New Delhi : In a huge setback to roughly 5 crore people working with private firms and business enterprises, the Centre slashed EPF interest rate down to 8.1 percent from the previous 8.5. The EPF Trustee Board in March convened a meeting to decrease interest rate to 8.1 percent for fiscal 2021- 2022.
The rate is the lowest in four decades. The Central move comes while banks and other institutions have upped interest rates. Earlier, the Centre reduced interest on small savings and similar monies. RBI effected changes in interest rate owing to rising inflation and the Centre hurried to bring down the EPF interest rate with the Finance Ministry lending approval to Labour Ministry’s recommendation for reduced rate – a step that cuts off any scope for reexamination of the rate-reduction decision.
With Finance Ministry lending nod, interest at reduced rate of 8.1 are being credited into beneficiary banks accounts.
