Bad news for 6 crore PF subscribers, interest rate cut likely for fiscal 2021

New Delhi: The Indian economy is facing rising prices for fuels like gasoline, diesel and LPG. In a recent development, the interest rate of the EPF (Employee Provident Fund) could again decline over the year. If that happens, it will be a blow to over 6 crore of salaried classes. EPF subscribers, who feared they would not touch their interests until last year, will now be affected in another way.

The interest rate on EPF will decrease!

According to sources, people made a large number of EPF withdrawals during the Corona crisis, during which the contribution of the Contingency Fund contribution also declined. As a result, the Organization de la Caisse de Prévoyance des Employees (EPFO) has decided to reduce interest rates. EPFO’s Central Board of Trustees (CBT) will meet tomorrow Thursday March 4 to decide on the new rates. In such an environment, interest rates are doomed to fall.

Interest rates will be decided on March 4

The income of the Employees Provident Fund (EPFO) was deeply affected in fiscal 2020. Speaking to Zee Media, EPFO’s trustee KE Raghunathan said he was told that the Central Board of Trustees would meet in Srinagar on Thursday. (March 4). No information was provided on the interest rates in the email they received.

The government had announced that it would pay 8.5% interest for the 2019-2020 fiscal year, the Central Board of Trustees previously said 8.5% interest would be paid in two installments during the fiscal year ending March 31. a cent investment and 0.35 per cent interest will be taken from equity.

Lowest interest on EPF in 7 years

The interest rate on EPF was 8.5% in fiscal year 2020, the lowest in 7 years. Previously, in fiscal year 2013, the interest rates on EPF were 8.5%. In March of last year, EPFO ​​raised interest rates. Previously, during the 2019 financial year, EPF received an interest rate of 8.65%. EPFO offered an interest of 8.55% for fiscal 2018, or 8.8% for its first fiscal 2016. Earlier, in fiscal 2014, it was 8.75%.

The Employee Provident Fund has 6 million subscribers across the country. In FY2020, these subscribers had to wait for interest because there was a KYC identification issue. If interest rates are to be reduced now, it will be a blow to all subscribers.