Congress leader Mallikarjun Kharge on Sunday targeted the government over the revision in the provident fund interest rate, saying it was the "lowest in 40 years". Kharge is among several opposition leaders who have critcised the government over the new interest rate. "EPFO has slashed interest rates to 8.1%. The lowest in 40 years. Under UPA, the EPF rates were always between 8.5 to 9.5%. Be it savings or FD rate, the safe banking instruments of the poor and middle class are delivering much lower returns, at a time of high inflation (sic)," the leader of the opposition in Rajya Sabha tweeted.
On Saturday, the Employees’ Provident Fund Organisation (EPFO), the state-run retirement fund manager and a popular savings scheme for millions of salaried middle-class Indians, announced a cut in interest rate from 8.5 per cent to 8.1 per cent. “In today’s meet, EPFO consensus has been that it will pay an 8.1% interest on deposits based on the current position of earnings and deposits of the organisation,” Virjesh Upadhyay, a board member of EPFO, told HT.
Soon after the big announcement, Union minister Bhupendra Yadav said in Guwahati that “it feels good to announce” the revision.
{{/usCountry}}Soon after the big announcement, Union minister Bhupendra Yadav said in Guwahati that “it feels good to announce” the revision.
{{/usCountry}}Among those who have criticised the move are the Congress's Randeep Singh Surjewala. "The income of 84 per cent people of the country has decreased. Is it right to attack the savings of crores of employees on the basis of electoral victory? The EPFO has reduced the interest rate on PF deposits to the lowest level in 10 years. Is this the 'return gift' of BJP's victory?" he tweeted, referring to the BJP win in four states this week.
Shiv Sena leader Priyanka Chaturvedi tweeted: "EPFO slashes interest rates to 8.1%, lowest in over 40 years. Over 6 cr EPF account holders will feel the pinch. (sic)."