EPFO may retain 8.65% interest rate for FY18

The Employees Provident Fund Organisation (EPFO) is expected to keep interest rate unchanged on provident funds at 8.65 per cent for its about 50 million members for 2017-18 at its trustees’ meet on February 21, sources said.

The EPFO has already sold exchange-traded funds (ETF) worth ~28.86 billion earlier this month to bridge the gap to maintain 8.65 per cent for this financial year, they said.

The EPFO has earned a return of around 16 per cent at ~10.54 billion, which would be sufficient to provide 8.65 per cent rate of interest, said sources. The income projections for the current financial year have not been circulated along with the agenda to the trustees, and it would be tabled during the meeting, they said.