EPFO retains interest rate on deposits at 8.5% – Times of India

NEW DELHI: The Employee’s Provident Fund Organisation (EPFO) on Thursday decided to retain interest rate on provident fund deposits at 8.5 per cent for the financial year 2020-21.
The EPFO apex decision-making body Central Board of Trustees decided to fix 8.5 per cent rate of interest for 2020-21 at its meeting in Srinagar on Thursday.
The decision comes amidst speculations that the retirement fund body would lower interest rates for the current fiscal as economic downfall due to the coronavirus pandemic led to large number of withdrawals.
In March 2020, EPFO had reduced interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was 8.5 per cent.
The EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The EPFO had provided 8.25 per cent rate of interest on provident fund in 2011-12.
EPFO has more than five crore active subscribers at present.
(With inputs from PTI)