Why the interest rate on the provident fund can be reduced
Kei Raghunathan, a trustee of the EPFO, said that he has received information about the next CBT meeting in Srinagar on March 4. The agenda of the meeting is coming soon. However, he said that there is no mention of discussion on interest rate in the e-mail related to the information of the meeting. Meanwhile, speculations are being made that EPFO may reduce the interest rate on the Employees Provident Fund for the financial year 2020-21. Explain that the interest rate on provident fund for the financial year 2019-20 was 8.5 percent. It is believed that in the middle of the corona crisis, a decision can be taken to reduce interest due to higher withdrawal from PF and less contribution.
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Reduced to 7-year low in 2020
In March 2020, EPFO reduced the interest rate on provident fund deposits to 8.5 percent for the financial year 2019-20. This is the lowest interest in the last seven years. Earlier in 2012-13, interest rates were at 8.5 per cent. Subscribers received 8.65 per cent interest on PF deposits in the financial year 2018-19. EPFO had paid 8.65 per cent interest on PF deposits for 2016-17, 8.55 per cent for 2017-18 and 8.8 per cent for 2015-16. At the same time, 8.75 percent interest was paid on PF deposits in 2013-14, which was more than 8.5 percent for the financial year 2012-13.