(1) Subject to the provisions of sub-rule (5) of this rule Government shall pay to the credit of the account of a subscriber interest at such rate as may be fixed by Government from time to time.
(2) Interest shall be credited with effect from last day in each year in the following manner, namely:-
(i) On the amount at the credit of a subscriber on the last day of the preceding year, less any sums withdrawn during the current year-interest for twelve months;
(ii) on sums withdrawn during the current year-interest from the beginning of the current year up to the last day of the month preceding the month of withdrawal;
(iii) on all sums credited to the subscriber’s account after the last day of the preceding year interest from the date of deposit up to the end of the current year;
(iv) the total amount of interest shall be rounded to the nearest whole rupee (Fifty Naye Paise counting as the next higher rupee):
Provided that when the amount standing at the credit of a subscriber has become payable, interest shall thereupon be credited under this rule in respect only of the period from the beginning of the current year or from the date of deposit, as the case may be, up to the date on which the amount standing at the credit of the subscriber became payable.
(3) In this rule, the date of deposit shall in the case of recovery from emoluments, be deemed to be the first day of the month in which it is recovered; and in the case of an amount remitted by the subscriber, the date of deposit shall be deemed to the first day of the month of receipt, if it is credited before the fifth day of that month, but if it is received on or after the fifth day of that month, it shall be deemed to be the first day of the next succeeding month:
Provided that where there has been a delay in the drawal of pay of leave salary and allowances of a subscriber and consequently delay in the recovery of subscription towards the fund, the interest on such subscription shall be payable from the month in which the pay or leave salary of the subscriber was due under the rules, irrespective of the month in which it was actually drawn:
Provided further that where the emoluments for a month are drawn on the last working day of the same month the date of deposit shall in the case of recovery of his subscriptions, be deemed to be the first day of the succeeding month:
Provided also that in the case of an amount forwarded in accordance with the proviso to sub-rule (2) of Rule 14, the date of deposit shall be deemed to be the first day of the month, if it is received by the Accounts Officer before the fifteenth day of that month.
(4) In addition to any amount to be paid under rules 19, 20 and 21, interest thereon up to the end of the month preceding that in which the payment is made or upto 6 months from the date necessitating the payments, shall be payable to the person to whom such amount is to be paid:
Provided that where the Account Officer has intimated to that person (or his agent) a date on which he is prepared to make payment in cash, or has posted an authorization for payment to that person, interest shall be payable only up to the end of the month preceding the date so intimated, or the date of posting authorization, as the case may be.
(5) Interest shall not be credited to the account of a Mohammedan subscriber if he informs the Accounts Officer that he does not wish to receive it, but if he subsequently asks for interest, it shall be credited which effect from the first day of the year in which he asks for it.
(6) The interest on amounts which under sub-rule (3) of Rule 14, sub-rule (5) of Rule 17, Rules 19 and 20, and sub-rule (3) of para 3, sub-rule (4) of para 5, sub-rule
(1) of para 7, sub-rule (1) or (2) of para 8 of the Annexure, are replaced at the credit of the subscriber in the Fund, shall be calculated at such rates as may be successively prescribed under sub-rule (1) of this rule and so far as may be in the manner prescribed in this rule.
(7) In case a subscriber is found to have drawn from the fund an amount in excess of the amount standing to his credit on the date of the drawal, the overdrawn amount, irrespective of whether the overdraw occurred in the course of an advance or a withdrawal of the final payment from the fund, shall be repaid by him with interest thereon, in one lump sum, of in default, be ordered to be recovered by deduction in one lump sum from the emoluments of the subscriber. If the total amount to be recovered is more than half of the subscriber’s emoluments, recoveries shall be made in monthly installments of moieties of his emoluments till the entire amount together with interest is recovered. For this sub-rule, the rate of interest to be charged on overdrawn amount would be two and half percent over and above the normal rate of Provident Fund balances, applicable at the relevant period. The interest realized on the overdrawn amount shall be credited to Government Account under the Head 049, Interest Receipts, D-7 Other Receipts, IV Other Items 6. Interest on overdrawals from Provident Fund.