New Delhi: After reducing the repo rate after a long time by the Reserve Bank, the cut in interest rates from the banks is considered to be fixed. However, there is no possibility of impact on the Employees Provident Fund (EPF) interest at least this year. According to the indications received from the Ministry of Labor, the interest rate may not increase in the current financial year, but there is no possibility of decrease in comparison to last year. This means that EPF investment will remain stable in the current financial year and in 2024-25, 8.25 percent interest on EPF is almost certain. The official decision will be taken at the current year's EPF interest rate in the meeting of the Central Board of Trustees (CBT) of the Employees Provident Fund Organization.

According to sources, the EPFO ​​has completed the discussion on the proposed interest rate with the Ministry of Labor after fulfilling its income and expenditure for the year 2024-25. After the repo rate cut in the repo rate of the Reserve Bank, in view of the possibility of investment deposits on behalf of the banks and the possibility of cutting interest rates on loans, there was also speculation on EPF interest.

Labor Ministry is not in favor

However, in terms of interest on EPF, which is considered to be the biggest facility of social security, the Ministry of Labor is not in favor of taking a decision on the basis of the last two -month repo rate of the current financial year. Recently, the EPFO ​​presented before the Ministry of Labor of the Labor of the Labor of the current and future investment of the current year to the current and future investment. It is believed that in a meeting held on this issue with EPFO, Labor Minister Mansukh Mandavia also expressed his opinion to maintain stability in interest on EPF.

More than six and a half crore members in EPF

Let us know that at present there are more than six and a half crore members in EPF and politically EPF interest is always a sensitive issue. However, in September last year, in view of the boom of the capital market and paying more than eight percent interest on the fixed deposits of banks, the ministry also raised the possibility of paying 8.40 percent interest on EPF during a time current year. But the capital market has been familiar with heavy fluctuations for the last five months and the repo rate has also decreased by 0.25 percent.

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Ministry has given approval

In such a situation, it is important to maintain 8.25 percent this year on EPF like 2023-24. The Ministry of Labor has given its approval on the interest rate proposal of the EPFO, which will be decided after considering the CBT meeting on February 28. CBT only approves the proposal to fix the interest rate. The Finance Ministry makes a final decision on the recommendation of CBT. Generally, CBT recommendations are approved to the Finance Ministry and only after that the current year interest amount on EPF is deposited in the members' account.