Officials said that EPF cash withdrawals have reduced now compared to the time of Corona Pandemic and the income of EPFO investments has increased significantly. He said that in the process of predicting good returns from equity investments, the EPF interest rate can be maintained at the current rate of 8.10 percent or there are possibilities of reducing it below 8 percent. An official stated that the central government may not make major changes in the EPF interest rates in view of assembly elections of key states this year and general elections next year.
A member of the EPFO Finance Investment and Audit Committee confirmed that the CBT meeting will be held in the last week of March. A day before that, FIAC will meet and recommend the interest rate for the financial year 2022-23. However, where this meeting will be held and what its main agenda will be is not disclosed. But as far as he knows, there is no main agenda other than the decision on the interest rate this year. He said there is a possibility of decisions on interest rate and other management related issues.
For the financial year 2021-22, the retirement fund body EPFO had fixed the interest rate at 8.1 percent last year. However, it is a 40-year low. Last year the interest was less than 8.5 percent. It was decided on the basis of income of Rs.76,768 crore. EPFO has been investing in equities since 2015-16. In the first year, 5 percent of the funds were invested, 10 percent in the second year, and 15 percent in the third year. Now it has reached Rs.1.7 lakh crore. Out of which Rs.22,000 crore has been withdrawn by March 31, 2022. Also, EPFO has 1.5 lakh crore investments in ETFs.
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