Expect an increase in the interest rate on provident fund deposits, people have suffered a huge setback. 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. Sources have given this information.
New Delhi: Expect an increase in the interest rate on provident fund deposits, people have suffered a huge setback. 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. News agency PTI sources have given this information. Interest on provident fund deposits has come down to a four-decade low. This is the lowest since 1977-78, when the EPF interest rate was 8 per cent.
A source said, “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. The CBT had fixed an interest rate of 8.5 percent on EPF deposits for 2020-21 in March 2021.
The file will be sent to the Finance Ministry for consent
Now after the decision of CBT, the interest rate on EPF deposit for 2021-22 will be sent to the Finance Ministry for consent. The EPFO provides the interest rate only after the government confirms it through the Ministry of Finance.
Interest rate decreasing every year
In March 2020, EPFO reduced the interest rate on provident fund deposits to 8.5 per cent from 8.65 per cent provided for 2018-19. The interest rate for the year 2019-20 had come down to a seven-year low. The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5 per cent.
PFO had given 8.65 percent interest rate to its customers in 2016-17 and 8.55 percent in 2017-18. In the financial year 2015-16, the interest rate was slightly higher at 8.8 percent. It had given 8.75 per cent interest in 2013-14 as well as 2014-15, which is higher than 8.5 per cent in 2012-13. The interest rate in 2011-12 was 8.25 per cent.
