In a move which will benefit millions of employees, the government has hiked
interest rate on contributions to General Provident Fund (GPF) and other
similar funds to 8.8 per cent for 2012-13.
The interest rate on such
funds was 8.6 per cent during December 2011-March 2012 period, while it was 8
per cent for April-November 2011.
"It is announced ... that during the
year 2012-13, accumulations at the credit of subscribers to the General
Provident Fund and other similar funds shall carry interest at the rate of 8.8
per cent per annum," the Finance Ministry
said.
The benefit of increased interest rate will be available to
subscribers of Contributory Provident Fund (India), All India Services Provident
Fund, State Railway Provident Fund and General Provident Fund (Defence
Services).
Contributors to Indian Ordnance
Department Provident Fund, Indian Ordnance Factories Workmen's Provident
Fund, Indian Naval Dockyard Workmen's Provident Fund, Defence Services Officers
Provident Fund and Armed Forces Personnel Provident Fund will also benefit from
the move.
Rate of interest on GPF is generally
fixed after taking into consideration the average secondary market yields on
government securities of similar maturity.
Source:-The Economic Times.
To view the Ministry of Finance (Department of Economic Affairs) Resolution dated 22nd May, 2012 Click here.
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