In view of the falling interest rates in the financial system, the government has revised the rates on GPF or General Provident Fund and other similar funds lower by 10 basis points similar to a cut announced in case of small savings schemes few days back for the July-September quarter. GPF for the quarter ending June fetched a return of 8%. This rate of return will remain applicable for central government staff, railways and defence personnel.
In a notification, the ministry of finance said, "It is announced for general information that during the year 2019-2020, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.9% (Seven point nine percent) w.e.f. 1st July, 2019 to 30th September, 2019". The revised rate come into force This 1st July, 2019. The funds concerned include:
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
In October-December quarter, the government increased the rate on GPF but since then the interest rate has been held steady.