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GPF interest rate is presently fixed at par with that of PPF interest rate

GPF interest rate is presently fixed at par with that of PPF interest rate

GPF Rules

With effect from 7th March 2017, Government has simplified and liberalised the conditions for taking advance from the fund by the subscribers for education, illness, purchase of consumer durables. Conditions and procedures for withdrawal from the fund for the purpose of education, illness, housing, purchase of motor vehicles etc. have also been liberalised. No documentary proof is required to be submitted now for advance and withdrawal applications. A simple declaration by the subscriber is sufficient. A time limit for sanction and payment of advance/withdrawal has also been fixed.

There is no proposal under consideration of Government to increase/link the rate of interest on GPF at parity with that of EPF. The interest rates on EPF are decided on the recommendations of the Central Board of Trustee (EPF) taking into account the yearly income from the investment made by EPFO. The GPF interest rate is presently fixed at par with that of PPF interest rate.

This was stated by the Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office, Dr. Jitendra Singh in a written reply to question by Dr. Sunil Baliram Gaikwad, Kunwar Haribansh Singh, Shri T. Radhakrishnan, Shri Gajanan Kirtikar and Shri Bidyut Baran Mahato in the Lok Sabha today.

Source: PIB News







Comments

Anonymous said…
why the GPF interest rate is 8.5% while it was 12% & 13% in previous times. Banks are charging 18-20% from govt. employees for car and other p/loans etc. why? the govt. employees are being looted by banks or govt. the interest rate for GPF should be restored to 12% to boost the economy of the country. it is the Govt. failure in not to ensure proper interest to govt. employees.

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