new Delhi: Expect an increase in the interest rate on provident fund deposits, people have suffered a huge setback. EPFO has reduced the interest rate instead of increasing it. An interest rate of 8.1 percent has been announced for the financial year 2021-22, which was 8.5 percent in 2020-21. News agency PTI sources have given this information. Interest on provident fund deposits has come down to a four-decade low. This is the lowest since 1977-78, when the EPF interest rate was 8 per cent.
A source said, “The Central Board of Trustees (CBT), the apex decision-making body of the Employees’ Provident Fund Organization (EPFO), in its meeting held on Saturday, has decided to give 8.1 percent interest rate on EPF for 2021-22. The CBT had fixed an interest rate of 8.5 percent on EPF deposits for 2020-21 in March 2021.
The file will be sent to the Finance Ministry for consent
Now after the decision of CBT, the interest rate on EPF deposit for 2021-22 will be sent to the Finance Ministry for consent. The EPFO provides the interest rate only after the government confirms it through the Ministry of Finance.
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interest rate decreasing every year
In March 2020, EPFO reduced the interest rate on provident fund deposits to 8.5 per cent from 8.65 per cent provided for 2018-19. The interest rate for the year 2019-20 had come down to a seven-year low. The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5 per cent.
PFO had given 8.65 percent interest rate to its customers in 2016-17 and 8.55 percent in 2017-18. In the financial year 2015-16, the interest rate was slightly higher at 8.8 percent. It paid 8.75 per cent interest in 2013-14 as well as 2014-15, which is higher than 8.5 per cent in 2012-13. The interest rate in 2011-12 was 8.25 per cent.
Tags: Epfo, EPFO account, EPFO subscribers, EPFO website
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