EPFO: Interest on PF will not be reduced this year, new rate announced

EPFO: Interest on PF: EPFO has announced interest rate on provident fund deposits for the financial year 2020-21. There is no change in the interest rate. The Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO) has been announced to give 8.5 percent in Srinagar as in the previous financial year. PTI has given this news by quoting sources. Earlier there was speculation that EPFO ​​may reduce the interest rate on provident fund deposits for this financial year (2020-21). Explain that EPFO ​​has more than 50 million active customers.

Most interest was received on EPF in 2015-16

financial year	Interest rate in percent
2020-21	8.5
2019-20	8.5
2018-19	8.65
2017-18	8.55
2016-17	8.65
2015-16	8.8
2014-15	8.75
2013-14	8.75
2012-13	8.5
2011-12	8.25

Sources said that the Central Board of Trustees, the apex decision-making body of the Employees’ Provident Fund Organization (EPFO), in its meeting in Srinagar on Thursday, has decided to fix the interest rate for 2020-21 at 8.5 per cent. In March last year, EPFO ​​reduced the interest rate on provident fund deposits for 2019-20 to 8.50, the lowest in seven years, compared to 2012-13. The interest rate in the year 2018-19 was 8.65 percent. At the same time, it was 8.55 percent in 2017-18. The highest rate of interest was 8.8 percent in 2015-16.

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No interest money was deposited in 40 lakh PF account

Interest money has not been deposited in the account of about 40 lakh Provident Fund (PF) shareholders associated with the Employees Provident Fund Organization (EPFO). At the same time, the government has announced to deposit interest money in PF accounts for the financial year 2019-20, about one and a half months ago. The EPFO ​​has attributed this to the mismatched KYC (Know Your Customer) provided by employers. Two government officials have given this information on the condition of keeping their identity a secret.

However, the matter of delay in payment of interest has come to light before this. An official associated with the EPFO ​​said that about 8 to 10 per cent of the PF shareholders’ interest has not been deposited in their account. This mismatch is due to KYC. However, the officer is also surprised as to how this delay has been done when every transaction is done online. Apart from this, an official said that we are trying to ensure that the shareholders do not face this problem at the time of withdrawal from PF. Further, we are working to ensure that there is no problem of compounding interest deposits in the account of shareholders as 2020-21 is about to end.