EPFO members can get to hear good news before Holi. The two-day meeting of the Central Board of Trustees of EPFO has started in Guwahati. In this, the interest rate on Provident Fund deposits for 2021-22 will be finalized. EPFO had given 8.5 percent interest in the financial year 2020-21 and in the previous financial year.
After the interest rate is decided by the CBT, it is sent for the approval of the Finance Ministry. In March, 2020, the EPFO had reduced the interest rate on PF deposits to 8.5 percent for 2019-20, which is its lowest level of seven years. In 2018-19, an interest of 8.65 percent was given on EPFO. EPFO had paid 8.65 per cent interest in 2016-17 and 2017-18 also. At the same time, the interest rate was 8.8 percent in 2015-16, 8.75 percent in 2013-14 and 2014-15 also.
interest rate will decrease or increase
According to experts, in view of the current economic situation, CBT may decide to reduce the interest rates in the current financial year or keep it stable. Sources say that the Russo-Ukraine war has caused a huge fall in the stock markets. This may affect earnings. In such a situation, the interest rates of PF can be kept stable for the financial year 2021-22. But there is also the possibility of a cut in it.
Along with this, a proposal will also be presented in this meeting to transfer Rs 100 crore from the unclaimed amount lying with the EPFO to the Senior Citizens Welfare Fund. According to the notification issued by the Finance Ministry in 2015, the unclaimed amount lying in EPF, PPF and other savings schemes should be transferred to the Senior Citizens Welfare Fund after seven years. The government has proposed to invest up to five per cent of the EPFO’s incremental income in Alternative Investment Funds (AIFs). This will also be discussed in this meeting.
what is the agenda
The Central Board of Trustees (CBT) of EPFO consists of representatives of government, workers and employees and its decisions are binding on EPOFO. It is headed by the Labor Minister. In the last meeting of the CBT, four sub-committees were formed which may submit their recommendations in the Guwahati meeting. Two of these committees are headed by Minister of State for Labor Rameshwar Teli while two are headed by Labor Secretary Sunil Barthwal.