New Delhi: Days after announcing a 4 per cent hike in the Dearness Allowance of government employees, the Ministry of Finance on Monday announced the interest rate for provident fund schemes for Central government employees. Keeping the rate unchanged, the ministry said that the funds shall carry a 7.1 per cent interest rate for October-December quarter.
The finance ministry revises the interest rate on GPF every quarter.
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.”
This means that the interest rate on GPF and other similar funds would be 7.1 per cent for the December quarter. These rates are effective from October 1, 2022, the DEA said in the resolution.
The 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, Armed Forces Personnel Provident Fund will carry a 7.1 per cent interest rate from October 1 to December 31, 2022.
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General Provident Fund
It is a type of provident fund available only for government employees in India. All government employees can contribute a part 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.
Meanwhile, the Employees’ Provident Fund (EPF) interest rate for 2021-22 has been set at 8.1 per cent for 2021-22.
Small Savings Schemes interest rates
Recently, the Centre has hiked rates on some small savings schemes by up to 30 basis points for the third quarter (October-December), a finance ministry notification said last week.
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. 3-year post office time deposit will fetch 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.
