INTEREST RATES ON GENERAL PROVIDENT FUND (GPF) HAS BEEN REVISED TO 8.6% (EIGHT POINT SIX PERCENT) WITH EFFECT FROM 1.12.2011

Resolution - accumulations at the credit of subscribers to the GPF and other similar funds - 2011-2012(89 KB) (Dated 19th March, 2012)
(PUBLISHED IN PART I SECTION 1 OF GAZETTE OF INDIA)
F.NO. 5(1)-B(PD)/2011
Government of India
Ministry of Finance
(Department of Economic Affairs)
New Delhi, the 19th March, 2012
RESOLUTION
It is announced for general information that during the year 2011-2012, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8% (Eight per cent) for the period from 1.4.2011 to 30.11.2011 and 8.6% (eight point six percent) with effect from 1.12.2011.

The funds concerned are:—1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (India).
3. The All India Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The Indian Ordnance Department Provident Fund.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund.
2. Ordered that the Resolution be published in Gazette of India.
sd/-
(Brajendra Navnit)
Deputy Secretary (Budget)

CABINET APPROVES 7% HIKE IN DEARNESS ALLOWANCE.

THE DEARNESS ALLOWANCE AND DEARNESS RELIEF FOR CENTRAL GOVERNMENT SERVING EMPLOYEES AND PENSIONERS WILL INCREASE FROM 58% PER CENT OF BASIC EMOLUMENTS TO 65% PER CENT WITH EFFECT FROM 1.1.2012.

RATES ON SMALL SAVINGS SCHEMES INCREASED

In its bid to render the National Small Savings Fund schemes more attractive to investors by way of returns and halt the tendency to switch over to bank deposit schemes, the government, on Monday, hiked the rates of interest on post office small savings plans by up to 50 basis points for the new fiscal year.


Accordingly, while the interest rate on savings deposits has been kept unchanged at 4 per cent — the same as in savings bank accounts — the rates for time deposits of one and two years stand increased by 50 basis points each to 8.2 per cent and 8.3 per cent, respectively.


For the more popular ‘monthly income scheme', however, the increase is slightly lower at 30 basis points and, thus, the interest rate for the five-year scheme stands pegged at 8.5 per cent while the interest on public provident fund has been upped from 8.6 per cent to 8.8 per cent.


The new rates are to come into effect from April 1 this year and remain valid for the whole of 2012-13.According to an official release here, the interest rate for three-year time deposits has been revised up from 8 per cent to 8.4 per cent while that for the five-year time deposit has been hiked to 8.5 per cent from 8.3 per cent. The five-year recurring deposit scheme will also fetch investors a higher interest of 8.4 per cent as compared to 8 per cent for the current fiscal.


Just as banks pay a higher return to senior citizens, the rate for senior citizens savings scheme has also been raised to 9.3 per cent from 9 per cent at present. Besides, the budget for 2012-13 has proposed a reduction in the age slab for the senior citizen category to 60 from 65.


The interest rate on the five-year and 10-year maturity National Savings Certificate has also been revised higher by 20 basis points each to 8.6 per cent and 8.9 per cent, respectively.

MODEL REPRESENTATION FOR GRANT OF ONE INCREMENT

Government servants are aware that the Ministry of Finance and Railways, both have already issued orders for grant of one increment in the pre-revised pay scale to nullify the anomaly in respect of central government employees who were in receipt of pre-revised increment between February 2006 to June 2006.
A model requesting the concerned head of Office for grant of one increment and drawl of arrears is published below for ready use by the Officers:
MODEL REPRESENTATION FOR GRANT OF ONE INCREMENT

From
To,
Sir / Madam,
· Sub: Officers who were due to get heir annual increment between February to June during 2006 – Grant of additional increment as one time measure- Request for sanction and drawal of arrears – Reg.
Kind reference is invited to the Ministry of Finance, Department of Expenditure O.M.No.10/02/2011- E.III/A dated 19th March, 2012 wherein all the central government employees who were due to get their annual increment between February to June during 2006 were granted one increment on 1.1.2006 in the pre-revised pay scale as a one time measure and there after next increment in the revised pay structure on 1.7.2006 as per Rule 10 of CCS(RP) Rules, 2008 (Copy enclosed for ready reference).
I wish to submit that my increment in pre revised pay scale was on __________ and hence, in terms of the above Office Memorandum, I am eligible for one additional increment in pre-revised pay scale as a one time measure and also eligible for next increment in the revised pay structure on 1.7.2006 as per Rule 10 of CCS(RP) Rules, 2008.
In view of above submission, I request that one additional increment may kindly be granted and my pay may please be fixed as stipulated in above O.M. and that the arrears of pay and allowance may kindly be drawn and paid to me at an early date.

Thanking you ,

Yours Faithfully,