Business Today
Loading...

EPFO starts interest payments for FY20; amount to appear in EPF accounts from Jan 1

The official also informed that EPFO has already begun depositing interest amounts into members' bank accounts at the direction of Labour Ministry

twitter-logoBusinessToday.In | December 31, 2020 | Updated 22:41 IST
EPFO starts interest payments for FY20; amount to appear in EPF accounts from Jan 1

Retirement fund body Employees' Provident Fund Organisation (EPFO) has retained its current 8.5 per cent interest rate on employees' provident fund (EPF) for 2019-20, as had been decided earlier.

EPFO, with more than six crore subscribers, also began crediting the amounts into their bank accounts on Thursday.

A senior official informed PTI that many members of the EPFO would be able to see the credited interest amounts in their EPF accounts starting Friday. 

The official also informed that EPFO has already begun depositing interest amounts into members' bank accounts at the direction of Labour Ministry.

"We had said that it would be our endeavour to provide 8.5 per cent interest rate on EPF for 2019-20. We have issued a notification to provide 8.5 per cent rate of interest on EPF for 2019-20. We have also began the process to credit the said rate of interest into subscribers' account," said Labour Minister Santosh Gangwar.

Also Read: Indian economy to grow by 10% in FY22, will reach pre-COVID level, says NITI Aayog vice-chairman

The minister has also informed that those retiring on December 31 will also receive the said amount, and that the process for capital gains at a 0.35 interest rate payment has also been completed for this fiscal year.

Central Board of Trustees, EPFO's apex decision making body headed by Gangwar, had approved the 8.5 per cent interest rate for 2019-20 back in March this year. The EPFO had decided to appropriate the 8.5 per cent interest rate in September 2020, splitting it into two components of 8.15 percent from debt income, and 0.35 per cent from the sale of ETFs (exchange-traded funds) as capital gains. These splits were subject to their potential redemption in December, which was eventually done away with.

The EPFO had chosen ETFs to liquidate some of its funds in order to provide the 8.5 per cent interest rates for the previous financial year, having failed to do so owing to choppy market conditions induced by the lockdown.

Also Read: Energy demand improves in November, but at a sluggish pace: Ind-Ra report

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close