PROVIDENT FUND INTEREST RATES COULD GO DOWN FURTHER THIS FISCAL

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The Hush Post: Employees Provident Fund Organisation could lower interest rates on provident fund deposits this fiscal compared to 8.65 per cent for 2016-17. This was stated by a labour ministry official.
EPFO may bring down rate of return on PF deposits for 2017-18 owing to lower income on bonds and its plan to credit ETF investments directly into the account of subscribers.
The Employees’ Provident Fund Organisation (EPFO) is likely to cut interest rate because it is directly crediting exchange trade funds (ETF) units into provident fund accounts and lower yields on other investments, particularly bonds.
The EPFO has approved an accounting policy for valuation and accounting of equity investments. The policy will enable the body to credit ETFs units into the provident fund account of the subscribers by this fiscal end. Thus every account holders will see their provident fund balance in the form of cash balance and ETF units. The EPFO has 4.5 crore members depositing a monthly fund for future and retirement purposes.

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