The central government is going to bring good news for about 24 crore account holders. It is expected that the Central Board of Trustees, the apex decision-making body of the EPFO, in its meeting in March, may increase the interest rate on employees’ provident fund deposits for 2021-22.
The interest rate for the current financial year will be decided in the meeting to be held next month. Union Labor Minister Bhupendra Yadav has said that the CBT meeting of EPFO will be held in Guwahati in March, where the proposal of fixed interest rates for 2021-22 has been listed for discussion.
Recently when asked by the media whether the interest rate of EPFO 2021-22 will remain at 8.5% like 2020-21, he said that the decision on the interest rate will be taken based on the income of the current financial year. Bhupendra Yadav is also the head of CBT.
Once the CBT decides on the interest rates for the current year, the proposal will be sent to the Finance Ministry for approval. In March 2020, EPFO had reduced the interest rate on provident fund deposits to 8.5%, the lowest level in 7 years.
EPFO recently informed from its Twitter handle that interest has been deposited in more than 24 crore PF accounts for the financial year 2020-21. This was done at an interest rate of 8.5%.