Retirement fund body EPFO is likely to announce the rate of interest on provident fund deposits for 2020-21 on March 4 when its Central Board of Trustees will meet at Srinagar.
K.E. Raghunathan, an EPFO trustee, said that on Monday he received the intimation that the next CBT meeting is scheduled to be held on March 4, at Srinagar and that the agenda papers are likely to be sent soon.
He said that there is no mention about the discussion on interest rate for 2020-21 in the intimation mail.
Speculation is rife that the Employees’ Provident Fund Organisation (EPFO) may lower interest on provident fund deposits for this fiscal (2020-21) from 8.5 per cent provided for 2019-20 in view of more withdrawals and lesser contribution by members during this fiscal mainly because of the Covid-19 pandemic.
Last year in March, the EPFO had lowered its interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20 from 8.65 per cent in 2018-19.
The EPF interest rate provided for 2019-20 at 8.5 per cent was the lowest since 2012-13.
The EPFO had provided an 8.65 per cent interest rate to its subscribers for 2016-17, and 8.55 per cent in 2017-18.
The rate of interest was slightly higher at 8.8 per cent in 2015-16.
The fund had given an 8.75 per cent rate of interest in 2013-14 as well as in 2014-15, higher than 8.5 per cent for 2012-13.
