EPFO fixes PF interest rate at 8.25% for 2023-24 at 3-year high
In March 2021, the Central Board of Trustees (CBT) decided the 8.5% interest rate on EPF deposits for 2020-21.
Leading public sector lender, Bank of Baroda, increased the lending rates by 5 basis points (bps) on various tenures, coming into effect from August 12.
The development comes a day after the Reserve Bank of India (RBI) announced the status quo on the repo rate maintaining it at February level of 6.5 per cent.
As per the announcement by the bank, the Marginal Cost of Funds Based Lending Rate (MCLR) for overnight will be 7.95%, for one month, three-month, and six-month it will be 8.20%, 8.30%, and 8.40% respectively.
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MCLR is the minimum interest rate that banks require to charge for a specific loan.
Due to the rate hike on the loan, EMIs linked to them will also increase unless the bank reduces its mark-ups/margins on loans.
Apart from BoB, HDFC Bank has also hiked the rates by 15 bps on select tenures from August 7. Other key lenders like ICICI, Punjab National Bank and Bank of India too have increased rates wef August 1.
At the Monetary Policy Committee (MPC) meeting on Thursday, the RBI kept interest rates unchanged at 6.5% for a third straight meeting but signaled tighter policy if food prices drive inflation higher.
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