The Centre has recently announced the interest rate for the General Provident Fund (GPF) and other similar provident fund initiatives for Q1, i.e. April- June 2024. The government has maintained the interest rate on the General Provident Fund (GPF) at 7.1 per cent for the April-June quarter of FY25. It is the 17th consecutive quarter where the interest rate has remained unchanged. quarter.
As per the notification by the Finance Ministry’s Department of Economic Affairs (DEA), dated June 10, “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 per cent w.e.f. 1st April, 2024.”
The government has also kept the interest rate on GPF and linked funds constant for the first quarter of 2024-25.
The interest rate of 7.1% will stay the same for different government services and departments for the period of April-June 2024, alongside the GPF.
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.
The Defence Services Officers Provident Fund.
The Armed Forces Personnel Provident Fund.
GPFs are specialised provident funds exclusively available to Indian government employees. All government personnel are eligible to allocate a portion of their salaries towards the General Provident Fund. Consequently, upon retirement, employees receive the total amount accumulated throughout their tenure of service. The interest rate on GPFs is subject to quarterly review by the Finance Minister.
Who all can open GPF account
> It is open to central government employees and specific state government employees.
> Temporary employees with one year of continuous service are eligible for GPF.
> Employees must not have opted for any other government or organisational provident fund scheme.
> Government employees re-employed after retirement.
> Employees working in private sector companies are not eligible for GPF.
Maturity and withdrawal process
The GPF account matures upon a government employee’s retirement or upon reaching the stipulated superannuation age.
Employees are entitled to withdraw their GPF funds for various purposes after they have completed ten years of continuous service, or if there are ten years remaining until their superannuation date.
This eligibility criterion is applicable provided that the individual has maintained uninterrupted government service during this period.