(1) A subscriber shall, at the time of joining the Fund, send to the Accounts Officer, a 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 death before that amount has become payable, or having become payable has not been paid:
Provided that if, at the time of making the nomination, the subscriber has a family, the nomination shall not be in favour of any person or persons other than the members of his family:
Provided further that nomination shall not be made in favour of a step-son or a step-daughter if any other member of the family is alive.
Provided also that the nomination made by the subscriber in respect of any other Provident Fund to which he was subscribing before joining the Fund shall, if the amount to his credit in such other Fund has been transferred to his credit in the Fund, be deemed to be nomination duly made under this Rule.
(2) If a subscriber nominates more than one person under sub-rule (1), he shall specify in the nomination the amount of share payable to each of the nominees in such manner as to cover the whole of the amount that may stand to his credit in the Fund at any time.
(3) Every nomination shall be in form set forth in the Form-3.
(4) A subscriber may at any time cancel a nomination by sending a notice in writing to the Accounts Officer;
Provided that the subscriber shall, along with such notice, send a fresh nomination made in accordance with the provisions of this rule.
(5) A subscriber may provide in a nomination.-
(a) in respect of any specified nominee, that in the event of his predeceasing the subscriber, the right conferred upon that nominee shall pass to such other person or persons as may be specified in the nomination.
Provided that such other person or persons shall if the subscriber has other members of his family, be such other member or members.
Note: An adopted child shall be considered to be child. When the Accounts Officer is satisified under the personal Law of the subscriber and adopation is legally recognized.
Provided further that such other persons shall be a step-son or a stepdaughter only if no other member of the family is alive.
(b) that the nomination shall become invalid in the event of the happening of a contingency specified therein:
Provided that if at the time of making the nomination the subscriber has no family, he shall provide in the nomination that it shall become invalid in the event of his subsequently acquiring a family:
Provided further that if at the time of making the nomination the subscriber has only one member of the family, he shall provide in the nomination that the right conferred upon the alternate nominee under clause (a) shall become invalid in the event of his subsequently acquiring other member or members in his family.
(6) Immediately on the death of a nominee in respect of whom no special provision has been made in the nomination under clause (a) of sub-rule (5) or on the occurrence of any event by reason of which the nomination becomes invalid in pursuance of clause
(b) of sub-rule (5) or the proviso thereto, the subscriber shall send to the Account Officer a notice in writing canceling the nomination, together with a fresh nomination made in accordance with the provisions of this rule.
(7) Every nomination made, and every notice of cancellation given, by a subscriber shall, to the extent that it is valid, take effect on the date on which it is received by the Accounts Officer.
Explanation:- In this rule unless the context otherwise requires, ‘Person’ or ‘Persons’ shall include a company or association or body of individuals, whether incorporated or not.