At its Central Board of Trustees (CBT) meeting on March 4, the Employee’s Provident Fund Organisation (EPFO) is expected to take up the plan to announce the rate of interest for 2020-21. According to a report the interest rate of 8.75% in 2013-14 and 2014-15, up from 8.5% in 2012-13 has been recorded. K E Raghunathan, an EPFO trustee had told to the Press Trust of India Ltd. (PTI) that he had received notification on Monday that the next CBT meeting will be held in Srinagar so that the agenda papers will be submitted soon. He says that the intimation mail makes no mention of a debate on interest rates for 2020-21.
In March 2020, EPFO lowered the interest rate on provident fund deposits to 8.5% for 2019-20 down from 8.65% in 2018-19. Due to higher withdrawals and lower contributions by members during this fiscal year 2020-21, speculation is rife that the EPFO will reduce the 8.5% interest rate on provident fund deposits it sponsored in 2019-20. The interest rate offered by the EPF employee provident fund for 2019-20 was the lowest since 2012-13, when it was 8.5%. EPFO gave its customers an interest rate of 8.65% in 2016-17 and 8.55% in 2017-18. In 2015-16, the interest rate was marginally higher, at 8.8%.
