Ministry of Finance, Government of India(GoI) retained the General Provident Fund (GPF) and other non-government PF, Gratuity funds interest rate unchanged at 7.1 per cent for the first quarter Q1 of FY22.
- In April 2020, the GPF interest rate was changed from 7.9 per cent to 7.1 per cent and after that, the interest rate was being unchanged consecutively for 5 quarters.
- In April 2021, the Finance Ministry has also retained the Interest Rate of Small Savings Scheme for Q1FY22. Click here to know more
The 10 funds which are applicable for interest rates:
- 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
About General Provident Fund (GPF):
- GPF is a saving instrument only for government employees, they can contribute a portion of his/her salary regularly till the time he/she is employed. On retirement, the employer transfers the total accumulated amount in the GPF account to the employee.
- Before retirement, if an individual can withdraw the money, he should have been in services for at least 10 years.
- The interest income earned on the GPF amount is exempted under Section 80C of the Income Tax Act, 1961.
- Note – Private sector company employee is not eligible for the GPF
- 3 types of Provident Fund are – General Provident Fund (GPF), Public Provident Fund (PPF), and Employees Provident Fund (EPF).
Recent Related News:
Madhya Pradesh (MP) & Andhra Pradesh (AP) became the 1st Group of States to complete three out of the Four citizen schemes stipulated by the Department of Expenditure, Ministry of Finance. These two states have completed the implementation of schemes – One Nation One Ration Card Reforms, Ease of Doing Business Reforms, & Urban Local Bodies Reforms.
About Ministry of Finance:
Union Minister – Nirmala Sitharaman (Rajya Sabha MP representing Karnataka)
Minister of State (MoS) – Anurag Singh Thakur (Lok Sabha MP, Constituency – Hamirpur, Himachal Pradesh)