The Ministry of Finance has opted to maintain the prevailing interest rate of 7.1 per cent for the General Provident Fund (GPF) during the third quarter of the fiscal year 2024 (FY24). This decision was reported by ET Now on Wednesday.

It is noteworthy that the government regularly reviews and adjusts the interest rate for the GPF every quarter. In the preceding quarter, spanning from July to September, the interest rate had also been set at 7.1 percent.

On July 4, 2023, the Department of Economic Affairs (DEA), under the Ministry of Finance, made a formal announcement stating, "For the fiscal year 2023-2024, it is hereby declared for public awareness that the accumulations in the General Provident Fund and analogous funds, attributed to the subscribers, will accrue interest at the rate of 7.1 percent, effective from July 1, 2023."

The GPF is a social security initiative that exclusively caters to central government employees. Under this scheme, employees have the option to contribute a percentage of their earnings to the GPF, and the accumulated sum is disbursed to them upon retirement.

Moreover, the 7.1 percent interest rate is applicable to other parallel provident funds, including but not limited to the State Railway Provident Fund, the Armed Forces Personnel Provident Fund, the Defence Services Officers' Provident Fund, and the Indian Ordnance Factories Workmen's Provident Fund.

In addition to the GPF, the following funds will also enjoy an interest rate of 7.1 percent:

The General Provident Fund (Central Services)

The Contributory Provident Fund (India)

The All India Services Provident Fund

The State Railway Provident Fund

The General Provident Fund (Defence Services)

The Indian Ordnance Department Provident Fund

The Indian Ordnance Factories Workmen's Provident Fund

The Indian Naval Dockyard Workmen's Provident Fund

The Defence Services Officers Provident Fund

The Armed Forces Personnel Provident Fund

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