The Employees’ Provident Fund Organisation lowered the interest rate from 8.65% to 8.55% on its deposits for the year 2017-’18, ANI reported on Wednesday. The retirement fund body announced the decision after a meeting of its trustees.
The organisation had last slashed the rate on provident fund deposits in 2016-’17, to 8.65% from 8.8% in the previous year. It had lowered the interest rate then after finding that retaining the earlier rate would have left a deficit of Rs 383 crore.
In order to be able to maintain the interest rate in 2017-’18, the EPFO sold a portion of its investments in exchange traded funds, worth Rs 2,886 crore, earlier in February, PTI reported.
The retirement fund body has more than 5 crore subscribers.