Check The Latest Interest Rate Of GPF And Other Related Funds Here

For the October to December quarter, the government announced interest rates on the General Provident Fund and other related funds. The Budget Division of the Department of Economic Affairs, under the Ministry of Finance, recently released a notice that an interest rate of 7.1% for the term October to December 2020 will be imposed for the accumulation of funds on the credit of subscribers to the General Provident Fund (GPF) and other related funds. And hence, the GPF interest rate is 7.1 per cent from October 2020 to December 2020. The government modifies the interest rate on small savings schemes at the beginning of each quarter of the financial year and consequently announces the rate on GPF as well as other schemes. Recently, for the quarter of October to December 2020, the interest rate for post office small savings items such as the Public Provident Fund (PPF), NSC etc remained unchanged. The interest rate on PPF presently relates to 7.1 per cent per annum compounded annually. The General Provident Fund (Central Services) Rules 1960 relate, as per the Ministry of Personnel, Public Grievance and Pensions portal, to all temporary government workers after one year of continuous service, all re-employed retirees (other than those qualified for access to the Contributory Provident Fund) and all regular government workers.  

The Rules of the Contributory Provident Fund (India), 1962, extend to any non-pensionable government employee related to any of the services under the President’s authority. The regulations allow for the withdrawal, for particular reasons, of advances or withdrawals from the CPF. The CPF Rules also call for a Deposit Linked Insurance Revised Scheme, as in the GPF Regulations. For the term October to December 2020, effective October 1, the interest rate of 7,1 per cent will relate to any of the below funds: 

1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (India).
3. The All India Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The Indian Ordnance Department Provident Fund.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund

Owing to frequent occurrences of lost credits in their GPF accounts, the Department of Pension & Pensioners’ Welfare of the Ministry of Personnel, Public Grievances & Pension has issued grievances from retired government employees for erroneous and overdue GPF settlement, along with interest, on their retirement. Missing credits in the General Provident Fund (GPF) were mostly confirmed in their GPF statements by subscribers who relocated from one establishment to another or were allocated to a foreign deputation throughout their service, as well as by All India Service officers who carried out deputations outside their allocated cadres. The Department indicated that the GPF account is managed by an establishment that generates its salary bills and deducts the GPF subscription from that establishment. 

In order to prevent any failures in the revised servicing of GPF accounts, the Department thus notes that a coordination mechanism between these two establishments is most important. The Department released an Office Memorandum (OM) earlier in 2020, adopting the following steps: In order to prevent such complaints and in the pursuit of greater accountability, it has now been agreed that:

• For all offices holding GPF Accounts, it is compulsory to remind the authority liable for deducting the GPF subscription of the specifics of the missed credits once per financial year, subject to intimation by the subscriber affected.
• Every subscriber is required to provide a complete statement of all credits, debits and interest after the initiation of the GPF account, two years before his or her retirement date and again one year before the retirement date. Any subscriber can initiate a statement on such a declaration and the GPF account office must address the grievance within 60 days of the date of receipt of such a dispute.

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