As if demonetisation disaster wasn’t enough to cause considerable pain to small depositors, the announcement by the Employees’ Provident Fund Organisation (EPFO) on Monday dealt another blow to them after the body fixed the interest rate at 8.65% on EPF deposits for 2016-17.
Today’s decision will adversely impact at least four crore subscribers.
The Central Board of Trustees (CBT) of EPFO took the decision in a meeting in Bengaluru on Monday.
“The Employees Provident Fund Organisation’s apex decision-making body, the Central Board of Trustees (CBT), has taken a decision to lower the interest rate to 8.65 per cent for the current fiscal from 8.8 in 2015-16,” Indian National Trade Union Congress Vice-President Ashok Singh told PTI.
According to Finacial Express, Bharatiya Mazdoor Sangh General Secretary Virjesh Upadhyay said that 8.65 percent rate of interest is fixed on EPF deposits for 2016-17.
The Finance Ministry had earlier this year decided to lower interest on EPF for 2015-16 to 8.7 percent from the 8.8 percent approved by the CBT headed the Labour Minister.