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- EPFO can once again cut interest rates
- PF rates for FY 2019-20 reduced from 8.65 per cent to 8.50 per cent
- new Delhi. The corona virus and subsequent lockdown have dealt a major blow to the common people. In particular, the working people have to face the consequences of constantly reducing savings and rising inflation. Now the common people are going to get another big shock. By the way, the possibility of reducing the Small Saving Scheme Interest Rate is being raised. Now the provident fund interest rate can be reduced in the same way. According to media reports, the EPFO is likely to cut interest rates once again. The main reason behind this is being told the decreasing returns on investment, due to which the interest on provident funds is being considered to be reduced.
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- EPF interest rates may be cut
According to media report, the Finance and Investment Department and Audit Committee of EPFO are going to meet soon to decide on PF interest rates. Which will decide on how much interest rate the EPFO can pay. The EPFO invests 85 per cent of the total fund in the debt market and 15 per cent in the stock market through exchange traded funds. At the end of March last year, EPFO’s total investment in equities was Rs 74,324 crore and it returned 14.According to the information, there is an investment of more than 18 lakh crore rupees by EPFO, due to what may be the reason for the reduction of interest rates . Of the total investment, about 4500 crore rupees have been invested in NBFC company Dewan Housing and IL&FS. While DHFL is going through a bankrupt resolution process, government surveillance is on to protect IL&FS. In such a situation, a lot of money of EPFO has been trapped.74 per cent.
