RBI Issues Circular On Levying Unfair Interest Charges On Customers

EPFO added around 12.73 lakh net subscribers during October 2021.

Retirement fund body Employees’ Provident Fund Organisation (EPFO) on March 4 maintained interest rate of 8.5% for 2020-21,  a person familiar with the matter told Money9. The decision was taken at its Central Board of Trustees (CBT) meeting in Srinagar.

EPFO has more than five crore active subscribers.

Virjesh Upadhyay, EPFO Board Member and General Secretary of Bharatiya Mazdoor Sangh told Money9, “EPFO recommended 8.50% interest rate for FY21. Fin Min yet to notify the interest rates. The interest rate would be officially notified in the government gazette. People must appreciate that EPFO has maintained the rate of interest for FY21 despite a huge economic downturn due to COVID-19”

There were speculations that the EPFO would lower interest on provident fund deposits for this fiscal (2020-21) from 8.5% given in 2019-20 in view of more withdrawals and lesser contribution by members amid the coronavirus pandemic.

In March last year, the EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, from 8.65% in 2018-19.

The EPF (Employees Provident Fund) interest rate provided for 2019-20 was the lowest since 2012-13, when it was 8.5%.

The EPFO had provided 8.65% interest rate to its subscribers in 2016-17 and 8.55% in 2017-18. The rate of interest was slightly higher at 8.8% in 2015-16.

It had given 8.75% rate of interest in 2013-14 as well as 2014-15, higher than 8.5% for 2012-13. The EPFO had provided 8.25% rate of interest on provident fund in 2011-12.