Finance
By: Shree1news, 29 OCT 2021
The finance ministry has accredited an interest rate of 8.5% on provident fund deposits for 2020-21, according to a media report. The (EPFO) will credit the interest amount to almost 60 million beneficiary bills once the approval is officially communicated to the fund body.
The employees’ Provident Fund organisation’s (EPFO) central Board of Trustees had earlier accredited the interest rate and sought approval of the Finance Ministry for 8.5% hobby for FY21. After the board’s approval, the labour ministry has notified it. The labour minister heads the board of trustees.
The move that comes days ahead of Diwali will cheer up the salaried class, especially those who are suffering with process losses and pay cuts. The economic times in a report quoted Labour secretary Sunil Barthwal as saying that the finance ministry has given its clearance and it is going to be communicated as quickly as possible.
The 8.5% interest rate could mean EPFO can have a surplus of Rs 300 crore as against a surplus of Rs 1,000 crore in the previous financial year. The interest rate is the same as the previous year.
EPFO
The newspaper report stated the finance ministry has over the years wondered EPFO’s higher rate of interest compared to other government schemes which include the public provident fund or small savings schemes has been notably decrease.
EPFO had suggested an income of approximately Rs 70,300 crore in the preceding fiscal, with around Rs 4,000 crore coming from the sale of a portion of its stock investments and Rs 65,000 crore coming from debt, says the document, adding that the board of trustees recommended 8.5% for FY21 based in this.
