The Budget Division of Department of Economic Affairs, under the Ministry of Finance, has recently issued the notification on interest rate for subscribers of General Provident Fund (GPF) and other similar funds.
The interest rate on the Special Deposit Scheme for Non-Government Provident Superannuation, Gratuity Funds has been kept unchanged by the Central Government. The Budget Division of the Department of Economic Affairs, under the Ministry of Finance, has recently issued the notification that the fund accumulation at the credit of subscribers of General Provident Fund (GPF) and other similar funds will carry an interest rate of 7.1 per cent for the period 1st April, 2021 to 30th June, 2021.
The deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No.F.16(1)-PD/75 dated 30th June, 1975, shall with effect from 1st April, 2021 to 30th June, 2021 bear interest at 7.1% (seven point one percent). This rate will be in force w.e.f. 1st April, 2021.
The GPF interest rate from January 2021 to March 2021 was also 7.1 per cent. Earlier, the interest rates for the post office small savings products such as Public Provident Fund (PPF), NSC etc were kept constant for the quarter April-June, 2021.
The funds for which this interest rate will apply include 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 and Armed Forces Personnel Provident Fund.
As per the website of The Ministry of Personnel, Public Grievances and Pensions, the General Provident Fund (Central Services) Rules 1960 applies to all temporary government employees after a continuous service of one year, all re-employed pensioners (other than those eligible for admission to the Contributory Provident Fund ) and all permanent government employees. The subscription to Provident Fund is stopped three months prior to the date of superannuation.