EPFO cuts interest rates to 8.55%, Congress calls it backstabbing on honest tax payers

New Delhi : Slamming the Narendra Modi government for lowering the interest rate on provident fund deposits, the Congress on Wednesday said it was "backstabbing" honest tax payers by the measure.

The party also accused the government of indulging in "organized fleecing" of ordinary citizens.

"Modi Government backstabs honest tax payers by lowering interest rates of 4.5 crore EPF holders. Burning holes in the pockets of already burdened people has become the single point agenda - 'motto' of Modi government," said Congress spokesperson Randeep Singh Surjewala in a statement.

"Post the colossal loss of almost Rs 30,000 crore loot and scams being unravelled in the past seven days, Modi government has once again backstabbed the common people and honest tax payers of the country by reducing the interest rates in EPFO holders from 8.65 per cent to 8.55 per cent," he added.

"Post 2014-15, this is the second such reduction... interest rate on EPFO has now been reduced twice from 8.75 (in 2014-15) now to just 8.55 per cent," he said, adding that in December 2017, Modi government had cut the interest rate on small savings schemes, including Public Provident Fund (PPF), National Savings Certificate (NSC) and Kisan Vikas Patra.

The party also pointed out that the interest rate for savings bank accounts which was 4 per cent in May 2014 is now 3.5 per cent, PPF is down from 8.7 per cent (in May 2014) to just 7.6 per cent now and Kisan Vikas Patra, which was at 8.67 per cent then, is just 7.3 per cent now.

There are also multiple new bank charges that the Modi government has levied from time to time, he added.