<p>Retirement fund body EPFO today decided to lower the interest on EPF deposits for the current fiscal to 8.65 per cent, from 8.8 provided in 2015-16, for its over four crore subscribers.<br /><br /></p>.<p>"The Employees Provident Fund Organisation's apex decision making body, the Central Board of Trustees (CBT), has taken a decision to lower the interest rate to 8.65 per cent for the current fiscal from 8.8 in 2015-16," Indian National Trade Union Congress Vice-President Ashok Singh told PTI after the meeting at Bengaluru.<br /><br />Bharatiya Mazdoor Sangh General Secretary Virjesh Upadhyay also said that 8.65 per cent rate of interest is fixed on EPF deposits for 2016-17.<br /><br />As per the EPFO income projections, retaining 8.8 per cent rate of interest for the current fiscal would have left a deficit of Rs 383 crore.<br /><br />However, the body could have utilised about Rs 409 crore surplus with it, which accrued after providing 8.8 per cent rate of interest for 2015-16, to retain the same rate of return for the current fiscal.<br /><br />A surplus of about Rs 69.34 crore was stipulated if interest rate was to be lowered to 8.7 per cent.<br /><br />EPFO has projected income of Rs 39,084 crore for the current fiscal.<br /><br />As per sources, the Finance Ministry has been asking the Labour Ministry to align the EPF interest rate with other small saving schemes of the government like Public Provident Fund (PPF).<br /><br />In September, the government reduced interest rates on small savings schemes marginally by 0.1 per cent for the October-December quarter of 2016-17, which resulted in lower returns on PPF, Kisan Vikas Patra, Sukanya Samriddhi Account, among others.<br /><br />The Labour Ministry however wanted to retain 8.8 per cent for the current fiscal as well, a source said.</p>
<p>Retirement fund body EPFO today decided to lower the interest on EPF deposits for the current fiscal to 8.65 per cent, from 8.8 provided in 2015-16, for its over four crore subscribers.<br /><br /></p>.<p>"The Employees Provident Fund Organisation's apex decision making body, the Central Board of Trustees (CBT), has taken a decision to lower the interest rate to 8.65 per cent for the current fiscal from 8.8 in 2015-16," Indian National Trade Union Congress Vice-President Ashok Singh told PTI after the meeting at Bengaluru.<br /><br />Bharatiya Mazdoor Sangh General Secretary Virjesh Upadhyay also said that 8.65 per cent rate of interest is fixed on EPF deposits for 2016-17.<br /><br />As per the EPFO income projections, retaining 8.8 per cent rate of interest for the current fiscal would have left a deficit of Rs 383 crore.<br /><br />However, the body could have utilised about Rs 409 crore surplus with it, which accrued after providing 8.8 per cent rate of interest for 2015-16, to retain the same rate of return for the current fiscal.<br /><br />A surplus of about Rs 69.34 crore was stipulated if interest rate was to be lowered to 8.7 per cent.<br /><br />EPFO has projected income of Rs 39,084 crore for the current fiscal.<br /><br />As per sources, the Finance Ministry has been asking the Labour Ministry to align the EPF interest rate with other small saving schemes of the government like Public Provident Fund (PPF).<br /><br />In September, the government reduced interest rates on small savings schemes marginally by 0.1 per cent for the October-December quarter of 2016-17, which resulted in lower returns on PPF, Kisan Vikas Patra, Sukanya Samriddhi Account, among others.<br /><br />The Labour Ministry however wanted to retain 8.8 per cent for the current fiscal as well, a source said.</p>