Public Provident Fund Latest Update: Breathless waiting for a few hours! Interest rate on PPF will increase? –

Public Provident Fund Latest Update: Just a few more hours to wait. Meanwhile, Public Provident Fund (PPF) investors can get good news. Because, interest rate on PPF account is supposed to increase. The central government is expected to announce the new rates soon.

However, nothing has been officially announced about it yet. Even so, why is this expectation?

According to informed sources, there are two main reasons for this. First, the Reserve Bank of India reviews the interest rate hike on PPF every quarter. Which should be done now. Second, the Reserve Bank of India has raised the repo rate several times. Even, the repo rate was hiked in the last monetary policy meeting. As a result, many people think that the interest rate in PPF can be increased in accordance with it.
But ultimately if it is not increased, the interest rate will remain as it is now. That is, currently the interest rate on PPF is 7.1%. PPF customers will get interest at the same rate if the interest rate remains unchanged.

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According to informed sources, the Center reviews the PPF interest rate on a quarterly basis. Which is supposed to happen by December 2022. As a result, after that review, it will be known how much the PPF interest rate is going to be in the first month of next year. It will increase from the old rate i.e. 7.1%.

The Reserve Bank of India has increased the repo rate several times this year to control inflation. That is why the home loan is costing more. Again the interest rate is high in the savings scheme. However, interest rates on several government schemes have not increased. It also includes PPFO.

The interest rate on PPF was 7.4% in September 2018. Then in June 2019 the rate increased to 8%. But since then the interest rate of PPF has been declining. At present, that rate has come down to 7.1%.

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Several banks have raised interest rates on fixed deposits as the Reserve Bank of India hiked the repo rate. Interest rates are increased on FDs of various tenures. That is why the interest rate on fixed deposits of public and private banks has also increased. It has increased to 8% at present.

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