The Ministry of Finance has announced the interest rate for General Provident (GPF) and other similar provident fund schemes. The ministry has kept the interest rate unchanged for GPF and similar funds for the October-December quarter, of 2022.
According to a resolution released by the Department of Economic Affairs (DEA), Ministry of Finance on October 3, “It is announced for general information that during the year 2022-2023, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1 per cent (Seven point one percent) w.e.f. 1st October 2022 to 31st December2022.”
Accordingly, the interest rate on GPF and other similar funds would be 7.1 per cent for the October-December quarter, 2022. These rates are effective from October 1, 2022, the DEA said in the resolution.
Interest rates of GPF, other provident fund schemes
The funds that will fetch an interest rate of 7.1 per cent for the December quarter, 2022 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 a General Provident Fund?
General Provident Fund is a type of provident fund that is available only for government employees in India. All government employees are allowed to contribute a certain percentage of their salary to the General Provident Fund. Hence, the total amount accumulated during the employment term is paid to the employees at the time of retirement. The finance ministry revises the interest rate on GPF every quarter.
Employees’ Provident Fund (EPF) interest rate has been set at 8.1 per cent for 2021-22.
Small saving schemes’ interest rates for December-October quarter
The Union government announced an increase in the interest rates of certain small savings schemes for the October-December quarter of 2022. The interest rate of Senior Citizen Savings Schemes has been hiked to 7.6 per cent. Kisan Vikas Patra will fetch an interest rate of 7 per cent for the December quarter, of 2022. The interest rate on a 3-year post office time deposit has been raised to 5.8 per cent while the interest rate on 2-year post office time deposit has been increased to 5.7 per cent. Interest rates of the rest of the small savings schemes like PPF and Sukanya Samriddhi Yojana have been kept unchanged for the October-December quarter, 2022.