Current context: Employees' Provident Fund Organization (EPFO) has lowered the interest rate on provident fund deposits to 8.5 % for 2019-20.
a. 7.5%
b. 7.9%
c. 8.2%
d. 8.5%
- The announced of the rate cut is made by the Labour Minister Santosh Gangwar after the meeting of the Central Board of Trustee (EPFO apex decision-making body) on 5th March 2020.
- With the rate cut of 15 basis points, employees will get 0.15% lower returns on their provident fund deposits this year.
- The workers have been making a constant demand that the EPF interest payout should be higher in view of its investments in the stock market via the exchange-traded fund.
- In 2018-19, EPFO had a surplus of Rs 151 crore after an 8.65% payout.
- Post 8.5% payout, the EPFO will have a surplus of Rs 700 crore.
- EPFO invests 85% of its annual accruals in the debt market and 15% in equities through exchange-traded funds.
- The Employees' Provident Fund Organisation is a statutory body formed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
- It is tasked to assist the Central Board of Trustees, Employees' Provident Fund and comes under the aegis of the Ministry of Labour and Employment.
- Headquarter: New Delhi
Question:
Q.1 The Employees' Provident Fund Organization (EPFO) has lowered the interest rate on provident fund deposits to _________ for 2019-20?a. 7.5%
b. 7.9%
c. 8.2%
d. 8.5%
