The government has retained the interest rate for General Provident Fund (GPF) and other related schemes for the quarter October 1 to December 31, 2017. “During the Financial Year 2017-18, accumulations at the credit of subscribers to the General Provident Fund (GPF) and other similar funds shall carry interest at the rate of 7.8% with effect from 1st October, 2017 to 31st December, 2017. This rate will be in force w.e.f. 1st October, 2017,” it said in a press release today.
The Notification to this effect has been issued and published in the Gazette of India on 23rd October, 2017, the government said.
It may be noted that with effect from 7th March 2017, the government had simplified and liberalised the conditions for taking advance from the fund by the subscribers for education, illness, purchase of consumer durables. Conditions and procedures for withdrawal from the fund for the purpose of education, illness, housing, purchase of motor vehicles etc. had also been liberalised. No documentary proof is required to be submitted now for advance and withdrawal applications. A simple declaration by the subscriber is sufficient. A time limit for sanction and payment of advance/withdrawal has also been fixed.
The government had also said that there is no proposal under its consideration to increase/link the rate of interest on GPF at parity with that of EPF. The interest rates on EPF are decided on the recommendations of the Central Board of Trustee (EPF) taking into account the yearly income from the investment made by EPFO. The GPF interest rate is presently fixed at par with that of PPF interest rate.