New Delhi: In what could prove to be a relief for those facing financial distress, retirement fund body EPFO has decided to credit a part of 8.5 per interest on employees provident fund (EPF) for 2019-20 into the account of its around 6 crore subscribers. The 8.15 percent interest would be provided now while the remaining 0.35 per cent rate of interest on EPF for 2019-20 would be credited into the subscribers account in December this year. Also Read - EPFO Launches Multi-location Claim Settlement Facility | Here's All You Need to Know
The decision was taken at the Employees’ Provident Fund Organisation’s (EPFO) trustees meet held today. Also Read - 7th Pay Commission Latest News: Govt Releases Rs 868 Crore Pension Along With Rs 105 Crore Arrear
The EPFO had earlier planned to liquidate some of its investment in exchange traded funds to meet the deficit for providing 8.5 per cent interest for the last fiscal. However, it could not do so because of the choppy market conditions amid lockdown induced by COVID-19. Also Read - EPFO Cuts Interest Rate on Deposits to 8.5 Per Cent For 2019-20
The EPFO’s apex decision making body Central Board of Trustees (CBT) will meet again in December and take a call on crediting remaining 0.35 per cent interest into subscribers account.
The issue was not listed on the agenda. However, some trustees raised the issue of delay in crediting interest into subscribers’ account.