As EPFO lowers interest rate on deposits, Opposition parties slam Modi

EPFO fixes 8.1% as the rate of interest on EPF deposits for 2021-22, the headlines have said since Saturday. The Congress party has dubbed the movie as BJP’s ‘return gift’ to people following its victory in assembly polls (read Uttar Pradesh, Uttarakhand, Goa, and Manipur).

This is not a sole case of deceleration. “EPFO has slashed interest rates to 8.1%. The lowest in 40 years. Under UPA, the EPF rates were always between 8.5 to 9.5%. Be it savings or Fixed Deposit rate, the safe banking instruments of the poor and middle class are delivering much lower returns, at a time of high inflation,” wrote Congress leader Mallikarjun Kharge. This tweet sums up the Opposition’s criticism of the interest rates on savings made by small savers.

In its latest report, Business Standard said that the EPFO has a surplus of around Rs 450 Cr after paying at a rate of 8.1%. In their meetings with the EPFO, employee representatives had sought higher interest rates but the Central Board of Trustees settled for 8.1%, the report says. The decision affects more than six crore EPF account holders in the country.

Even regional parties like Shiv Sena are attacking the NDA government. “The Modi era has been marked by lowering interest on FD, PPF, Post office savings, Senior citizens savings scheme, etc,” lamented Priyanka Chaturvedi.