0.1% rate cut in provident fund deposits announced (Lead, correcting headline)

IANS  |  New Delhi 

In a blow to government employees, the Organisation (EPFO) on Wednesday decided to lower the interest rate on deposits to 8.55 per cent from the existing 8.65 per cent.

The rate cut decision for the fiscal 2017-18 was taken at the meeting of the of the EPFO, sources said.

In the last fiscal, the EPFO had cut the rate to 8.65 per cent from 8.8 per cent in 2015-16.

The latest rate cut comes amid reports that the EPFO sold a portion of its investments in the exchange-traded funds (ETF) worth Rs 2,886 crore earlier this month.

That had given rise to hopes that the retirement body, which has some five crore members, will retain the interest rate.

--IANS

sar/bg

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 21 2018. 21:10 IST
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