The Central Government has kept the interest rate on Special Deposit Scheme for Non-Government Provident Superannuation, Gratuity Funds unchanged.
The Central Government has kept the interest rate on Special Deposit Scheme for Non-Government Provident Superannuation, Gratuity Funds unchanged. In a Gazette notification dated 6th January 2021, the Department of Economic Affairs, Ministry of Finance, announced 7.1 per cent interest rate on these funds from 01-01-2021. The interest rate will be in effect till 31-03-2021.
“It is hereby notified that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No.F.16(1)-PD/75 dated 30th June, 1975, shall with effect from 1st January, 2021 to 31st March, 2021 bear interest at 7.1% (seven point one percent). This rate will be in force w.e.f. 1st January, 2021,” the notification said.
The interest rate on these funds was 7.1%. In a previous notification in July 2020, the interest rate for deposits under the special scheme was kept at 7.1 per cent. Launched on July 1, 1975, Special Deposit Scheme aims to provide better returns to non-government provident funds, gratuity and superannuation funds.
General Provident Fund interest rate
For the January-March quarter, the interest rate on General Provident Fund has also been kept at 7.1 per cent w.e.f. 1st January 2021. “It is announced for general information that during the year 2020-2021, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one per cent) w.e.f. 1st January 2021 to 31st March, 2021. This rate will be in force w.e.f. 1st January 2021,” an official notification said.
The funds for which this interest rate will apply include General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, General Provident Fund (Defence Services), Indian Ordnance Department Provident Fund, Indian Ordnance Factories Workmen’s Provident Fund, Indian Naval Dockyard Workmen’s Provident Fund, Defence Services Officers Provident Fund and Armed Forces Personnel Provident Fund.
