‘EPFO interest rate better than other schemes’

Finance Minister Nirmala Sitharaman on Monday defended a proposal to cut interest rate paid on employees’ provident fund deposits to over four-decade low of 8.1 per cent, saying the rate is dictated by today’s realities where interest rate on other small saving instruments was even lower.

Replying to a debate in the Rajya Sabha on the supplementary spending for the current fiscal, she said the decision to lower interest rate was taken by the central board of the provident fund managing body, EPFO, which has representatives of all stakeholders, including employee unions.

Her ministry is the nodal authority for approving the recommendation of the Central Board of Trustees of Employees’ Provident Fund Organization (EPFO).

‘EPFO has a central board which is the one which takes the call on what rate has to be given…and they have not changed it for quite some time. They have changed it now…to 8.1 per cent,’ the Finance Minister said.

The minister further added that it is a decision taken by the EPFO Central Board which has a wide spectrum of representatives in it.

0

0