Retirement fund management body EPFO may announce the interest rate on provident fund deposits for the financial year 2020-21 on March 4. On March 4, the Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO) has a meeting in Srinagar. The meeting is expected to decide on the proposal to announce the interest rate for 2020-21.
Kei Raghunathan, a trustee of the EPFO, told PTI that they received the information on Monday for the next meeting of the Central Board of Trustees in Srinagar on March 4. The agenda of the meeting is going to be sent soon. He said that there is no mention of discussion on interest rate for 2020-21 in the mail related to the information of the meeting. There is speculation that the EPFO may reduce the interest rate on provident fund deposits for this fiscal year (2020-21), which was 8.5 percent for 2019-20.
Interest money not deposited in 40 lakh PF shareholders account
Interest money has not been deposited in the account of about 40 lakh Provident Fund (PF) shareholders associated with Employees Provident Fund Organization (EPFO). At the same time, the government has announced to deposit interest money in PF accounts for the financial year 2019-20, about one and a half months ago. The EPFO has attributed this to the mismatched KYC (Know Your Customer) provided by employers. Two government officials have given this information on the condition of keeping their identity a secret.
Also read: EPFO: Did your stuck PF interest? Know balance through an SMS
However, the matter of delay in payment of interest has already come up. An official associated with the EPFO said that about 8 to 10 per cent of the PF shareholders’ interest has not been deposited in their account. This mismatch is due to KYC. However, the officer is also surprised that how has this delay occurred when every transaction is done online? Apart from this, an official said that we are trying to ensure that the shareholders do not face this problem at the time of withdrawal from PF. Further, we are working to ensure that there is no problem of compounding interest deposits in the account of shareholders as 2020-21 is about to end.