New Delhi: Employees’ Provident Fund Organisation lowers interest rates from 8.65% to 8.55%. The EPF interest rate was 8.80% in 2015-16. This is the third straight year for which the provident fund body has reduced interest rate.
In order to maintain the 8.65% interest this fiscal, the Employees Provident Fund Organisation (EPFO) had sold a portion of its investments in the exchange traded funds (ETF) worth Rs2,886 crore earlier this month, people aware of the matter had said.
It has earned a return of Rs1,054 crore on sale of ETFs in February, which would be sufficient to provide 8.65% rate of interest this fiscal, said the people.
The EPFO has been investing in ETFs since August 2015 and it has so far not monetised the ETF investments. The EPFO has invested around Rs44,000 crore in the ETFs till date.