The Ministry of Finance has announced the interest rate for the General Provident Fund (GPF) and other similar provident fund initiatives.
According to the resolution released by the Department of Economic Affairs (DEA), Ministry of Finance on October 4, 2023, “It is announced fit general information that during the year 2023-2324, accumulations al the credit of subscribers to 1he General Provident Fund and oilier similar funds shall carry interest at 7.1 percent wef October 1, 2023 to December 31, 2023.”
Also read: PPF, Sukanya Samriddhi, SCSS, NSC interest rates for December 2023 quarter announced; check here
For the October -December quarter of 2023, the government has kept the interest rate on GPF and linked funds unchanged. This is expected because the interest rate of these provident funds normally follows the interest rate of the Public Provident Fund (PPF), which has remained stable during the first quarter of 2023.
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.
l0. The Armed Forces Personnel Provident Fund.
What is a General Provident Fund?
General Provident Funds are provident funds offered only to Indian government employees. Everyone in the government is eligible to contribute a portion of their wages to the General Provident Fund. As a result, when the employees retire, they receive the entire money accrued over their service tenure. The finance minister reviews the GPF interest rate every quarter.
EPF interest rate
The EPF deposits will now be entitled to the new interest rate of 8.15% for FY 2022-23. The Employees’ Provident Fund account only receives the interest once a year, on March 31 of the relevant fiscal year, despite the fact that it is calculated on a monthly basis.
Also read: EPFO declares 8.15% as EPF interest rate for FY 2022-23
As per the EPFO circular issued, “The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees’ Provident Fund Scheme, 1952 to credit interest@ 8.15 % for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952. You are accordingly, requested to issue necessary instructions to all concerned for crediting the said interest to the members’ accounts.”
Small saving schemes’ interest rates for October- December quarter of 2023
The interest rates of certain small savings schemes or post office schemes for the quarter ending December 31, 2023 have been increased by the government. The interest rates of all schemes expect the recurring deposit rate have been kept unchanged.
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