Centre cuts GPF interest rate; central government employees, Railways and defense forces affected; here is by how much

GPF interest rate: The Central government has decided to cut General Provident Fund (GPF)  interest rate to 7.9 per cent for July-September period. Centre had kept the interest rate at 8 per cent on the general provident fund (GPF) in the last quarter. Notably, the GPF interest rates applies to all central government employees, railway and defense forces, according to government notification.

New GPF interest rates will apply from July 1

According to the notification issued by the Ministry of Finance, interest rate for General Provident Fund from the period July 1, 2019 to September 30, 2019 will be 7.9 per cent, and it will be deemed effective from July 1, 2019.

Rates reduced on small savings schemes

Recently, another setback for the common man was when the government reduced interest rates on small savings schemes. The interest rates on PPF as well as Senior Citizen Savings Scheme were reduced by 10 basis points.
 

लाइफ इंश्योरेंस प्रोडक्ट्स में हुए बदलावों से ग्राहकों को कितना फायदा? देखिए इंडिया फ़र्स्ट लाइफ इंश्योरेंस की MD आर एम विशाखा से अनुराग शाह की खास बातचीत।@anuragshah710 @IndiaFirst_Life pic.twitter.com/ESGicpkntY

— Zee Business (@ZeeBusiness) July 16, 2019

Impact on these employees

With the notification issued by the Ministry of Finance, following officials of these department will be affected, here is full list: 

1. Indian Ordnance Department Provident Fund
2. General Provident Fund (Central Services)
3. Contributory Provident Fund (India)
4. General Provident Fund (Defence Services)
5. Defense Services Officer Provident Fund
6. State Railway Provident Fund
7. Indian Ordnance Factories Workman Provident Fund
8. Armed Forces Personal Provident Fund
9. Indian Naval Dockyard Workman Provident Fund