The interest rate on provident fund deposits for 2017-18 is 10 basis points lower than that in the previous year. Graphic: MintNew Delhi: The Employees’ Provident Fund Organisation (EPFO), India’s retirement fund manager, has cut the interest rate it pays to more than 50 million subscribers to 8.55% for the year to 31 March, the lowest in five years. Labour minister Santosh Kumar Gangwar, who heads the body’s central board, said that the interest rate payout was cut because of low returns from debt investments. “When government does not contribute to the PF of subscribers, then why are they reducing the interest rate despite money in their corpus?” asked A.K. He said that the EPF rate is higher than the Government Provident Fund and Public Provident Fund, which are earning 7.6% interest this quarter.

Source: Mint February 21, 2018 14:05 UTC