EPFO likely to declare rate of interest on EPF deposits for FY21 on March 4

Retirement fund body EPFO is likely to announce the rate of interest on provident fund deposits for financial year 2020-21, on March 4, when its Central Board of Trustees will meet at Srinagar.

The Employees' Provident Fund Organisation (EPFO) is likely to take up the proposal to announce rate of interest for 2020-21 at its Central Board of Trustees (CBT) meeting scheduled on March 4, source said.

Talking to PTI, 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 discussion on interest rate for 2020-21 in the intimation mail.

Speculation is rife that the EPFO may lower interest on provident fund deposits for this fiscal (2020-21), from 8.5 per cent it provided for 2019-20, in view of more withdrawals and lesser contribution by members during this fiscal mainly due to the COVID-19 pandemic.

Last year, in March, EPFO had lowered 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 (employees provident fund) interest rate provided for 2019-20 was the lowest since 2012-13, when it was 8.5 per cent.

The EPFO had provided 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.

It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.