EPFO new Accounting Policies lowering the Interest Rate 2017-18
Posted on: 27/Nov/2017 5:46:11 PM
Employees Provident Fund Organization (EPFO) has decided to lower the interest rate on the deposits concerned with Provident Fund on this year.
The previous fiscal year’s official report says that it provided the interest rate of 8.65 to 4.5 crore members and now for the current year the cut of the interest rate is declared on the grounds on crediting exchange trade funds (ETF), on lowering yields on bond investments.
According to one of the senior official of EPFO the lower income of Bonds is said to be the reason for this sudden decrease in the interest rate and they are devising the plan to increase the income for the fiscal year which is actually in direct proportion with the interest credits for the subscribers.
For the purpose of revising the income generation and to neutralize the credit interest rate EPFO approved an accounting policy on accounting equity funds which is being prepared with the help of consulting IIM Bangalore, to give a balance to the subscribers in the form of ETF units and cash balance.
