The central government has not made any changes in the rates of special deposit schemes such as non-government provident superannuation and gratuity funds.
The central government has not made any changes in the rates of special deposit schemes such as non-government provident superannuation and gratuity funds. According to the decision of the Central Government, interest will be given on these funds at the rate of 7.1 percent. This decision will be applicable from 1 January 2021 this year and these interest rates will be effective till 31 March 2021.
On 6 January 2021, the Department of Economic Affairs, which came under the notification ministry of finance, related to this was released. Earlier, in the notification issued in July 2020, the interest rates of these funds were set at 7.1 per cent.
GPF will also get 7.1 percent interest
The central government has also set the General Provident Fund (GPF) interest rates at 7.1 per cent for the January-March quarter. These rates will be effective from 1 January 2021. According to the official notification, 7.1% interest will be credited on the deposits of the accounts of the subscribers of the General Provident Fund and other similar funds. This interest rate has been fixed for the period from 1 January 2021 to 31 March 2021.
According to the decision of the Central Government, this interest is General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, General Provident Fund (Defense Services), Indian Ordnance Department Provident Fund, Indian Ordnance Will be applicable for Factories Workmen’s Provident Fund, Indian Naval Dockyard Workman’s Provident Fund, Defense Services Officers Provident Fund and Armed Forces Personnel Provident Fund.
The scheme was launched in 1975
The Special Deposit Scheme (SDS) was launched on 1 July 1975 to provide better returns on non-government provident funds, gratuity and superannuation funds. Initially, it was brought for only 10 years but it was again increased to 1998. The central government pays interest on the money invested in SDS. Apart from this, it is invested in government securities and mutual funds. When it was launched, an interest of 10 percent was offered on it. After 1 April 1986, it received 12 percent interest for about 15 years. In the January to March quarter of 2018, interest on SDS was set at 7.6 per cent. It is operated through public sector banks and RBI.