The Finance Ministry approved an 8.5 percent rate of interest on provident funds for 2020-21, allowing the Employees’ Provident Fund Organization (EPFO) to credit interest to recipients’ accounts ahead of Diwali. The labor ministry wants to disclose the rate as soon as possible after receiving approval from the ministry on Friday, a senior government official informed The Indian Express. The EPFO has around 6.7 crore active subscribers and 6.9 lakh contributing establishments.
The interest rate is understood to have been decided on an income of Rs 70,300 crore from the sale of debt and equity investments, leaving a surplus of around Rs 300 crore with the EPFO.
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