The government has decided to increase the GPF interest rate to 8.8% from the present 8.6% for the Central Government employees for the year 2012-13. The Public Provident Fund was raised 8.6% from 8.5% recently.
The bank interest has been steadily going up for the last few years and is about 12% at present. The trade unions have been demanding that the interest rate on Provident Fund should be raised to 9.5%. But the government after a long period has raised the %, but only to 8.8%, far below the existing loan rates by the banks. The government should do justice to the workers by increasing the interest rate on the longterm provident fund deposits.
VAN Namboodiri's Blog 
The jump is negligible when you look at the inflation figure
Actualy the interest should be linked with the inflation