Central employees were expected to increase the interest rates on General Provident Fund (General PF), but they have got a big shock. In fact, the central government has not increased the interest rates on General PF savings even for the 14th consecutive quarter.
The Center has implemented CPF interest rates on General Provident Fund (GPF) without change for the April-June 2023 quarter. The Finance Ministry has announced no increase in interest rates for General Provident Fund (GPF) investors from April 1, 2023, despite a significant increase in the interest rates of select small savings schemes.
Investors who have been expecting interest rates to rise for a long time have been shocked. Let us tell you that the interest rates on GPF have not been increased since the last 13 quarters and now for the 14th time also the government has decided to keep the interest rates unchanged.
The Finance Ministry has announced the interest rate for General Provident Fund (GPF) and Mixed Fund Schemes. The ministry has kept the interest rate for GPF and similar funds unchanged for the April-June quarter of 2023. In a circular issued on April 10, 2023, the Ministry of Finance said that it is announced that during the year 2023-2024, deposits of customers in the General Provident Fund and other similar funds will be taxed at the rate of 7.1 percent from April 1, 2023 to June 30, 2023. Interest will be charged.
Interest rates on GPF and mutual fund schemes for the June quarter
The funds that will fetch an interest rate of 7.1 per cent for the April-June quarter of 2023 are-
- General Provident Fund (GPF) General Provident Fund for Central Service.
- General Provident Fund (GPF) General Provident Fund for Defense Services
- Contributory Provident Fund (CPF) Contributory Provident Fund.
- All India Services Provident Fund (AISPF) All India Services Provident Fund.
- State Railway Provident Fund (SRPF) State Railway Provident Fund.
- Indian Ordnance Department Provident Fund (AFPPF) Armed Forces Personnel Provident.
What is General PF and who gets it?
General Provident Fund (GPF) is given only to government employees in India. Under GPF, all government employees are allowed to contribute a certain percentage of their salary to the General Provident Fund. Hence, 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.