The Employees' Provident Fund Organisation (EPFO) on Thursday, 4 March announced the interest rates on deposits for the financial year 2020-21 to be 8.50 percent, same as the previous financial year.
Despite speculations of the interest rates on Provident Fund deposits decreasing amid the coronavirus pandemic and the consequent economic crisis, the rate was unchanged.
The EPFO took the decision in Srinagar, at the 228th meeting of the Central Board of Trustees under the chairmanship of Union Minister of State for Labour and Employment. Santosh Kumar Gangwar.
The board released a statement saying that, “The interest rate would be officially notified in the government gazette, following which EPFO would credit the rate of interest into the subscribers’ accounts,” Moneycontrol reported.
Virjesh Upadhyay, a board member, spoke to Moneycontrol, highlighting that "people must appreciate that the government has maintained the rate of interest for 2020-21 despite a huge economic downturn due to COVID-19.”
Last year’s interest rate on Provident Fund deposits was reduced to a seven-year low of 8.5 percent.
As part of 2021’s Budget, Finance Minister Nirmala Sitharaman had informed that the depositors investing more than Rs 2.5 lakh in EPF annually would have the interest subject for tax from 1 April.
(With inputs from Moneycontrol)
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