Provident Fund Union Finance Ministry approves 8.5 pc interest rate on provident fund for FY21: Report
New Delhi/IBNS: The Union Finance Ministry on October 29 ratified an 8.5 percent interest rate for 2020-21 for provident fund, media reports said.
The decision was passed on Friday, reported CNBC TV 18, notably, in accordance with recommendations of the board of retirement fund body Employees Provident Fund Organisation (EPFO).
The EPFO will be able to start crediting the interest to the account of over 60 million beneficiaries and likely before Diwali.
This will happen once the Labour Ministry notifies the interest rate on PF deposit for the year as per the Finance Ministry’s approval.
On March 4, the retirement fund manager said the 8.5 percent interest rate on PF deposits will continue to remain the same for the financial year 2020-21.
The EPFO board of trustees headed by the labour minister had ratified the interest rate for FY21 as well but as per rules the Labour Ministry had to seek the approval of the Finance Ministry on the proposed rate.
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