Finance ministry wants EPFO to lower provident fund (PF) interest rates

June 28, 2019 |
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Investments
Finance ministry wants EPFO to lower provident fund (PF) interest rates

NEW DELHI: India's finance ministry has demanded the Employees' Provident Fund Organization (EPFO) cuts the 8.65 percent annual return it was planning to offer about 85 million member workers, according to a ministry memorandum reviewed by Reuters.

The reason is that the yield may not be justified given the fund's performance but two officials with knowledge of the discussions said the bigger factor is concern the high return would hurt the economy by reducing banks' ability to lend at attractive rates.

 

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