The announcement was made through a resolution issued by the Department of Economic Affairs on October 10 and published in the Gazette of India.
The funds covered under this resolution include the General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, Defence Services Provident Funds, and other related schemes maintained by various government departments.
These schemes are primarily available to government employees, who contribute a portion of their salary regularly and receive the accumulated amount along with interest upon retirement.
The GPF interest rate is reviewed quarterly by the Ministry of Finance. The current rate of 7.1% remains unchanged from the previous quarter and is aligned with the Public Provident Fund (PPF) rate, which is also 7.1%.
However, key distinctions remain between the two schemes: PPF is open to all Indian citizens and carries a 15-year lock-in period, while GPF is exclusive to government employees and allows withdrawal only at retirement.
In comparison, the Employees’ Provident Fund (EPF), which serves private sector employees, has its interest rate reviewed annually by the Employees’ Provident Fund Organisation (EPFO).
