Centre cuts interest on GPF by 10 bps to 7.9 pc

The interest rate on the general provident fund (GPF) has been cut by 10 basis points (bps) to 7.9 per cent from 8 per cent with effect from July 1, the Finance Ministry said on Tuesday.

"Finance Ministry has cut the rate of general provident fund (GPF) by 10 basis points from 8 per cent to 7.9 per cent effective from July 1," said the official statement of Finance Ministry.

"During the year 2019-2020, accumulations at the credit of subscribers to the GPF and other similar funds shall carry interest at the rate of 7.9 per cent with effect from July 1, 2019 to 30th September 2019. This rate will be in force with effect from July 1, 2019," added the statement.

According to the statement, the funds concerned are 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), and the Indian Ordnance Department Provident Fund.

The funds are the Indian Ordnance Factories Workmen's Provident Fund, the Indian Naval Dockyard Workmen's Provident Fund, the Defence Services Officers Provident Fund, and the Armed Forces Personnel Provident Fund.