Govt leaves GPF (General Provident Fund) rate of interest unchanged at 7.1%

After leaving rate of interest unchanged for central government-backed small saving schemes like PPF, Sukanya Samriddhi Yojana, Post Office Savings, and so forth., the Narendra Modi Government has now determined to maintain the General Provident Fund (GPF) and different non-government PF, Gratuity funds rate of interest unchanged at 7.1 per cent. The Department of Economic Affairs underneath the Ministry of Finance made an official announcement on this regard and stated that GPF and different Special Deposit Scheme rate of interest of seven.1 per cent is relevant for April to June 2021 quarter and the brand new charge will turn out to be efficient from 1st April 2021.

The price range division of the above-mentioned division issued an Office Memorandum on this regard and stated, “During the year 2021-2022, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st April, 2021 to 30th June, 2021. This rate will be in force w.e.f. 1st April 2021.”

The Ministry of Finance OM went on so as to add that the deposits made underneath the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, introduced within the Ministry of Finance (Department of Economic Affairs) shall with impact from 1st April, 2021 to thirtieth June, 2021 bear curiosity at 7.1% (seven level one %). This charge will probably be in drive w.e.f. 1st April, 2021.

There are 10 funds for which this rate of interest announcement will apply and people funds are 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.

It would be the fifth consecutive quarter when the GPF rate of interest will probably be 7.1 per cent. In April 2020, the central authorities had slashed GPF rate of interest from 7.9 per cent to 7.1 per cent.

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