EPF rate retained at 8.5%
Extra time goal takes big guns to Spanish Cup title round
Giving a much-needed relief to the employed class worried about the falling interest regime, the Employees Provident Fund Organisation has retained the interest rate on EPF deposits at 8.5 per cent for the current fiscal
(FY20-21).
The EPFO had to liquidate investment in equities to maintain the rate at the current level, but it would still be making a profit this year. Though the EPFO's Central Board has recommended 8.50 per cent rate, the final call on the rate is taken by the finance ministry.
At 8.5 per cent, the EPF rate is better than most government small savings scheme rates, ranging from 6.9 per cent to 8.4 per cent, and bank fixed deposit rates of 5.5 to 6.3 per cent.
A government release on Thursday said the Central Board of the EPFO has recommended an annual interest rate of
8.5 per cent to be credited on deposit accounts of more than five crore members for the financial year
2020-21. The decision on interest rate would be send to the finance ministry for concurrence and later notified in the gazette, after which interest will be credited into the subscribers' accounts.
For FY21, EPFO decided to liquidate investment in equity and the interest rate recommended is a result of combined income from interest received from debt investment as well as income realised from equity investment.
As per reports, EPFO had an income of Rs
70,500 crore for distribution and even after keeping interest rates for current year at 8.5 per cent, it would have a surplus of around Rs 300 crore.
From 2015-16, the EPFO had started investing in equity through exchangetraded funds (ETFs) based on the NSE-50 and BSE-30 indices. The investment in equity assets started from
5 per cent for FY15 and is now at 15 per cent of the incremental portfolio.
The EPFO's decision comes amidst speculations that the interest rates would be lowered for
FY21 due to the pandemic impact. In FY20, the EPFO had cut the interest rate on PF deposits to a sevenyear low of 8.5 per cent. The rate of interest was
8.8 per cent in 2015-16, which came down to 8.65 per cent in FY19.
In the last budget, finance minister Nirmala Sitharaman had announced that the depositors investing more than Rs 2.5 lakh in EPF in a year would not enjoy tax exemption. This restriction is applicable for contribution made on or after April 1, 2021.
"The interest rate offered by EPF is better than most of the small savings schemes. So, even if you have 8.5 per cent with tax exemption till a contribution of Rs 2.5 lakh and 8.5 per cent for the remaining portion with tax, it remains a good option. It is a risk-free investment and is better than the bank fixed deposit rates ranging between 5.5 per cent and
6.3 per cent," said Suresh Sadagopan, founder of
Ladder7 Financial Advisories.
The current interest rate on EPF is higher than most of the small savings scheme rates. Public Provident Fund and National Savings Certificate provide 7.9 per cent interest rate. Kisan Vikas Patra offers 7.6 per cent and Sukanya Samriddhi Yojana 8.4 per cent. The five-year Post Office Monthly Income Scheme offers 7.6 per cent interest rate and post office term deposits of 1-3 years offer interest rate of
6.9 per cent. Post office 5year recurring deposits offer 7.2 per cent.
Madrid,
Barcelona needed extratime to reach the Copa del Rey final on Wednesday, with a 3-2 aggregate win over Sevilla coming just two days after a police raid on the club and the arrest of their former president.
Having trailed 0-2 from the first leg, Danish international Martin Braithwaite hit the crucial goal in the fifth minute of extra-time with a diving header off a Jordi Alba cross.
Gerard Pique had equalised in the fourth minute of stoppage time with virtually the last play of the game to save Barca.
The veteran international headed in at the near post after a fine cross from the astute Antoine Griezmann.
That was after Ousmane Dembele, who scored in the 2-0 win at Sevilla in La Liga at the weekend, had given the 30-time Spanish Cup winners a 12thminute lead in the second leg with a right-foot drive from outside the area.
Sevilla could have killed the game off in the 73rd minute to deny Barca their place in the final for a 42nd time.
They were awarded a penalty when Lucas Ocampos was brought down by Oscar Mingueza.
However, Ocampos saw his tame right-foot effort from the spot saved by Marc-Andre ter Stegen.
March
4:
Flagging Sevilla were then reduced to 10 men in injury time when Brazilian Fernando was red-carded for a foul on Francisco Trincao.
“The team deserved to qualify,” said Barca coach Ronald Koeman.
“For their work and honesty. We are more aggressive, we’ve always created chances, the team has improved enormously,” he added.
It was win for former a much-needed Barcelona after president Josep
Maria Bartomeu, current chief executive Oscar Grau, head of legal services Roma Gomez Ponti and Bartomeu’s advisor Jaume Masferrer were arrested by Catalan police, who searched the club’s offices on Monday morning.
They were all questioned in relation to last year’s “Barcagate” scandal.
The club holds its presidential elections later this week.
The search of Barcelona’s stadium was part of a probe into allegations the club carried out a defamation campaign against current and former players who were critical of Bartomeu.
Spanish radio station Cadena Ser claimed in February 2020 that Barca covered up inflated payments to a company called I3 Ventures which it had hired to boost the image of the club on the social media.
Part of the social media campaign included criticising current and former players like Lionel Messi and Xavi Hernandez, and iconic coach Pep Guardiola.
Barcelona will face either Athletic Bilbao or Levante, who are 1-1 in their semifinal, in the final on April 17 in Seville.
Before that, however, Barcelona will attempt another comeback effort when they take on Paris Saint-Germain in the second leg of their Champions League last 16 tie next week.
Barca trail 4-1 from the first leg.
Sevilla coach Julen Lopetegui admitted Wednesday’s defeat was a “bitter pill to swallow”.
—