EPFO Likely to Maintain 8.25% Interest Rate for FY26, Third Straight Year Unchanged

• EPFO is expected to keep the interest rate on deposits at 8.25% for FY26, marking the third consecutive year without a change.
• The Central Board of Trustees (CBT) will meet in early March to review the rate, with sources indicating a likely retention of the current rate despite potential suggestions for a marginal reduction.
• EPFO manages a corpus of approximately Rs 25-26 lakh crore, invested across various instruments including State Development Loans, central government securities, corporate bonds, and ETFs.
• The organization aims to diversify its portfolio by investing more in equity to generate higher returns, potentially allowing for an interest rate above 9% in the future.
• A committee involving EPFO, RBI, and the finance ministry is expected to be formed to explore investment diversification strategies.