house/flat
iii. Towards expenditure for marriage of self/son/daughter/dependent sister.
iv. Towards repayment of loan taken for purchase/construction of house/flat/repair of house or for marriage purpose.
Eligibility :
Slab / Service / Eligibility / Purpose1 / 5 years to less than 20 years / 50% of PF Balance / For purchase/construction of house/flat.
2. / 20 Years to less than 25 years / 75% of PF Balance / For purchase/construction of house/flat repair/renovation of house/flat.
Marriage of self/son/daughter/wholly dependent sister
Repayment of loan availed for the above two purposes(proof/declaration to be submitted)
3. / 25 years and above / 75% of PF Balance / For purchase/construction of house/flat repair/renovation of house/flat.
Marriage of self/son/daughter/wholly dependent sister
Repayment of loan availed for the above two purposes(proof/declaration to be submitted)
Documents:
i. For purchase of site/flat/house, agreement for sale or allotment letter is to be produced.
ii. For construction of house/repair of house,engineer's estimate for the construction is to be produced by the employees who have availed SHL and tax receipt alongwith engineer's estimate is to be produced by the employees who have not availed SHL.
iii. For marriage expenses, marriage invitation is to be produced. iv. For repayment of loan taken for Housing/marriage purpose, a declaration by the employee in prescribed format is to be given.
Other terms and conditions:
i. Those who have availed non refundable withdrawal from PF will not be eligible for Special Clean Loan against PF before completion of 6 months from the date of withdrawal.
ii. If withdrawal is made for purchase of house/site, purchase should be made within 6 monthsof the withdrawal.
iii. If withdrawal is made for the construction of house, construction should start within 6
monthsfrom the date of withdrawal and should be completed within 1 year from the date of
commencement of the construction.
iv. If withdrawal is made for repayment of loan, it should be repaid within 3 months from the date of withdrawal.
v. If the amount is not utilised for the purpose for which it was withdrawn, the whole amount should be refunded alongwith interest at prescribed rates from the month of such
withdrawal.
20 years to less than 25 years of service, 75 %
above 25 years, 75 %
Margin 50% or 25% (as the case may be) should be enough to cover 3 months Basic + Special allowance raking for PFfor availing PF Loan, liability under Refundable Withdrawal. Otherwise amount of sanction would be reduced by the excess liability. Term loan (PF) limit shall also be reduced from the eligible NRW amount.
Purposes for which the facility can be availed / Before 20 years of service only for construction and after 20 years service for construction or marriage of self, son, daughter and dependent sisters.
Particulars to be furnished for early sanction of Non-refundable Withdrawal / Besides personal data, outstanding balance in Refundable Withdrawal account and term loan (PF) availed particulars should be furnished in the prescribed application form.
For expenses proposed to be incurred, proof to be submitted Marriage invitation card for marriage to be performed, for construction, Engineer's estimate and proof of ownership of house such as SHL details/tax receipt, etc.
For expenses already incurred, declaration to be submitted.
Other Conditions / Special Clean loan is to be closed from out of the NRW proceeds.
Special Clean loan shall be availed after 6 months of NRW availment.
The application should be submitted in the prescribed format to CO: HRM through Branch Manager/Head of the Department at Administrative Offices.
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