What is the Full form of GPF?
The full form of GPF is General Provident Fund. GPF is a provident fund scheme that refers to government employees. In this system, government officials contribute some amount of their salaries to the account. The accrued balance is paid to the employee at the time of the retirement or superannuation.
Eligibility criteria of GPF
- The government worker must be an Indian citizen.
- This account is mandatory for government workers in that certain salary level.
- Private company workers are not qualified for this scheme.
How does GPF Operate
- It serves as a tool for government employees to save money. To GPF account, the employee is expected to contribute some portion of their salary annually over a set of time. The balance accrued in the employee’s GPF account shall be returned to the employee by the time of the superannuation or retirement.
- The holder of GPF account must also nominate a nominee for their consideration. If something occurs to the account holder, the nominee will receive all the benefits.
- The account also possesses a feature known as GPF advance. It is a type of interest-free loan from the GPF.