4,80,000 people visited this section in last 30 days. Apply Online

Get Cashback of Upto ₹ 1,000* on Loans Apply Online

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

GPF

General Provident Fund Account

Last Updated 24th Jun 2021

  • The full form of GPF is General Provident Fund.
  • GPF is a type of provident fund which is opened only by government employees.
  • Currently, the interest rate on GPF is 7.1%, though it keeps changing from time to time.
  • The amount from a GPF account can be withdrawn on retirement, though under some circumstances an employee can withdraw to a certain limit.
  • A government employee can also avail tax benefits for up to ₹ 1.50 Lakh under Section 80C of Income Tax Act.
Yes Bank
Returns bhi, Rewards bhi
5.5%* interest p.a + up to 1500** YES Rewardz Points on account opening
Earn up to 50k** YES Rewardz Points in 1st year
Exclusive offers on Demat & Lockers
>OPEN YOUR ACCOUNT DIGITALLY NOW
Disclaimer: For balance above INR 10 lcs to INR 1Cr. For YES FIRST customers. Terms and conditions apply. For more details please visit: www.yesrewardz.com
Looking for an Investment?

What is GPF (General Provident Fund)

General Provident Fund, full form of GPF, is a type of provident fund which is only available for the government employees in India. Every month a government employee contributes a certain percentage of their salary to the General Provident Fund and that amount can be availed on retirement. The interest rate on GPF keeps changing from time to time and currently, the interest rate is 7.1%. A government employee has to make the payment to the account except during suspension.

Features of GPF Account

Key features of the GPF account are:-

  • The General Provident Fund is managed by the Department of Pension and Pensioner’s Welfare, the department comes under the Ministry of Personnel, Public Grievances, Pensions.
  • According to pensioners' official portal -pensionersportal.gov.in a government employee can become a subscriber by contributing to the fund.
  • A government employee has to stop funding the account three months prior to the date of superannuation.
  • To withdraw the fund at the retirement an individual is not required to submit any documents.
  • On retirement, the department issues the instruction for immediate payment of GPF.
  • A subscriber is required to make a nominee at the time of joining. A nominee becomes an authorised person to get the GPF amount at the time of the unfortunate event.
  • An individual having a taxable income of ₹ 6.50 Lakh can avail a tax rebate of ₹ 1.50 Lakh as per the proposal in Interim budget 2010-20.

Eligibility Criteria for General Provident Funds

People who fulfil the following eligibility criteria can open the GPF account:-

  • An Indian resident who is a government employee.
  • It is necessary for government employees to subscribe to GPF who come under a certain salary slab.

GPF Rules and Regulations

To open and maintain a GPF account, an account holder has to follow some GPF rules and regulations which are:-

  • A subscriber cannot contribute more than his/her income in the GPF account.
  • The GPF will only mature at the time the subscriber retires, however, he/she will stop the contribution three months before the retirement.
  • A subscriber can also nominate one or more people as a nominee, but he/she should clarify who will get how much share.
  • An individual can withdraw the money before retirement; however, they should have been in services for at least 10 years.
  • For funding of education or a ceremony, a subscriber can withdraw 75% of the outstanding balance or 12 months subscription amount whichever is lower.
  • For a medical illness of his own or dependents, a person withdraws up to 90% of the outstanding balance, however, the amount has to be withdrawn within 7 days of such purpose.
  • In the case of subscribers death, the nominee is entitled to the additional amount which is equal to the average of three years of GPF. The additional amount in such case cannot be more than ₹ 60,000.
  • For purposes of buying a home, reconstruction or repaying the loan one can withdraw the GPF amount for up to 75%.
  • Two years prior to retirement 90% of the amount can be withdrawn without giving any reason.
  • The interest income earned on GPF amount is exempted under Section 80C of Income Tax Act, 1961.

GPF Contribution Amount Limit

How much contribution has to be made in the General Provident Fund is decided by the government employee who has to open the GPF fund. Although, the contribution range is set by the department minimum is 6% and the maximum is 100%.

How to Check GPF Online Balance?

Every state has a different website where one can check GPF online balance, to check GPF online balance perform the following steps:-

  • Log in to the e-GPF website
  • Fill the Series code, GPF number, employee Pin (All this information is provided by the local Accountant General through his DDO / treasury).
  • Enter Captcha
  • Click on ‘Submit’

Withdrawal Process of GPF

There are various reasons due to which a subscriber can withdraw the GPF account before retirement, however, the limit for every purpose is different. Here is a list of purposes on which an individual can withdraw the GPF balance:-

Purpose Limit Eligibility
Buying consumer product Up to 50% of the outstanding balance Up to 50% of the outstanding balance 10 year before the retirement or on completion of 15 years of service
Education fees Up to 50% of the outstanding balance 10 year before the retirement or on completion of 15 years of service
Medical issues Up to 50% of the outstanding balance 10 year before the retirement or on completion of 15 years of service
Buying land for the house Up to 90% of the outstanding balance Any time
Construction or reconstruction of a house Up to 90% of the outstanding balance Any time
Repayment outstanding mortgages Up to 90% of the outstanding balance Any time
Repairing motor vehicle Up to ⅓ of credit amount or Rs 10,000 whichever is lower After completing 26 years of service or three years prior to retirement
Buying a motor vehicle Up to 50% of the outstanding balance or Rs 4,000 for two wheeler and Rs 22,000 for a four-wheeler Within 5 years if superannuation or completing 15 years in service
Subscription amount to be paid to Group Insurance Scheme An amount equivalent to the one-year subscription fee At any time
Charges for converting from leasehold to freehold of property allotted/transferred Up to 90% of the outstanding balance All officials can withdraw the amount at any time
Without assigning any reason prior to two years of retirement – Rule 15 (1) (Q) Up to 90% of the outstanding balance Retiring within one year

Difference Between GPF and PPF

Both GPF and PPF are the types of provident, however, there is a difference between the two. Let’s understand the difference between GPF and PPF:-

Particulars General Provident Fund (GPF) Public Provident Fund (PPF)
EligibilityOnly government employees can open GPF fund Any Indian citizen can open the PPF account
Lock-in periodTill retirement 15 years
Interest rate 7.1% 7.10%
Tax benefitsYes, tax benefits can be availed under Section 80C of Income Tax Act, 1961 Yes, tax benefits can be availed under Section 80C of Income Tax Act, 1961

FAQs

How do GPF Funds work?

GPF funds work in a way that a government employee can save a certain amount into the GPF account with savings they also earn interest on the same and they get the total amount at retirement.

What is the maximum limit of GPF deduction?

An employee can contribute the maximum of his/her 100% salary into the general provident fund.

What is the minimum limit of GPF fund deduction?

An employee has to contribute a minimum 6% salary into the general provident fund.

How to check GPF balance?

Every state has a different website for GPF, so to check you should login to your state’s GPF website and provide a GPF number, GPF series option, enter DOB and click on submit.

How do I get my GPF Account password?

To get the password for the GPF account, visit the state’s GPF website, click on Registered user and then click forgot password. A new window will open up, enter GPF number, GPF series option and name click submit. Then you will receive OTP on your registered mobile number then click provide the new password and click submit.


Notification ×
  • Home Loan

    Home Loan at all-time low rates starting at 6.65%. Cashback of up to ₹ 1,000.

    Apply Now
  • Personal Loan

    Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000 .

    Check Offers
  • Gold Loan

    Instant Gold Loan starting at 9.50% with Cashback of up to ₹ 500

    Apply Now
  • Loan Against Property

    Best Loan Against Property Offers starting @ 7.20%. Cashback of up to ₹ 1,000*.

    Apply Now
  • Business Loan

    Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

    Apply Now
  • Fixed Deposit

    AAA rated FDs with returns as high as 6.95%.

    Invest Now
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
Loader
Please wait while your information is being processed...