EPFO News: EPFO has given a big blow to the employed people. EPFO has reduced the interest rate instead of increasing it. An interest rate of 8.1 percent has been announced for the financial year 2021-22, which was 8.5 percent in 2020-21. It is feared that interest rates will increase in the future as well.
EPFO Latest News: In the midst of rising inflation, there is bad news for the employed. For a long time, 6 crore people, who have been waiting for the EPFO interest rates to increase, have got a big setback. Before the festival, EPFO has reduced the interest rate instead of increasing it. An interest rate of 8.1 percent has been announced for the financial year 2021-22, which was 8.5 percent in 2020-21. Let us tell you that the interest on provident fund deposits has come down to a four-decade low.
6 crore people got a shock
The Central Board of Trustees (CBT), the apex decision-making body of the Employees’ Provident Fund Organization (EPFO), in its meeting held on Saturday, has decided to give 8.1 percent interest rate on EPF for 2021-22. Earlier, the CBT had fixed an interest rate of 8.5 percent on EPF deposits for 2020-21 in March 2021. On the decision of the Central Board of Trustees, EPFO will now take approval from the Ministry of Finance.
After getting the seal of the Finance Ministry, interest will be paid to the account holders. After this deduction, the interest rate on EPF has come down to the lowest in four decades. Earlier in the financial year 1977-78, the employees were paid interest at the rate of 8 per cent on EPF.
Repo rate may increase
At this time inflation is at its peak. In such a situation, this deduction has happened at a time when it is going to be expensive for you to take a loan. There is also a possibility of increasing the rate of loan given to banks by the Reserve Bank of India i.e. the repo rate. The Finance Ministry has already made it clear to the Labor Ministry that there should be a balance between the interest rates of small savings schemes and EPF. According to the Finance Ministry, the interest rate of EPF should not be high.
And interest rates may come down
After this, it is feared that in the coming days, the interest rate of EPF can be further cut. The interest rate on the Public Provident Fund ie PPF scheme coming under small savings schemes is currently 7.1 percent. In such a situation, in the coming days, the interest rate on PF for you may decrease further.
