NEW DELHI: The Centre authorised an 8.1 percent interest rate on employee provident fund deposits for FY22 on Friday.  The rate for the previous fiscal year, at 8.1 percent, would be approaching a four-decade low.

The Central Board of Employees' Provident Fund Organisation (EPFO) suggested paying 8.1 percent interest on provident fund deposits for the current fiscal year in March, and the Centre has now approved the proposal.
Employees' Provident Fund interest rate was 8.5 percent in FY21.

With a balance of almost Rs 16 lakh crore, the EPFO is the country's largest retirement fund and the second largest non-banking financial institution.

Union Finance Minister Nirmala Sitharaman had stated that the idea to reduce the interest rate provided on employees' provident fund deposits was driven by today's circumstances, when yields on other small saving instruments were much lower.

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