Finance

Government slashes interest rate on General Provident Fund

Updated : July 17, 2019 07:14 AM IST

The Narendra Modi government has cut the interest rate of the General Provident Fund (GPF) by 10 basis point from 8 percent to 7.9 percent due to the decline in overall interest rates in the financial system.

For the July-September quarter, GPF and other similar funds will pay 7.9 percent interest rate to its subscribers, as compared to 8 percent during the previous quarter, Department of Economic Affairs in Finance Ministry said on July 12.

The rate is in line with that of Public Provident Fund (PPF).

"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. This rate will be in force w.e.f. 1st July 2019," the ministry of finance said in a notification.

This interest rate will be applicable on provident funds of Central government employees, railways and defence forces, the government said. This rate will be in force with effect from July 1, 2019.

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