CPI MP writes to Nirmala Sitharaman, urges her to reconsider reducing interest rate of EPFO

New Delhi [India], March 12 (ANI): Communist Party of India (CPI) Rajya Sabha MP from Kerala Binoy Viswam on Saturday wrote to Union Finance Minister Nirmala Sitharaman and urged her to reconsider the decision to slash the interest rate of EPFO from 8.5 per cent to 8.1 per cent.

Viswam, in his letter to the Finance Minister, said that the decision of the Employees' Provident Fund Organisation (EPFO) to slash the interest rate to 8.1 per cent from 8.5 per cent is not only irresponsible but also reflects the complete lack of concern this government shows towards the working people of our country.

"Following electoral victories, the ruling party has once again displayed its true colours, this time by throwing the working class of India under the bus by slashing the interest rate to a 43-year low," the CPI MP said.

The Member of Parliament further said that it has been the Finance Ministry's continuous position to push the EPFO to reduce its interest rates without providing sound reasoning and logic thereby defeating the very purpose of the organisation.

As an organisation that intends to provide social security to the workers of India, the reduction in interest rate is unconscionable, he added. 

"The mission of the organisation itself states that it aims to ensure ease of living for members and pensioners. At a time when the COVID-19 pandemic has impacted the financial security of millions of workers in India as well as the cost of living, the slash in interest rate will mean that the 60 million salaried class subscribers will suffer significant monetary losses. For these workers, Indians who contribute to the growth and progress of the country, such harsh steps must be explained as the exception of last resort," the MP said in a letter.

The CPI leader urged Sitharaman to consider the decision and maintain the current interest rate of 8.5 per cent, which in itself requires an increase. (ANI)