The Retirement Fund Body (EPFO) may announce the interest rate on provident fund deposits on March 4 for the financial year 2020-21. The EPFO has a meeting in Srinagar on March 4. The proposal to announce the interest rate for 2020-21 may be decided in this meeting. According to an EPFO trustee, the next meeting of the central board of trustees is to be held in Srinagar on March 4. The agenda of this meeting will be shared soon. There is speculation that EPFO may reduce the interest rate on provident fund deposits for this financial year (2020-21), which was 8.5 per cent for 2019-20.
In March last year, EPFO reduced the interest rate on provident fund deposits for 2019-20 to 8.5 percent from 8.65 percent in 2018-19. The interest rate paid for EPF (Employees Provident Fund) 2019-20 was the lowest since 2012-13. The EPFO had offered 8.65 per cent interest rates to its customers for 2016-17 and 8.55 per cent in 2017-18. The interest rate was slightly over 8.8 percent in 2015-16. It offered 8.75 per cent interest rate in 2013-14 as well as 2014-15.
There is a possibility that EPFO may reduce interest rates for the current financial year. In fact, during the Corona crisis, account holders have withdrawn large amounts from PF. On the other hand, there is also the argument that due to a large number of jobs, the amount deposited in EPFO has also decreased.
It may be noted that after the change in rules by the Employees Provident Fund Organization, partial or full withdrawal from EPF has become easier and faster. The EPFO can withdraw up to 75% of the amount from the EPF fund after one month of the employee leaving the job. Subscribers can make partial withdrawals online.