BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fresh
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Following
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Financial
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Fund
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Detailed explanation-1: -The Labour Ministry has recently proposed to slash the interest rate by 0.4% to 8.1% from 8.5% earlier for the FY 2021-22. The decrease in interest rate will be a big blow to salaried individuals. This is because calculations related to retirement corpus is dependent on EPF contributions and its interest rate.
Detailed explanation-2: -It should be noted that the current proposed PF Interest Rate for FY 2021-22 at 8.1% is the lowest of the interest rates paid by EPFO since 1977-78, i.e. at 8.5% (FY 2019-20 and 2020-21), 8.65% (FY 2018-19), 8.55% (FY 2017-18), 8.65% (FY 2016-17), and so on.
Detailed explanation-3: -“The EPFO has decided to provide 8.50 percent interest rate on EPF deposits for 2019-20 in the Central Board of Trustees (CBT) meeting held today”, states Gangwar. Earlier in the year 2016-17 and 2018-19, the EPFO had given an 8.65% rate of interest to the subscribers. It was 8.80% in 2015-16.
Detailed explanation-4: -The Employees Provident Fund Organization or EPFO has reduced the interest rate offered in the PF scheme from 8.5% to 8.1% for the fiscal year 2022-23. The salaried employee class is going to receive lower interest from now onwards as compared to the previous fiscal year.