EPFO Lowered Interest Rate on Deposits to 8.5%

Published on March 05, 2020
Current context: Employees' Provident Fund Organization (EPFO) has lowered the interest rate on provident fund deposits to 8.5 % for 2019-20.
EPFO Lowered Interest Rate on Deposits to 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%

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