EPFO can once again cut the interest rates of PF-Provident Fund. Let us tell you that earlier the interest rate of PF was 8.65 percent, which has been reduced to 8.50 percent in the month of March.
new Delhi. In this crisis of corona, the difficulty of the common man is increasing daily. Inflation on the one hand, on the other hand, the interest rates on saving (Small Saving Interest rates) are continuously decreasing. According to media reports, interest rates can be cut once again by the EPFO-Employees Provident Fund Organization. The main reason behind this is being told the declining return on investment, due to which the idea of provident fund interest rate is being considered to be reduced. Let us tell you that the PF rates for the financial year 2019-20 have been reduced from 8.65 per cent to 8.50 per cent. But so far it has not been approved by the Finance Ministry. The Labor Ministry will notify it only when the Finance Ministry gives its approval.
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What is the matter- According to the news published in the English newspaper Economic Times , sources have told the newspaper that the Finance Department, Investment Department and Audit Committee are going to meet soon to decide on the interest rates. In this, it will be decided how much interest rate the EPFO is in paying. Let us tell you that EPFO invests 85% of its total funds in debt market (bonds) and 15% in the stock market through exchange traded funds (ETFs). At the end of March last year, EPFO’s total investment in equities was 74,324 crores. Was Rs. 14 and he got a return of 14.74%.
Why will interest rates fall? EPFO has invested more than Rs 18 lakh crore. Of this, about 4500 crore rupees have been invested in NBFC company Dewan Housing and IL&FS. While DHFL is going through a bankrupt resolution process, government surveillance is going on to save IL&FS. In such a large amount of EPFO is trapped.
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