New Delhi: The Employees Provident Fund Organisation (EPFO) has reduced the interest rate on Provident Fund deposits t0 8.65% from 8.8%, affecting the funds of over four crore subscribers.
PTI earlier reported that retaining the interest rate at 8.8% for the current fiscal would result in a deficit of Rs. 383 crore, the Central Board of Trustees, the apex decision making body, wants to utilise a Rs 409 crore surplus with it.
As per the EPFO income projections of Rs 39,084 crore for the current fiscal, providing 8.8 per cent rate of interest on EPF deposits will leave a deficit of Rs 383 crore. There would be a surplus of about Rs 69.34 crore if interest rate is lowered to 8.7 per cent.
The Finance Ministry has been asking the Labour Ministry to align the EPF interest rate with other small saving schemes of the government like Public Provident Fund (PPF).
In September, the government reduced interest rates on small savings schemes marginally by 0.1 per cent for the October-December quarter of 2016-17, which resulted in lower returns on PPF, Kisan Vikas Patra, Sukanya Samriddhi Account, among others.
The Labour Ministry however wanted to retain 8.8 per cent for the current fiscal as well, a source said.
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