COVID-19 Impact: Interest on provident fund for FY 20 to be paid in two parts, says EPFO
New Delhi | Jagran Business Desk: Retirement fund body EPFO on Wednesday announced that it would credit a part of 8.5 per cent interest on employees provident fund (EPF) for 2019-20 into the account of its around 6 crore subscribers. The retirement fund body has decided to credit 8.15% interest into the subscribers’ account first, while the remaining 0.35% will be credited in December.
The EPFO had earlier planned to liquidate some of its investment in exchange traded funds to meet the deficit for providing 8.5 per cent interest for the last fiscal.
However, it could not do so because of the choppy market conditions amid lockdown induced by COVID-19.
"There is no going back on 8.5% rate for FY20, but the current situation has pushed us to go for two instalments. Some of the investments could not be encashed due to bad market situation, hence this new formula," Livemint quoted EPFO central board trustee, Virjesh Upadhyay as saying.
The EPFO’s apex decision making body Central Board of Trustees (CBT) will meet again in December and take a call on crediting remaining 0.35 per cent interest into subscribers account.
The issue was not listed on the agenda. However, some trustees raised the issue of delay in crediting interest into subscribers’ account.
The board headed by Labour Minister Santosh Gangwar had decided to provide 8.5 per cent interest rate for 2019-20 in its meeting held in March this year.
(with agency inputs)
Posted By: Rakesh Kumar Jha