General Provident Fund (GPF) Interest Rate for October-December Quarter Remains Steady at 7.1%
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General Provident Fund (GPF) Interest Rate for October-December Quarter Remains Steady at 7.1%

In a recent development, the Ministry of Finance has announced that the interest rate for the General Provident Fund (GPF) will remain unchanged at 7.1 percent for the October-December quarter of the fiscal year 2023-2024. This decision marks a continuation of the consistent interest rate that has prevailed over the past few quarters.

Interest Rate Review

The Indian government routinely reviews and adjusts the interest rate for the GPF on a quarterly basis. During the preceding quarter, from July to September, the interest rate was also set at 7.1 percent. The Department of Economic Affairs (DEA), a division of the Ministry of Finance, formally announced this decision on July 4, 2023. The interest rate adjustment took effect from July 1, 2023, and applies for the entire fiscal year 2023-2024.

An Overview of the GPF

The General Provident Fund is a social security scheme that exclusively serves central government employees. Under this scheme, employees contribute a portion of their salary towards the GPF, and upon retirement, they receive the accumulated amount along with interest.

Consistency Across Similar Funds

It’s worth noting that the 7.1 percent interest rate isn’t limited to the GPF alone. It also applies uniformly to similar provident funds, including the State Railway Provident Fund, Armed Forces Personnel Provident Fund, Defence Services Officers’ Provident Fund, and Indian Ordnance Factories Workmen’s Provident Fund.

Uniform Interest Rate Across Multiple Funds

The following funds will also benefit from the consistent 7.1 percent interest rate:

  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

With this decision by the Ministry of Finance, government employees participating in these provident funds can continue to enjoy the stability of a 7.1 percent interest rate for the current quarter and the fiscal year ahead.

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