General Provident Fund: Govt declares interest rate on GPF, other funds – Check details

The government has declared interest rate on General Provident Fund and other similar funds for the January-March quarter. The Budget Division of Department of Economic Affairs, under the Ministry of Finance, has recently issued the notification that the fund accumulation at the credit of subscribers of General Provident Fund (GPF) and other similar funds will carry an interest rate of 7.9 per cent for the period January to March 2020. The GPF interest rate from January 2020 to March 2020 is 7.9 per cent.

Earlier, the interest rate for the post office small savings products such as Public Provident Fund (PPF), NSC etc were kept constant for the quarter January-March, 2020. Currently, the interest rate on PPF is 7.9 per cent per annum compounded annually.

As per the website of The Ministry of Personnel, Public Grievances and Pensions, the General Provident Fund (Central Services) Rules 1960 applies to all temporary government employees after a continuous service of one year, all re-employed pensioners (other than those eligible for admission to the Contributory Provident Fund ) and all permanent government employees. The subscription to Provident Fund is stopped three months prior to the date of superannuation.

Contributory Provident Fund Rules (India ), 1962 is applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. The Rules provide for the withdrawal of advances or withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit Linked Insurance Revised Scheme.

At the start of each quarter of the financial year, the government revises the interest rate on small savings schemes and subsequently declares the rate on GPF and other schemes.

The interest rate of 7.9 per cent for the period January to March 2020, effective January 1, will apply to all the following funds:

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 Fund