Employees’ Provident Fund Organization (EPFO) is preparing to pay interest for the financial year 2020-21 even before Diwali. The organization has sought approval from the Finance Ministry and it is expected that the ministry will also give its approval soon.
Crores of Provident Fund (PF) account holders can get festive gifts before Diwali. Employees’ Provident Fund Organization (EPFO) is preparing to pay interest for the financial year 2020-21 even before Diwali. It is worth noting that even before Diwali, the government will also give dearness allowance and dearness relief to the central employees.
The Central Board of EPFO has given its approval for the interest rate. Now the organization has sought approval from the Finance Ministry and it is expected that the ministry will also give its approval soon.
Good income last year
The Central Board of EPFO in March this year had recommended an interest rate of 8.5% for the financial year 2020-21. In the last financial year, the EPFO earned Rs 70,300 crore, which includes Rs 4,000 crore from selling a part of its equity investments.
Approval sought from Ministry of Finance
Live Mint has given this news quoting a government source. An official said that the organization has sought approval from the Finance Ministry to pay interest with 8.5 percent interest rate for the financial year 2020-21. All the factors were considered when the interest was decided. EPFO is able to pay interest @ 8.5 percent.
Another official said that taking approval from the Finance Ministry is only a part of the protocol. EPFO cannot pay interest without the approval of the ministry. The EPFO is hopeful that the Finance Ministry will also give its approval soon in view of the decision of its board and its strong financial condition.
