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21. Write three similarities and three differences between general provident fund and
public provident fund.
[6]
Answers
Answer:
Savings plays a critical part in an individual’s financial standing. It bolsters one’s financial footing and creates a stable ground for times when a person is out of income. On that note, it is particularly important to create a substantial corpus for one’s post-retirement life.
Keeping that in perspective, the Indian government has introduced Provident Funds (PFs). In India, there are three types of provident funds, namely – General Provident Fund (GPF), Employees’ Provident Fund (EPF), and Public Provident Fund (PPF).
Each provident fund that is mentioned above promotes the practice of savings when an individual has a regular source of income. This helps to accumulate sufficient funds that can be used to meet expenses when one is out of income. However, there are also several basic differences between EPF and GPF, and PPF that an individual must duly consider.
Nevertheless, before directly delving into their differences, it is crucial to learn about their characteristics.