People showing their money after withdrawing from an ATM after a long queue in Patna on Sunday. (Source: PTI)

General Provident Fund Interest Rate Raised To 8% For October-December Quarter

The government raised the interest rate for general provident fund and other related schemes by 0.4 percentage points to 8 percent for the October-December quarter. The rate is in line with that for public provident fund.

The interest rate on general provident fund was 7.6 percent for the July-September quarter of 2018-19.

“During the year 2018-2019, accumulations at the credit of subscribers to the general provident fund and other similar funds shall carry interest at the rate of 8 percent with effect from Oct. 1-Dec. 31,” a Department of Economic Affairs’ notification said.

The interest rate would apply on provident funds of central government employees, railways and defence forces.

Last month, the government announced that the interest on small savings, including National Savings Certificate and Public Provident Fund, will be hiked by up to 0.4 percentage point for the October-December quarter, to align it with rising deposit rates in the banks.

Also read: India’s Payroll Debate: What Employee Provident Fund Data Tells Us