Breaking: Shocking..Interest on your PF money REDUCED to 8.55%

New Delhi, Feb 21: The EPFO on Wednesday fixed an interest rate of  8.55% interest rate for 2017-18. This is lower  than 8.65 % that you got in 2016-17.

Earlier it was being speculated that EPFO will maintain the 8.65% interest rate for this fiscal. The Employees Provident Fund Organisation (EPFO) had sold a portion of its investments in the exchange-traded funds (ETF) worth Rs 2,886 crore earlier this month, sources said.

The EPFO had announced 8.65% rate on deposits for 2016-17, a tad lower than 8.8 percent in 2015- 16. It has earned a return of Rs 1,054 crore on sale of ETFs this month, which was expected to be sufficient to provide 8.65 percent rate of interest this fiscal, sources added.

The EPFO has been investing in ETFs since August 2015 and it has so far not monetised the ETF investments. The EPFO has invested around Rs 44,000 crore in the ETFs till date.

News24Bureau/Agencies