Bengaluru/New Delhi : Retirement fund body EPFO on Monday slashed interest on deposits to a four-year low of 8.65 per cent this fiscal in tandem with falling rates on savings due to surge in bank deposits post demonetisation.
The Employees Provident Fund Organisation (EPFO) had provided 8.8 per cent rate of interest on deposits for 2015-16 to its four crore contributing subscribers.
It maintained 8.75 per cent for 2013-14 and 2014-15 while it was 8.5 per cent in 2012-13.
“We have decided the interest rate for EPF subscribers at 8.65 per cent for 2016-17. The decision was arrived at after detailed consultations with all stakeholders. With consensus we have taken this decision,” Union MoS (labour and employment) Bandaru Dattatreya said.
After the meeting, the minister said: “In spite of giving 8.65 percent interest rate, we have surplus of Rs 269 crores.”...