Bad news for 6 crore PF subscribers, interest rate reduction likely for FY 2021

In a recent development, the rate of interest of EPF (Employees' Provident Fund) might witness a cut again in the financial year. If this happens, it will be a big blow for more than 6 crore salaried classes. The EPFO Central Board of Trustees (CBT) will meet to decide on the new rates.

New Delhi: Indian economy is facing a price hike on fuels like Petrol, Diese, LPG. In a recent development, the rate of interest of EPF (Employees' Provident Fund) might witness a cut again in the financial year. If this happens, it will be a big blow for more than 6 crore salaried classes. The EPF subscribers, who were worried about not getting their interest money till last year, will now be affected in another manner.

The interest rate on EPF will decrease!

According to sources, people have done a large number of EPF withdrawals during the Corona crisis, during which the contribution of Provident Fund Contribution has also decreased. Due to which the Employees' Provident Fund Organization (EPFO) has decided upon reducing the interest rates. The EPFO Central Board of Trustees (CBT) will meet tomorrow on Thursday (March 4) to decide on the new rates. In such an environment, the interest rates are bound to go down.

The interest rates will be decided on March 4

Employees' Provident Fund Organisation (EPFO) ​​earnings have been deeply affected in the financial year 2020. Speaking to Zee Media, EPFO ​​trustee KE Raghunathan said that he has been told that the Central Board of Trustees will meet in Srinagar on Thursday (March 4). No information has been provided about the interest rates in the e-mail they received.

The government had announced to pay 8.5 per cent interest for the financial year 2019-20, the Central Board of Trustees had earlier said that 8.5 per cent interest will be paid in two instalments in the financial year ending March 31. That is, 8.15 per cent investment and 0.35 per cent interest will be paid from equity.

Lowest interest on EPF in 7 years

The interest rate on EPF was 8.5 per cent in the financial year 2020, which is the lowest in 7 years. Prior to this in the financial year 2013, the interest rates on EPF were 8.5 per cent. In March last year, the EPFO ​​revived the interest rates. Earlier, in the financial year 2019, EPF was receiving an 8.65 per cent interest rate. EPFO offered 8.55 per cent interest in the financial year  2018, which was 8.8 per cent in its first fiscal year 2016. Earlier, in the financial year 2014, it was 8.75 per cent.

The Employees' Provident Fund has 6 crore subscribers across the country. In the financial year 2020, these subscribers had to wait for the interest as there was a problem with KYC identification. If the interest rates are to get a cut now, it will be a big blow to all the subscribers.