The Government of India has recently decided to cut interest rate on General Provident Fund (GPF). For July-September, the General Provident Fund and other similar funds will pay 7.9% interest.
As a heads up to all government officials and employees, the Government of India has marginally reduced the interest rate for General Provident Fund and other related saving schemes. This implies that there has been a 0.1 percentage point decline in the rate of interest from the previous three quarters.
The GPF is a provident fund account which accepts deposits only from government employees. The employees make a contribution on a monthly basis and are entitled to the corpus amount at the time of retirement. The terms & conditions regarding General Provident Fund are applicable to central government employees who have been appointed on or before December 31, 2003. In addition, the employees can nominate a relative at the time of opening an account.
Reportedly, to confirm the same, the Ministry of Finance has issued the following notification:
"It is announced for general information that during the year 2019-2020, accumulations at the credit of subscribers to the GPF and other similar funds shall carry interest at the rate of 7.9 percent with effect from July 1, 2019 to 30th September 2019. This rate will be in force with effect from July 1, 2019," - Ministry of Finance.
Along with this notification, the Ministry of Finance has also released a list of funds in which the rate cut is applicable.
- The General Provident Fund (Central Services)
- The Contributory Provident Fund (India)
- The All India Services Provident Fund
- The State Railway Provident Fund
- The General Provident Fund (Defence Services)
- The Indian Ordnance Department Provident Fund
- The Indian Ordnance Factories Workmen’s Provident Fund
- The Indian Naval Dockyard Workmen’s Provident Fund
- The Defence Services Officers Provident Fund
- The Armed Forces Personnel Provident Fund