Central Board of Employees' Provident Fund Organisation (EPFO) on Thursday has recommended 8.50% rate of interest to its subscribers for year 2020-21, said a press release of Ministry of Labour & Employment.
FDI equity inflow grew by 40% in the first 9 months of FY 2020-21 (USD 51.47 billion) compared to the year-ago period (USD 36.77 billion), said the release.
The interest rate would be officially notified in the government gazette following which EPFO would credit the rate of interest into the subscribers’ accounts.
For FY 2021, EPFO decided to liquidate investment in and the interest rate recommended is a result of combined income from interest received from debt investment as well as income realized from equity investment. This has enabled EPFO to provide higher return to its subscribers and still allowing EPFO with healthy surplus to act as cushion for providing higher return in future also. There is no over-drawl on EPFO corpus due to this income distribution, said the release.