A separate reserve fund is being created in EPFO! Your money is now more secure
The government is now preparing to create an 'Interest Stabilization Reserve Fund' for the EPFO. The aim of this move of the government will be to provide stable interest to more than 6.5 crore members of the EPFO on their provident fund contribution.
These days, along with banking frauds, EPFO frauds are also happening a lot. Scammers are breaking into your account by taking your personal information.
But now your EPFO money will be safe. Actually, the government is now preparing to create an 'Interest Stabilization Reserve Fund' for EPFO. The purpose of this step of the government will be to give stable interest to more than 6.5 crore members of EPFO on their provident fund contribution.
What is the purpose?
According to a report by Economic Times, the Ministry of Labor and Employment has started an internal study in this regard. Based on this study, EPFO members are to be given a stable interest apart from the returns on their investments.
It is believed that this step is being taken to protect the members from the impact of market fluctuations, so that they get stable interest and their earnings are not affected.
Investment in the market is risky, in such a situation, the reserve fund of EPFO will be able to give assured returns to the members.
How will it work?
According to the report, EPFO will create a reserve fund every year by keeping aside the interest income. This fund will be used when the returns on EPFO's investments decrease.
Due to this, members will get a fixed interest and no matter how much fluctuation occurs in the market, it will not affect their interest.
When will the rule be implemented?
This scheme of EPFO Reserve Fund is currently in the initial stage and will be finalized by the end of this year. If the scheme gets approval from the Central Board of Trustees of EPFO, then it can be implemented from 2026-27.
How much interest are you getting?
The interest rates offered by EPFO keep changing from year to year. For the year 2023-24, EPFO had fixed the interest rate for members at 8.25 percent. Earlier, members used to get an interest rate of 8.10.
You can withdraw money from ATM
Apart from this, the facility of withdrawing PF money from ATM has also been announced in January this year.
This means that in the coming days, people will be able to withdraw their EPFO money from ATM. For this, they will be given an ATM card just like a bank debit card.