General Provident Fund: Similar to the small savings scheme, the government reviews the interest rates of General Provident Fund every quarter.
Central Government Employees: The government employees investing in the General Provident Fund have suffered a setback. The Finance Ministry has announced the interest rates to be paid on other Provident Funds including General Provident Fund for the April to June quarter of the financial year 2023-24 and the Finance Ministry has not made any change in the interest rates.
This is when the Finance Ministry has increased the interest rates of many small savings schemes in the April to June quarter but there has been no change in the interest rates of the General Provident Fund. Actually, the interest rate of other provident funds including General Provident Fund is the same as the rate of interest given by the government on PPF (Public Provident Fund). Because interest rates have been increased on all schemes except PPF of small savings scheme, hence no change has been made in the interest rates of General Provident Fund.
Issuing the resolution, the Department of Economic Affairs, Ministry of Finance said that for general information it is announced that during the year 2023-2024, from April 1, 2023 to June 30, 2023, the General Provident Fund and other Provident Fund Interest will be given at the rate of 7.1 percent on the deposits of the subscribers. The interest rate on GPF and other provident funds will be 7.1 per cent for the April-June quarter. These rates are applicable from April 1, 2023.
General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund. General Provident Fund (Defence Services) 7.1 percent interest rate on the Indian Ordnance Department Provident Fund will be applicable for the April-June quarter.
The Finance Ministry reviews the interest rates every three months. General Provident Fund is available only for government employees. All government employees have to put some percent of their salary in the General Provident Fund. And the amount deposited in this fund is given to the employees after retirement.
