interest

Govt okays lowering of PF rate to 8.65%

The Finance Ministry has permitted the Labour Ministry to go ahead with 8.65 percent rate of interest on employees’ provident fund for 2016-17. The Finance Ministry in its communication to the Labour Ministry has, however, put a rider that the interest rate should not result in a deficit for the retirement fund. The Finance Ministry had last year also decided to lower the EPF interest rate.

Interest rate on PPF, KVP lowered

Returns on small savings schemes, including public provident fund , National Savings Certificate and Kisan Vikas Patra, will be lower from April 1. Interest rates on all nine small savings schemes will be lower by 0.1%. The government moved to a market-linked interest rates system for these instruments last year but also reserved the right to review them quarterly.