In a move that will affect some 15.84 crore contributors to the Employees Provident Fund scheme, the government has cut the interest rate for 2015-16 marginally to 8.7 percent from the recommended rate of 8.8 percent.
The new rate came to light in a rather peculiar manner, with Labour Minister BandaruDattatreya informing the LokSabha about it in a written reply to a question posed by two lawmakers on Monday.
The Minster said the Central Board of Trustee of the Employees' Provident Fund (EPF) in its 211th meeting on February 16 this year had proposed an interim rate of interest at 8.80 percent to be credited to the accounts contributors for year 2015-16. But the Ministry of Finance ratified an interest rate of 8.70 percent, he said in the reply to the questions from C.R. Chaudhary of the Bharatiya Jana Party and P. Nagarajan of the All India Anna DravidaMunnetraKazhagam.