Employees' Provident Fund Organisation has hiked interest rate on employees' provident fund to 8.65 percent from 8.55 percent for the 2018-19 fiscal year, reported ANI.
The Central Board of Trustees (CBT) headed by Labour Minister is the apex decision making body of the EPFO which finalises rate of interest on PF deposits for a financial year.
Once approved by the CBT, the proposal is required concurrence of the Finance Ministry. The interest rate is credited into the subscribers account after the Finance Ministry's approval.
The EPFO had provided a five-year low rate of interest of 8.55 percent to its subscribers for 2017-18.
The body had kept the interest rate at 8.65 per cent in 2016-17 and 8.8 percent in 2015-16. It provided 8.75 percent interest for 2013-14 as well as 2014-15. The rate of interest was 8.5 percent in 2012-13.
The EPFO had started investing in the ETFs (exchange traded funds) in August 2016. Presently it invests 15 percent of its Rs 1.5 crore investible deposits at hand every year in ETFs. It has invested around Rs 50,000 crore in ETFs so far.
(With PTI inputs)
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