The Employees’ Provident Fund Organisation (EPFO) may lower interest rate on provident fund deposits this fiscal compared to 8.65% . Photo: Pradeep Gaur/MintNew Delhi: Retirement fund body Employees’ Provident Fund Organisation (EPFO) may lower interest rate on provident fund deposits this fiscal compared to 8.65% provided to its 4.5 crore members for 2016-17, a labour ministry official said. The EPFO is likely to cut interest rate on the grounds that it is directly crediting exchange trade funds (ETF) units into provident fund accounts and lower yields on other investments, particularly bonds. The finance ministry has been nudging the labour ministry to align the EPF rate with its small saving schemes like public provident fund. In December last year, the EPFO trustees had decided to lower the rate of interest on EPF to 8.65% for 2016-17 from 8.8% provided for 2015-16.

Source: Mint November 26, 2017 07:30 UTC