New Delhi: The Employees' Provident Fund Organisation (EPFO) on Thursday annouced the rate of interest on provident funds deposits for the 2021-22 fiscal and decided to retain the rate at 8.5%. 


As per reports, the retirement fund body retirement fund body's apex decision-making body Central Board of Trustees decided to fix 8.5 per cent rate of interest for 2020-21 at its meeting in Srinagar earlier in the day. 


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The announcement comes amid speculations that EPFO might reduce the interest rates on provident fund deposits for 2020-21 fiscal from 8.5 per cent provided in 2019-2020 fiscal on the backdrop of higher withdrawal and lesser deposits due to Coronavirus pandemic. 


In March last year, the EPFO had lowered interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent in 2018-19. The interest rates were lower since 2012-2013, when it was 8.5 per cent.


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The retirement fund body had even provided 8.65 per cent interest rate to its subscribers in the 2016-17 financial year and 8.55 per cent in FY 2017-18. The rate of interest on provident fund was marginally higher at 8.8 per cent in 2015-16.


It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The EPFO had provided 8.25 per cent rate of interest on provident fund in 2011-12.