The EPF Organisation is probably acting on the direction of the government to reduce the interest rates on EPF. It accepted the demand of the Unions for increase from 8.5% to 9.5% last year , which was opposed and criticised by the employers and big business. These managements and  business concern seem to have succeeded in pressurizing the government to reduce the interest this year.

The Unions have pointed out that the EPFO is not being transparent in that all the details of the savings, interests etc are not revealed. They point out that there are about Rs. 15,000 crore deposits in EPF which are inoperative accounts an on April 2011. The EPF has not revealed how much interest it has got on these accounts. It is  to be added for finalising the EPF interest for the subscribers. Further, when Bank, Post Office interest rates are going up, how the EPF interest can be reduced?

As mentioned earlier, there is clear justification for increasing and not reducing the EPF interest.