Amidst the Corona crisis, the Modi government has announced the General Provident Fund (GPF) interest rate for the October-December quarter. The government has decided that the interest rate for the October-December quarter will be 7.1 percent.
The Budget Division of the Department of Economic Affairs under the Ministry of Finance has recently issued a notification in this regard. According to the notification, this interest rate will be applicable from October 1, which is till December 2020. The government revises the interest rate of small savings schemes at the beginning of every quarter of the financial year and subsequently declares the rate on GPF and other schemes. That is, the interest rate on GPF is reviewed every 3 months.
This rate will have a direct impact on these funds after the notification is issued. These include The General Provident Fund (Central Service), Contributory Provident Fund (India), All India Service Provident Fund, State Railway Provident Fund, General Provident Fund (Defense Service), Indian Ordnance Department Provident Fund, Indian Ordnance Factories Workmen’s Provident Fund, Indian Naval Dockyard Workmen’s Provident Fund, Defense Service Officers Provident Fund and Armed Forces Personal Provident Fund.
Let us tell you that GPF is a kind of provident fund account, but it is not for all types of employees, only government employees get the benefit of it. It is mandatory for a certain class of government employees to contribute to the GPF. Provident Fund (PF) and Public Provident Fund (PPF) are completely different from accounts.
(With inputs from jansatta.com)