InvestorQ : What is the interest rate set for EPF for the current year? Has it been lowered?
Arya Nanda made post

What is the interest rate set for EPF for the current year? Has it been lowered?

Answer
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Deepa Salunkhe answered.
7 months ago


On Wednesday, the EPFO announced that the interest rates on the Employee Provident Fund (EPF) have been cut to 8.50%. This is the lowest level in 7 years. Over the last few years, many banks have been asking the RBI to reduce the rates of interest on EPF, PPF and small savings as it was distorting the yield curve and making it impossible for banks to cut their deposit rates. This had been largely responsible for the weak transmission of rate cuts by banks. This is expected to save Rs.700 crore for the government of India in the form of interest payouts. Market experts have warned that rates need to still go lower.