Rule 292 requires provident fund contributions and accruals to be invested in five categories with set percentages — Government securities at least 45%, debt instruments at least 35%, short-term debt up to 5%, equities at least 5%, and asset-backed and miscellaneous investments up to 5% — with uninvested funds held in post office or scheduled bank accounts.
292
Rules 2026 · Rule 292
Investment of fund moneys (recognised provident fund)
Rules 261-310
The table (sub-rule 1). All contributions to a provident fund, whether by the employer or employees, transferred from a recognised provident fund of a former employer, or accrued as interest or otherwise, are invested as follows: Government Securities and Related Investments, minimum 45%; Debt Instruments and Related Investments, minimum 35%; Short-term Debt Instruments and Related Investments, up to 5%; Equities and Related Investments, minimum 5%; Asset Backed, Trust Structured and Miscellaneous Investments, up to 5%.
Meaning and conditions (sub-rule 2). The nature of these investments follows notification S.O. 1433(E) of 29 May 2015 of the Ministry of Labour and Employment, as amended, and is subject to the conditions there.
Funds not so invested (sub-rule 3). May be deposited in a Post Office Savings Bank Account in India, or a current or savings account with a scheduled bank.
Other points (sub-rule 4). "Government securities" is as in section 2(f) of the Government Securities Act, 2006; the percentages apply to the aggregate moneys with the fund in the tax year; moneys received on transfer, maturity or realisation of a security or deposit, or withdrawal from a bank account, are treated as moneys accruing to the fund; and "scheduled bank" is defined by reference to the State Bank of India, its subsidiary banks, corresponding new banks, and banks in the Second Schedule to the Reserve Bank of India Act, 1934.