Another big news is revealed regarding EPFO. These days, alongside banking scams, EPFO frauds are on the rise too. Scammers are accessing your accounts by stealing your personal info. But don’t worry, your EPFO funds are about to get a safety boost. The government is planning to set up an ‘Interest Stabilization Reserve Fund’ for EPFO. This initiative aims to provide stable interest rates for over 6.5 crore EPFO members on their provident fund contributions.
What’s the goal?
As per a report from the Economic Times, the Ministry of Labor and Employment has kicked off an internal study on this matter. The idea is to offer EPFO members a consistent interest rate, in addition to the returns from their investments. This move is likely aimed at shielding members from market volatility, ensuring they receive stable interest without their earnings being impacted. Since investing in the market can be risky, this reserve fund will help guarantee returns for members.
How will it function?
According to the report, EPFO plans to set aside a portion of the interest income each year to create this reserve fund. This fund will come into play when the returns on EPFO’s investments dip. As a result, members will enjoy a fixed interest rate, and no matter how much the market fluctuates, their interest won’t be affected.
When’s the rule going to kick in?
The EPFO Reserve Fund scheme is still in its early stages and is expected to be wrapped up by the end of this year. If the Central Board of Trustees of EPFO gives it the green light, we could see it rolling out in 2026-27.
What’s the interest rate looking like?
EPFO’s interest rates change every year. For 2023-24, they’ve set the interest rate for members at 8.25 percent, which is up from the previous 8.10 percent.
You can now withdraw cash from ATMs
Also, starting this January, there’s a new option to withdraw your PF money from ATMs. Soon, folks will be able to access their EPFO funds just like they would with a regular bank debit card.