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On EPF rate cut, minister says ‘feels good to announce’; RLD chief reacts
Union labour minister Bhupendra Yadav was quoted saying “it feels good to announce” 8.1% interest rate on EPF savings for 2021-22 at a time when a 10-year fixed deposit with the State Bank of India yields just around 5.4% returns.
Rashtriya Lok Dal (RLD) chief Jayant Chaudhary criticised Union labour minister Bhupendra Yadav for “feeling good” to announce a downward revision of the interest rate on employees’ provident fund (EPF), a popular savings scheme for millions of salaried middle-class Indians. The Central Board of Trustees, in its 230th meeting, chaired by Yadav, took key decisions including revised estimates for 2020-21 and budget estimates for 2022-23 for schemes administered by the Employees’ Provident Fund Organisation (EPFO).
The state-run retirement fund manager has lowered the interest on provident fund deposits for 2021-22 from 8.5% to 8.1%, the lowest since 1977-78. The labour ministry said in a statement that the interest rate recommended is a “result of combined income from interest received from debt investment as well as income realized from equity investment.”
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Addressing an EPFO public event in Guwahati, Bhupendra Yadav said “it feels good to announce” 8.1% interest rate on EPF savings for 2021-22 at a time when a 10-year fixed deposit with the State Bank of India yields just around 5.4% returns, while returns on savings instruments like the Public Provident Fund are in the range of 6.8% to 7.1%, reported news agency ANI.
“Feels good to pour salt into wounds of those who are bearing the brunt of inflation?” Chaudhary wrote on Twitter.
The RLD chief said that low-interest rates are not transmitting to high growth and hurting savings.
“Inflation adjusted returns on saving schemes turning -ve, MSMEs’ withering & stagflation is on the horizon!” he added.
