Millions of EPFO subscribers may have to take a hit on their earnings from provident fund deposits as the fund manager has decided to seek a cut in interest rate to 8.5 per cent.
The Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) will meet on November 23 to consider a reduction in interest rate for fiscal 2017-18. The EPFO paid 8.65 per cent interest last year.
The decision to cut the rate has come at a time when returns of other deposit schemes are also low. A steady rise in food inflation is eroding their savings as well.