The Ministry of Finance has announced the interest rate for the General Provident Fund (GPF) and other similar provident fund initiatives for April- June 2024 quarter.
The General Provident Fund and other similar funds shall carry interest at the rate of 7.1% effective from April 1, 2024 to June 30, 2024
According to the resolution released by the Department of Economic Affairs (DEA), Ministry of Finance on June 10, 2024, “It is announced general information that during the year 2024-2025, 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 . 1 April, 2024 to 30 June 2024. This rate will be in force w.e.f . 1 April 2024.”
The government has kept the interest rate on GPF and linked funds constant for this quarter of 22024.
The funds concerned are:
1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (lndia).
3. The All lndia Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The lndian Ordnance Department Provident Fund’
7. The lndian Ordnance Factories Workmen’s Provident Fund.
8. The lndian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund. 10. The Armed Forces Personnel Provident Fund.
What is a General Provident Fund?
General Provident Funds are provident funds offered only to Indian government employees. Everyone in the government is eligible to contribute a portion of their wages to the General Provident Fund. As a result, when the employees retire, they receive the entire money accrued over their service tenure. The finance minister reviews the GPF interest rate every quarter.
EPF interest rates
The EPFO increased the interest rate to 8.25% for 2023-24 from the previous year’s rate of 8.15%.
After the EPFO publishes the interest rate for a fiscal year, the rate is computed based on the monthly closing balance and then for the whole year.
