IMPORTANT: The new rate NOT APPLICABLE for GPF in BSF etc

Ministry approves 9.5% interest on PF deposits

PTI        March 17, 2011  

From Business Today

The Finance Ministry on Thursday approved higher interest rate of 9.5 per cent to over 4.7 crore depositors with the Employees Provident Fund Organisation (EPFO) for 2010-11.

The EPFO had been paying 8.5 per cent interest on PF deposits since 2005-06. In September last year, it had recommended an increase in interest rate to 9.5 per cent for 2010-11 after discovering Rs 1,731 crore surplus in their books of accounts.

"The finance ministry has ratified 9.5 per cent rate of return on PF deposits for 2010-11. We have received a notification in this regard," Central Provident Fund Commissioner Samirendra Chatterjee told PTI.
http://businesstoday.intoday.in/bt/story/ministry-approves-9.5percent-interest-on-pf-deposits/1/14013.html


However it is important to note that this new rate is NOT APPLICABLE for GPF in BSF etc. For GPF the rate continues to be 8%. It may be increased subsequently through a separate notification by the ministry.