NEW DELHI: The Employees' Provident Fund Organisation (EPFO) on Wednesday introduced decrease rate of interest for 2017-18 compared to the closing yr. The provident fund or PF deposits this yr will fetch an rate of interest of eight.55 according to cent which is lower than eight.65 according to cent in 2016-17.
"It is difficult to evaluate about future in view of present economic scenario. We paid 8.65 per cent last fiscal, which left a surplus of Rs 695 crore. This year, we have decided to recommend 8.55 per cent for 2017-18, which will leave a surplus of Rs 586 crore," Labour Minister Santosh Gangwar instructed reporter after the Employees' Provident Fund Organisation's (EPFO) trustees meet.
The minister, who also heads EPFO's apex determination making frame Central Board of Trustees (CBT), stated he expects the finance ministry to offer concurrence to the eight.55 according to cent rate of interest decided.
After the CBT's determination on rate of interest, the proposal is vetted through the finance ministry. Once authorized through the finance ministry, the rate of interest is credited into subscribers' account.
The EPFO interest rates are decreasing since 2015-16 when the speed on deposits was once eight.eight according to cent. Currently, the pension fund frame has around 6 crore members.
Gangwar additional stated the trade traded funds (ETFs) investments have fetched a go back of 20.65 according to cent to this point, and within the months of January and February this yr, the EPFO has offered Rs 3,700 crore ETFs which earned a go back of Rs 1,011 crore.
The EPFO has invested around Rs 44,000 crore to this point within the ETFs. It has been investing in ETFs since August 2015 and it has to this point now not monetised the ETF investments.
The EPFO manages a corpus of over Rs 10 lakh crore and receives 1 crore claims annually. Over the past, it has introduced many new tasks for the good thing about subscribers for easing the declare procedure.
(With PTI inputs)
"It is difficult to evaluate about future in view of present economic scenario. We paid 8.65 per cent last fiscal, which left a surplus of Rs 695 crore. This year, we have decided to recommend 8.55 per cent for 2017-18, which will leave a surplus of Rs 586 crore," Labour Minister Santosh Gangwar instructed reporter after the Employees' Provident Fund Organisation's (EPFO) trustees meet.
The minister, who also heads EPFO's apex determination making frame Central Board of Trustees (CBT), stated he expects the finance ministry to offer concurrence to the eight.55 according to cent rate of interest decided.
After the CBT's determination on rate of interest, the proposal is vetted through the finance ministry. Once authorized through the finance ministry, the rate of interest is credited into subscribers' account.
The EPFO interest rates are decreasing since 2015-16 when the speed on deposits was once eight.eight according to cent. Currently, the pension fund frame has around 6 crore members.
Gangwar additional stated the trade traded funds (ETFs) investments have fetched a go back of 20.65 according to cent to this point, and within the months of January and February this yr, the EPFO has offered Rs 3,700 crore ETFs which earned a go back of Rs 1,011 crore.
The EPFO has invested around Rs 44,000 crore to this point within the ETFs. It has been investing in ETFs since August 2015 and it has to this point now not monetised the ETF investments.
The EPFO manages a corpus of over Rs 10 lakh crore and receives 1 crore claims annually. Over the past, it has introduced many new tasks for the good thing about subscribers for easing the declare procedure.
(With PTI inputs)
PF deposits to fetch lower interest rate in 2017-18
![PF deposits to fetch lower interest rate in 2017-18]()
Reviewed by Kailash
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February 21, 2018
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