Government Assures Provident Fund (EPFO) Subscribers They Will Not Lose Interest
Allaying fears of crores of its subscribers, the Employees' Provident Fund Organisation (EPFO) has said that it has started crediting interest for the financial year 2021-22, and there will be no loss of interest.
Earlier in June, the government had approved 8.1 per cent interest for 2021-22 for its over five crore subscribers.
The retirement fund body typically starts crediting the interest into provident accounts after the government ratifies the interest rate.
Deposit statements, however, were not showing interest accrued for the previous financial year, causing concerns among over five crore subscribers. They feared that they would lose interest part.
Now, EPFO, in a tweet, has said: “The process of crediting interest is ongoing, and it will get reflected in your account soon. Whenever the interest is credited, it will be paid in full. There will be no loss of interest.”
The process of crediting interest is ongoing and it will get reflected into your account soon. Whenever the interest is credited, it will be paid in full. There will be no loss of interest.
October 31, 2022The tweet was in response to a query on “delay” in crediting interest into account.
The Finance Ministry in October clarified that interest was being credited, but it was not visible in account statements. The finance ministry had attributed this to a software glitch.
There is no loss of interest for any subscriber.
October 5, 2022
The interest is being credited in the accounts of all EPF subscribers. However, that is not visible in the statements in view of a software upgrade being implemented by EPFO to account for change in the tax incidence. (1/2) https://t.co/HoY0JtPjIIThe Ministry added that the payments were being made, inclusive of interest, for all subscribers seeking settlement or withdrawal,
Employee provident fund is one of the safest saving schemes that offer returns higher than other secure investment options such as bank fixed deposits.
It is a popular scheme, particularly among small savers, as a particular portion of the monthly deposit is earmarked for pension benefits. Besides, subscribers can enjoy tax benefits on the deposits they make.
However, the interest rate of 8.1 per cent for the previous financial year is a multi-year low. The interest rate has been steadily coming down over the years.
Interest stood at 8.65 per cent in 2016-17, reduced to 8.55 per cent in 2017-18. It reached a seven-year low of 8.5 per cent in 2019-20.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
