Modi govt's New Year bonanza for PF subscribers continues, takes big decision for your benefit

 New Delhi: The Modi government’s New Year bonanza to benefit crores of EPF subscribers continues, with media reports saying that it has allowed Employees' Provident Fund Organisation (EPFO) and Exempted Provident Fund Trusts to invest in public sector debt ETFs (Exchange Traded Funds) like Bharat Bond ETF.

As per a report in the Live Mint, a notification in this regard was pushe

d on January 4.

    It is worth mentioning here that ETFs are giving yields in the range of between 4.5 percent to 6.6 range. This is way less than the 8.5% interest rate declared by the EPFO for FY20 in December 2020.

    Labour Minister Santosh Kumar Gangwar in written reply to a question in Lok Sabha in 2019 had said that Employees’ Provident Fund Organization (EPFO) is investing in Exchange Traded Funds (ETFs) based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 Indices. EPFO does not invest in shares and equities of individual companies. As of September 2019, the total amount invested by EPFO in ETFs was Rs 86,966 crore. The Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) in its 207th meeting held on March 31 2015 had decided to invest only in ETFs in the category of equity and related investments.

    Giving New Year bonanza to around six crore EPF subscribers who have been eagerly waiting for the final nod from government on crediting of interest for 2019-20 in their employees' provident fund (EPF) accounts, the Modi government 8.5 percent interest.

    Labour and Employment minister Santosh Gangwar on December 31 announced that PF subscribers will start receivig 8.5 percent interest on their PF amount from the said day onwards.

    “I am happy to inform you that a notification has been issued & for year 2019-2020, our over 6 crore subscribers will receive 8.5 percent interest on PF amount. We have made such arrangements that you'll start receiving these benefits from today,” Union Minister Santosh Gangwar said.

He added, “We know that circumstances in 2020 weren't favourable for us. People were surprised when in 2020 beginning, we had said that we'll try to give 8.5 percent interest on Provident Fund amount for year 2019-2020. Today, I am here to fulfill that promise.”