Government Assures Provident Fund (EPFO) Subscribers They Will Not Lose Interest

Allaying fears of crores of its subscribers, the Workers’ Provident Fund Organisation (EPFO) has mentioned that it has began crediting curiosity for the monetary yr 2021-22, and there shall be no lack of curiosity.

Earlier in June, the federal government had authorised 8.1 per cent curiosity for 2021-22 for its over 5 crore subscribers.

The retirement fund physique sometimes begins crediting the curiosity into provident accounts after the federal government ratifies the rate of interest.

Deposit statements, nonetheless, weren’t displaying curiosity accrued for the earlier monetary yr, inflicting considerations amongst over 5 crore subscribers. They feared that they might lose curiosity half.

Now, EPFO, in a tweet, has mentioned: “The method of crediting curiosity is ongoing, and it’ll get mirrored in your account quickly. Every time the curiosity is credited, it is going to be paid in full. There shall be no lack of curiosity.”

The method of crediting curiosity is ongoing and it’ll get mirrored into your account quickly. Every time the curiosity is credited, it is going to be paid in full. There shall be no lack of curiosity.

— EPFO (@socialepfo) October 31, 2022

The tweet was in response to a question on “delay” in crediting curiosity under consideration.

The Finance Ministry in October clarified that curiosity was being credited, however it was not seen in account statements. The finance ministry had attributed this to a software program glitch.

There isn’t any lack of curiosity for any subscriber.

The curiosity is being credited within the accounts of all EPF subscribers. Nevertheless, that isn’t seen within the statements in view of a software program improve being applied by EPFO to account for change within the tax incidence. (1/2) https://t.co/HoY0JtPjII

— Ministry of Finance (@FinMinIndia) October 5, 2022

The Ministry added that the funds had been being made, inclusive of curiosity, for all subscribers looking for settlement or withdrawal,

Worker provident fund is likely one of the most secure saving schemes that provide returns increased than different safe funding choices equivalent to financial institution mounted deposits.

It’s a fashionable scheme, notably amongst small savers, as a selected portion of the month-to-month deposit is earmarked for pension advantages. Apart from, subscribers can get pleasure from tax advantages on the deposits they make.

Nevertheless, the rate of interest of 8.1 per cent for the earlier monetary yr is a multi-year low. The rate of interest has been steadily coming down through the years.

Curiosity stood at 8.65 per cent in 2016-17, lowered to eight.55 per cent in 2017-18. It reached a seven-year low of 8.5 per cent in 2019-20.