Shocker: Interest on your EPF may come down by 0.25 per cent
- Interest rate on EPF may come down as a result of failing yield on securities or bonds
- Last fiscal year the interest per cent was reduced from 8.80 per cent to 8.65 per cent
- In another development, now more banks have been roped in to give the EPFO service to the people
FollowThere is a buzz that interest rate on EPF may come down by around 0.25 per cent as a result of failing yield on securities or bonds.
Last fiscal year the interest per cent was reduced from 8.80 per cent to 8.65 per cent. It might come down by 0.25 per cent for this fiscal year, reported Economic Times.
"After discussing in the Central Board of Trustees meeting, my ministry will take a decision. I am going to call a meeting shortly. The meeting will happen next month," Labour Minister Bandaru Dattatreya had told reporters when asked about the decision on EPF interest rate for this fiscal.
"Last time, I gave 8.65 per cent, and this year, our rate of return has come 13.3 per cent on equity investments. The CBT will propose a rate of interest based on income projection for this fiscal. Then, as its chairman, we will take the decision,” he told further.
However, announcement in this regard will be made soon, say experts.
In another development, now more banks have been roped in to give the EPFO service to the people. This move is aimed at expanding its service offerings and reduce annual transaction cost by at least Rs300 crore.
Earlier, State Bank of India was EPFO’s only banking partner. In December 2016, EPFO roped in four nationalised banks- Punjab National Bank, Allahabad Bank, Union Bank and Indian Bank. Now it has tied up with five more banks including ICICI, Kotak, HDFC Bank, Bank of Baroda and Axis Bank to provide the EPFO service.
