The Modi-led NDA government on Tuesday hiked interest for General Provident Fund (GPF) and other related schemes by 0.4 percentage points to 8 per cent for the October-December quarter. The interest rate on GPF was 7.6 percent for the July-September quarter of 2018-19.
Making the announcement, Department of Economic Affairs said that during the year 2018-2019 accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8 percent with effect from October 1, 2018, to December 31 2018.
The revised interest rate would apply on Provident Funds of central government employees, railways and defence forces.
WHAT IS GENERAL PROVIDENT FUND?
GPF is a provident fund account available only for government employees. It’s interest rates are revised according to the government’s notification issued from time to time.
The employees become a GPF member only after he contributes a certain percentage of his/her salary to the account.
A subscriber can subscribe monthly to GPF except during the period when he is under suspension. On the retirement of the employee, instructions have been issued for immediate payment of final balance on retirement.