According to a resolution issued by the Department of Economic Affairs (DEA), Ministry of Finance on 3 October, “It is announced for general information that during the year 2022-2023, the General Provident Fund and other similar funds will be subject to change on 1 October. From 2022 to December 31, 2022, interest will be charged at the rate of 7.1 percent (seven decimal one percent).
Accordingly, the interest rate on GPF and other similar funds for the October-December quarter, 2022 will be 7.1 per cent. These rates are effective from October 1, 2022, the DEA said in the proposal.
Interest Rates of GPF, Other Provident Fund Schemes
The funds to receive an interest rate of 7.1 per cent for the December quarter, 2022 are
1. General Provident Fund (Central Services);
2. Contributory Provident Fund (India)
3. All India Services Provident Fund
4. State Railway Provident Fund
5. General Provident Fund (Defence Services)
6. Indian Ordnance Department Provident Fund
7. Indian Ordnance Factory Workers Provident Fund
8. Indian Naval Dockyard Workers’ Provident Fund
9. Defense Services Officers Provident Fund
10. Armed Forces Personnel Future
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What is General Provident Fund?
General Provident Fund is a type of provident fund available only to government employees in India. All government employees are allowed to contribute a certain percentage of their salary to the General Provident Fund. Therefore, the total amount accumulated during the employment period is paid to the employees at the time of retirement. The Finance Ministry revises the interest rate on GPF every quarter.
The interest rate of Employees’ Provident Fund (EPF) has been fixed at 8.1 percent for 2021-22.
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Interest Rates of Small Savings Schemes for the December-October Quarter
The central government announced an increase in the interest rates of some small savings schemes for the October-December quarter of 2022. The interest rate on Senior Citizen Savings Schemes has been increased to 7.6 percent. The Kisan Vikas Patra will fetch an interest rate of 7 per cent for the December quarter of 2022. The interest rate on 3-year post office fixed deposits has been increased to 5.8 percent, while the interest rate on 2-year post office time deposits has been increased to 5.7 percent. The interest rates of other small savings schemes like PPF and Sukanya Samriddhi Yojana have been kept unchanged for the October-December quarter, 2022.