Under the ministry of finance, the department of Economic Affairs has notified that the accumulation at the credit of subscribers of General Provident Fund (GPF) and other similar funds for January-March 2020 quarter has been fixed at 7.9%.
For the current quarter, the interest rate on small savings scheme has been kept unchanged despite constant calls of a rate cut on these savings schemes such that the return from them are par with bank deposits and other similar investments. For the January-March quarter, PPF interest rate is 7.9% per annum that is compounded annually.
The GPF as per the The Ministry of Personnel, Public Grievances and Pensions, the General Provident Fund (Central Services) Rules 1960 becomes applicable to all the temporary employees who have completed one year in service, all re-employed pensioners (other than those eligible for admission to the Contributory Provident Fund ) and all permanent government employees. The subscription to Provident Fund is stopped three months prior to the date of superannuation.
So, effective January 2020, the interest rate will apply to all of these 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