PF deposits to fetch lower returns as EPFO cuts rates to 8.65% for 2016-17

It is 0.15% less than the last financial year

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Retirement fund body Employees' Provident Fund Organisation (EPFO) on Monday fixed 8.65 per cent  as the interest on EPF deposits for 2016-17.

It is 0.15 per cent less than the last financial year's 8.8 per cent.

Earlier the Finance Ministry  decided to lower interest on provident fund deposits for 2015-16 to 8.7 per cent from the 8.8 per cent approved by the Central Board of Trustees or CBT. However, following protests by  unions, the government later rolled back its decision and approved an 8.8 per cent as the interest on PF deposits.

In September, the government reduced interest rates on small savings schemes marginally by 0.1 per cent for the October-December quarter of 2016-17, which resulted in lower returns on PPF, Kisan Vikas Patra, Sukanya Samriddhi Account, among others.