The Indian Railway Establishment Code (IREC) provision of Rule 920, which pertains to the payment of interest on the balance of the State Railway Provident Fund (SRPF), has been clarified in Railway Board’s RBE No. 29/2023. The circular states that interest on the SRPF balance of a removed or dismissed employee should be calculated and paid in the same way as for those who quit or retire voluntarily, and that the SPRF rules do not differentiate between the methods of quitting or ceasing service. The directive aims to eliminate confusion and ensure that all railway employees receive fair treatment in terms of their SRPF balance and interest payment.
Release of SRPF balance and interest on Removal/Dismissal of service
RBE No. 29/2023
GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRAL AYA)
New Delhi, dated: 09.02.2023.
The General Managers/Principal Financial Advisors,
All Zonal Railways/Production Units etc,
DGs of RDSO and NAIR.
Subject:- Release of SRPF balance and interest on Removal/Dismissal of service.
References have been received from Zonal Railways/PUs regarding the application of provision of Rule 920 of the Indian Railway Establishment Code (IREC)- Vol I, 1985 Edition in case of removed/dismissed employees, for payment of interest beyond the period when its payment was due and up to the date of tender of payment was made.
- As per the provisions of Rule 920 of the IREC Vol I, when the amount at the credit of the subscriber has become due, the interest should be paid up to the date of tender of payment or up to six months after the month in which amount became payable, whichever is earlier SPRF Rules do not differentiate as far as payment of interest on SRPF balance is concerned on the manner of quitting/cessation of service, that is, be it on superannuation, voluntary retirement otherwise.
In view of the above, the interest on the SRPF balance at the credit of a subscriber has been removed or dismissed may be calculated and paid in the same manner.
(G. Priya Sudarsani),
Director, Finance (Estt.),