The organization has sought approval from the Ministry of Finance
Crores of Provident Fund (PF) account holders may get to hear good news before Diwali. Employees’ Provident Fund Organization (EPFO) is preparing to pay interest for the financial year 2020-21 just before Diwali. It is worth noting that even before Diwali, the government will provide dearness allowance and dearness relief to central employees. The Central Board of EPFO has approved this for interest rates. Now the organization has sought approval from the Finance Ministry and it is expected that the ministry will also approve it soon.
According to the information, the Central Board of EPFO had recommended an interest rate of 8.5 percent for the financial year 2020-21 in March this year. In the last financial year, EPFO imported Rs 70,300 crore including Rs 4,000 crore from sale of a portion of its equity investments. According to sources, an official said that the institution has sought approval from the Finance Ministry to give interest at the rate of 8.5 percent for the financial year 2020-21. All factors were taken into account while determining interest.
Another official said that getting approval from the finance ministry is part of the protocol. EPFO cannot pay interest without the approval of the ministry. The EPFO is hopeful that the Finance Ministry will also approve it soon, considering the decision of its board and its strong financial position.