New Delhi: The Employees Provident Fund Organisation (EPFO) today decided to lower the interests on EPF deposits for the present fiscal year from 8.8 to 8.65 per cent.
The apex decision making body of the organisation Central Board of Trustees (CBT) decided to cut the rates after a meeting earlier today.
In what could be a big decision for as many as four crore subscribers throughout the country the organisation lowered the interest rates in spite of having Rs 409 crore surplus with itself which was accrued from 2015-16 fiscal under 8.8 rate per cent. But maintaining the same rate was not possible this year since the Centre had accrued Rs 1640 crore a year earlier and was able to manage during 2015-16.
Had the government decided to levy the same rate this year it would have left a deficit of Rs 383 crore but it could have compensated through last year’s surplus. Then also it would have a surplus of Rs 69.34 crore accounting for a projection of 8. 7 per cent rate of interest. So in all the rates were bound to come down.