 tothe public pl10vident fund bill, 1968 (to be/as introduced in lok sabha) 1 page 2, in the marginal heading to clause 4,-for "subscri pto1n to futld" ~ "sllbscriptions to fund" 2 page 2, line 28,-(i) after "r)fficial gazette" insert " " , (1i) after "time to time" insert " if , page 2, line' 33,-3 " - ii , omit -page 3, line 7,-4 ft suscri ptionsft ~ "subscriptions" for page 3, in the marginal heading tn chuse 9,-5 read -after "against" "attachment" ft page 4, line 7,-after fl following" insert " " , page 4, line 9,-7 for "scheme or" read "scheme or" page 6, line 8, from hottom,-8 "deputy" for "dupty" read -page 8', line 1, from bnttom,-9 for 11 i tnerest" read "i nteres t" -reln delhi; atrll 15, 1968 oha tra 2h 1890 (sakaj  8w no 3' __ ~ i~ the public provident fund bill, 1968i-bill to prwide for the institution of a promdent fund for the ,tmef'tit public be it enacted by parliament in the nineteenth year ot the republic of india as follows:-1 (1) this act may be called the public provident fund act sholl titl 1968 ad eatalt (2) jrt extends to the whole of india s ddwtiolll 2 in this act, unless the context otherwise requires,-(a) "fund" means the public provident fund established under the scheme; (b) "minor" means a person who is not deemed to haye attained majority under the indian majority act, 1875; 9 of i87s 10 (c) "scheme" means the public provident fund scheme framed under sub-section (1) of section 3;  (d) "subscriber" means an individual who makes subscription to the fund under section 4 and where such suqscription is made by an individual on behalf of a minor, of whom he is the s guardian, such minor; (e) "year" means the financial year  public provident fund scheme  3 (1) the central government may, by notification in the official gazette, frame a scheme to be called the public provident fund scheme for the establmhment of a provident fund for the 10 general public and there shall be established, as soon as may be after the framing of the scheme, a fund in accordance with the provisions of this act and the scheme (2) subject to the provisions of thil act, the scheme ·may provide for au or any of the matters specified in the schedule is (3) the scheme shah have effect notwithstanding anything contained in any law for the time being in force other than this act or in any instrument 'laving effect by virtue of any law other than this act (4) the central government may, from time to time, by notifi- 20 cation in the official gazette, add to, amend or vary the scheme subacriptoln to fuiid 4 any individual may, on his own behalf or on behalf of a minor, of whom he is the guardian, subt;cribe to the fund in such manner and subject to such maximum and minimum limits as may be specified ,in the scheme 25 5 all subscriptions made uncier section 4 shan bear interest at interest ' such rate al may be notified by the central goverrmtent in the omclal gazette from time to time ad the interest mall be calculated·in such mbdder as may be specified in the scheme   withdrawal, 6 (1) a subscriber shall be entitled to make withdrawals from 30 the amount standing to his credit in the fund (including any interest accrued thereon) to such extent and subject to such terms and conditions as may be specified in the scheme: provided thai such withdrawal shall be allowed only after the ,expiry of a period of five years from the end of the year in whlcfl 35 he makes the initial sublcription to the fund (2) notwithstanding anything contained in sub-section (1), a subscriber shall be entitled to withdraw the entire balance standing to his credit in the fund after the expiry of a period of fifteen years from the end of the year in which he makes the initial subscription to the fund (3) subject to the provisions of sub-sections (1) and (2) an individual who has made suscriptions to the fund on behalf of a minor, af whom he is the guardian, shall be entitled to withdraw any amount from the fund only for the use of the minor 10 7 a subscriber may be granted loans out of the amount standing =~ or to his credit in the fund on such terms and conditions as may be specified in the scheme and where the subscriber is a minoll', sucn loans shall be granted to his guardian only for the use of the minor 8 (1) if a subscriber dies and there is in force at the time of his ~:=~ od is death a nomination in favour of any person, all amounts standing lubllcribcr to his credit in the fund shall be payable to the nominee (2) where the nominee is a minor, the amounts referred to in sub-section (1) shall be payable to any guardian of the property of the minor appointed by a competent court, or where no such guardian 20has been so appointed, to either parent of the minor, or where neither parent is alive, to any other guardian of the minor (3) where there is no nomination in force at the time of the death of the subscriber, the amounts referred to in sub-section (1) shall be payable to his legal heirs p  ~5 9 the amount standing to the credit of any subscriber in the :::iod fund shall not be liable to attachmf'nt under any decree or order of ttee mlent any court in respect of any debt or uability incurred by the subscriber 10 no suit, prosecution or other legal proceeding shall lie against ~;ot;fitiod 30any person for anything which is in good faith done or intended to tak~n i': be done under this act or the scheme good faith 11 (1) if any difficulty arises in giving effect to the provisions power to of this act or the scheme, the central government may, by order ::kiel published in the official gazette, make such provisions not incon-3ssistent with the provisions of this act, as appear to it to be necessary or expedient for the removal of the difficulty: provided that no such order shall be made after the expiration of three years from the commencement of this act - (2) every order made under bub-section (1) shall be laid as soon as ~y be ~ter it is made before each house of ~arliament schlme to be l'aid before parllamen' 12 the scheme shall be laid, as soon as may be, after it is framed before each house of parliament while it is in session for' a total period of thirty days which may be comprised in one session or in 5 two suecessive sessions, and $£, before the expi'ry of' the session in which it is so laid or the sessrion immediately following both houses agree in making any modificatjon in any provision of the scheme or both houses agree that any provision in the scheme should not be made, the provision of the scheme shall thereafter have eft'ect only in such modified form or be of no effect, as the 10 case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that provision  matters for which provision may be made in the scheme:-(1) the memner in which subscriptions to the fund may be 5 made and the maximum and minimum limits of such subscriptions (2) the manner in which interest on sub!icriptions to the fund may be calculated (3) the documents to be issued to subscribers as evidence 10 of the subscriptions made by them to the fund (4) the extent to which and the terms and conditions under which withdrawals may be made by subscribers from the amount standing to their credit in the fund (5) the auth'jrity or authorities by or throu~h whom subs-15 criptions to the fund may be collected or withdrawals therefrom may be made (6) the terms and conditions under which loans may be granted to subscribers out of the amounts standin" to their credit in the fund and the authority or authorities by whom 20 such loans may be granted (?) the accounts to be maintained with respect to subscriptions to the fund, and withdrawals and final payments made and loans granted therefrom and the authority or authorities by whom such accounts shall be maintained 25 (8) the nomination of any persoll to receive the amount standing t'o the credit of a subscriber in the fund in the event of his death and the cancellation or change of such nomination (9) the issue of duplicate of any document issued as evidence of any subscription to the fund in the event of damage, joso; or destruction of the original and the fee on the payment of which such duplicate may be issued (10) any other matter which is to be provided for in the sche"me or which may be necessary or proper for the purpose of implementing the scheme ~ ~ '-'  5  statement of objects and reasonsthe object of this bill is to provide for the institution of a provident fund for the general public the fund i5 meant to be a medium of lung term savings for individuals the bill inter alia seeks to empower the central government to frame a scheme specifying the maximum and minimum limits in respect of subscriptions to the fund; the extent to which withdrawals may be made from the fund; the procedure for maktng subscriptions to, and withdrawals from, the fund; and other relevant matters interest on subscriptions will be credited to the individual accounts of subscnbers to the fund at the rate to be notified by the central government from time to time new delhi; the 2nd april 1968 morarji desat  president's recommendation under article 117 of the constitution of india[copy of letter no f 14(47)-b/67, dated the 8th april 1968 from shri morarji desai, dupty prime minister aoad minister of finance to the secretary, lok sabha] the president, havin,g been informed of the subj'ect matter of the proposed bill to provide for the institution of a provident fund for the general public, recomme'lds under clauses (1) and (3) of article 117 of the constitution, the introduction of the public provident fund bill, 1968 in the lok sabha and also the consideration of- the bill  under clause 3 (2) of the bill, read with items (5), (6) a'jld (7) of the schedule thereto, the authority oil' authorities who will operate the public provident fund by collecting subscriptions etc, will be as proposed to be provided for in the scheme the fund is proposed to be operated by the central goverrunent through the agency of the state bank of india and its subsidiaries for adminis~ring the fund it will be necessary to employ some additional staff in the mi'ais~y of finance the expenditure on account of the additional staff together with incidental expenses will be rs 32,000 a year there will be no non-recurring expenditure  requirement of personnez and financeno annual emolumenb cost ----------------- -- ~---  ------------------ ---_  _------_ rs  __  i oflicer under secretary i x rs 15,300 is·300 n establishment assistant i i x rs 6,500 6500 lower dh'ision clerk (typist) i x rh 3,300 3300 class iv 1 x rs 1900 1900 iii incidental 5,000 32,000 ---- -- --- - _  _--- --_  --__---_ __ _- -'--"---  _--------on the basis that in the first year 2 lakh accounts will be opened and the averege co'atribution will be rs 500, a total contribution of rs 10 crores has been assum'ed in the budget for 1968-69 at the rate of rs 5 per account in the first year and rs 3 per account per year in the subsequent years the remuneration payable to the state bank of india and its subsidiaries would be rs 10 lakhs in the first year and rs 6 lakhs in subsequent years in addition under clause 5 of th'e bill, interest at the rate to be notified ,by government from time to time, on the subscriptio'ns made to the fund, wiu have to be credited to the subscriber's acoount on the assumption that the scheme will be introduced from the 1st july, 1968 and that the subscription of lts 10 crores assumed in the budget would be received uniformly during the remaining nine months of 1968-69 the interest charge, will come to approximately rs 18 to 20 lakhs for the 1st year for the subse--quent years the interest charge will depend upon the amount of subscri'ptions, the balances at the credit of each subscriber in the fund and the rate of itnerest sub-<:lause (1) of clause 3 of the bill provides that the central government may, by notification in the ofticial gazette, frame - scheme to be called the publie provident fund scheme for the establishment of a provident fund for the general public the matters which may be provided for in the schem'e have been specified in the schedule they, inter alia, relate to the manner in which subscrlptions to the fund may be made and the maximum and minimum limits of such subscriptions; the manner in which interest an f>ubscriptions to the fund may be calculated; the extent to which and the terms and conditions under which withdrawals may be made by subscribers from the amounts standing to their credit in the fund; the accounts to be maintained with respect to subscriptions to the fund and withdrawals and fin,,1 pa~ents made therefrom; and the nomination by a subscriber of any person to receive the amount standjng tq his ~ in ~ everitl of his death these' are matters of procedure and administrative detail and it is hardly practicable to provide for them in the bill itself moreover, under clause 12 of the bill, the scheme shall 'be subject to the scrutiny of parliament the delegation of l'egislative power is, thus, of a normal character, a bill to provide for the institution of a provident fund for the general public '" (shri morarji desai, deputy prime minister and minister of finane,) 