Mumbai: Retirement fund body Employees Provident Fund Organisation (EPFO) after its meeting in Bengaluru on Monday said that it has fixed an interest rate of 8.65 per cent on Employees Provident Fund (EPF) deposits for the year 2016-17.
The Central Board of Trustees at the EPFO did not retain the present interest rate of 8.8 per cent that was valid for the year 2015-16.
The decision is bound to impact over 4 crore subscribers to country’s premium saving scheme run by government of India.
The prevailing uncertain fiscal environment post demonetisation in country would have spurred the members of the Central Board of Trustees to slash the interest rate.
Earlier, the finance ministry had decided to revise the interest rate for 2015-16 to 8.7 per cent from the existing 8.8 per cent.
Of late, the EPFO has been investing large amounts of proceeds in EPF accounts in equity markets to generate more resources.
