Yesterday, just a day before the Union Budget is to be presented in the Parliament, the Union Finance Minister dropped a bomb-shell on the Salaried Class of India.
What is that Bomb Shell?
Our Finance Minister has proposed/approved a 1.25% rate cut on the Interest offered on EPF deposits. For now on, the rate of interest will be 8.25% instead of the 9.5% that was offered so far.
How does this affect us?
Employee Provident Fund (EPF) is one of the main (if not only) sources of funds for retirement for a majority of the working/salaried class of India. So, a rate cut here means, millions of Indias salaried people are going to be adversely affected. A rough estimate puts around 5 crore or more workers throughout India will be affected by this Rate Cut.
What is Next?
Frankly speaking, only God Knows. Lets Hope & Pray that, this rate cut is scrapped or atleast partially scrapped to benefit the millions of middle class India's who depend entirely on their EPF savings for Retirement.