The Finance Ministry has hiked interest rates on General Provident Fund (GPF) to 8.8%. This comes into effect from April 1, 2012. This move will benefit millions of Central Government employees who are subscribers to this fund.
This interest rate of 8.8 per cent will apply for 2012-13 and is higher than the 8.6 per cent rate for the December 2011-March 2012 period and also the 8 per cent rate for April-November 2011 period. The revised rate is in line with the 8.6 per cent interest provided for the Public Provident Fund.
The revised interest rate of 8.8 per cent is be applicable for accumulations in the GPF of defence services, the Armed Forces Personnel Provident Fund, the Defence Services Officers Provident Fund, the Indian Ordnance Department Provident Fund, the Indian Ordnance Factories Workmen's Provident Fund and the Indian Naval Dockyard Workmen's Provident Fund.
The benefit will also be available to the subscribers of Contributory Provident Fund (India), the All India Services Provident Fund and the State Railway Provident Fund.
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