Ministry of Finance has kept the interest rate of GPF or General Provident Fund unchanged at 7.1% for the January-March quarter of 2023. According to a resolution released by the Department of Economic Affairs (DEA), Ministry of Finance, the interest rate on GPF and other similar funds will continue to be 7.1% for the January-March quarter of 2023.
These rates are effective from 1 January to 31 March, 2023, the DEA said in the resolution.
GPF is a social security scheme available to only central government employees. Employees are allowed to contribute a certain percentage of their salary to the GPF and the overall amount accumulated during the employment period will be paid to the staff at the time of their retirement.
The government revises the interest rate on GPF every quarter. In the previous quarter ended 31 December, 2022, the GPF interest was similar at 7.1%.
The 7.1% rate of interest of is also applicable to other government-run provident funds including the Contributory Provident Fund, All India Services Provident Fund, Armed Forces Personnel Provident Fund, State Railway Provident Fund, among others.
The funds that will fetch an interest rate of 7.1% are:
1. The General Provident Fund (Central Services);
2. The Contributory Provident Fund (India)
3. The All India Services Provident Fund
4. The State Railway Provident Fund
5. The General Provident Fund (Defence Services)
6. The Indian Ordnance Department Provident Fund
7. The Indian Ordnance Factories Workmen’s Provident Fund
8. The Indian Naval Dockyard Workmen’s Provident Fund
9. The Defence Services Officers Provident Fund
10. The Armed Forces Personnel Provident
What is the General Provident Fund (GPF)?
The Indian Government offers different types of saving schemes for government employees so they can generate high returns. Public provident fund (PPF), Employees provident fund (EPF), and General provident fund (GPF) are the three types of provident funds available in India. Therefore, it is necessary to evaluate the differences between them that will help gain more ideas. Another factor is that it makes feasible ways to select the right one based on the choices. This will help a lot to focus more on the future financial goals that give ways to meet exact needs.
General Provident Fund is a type of account meant for government employees to contribute a certain percentage of their salary to the fund. An employee will get the total amount after his/her retirement. Those who work in central and state government offices come under a GPF scheme that caters to their requirements. However, they should know the scheme’s complete details, including features and benefits.