Employees' Provident Fund Organisation on Thursday announces a 15 basis point reduction in the interest rate on Provident Fund deposits in the Financial Year 2019-20. The organisation has lowered the interest rates from 8.65% to 8.50%.
This means that the salaried employees will now get 0.15% lower returns on PF deposits and will affect over 60 million subscribers.
Well, this comes amid the economic slowdown that has had an impact on the EPFO's earnings from the debt market instruments that includes fixed deposits and government securities.
The organisation invests 85% of its annual income in the debt market and 15% in equity market. Reports show that EPFO had invested in Rs 18 lakh crore out of which Rs 4,500 has been in DHFL and IL&FS. The balance sheet of EPFO for the year ended March 31, 2019, showed that it had made an investment of Rs 74, 324 crore that fetches them a 14.74% return.
More details awaited.
