Recently EPFO had been news. Well, EPFO is short form for Employees’ Provident Fund. Earlier EPFO released statement. That statement was about ETF investment hike. However, the latest one is about interest rate on provident fund deposits. Moreover, these deposits are for 2016-17 financial year.
Mr. Bandaru Dattatreya, Labour Minister announced about this decision. Because EPFO trustees propose an 8.65% interest on PF. On other hand, Finance Ministry is asking Labour Ministry to check interest rate. As it has to be up to 50 basis points.
Dattatreya’s take on lowering interest rate
The Labour Minister, Mr. Dattatreya said that they submitted report about interest rate on provident fund. However, if there are any changes. He will also meet the Finance Ministry. In this way, things will be clear. In addition, he went to add that 8.65% will be the same.
Moreover, there are very few chances for this interest rate to change. However, he was not sure of when will interest start. This interest is for the 8.65%. On other hand, Mr. Dattatreya said that CBT agreed for 8.65% interest rate. CBT is the Central Board of Trustees.
Aadhaar card seeding application launched
Apart from the above stated things. Mr. Dattatreya launched Aadhaar card seeding application. This Aadhaar seeding application will help EPF subscriber. Even pensioners will be able to use this application. It would be better if you know steps to check EPF balance using UAN number.
Benefits of Aadhaar seeding application with PF or pension
Because of Aadhaar seeding application, pensioners or PF subscribers can go to field offices. Therefore, at EPF field offices, they can check seeding of Aadhaar card to PF is possible. Furthermore, they can also link Aadhaar card to pension. Thus, people can receive Aadhaar benefits. But for receiving benefits of Aadhaar, people must follow a few steps.
To help pensioners and provident fund holders. The Labour Ministry developed Aadhaar seeding application. However in developing this application, CDAC played an important role. Additionally, CDAC is the short form for Common Service Centres.
Effect of interest rate on EPF in current financial year
Bandaru Dattatreya informed that their situation is improving. This is terms of income earning on the investments. Moreover, decision of EPF pensioners to get medical benefits is also there.
Thus, things will be better by start of next financial year. Because Labour Ministry expects to have better returns in the next financial year. This is the FY 2017-18.
As for the case of this year. The Labour Minister, Bandaru Dattatreya said that rate of interest did not finalise so far. Therefore, only after the final meeting there will be clear picture. This is for the rate of interest. In addition, income estimates will have important part to play as well.
Thus, we must wait for some more time till we know the final result on EPFO interest rate. Till then you can know more about how to set EPFO claims through mobile.