EPF Interest Rate Cut: After the rising prices of expensive petrol-diesel, LPG and the inflation of CNG, PNG, now get ready to face another setback. Employees’ Provident Fund-EPF interest is going to fall once again in the financial year 20-21.
New Delhi: EPF Interest Rate Cut: After the rising prices of expensive petrol-diesel, LPG and the inflation of CNG, PNG, now get ready to face another blow. In the financial year 20-21, the interest of EPF (Employees’ Provident Fund) is going to be cut again. If this happens, it will be a big blow for more than 6 crore salaried classes. Till now EPF subscribers, who were worried about not getting interest till last year, are now going to be hit twice.
Interest on EPF will decrease!
According to information from sources, people have done a large number of EPF withdrawals during the Corona crisis, during which the contribution of PF Contribution has also decreased. Due to which the Employees’ Provident Fund Organization (EPFO) can decide to cut the rates. The EPFO Central Board of Trustees (CBT) will meet tomorrow on March 4 to decide on the new rates. In such an environment, the rate cut is considered to be fixed.
Decision on interest rates will be made on March 4
In FY 2020, EPFO earnings have been affected. Speaking to the PTI, EPFO Trustee KE Raghunathan said that he has been told that the Central Board of Trustees will meet in Srinagar on 4 March. No information has been given about the interest rates in the e-mail they received.
‘Cheap’ CNG cars will end costly petrol-diesel tension
Let us tell you that the government had announced to pay 8.5 percent interest for the financial year 2019-20, the Central Board of Trustees had earlier said that 8.5 percent interest will be paid in two installments in the financial year ending March 31. That is, 8.15 percent investment and 0.35 percent interest will be paid from equity.
Lowest interest on EPF in 7 years
In FY 2020, EPF got an interest of 8.5%, which is the lowest interest in 7 years. Prior to this in FY 2013, the interest rates on EPF were 8.5%. In March last year, the EPFO revived the interest. Earlier, in FY 2019, EPF used to get 8.65% interest. EPFO paid 8.55% interest in FY 2018, which was 8.8% in its first fiscal year 2016. Earlier, in FY 2014, it was 8.75%.
Let us tell you that EPF has 6 crore subscribers across the country. In FY 2020 too, there was a delay in getting interest to these crores of people due to the mess in KYC. After that, if interest rates are cut now, it will be a big blow.
