GPF Interest Rate For October-December 2023 Quarter Declared
The Union Ministry of Finance has announced the interest rates at 7.1 per cent for the General Provident Fund (GPF) and other analogous provident fund initiatives.
As outlined in the resolution presented by the Department of Economic Affairs (DEA) under the Ministry of Finance on 4 October 2023, "It is announced for general information that for the year 2023-2024, the accumulations to the credit of subscribers in the General Provident Fund and similar funds shall bear interest at 7.1 per cent effective from 1 October 2023 to 31 December 2023."
For the period of October to December in 2023, the government has opted to maintain the interest rates for GPF and related funds without any alterations.
This aligns with the usual practice, as the interest rates of these provident funds generally mirror that of the Public Provident Fund (PPF).
The General Provident Fund encompasses various schemes, including the General Provident Fund (Central Services), the Contributory Provident Fund (India), the All India Services Provident Fund, the State Railway Provident Fund, the General Provident Fund (Defence Services), the Indian Ordnance Department Provident Fund, the Indian Ordnance Factories Workmen's Provident Fund, the Indian Naval Dockyard Workmen's Provident Fund, the Defence Services Officers Provident Fund, and the Armed Forces Personnel Provident Fund.
What is a General Provident Fund?
The General Provident Fund is exclusive to Indian government employees. It allows government employees to contribute a portion of their salaries, which is then returned to them in its entirety upon retirement, inclusive of accrued interest. The GPF interest rate undergoes review every quarter under the purview of the finance minister.
EPF Interest Rate
Effective for the fiscal year 2022-2023, the Employee Provident Fund (EPF) deposits will now attract an interest rate of 8.15 per cent. While the interest is calculated monthly, it is credited to EPF accounts once a year, specifically on March 31 of the relevant fiscal year.
According to an EPFO circular, "The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest at 8.15 per cent for the year 2022-23 to the account of each member of the EPF Scheme."
Small Saving Schemes' Interest Rates for October-December 2023
The government has decided to increase the interest rates for specific small savings schemes and post office schemes for the quarter concluding on December 31, 2023. Notably, the interest rates for all schemes, excluding the recurring deposit rate, have been retained without adjustments.
