Provident Fund interest rates reduced; check the new rate here
Provident Fund interest rates reduced; check the new rate here
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Employees Provident Fund Organisation, the body regulating the Provident fund commonly known as PF, has sliced the interest rates on the Provident fund deposits. The body currently has 6 crore registered members.

The rate for financial year 2016-17 was 8.65 percent and it will be 8.55 percent in 2017-18. The interest rate are being cut every year since 2015-16 when the rate was 8.80 percent.

“It is difficult to evaluate about future in view of present economic scenario. We paid 8.65 per cent last fiscal, which left a surplus of Rs 695 crore. This year, we have decided to recommend 8.55 per cent for 2017-18, which will leave a surplus of Rs 586 crore,” said Santosh Gangwar, Labour Minister.

Trustees of the EPFO had a meeting where the decision was taken. Gangwar also heads the top decision making body, Central Board of Trustees (CBT), of the organisation.

The implementation of the new interest rate is subject to approval from finance ministry. Post CBT’s decision, the decision will be examined by finance ministry.

EPFO currently manages a corpus of Rs. 10 lakh crore and gets claims of Rs. 1 crore every year. In order to ease the claim process, the organisation has launched several schemes to benefit the subscribers.

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