Employees working on behalf of Narendra Modi government may get a shock. According to a news website report, the Employees Provident Fund Organization ((EPFO) is preparing to reduce the provident fund (PF) interest rates by 8. 65 per cent. The report claims that the EPFO interest rates will be reduced by 15 to 25 basis points. It is being said that this announcement can be made by the government in the last week of January.
If you are also employed, then perhaps you understand the importance of PF amount very well. During the job, this amount is secured for the future of the person. Money is deposited in this, along with the interest rate on PF is also available. Many people withdraw money from PF funds according to their needs. The decision of the Central Government to reduce the interest rate of PF will affect about 8 crore people.
The EPFO announced an 8.65 per cent interest rate for the financial year ended March 2019. Earlier, people used to get 8.55 percent interest rate on PF. Recently, there was also news that the Finance Ministry of Nirmala Sitharaman is not in favor of giving more returns on the PF of the working people. The reasoning of the Ministry behind this is that in the circumstances of giving high returns, it is not possible for banks to give attractive interest rates at all because it will affect the economy.