What is the Current GPF rate of interest?
As per the sooner notification launched by The Budget Division of the Department of Economic Affairs, beneath the Ministry of Finance, the fund accumulation on the credit score of subscribers of the General Provident Fund (GPF) and different related funds would offer a rate of interest of seven.9% for the interval January to March 2020.
However, the Government of India has revised the rate of interest on GPF once more for the interval between 1 April 2020 and 30 June 2020 within the monetary year 2020-21 (April-March). In this era, it’s going to fetch a rate of interest of seven.1% for all of the subscribers to the General Provident Fund and different related funds.
Knowing concerning the previous rate of interest of the General Provident Fund will enable you to research the sample of revision by the federal government. If you’re an authorities worker and wish to open an account beneath the GPF scheme, the year-wise checklist of GPF charges of curiosity can assist you to make the choice rapidly. All the federal government staff ought to pay attention to any adjustments in General Provident Fund Interest Rate because it impacts their cash and their future immensely.
GPF Interest Rate Year-wise List
|Year||Rate of Interest|
|1981-82 to 1982-83||9.00%|
|1986-87 to 1999-2000||12.00%|
|2003-04 to 2010-11||8.00%|
|01-04-2011 to 30-11-2011||8.00%|
|01-12-2011 to 31-03-2012||8.60%|
|2013-14 to 2015-16||8.70%|
|01.04.2016 to 30.06.2016||8.10%|
|01.07.2016 to 30.09.2016||8.10%|
|01.10.2016 to 31.12.2016||8.00%|
|01.01.2017 to 31.03.2017||8.00%|
|01.04.2017 to 30.06.2017||7.90%|
|01.07.2017 to 31.12.2017||7.80%|
|01.01.2018 to 31.03.2018||7.60%|
|01.4.2018 to 30.06.2018||7.60%|
|01.07.2018 to 30.09.2018||7.60%|
|01.10.2018 to 31.12.2018||8.00%|
|01.01.2019 to 31.03.2019||8.00%|
|01.04.2019 to 30.06.2019||8.00%|
|01.07.2019 to 30.09.2019||7.90%|
|01.10.2019 to 31.12.2019||7.90%|
|01.01.2020 to 31.03.2020||7.90%|
|01.04.2020 to 30.06.2020||7.10%|
|01.07.2020 to 30.09.2020||7.10%|
|01.10.20209 to 31.12.2020||7.10%|
|01.01.2021 to 31.03.2021||7.10%|
- The authorities levied a rate of interest on GPF and related funds at 7.1% for the April-June quarter of FY 20-21
- As per the notification launched by the finance ministry on 31st March 2020, the brand new price was set to 7.1%, efficient from April 1 until June 30 of FY21.
- In the earlier quarter, i.e. January – March, the price of GPF curiosity was 7.9%
- According to the Government officers, that is in step with the minimize within the Public Provident Fund or PPF charges beneath small financial savings schemes.
List of funds on which the brand new price shall be relevant
The rate of interest minimize price won’t solely have an effect on the GPF rates of interest, however, shall be relevant to provident funds of central authorities staff, railways, and protection forces as properly. Also, the speed is in step with that of the Public Provident Fund. The checklist of involved funds beneath this price minimize are:
- The General Provident Fund (Central Services)
- The Contributory Fund (India)
- The All India Services Provident Fund
- The State Railway Provident Fund
- The General Provident Fund (Defense Services)
- The Indian Ordnance Department Provident Fund
- The Indian Ordnance Factories Workmen’s Provident Fund
- The Indian Naval Dockyard Workmen’s Provident Fund
- The Defense Services Officers provident Fund
- The Armed Forces Personnel Provident Fund
Who is eligible for the General Provident Fund?
As per the website of The Ministry of Personnel, Public Grievances and Pensions, all nonpermanent authorities staff after a steady service of 1 yr, all re-employed pensioners (apart from these eligible for admission to the Contributory Provident Fund ), and all everlasting authorities staff are eligible. The General Provident Fund (Central Services) Rules 1960 applies to all of the above-mentioned kinds of authorities servants.
How does GPF work?
As talked about earlier, General Provident Fund (GPF) is a sort of financial savings instrument for the presidency staff. An worker can contribute part of his/her financial savings recurrently until the time he/she is employed. On retirement, the employer will credit score the whole gathered quantity within the GPF account to the worker.
GPF Deposit Limit
- The minimum deposit quantity might be 6% of the subscriber’s wage
- The maximum deposit quantity might be 100% of the subscriber’s wage
GPF subscription validity
A subscriber shall subscribe month-to-month to the Fund besides in the course of the interval when he/she is beneath any form of suspension.
When does the subscription finish?
Subscription to Provident Fund is stopped 3 months previous to the date of superannuation. GPF curiosity Rates of subscription shall not be lower than 6 % of subscriber’s emoluments and no more than his whole emoluments
Government Servants’ Provident Fund Rules have been first issued within the yr 1954. Since then, to mitigate the issues confronted by Government servants in receiving their provident fund claims cleared and to allow quick disposal of claims, numerous amendments, selections, and clarifications have been issued in regard to those Rules periodically.
Owing to those adjustments, the state Government determined to revamp the foundations to simplify the procedures and to implement all of the adjustments on GPF rates of interest, to make accessible at one place for prepared reference and use. With these goals in thoughts, the brand new General Provident fund Rules, 1997 have been formulated and have been made efficient from 1st June 1997