EPFO may credit 8.5% interest to its 6 crore subscribers by Diwali as it has approved the same and now awaits the approval from Finance Ministry
New Delhi: In good news for subscribers of the Employees’ Provident Fund Organisation (EPFO), the retirement fund body is likely credit the interest rate for the financial year 2020-21 (FY21) before Diwali.
The development, which is likely to come close to the time when government employees get their dearness allowance and dearness relief will bring much cheer to millions under the pressure of Covid-related economic stress, high fuel and prices etc.
The EPFO’s central board has approved the interest hike and the body now seeks the nod of the finance ministry, according to reports.
EPFO sought the final approval from the ministry for 8.5% interest rate for 2020-21 which was decided after considering all factors. The retirement fund is well-positioned to pay the interest rate to its subscribers. The nod from the ministry is sought as per protocol as the EPFO cannot credit the interest rate without its approval.
EPFO hopes to get the approval soon as the board is in a comfortable financial position for the credit payout.
‘EPFO kept the interest rate unchanged for FY21 as there were more withdrawals than deposits during the year owing to widespread job losses due to the Covid-19 pandemic.
The government reduced the EPF interest rate to a 7-year low of 8.5% during the financial year 2019-20 which was 8.65% during FY 2018-19, 8.55% during FY 2017-18, and 8.65% for FY 2016-17.
EPFO has 6 crore members who are likely to see the EPF interest credit for the year FY 2020-21 anyway during the next week. They can check their funds in their provident fund accounts by giving a missed call, through an SMS or through UMANG app.
