People's Democracy

        AISGEF Demands Raise In GPF Interest Rate

The All India State Government Employees’ Federation’s (AISGEF) general secretary Sukomal Sen has written the following letter to P Chidambaram, union finance minister regarding ‘Raising of interest rate of GPF along with EPF and interest rate of Small savings’.

“YOU are surely aware that along with the drastic reduction of interest rate of EPF, the rate of interest of general provident fund of the central and state government employees (numbering more than one crore) was also reduced from earlier 12 per cent to 8 per cent presently. All these reductions took place during the last several years against which we have always protested.

Now since, the states are demanding for raising the interest rate of EPF, we would request that the AISGEF has also raised demand of raising the interest rate of GPF also as more than one crore of government employees are affected by it.

We would like to refer to another point. During the Lok Sabha elections the senior citizens all over the country voted against the BJP-led NDA in a big way as a protest against the drastic reduction of interest rate of small savings. This was one of the main reasons for the anger of the senior citizens against the BJP government.

Now everybody expected that the UPA government would raise the interest rate to a certain extent. And the UPA government has announced 9 per cent interest rate for the savings of senior citizens according to our information, as appeared in the media. But we would like to point out that the existing 8 per cent interest rate of postal savings carries a bonus of 10 per cent after maturity of the deposit. But now if senior citizens deposit money at 9 per cent, no bonus will be added to their savings after maturity.  This means at 8 per cent interest, the depositors will actually be benefited with 9.25 per cent interest rate taking into account the 10 per cent bonus. And while depositing at 9 per cent they will get just 9 per cent only without 10 per cent bonus. Senior citizens are feeling badly at this reported decision by the UPA government.

Hope you would appreciate our position and take appropriate steps to raise the interest rate of GPF to earlier rate of 12 per cent and also interest rate of Small Savings as least to 12 per cent and issue order accordingly. (INN)