EPF interest rates reduced:
The Central Board of Trustees of the Employees Provident Fund Organisation (EPFO) reduced the interest rate payable on their PF savings for this financial year to 8.65 per cent, as against 8.8 per cent in 2015-16.
This is the lowest return on EPF savings in the last seven years.
Rationale behind lowering the interest rate:
1. The decision to recommend this interest rate was made keeping in mind the overall economic scenario where interest rates are coming down.
2. The Minister cited the lower surplus from the previous year as another factor for the rate cut.
3. Even at 8.65 percent, EPF will deliver better returns than other savings instruments such as Public Provident Fund, GPF and post office term deposit schemes.