Nirmala Sitharaman Describes Fact Of Revision Of EPFO Rates
On Monday Finance Minister Nirmala Sitharaman describe the fact about EPFO interest rates. She states that the current 8.1 percent of interest rate on employees provident fund is better than other schemes. She comparatively explains that other savings schemes are paying much lower interest rates than EPFO. It was also asserted by her that the current revision of interest rates speak out the realities of the current era.
While debating on the Supplementary Budget in Rajya Sabha she said that EPFO’s central board decides the interest rate on EPF. And the decision to cut the return rate to 8.1 per cent for fiscal year 2021-2022 was taken by the board.
Nirmala Sitharaman stated, “EPFO has a central board which is the one which takes the call on what rate has to be given for them, and they have not changed it for quite some time…they have changed it now … to 8.1 per cent.”
Interest Rates Offer By Other Schemes
With a large number of representatives , the decision was taken by the EPFO Central Board. As they have decided to keep the interest rate at 8.1 per cent the other schemes are providing very lower in comparison. Sukanya Samriddhi Yojana providing 7.6 percent, Senior Citizen saving scheme at 7.4 percent, PPF at 7.1 percent and SBI’s FD for the tenure of 5-10 years providing the interest rate of 5.50 percent.
Finance Minister Nirmala Sitharaman said, “The fact remains these are rates which are prevailing today, and it (EPFO interest rate) is still higher than the rest.” Further added that the EPFO rates were unchanged since 40 years, but the current revision is describing today’s realities.