On March 4, when the Central Board of Trustees meets in Srinagar, the retirement fund body EPFO is supposed to declare the rate of interest on provident fund deposits for the fiscal year 2020-21. At its Central Board of Trustees (CBT) meeting on March 4, the Employees' Provident Fund Organisation (EPFO) is poised to bring up the proposal to declare the rate of interest for 2020-21, according to a report. K E Raghunathan, an EPFO trustee, told PTI that he received notification on Monday that the next CBT meeting will be held on March 4 in Srinagar, and that the viewpoint reports will be released shortly. He claims that the intimation letter makes no mention of a report on interest rates for 2020-21.
Because of further withdrawals and lower contributions by members during this fiscal (2020-21), uncertainty is widespread that the EPFO can reduce interest on provident fund deposits from the 8.5 percent it supported in 2019-20, owing to the COVID-19 pandemic. EPFO slashed the interest rate on provident fund deposits to 8.5 percent for 2019-20, reduced from 8.65 percent in 2018-19, in March of last year. The 2019-20 EPF interest rate was the weakest since 2012-13, when it was 8.5 percent. The EPFO delivered its members an interest rate of 8.65 percent in 2016-17 and 8.55 percent in 2017-18. In 2015-16, the interest rate was marginally higher, at 8.8%. It generated an interest rate of 8.75 percent in 2013-14 and 2014-15, up from 8.5 percent in 2012-13.