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EPFO may pay 8.5% interest this fiscal

Statesman News Service |

press trust of india
NEW DELHI, 23 JUNE: Retirement fund body Employees’ Provident Fund Organisation (EPFO) is likely to pay an interest rate of 8.5 per cent on provident fund deposits for financial year 2013-14 to its over five crore subscribers, the same as provided in 2012-13.
“The rate of interest on PF deposits is unlikely to be changed for the current fiscal at 8.5 per cent,” a source privy to the development said.
EPFO paid 8.5 per cent interest rate to its subscribers in  2012-13 which was higher than 8.25 per cent provided in 2011-12.
The source further revealed that the EPFO office has already worked out the income projections and the feasible rate of return to be provided on PF deposit in the current fiscal.
As per the practice, the EPFO would have to place the proposal before its advisory body Finance and Investment Committee after which it is considered by the apex decision making body Central Board of Trustees headed by the labour minister for taking the final call.
Once approved, the proposal is put before the finance ministry for its concurrence.
EPFO has recently reconstituted the CBT, and thus the FIC would be constituted again in the next meet of trustees.
The CBT meeting is likely to be convened next month as the new Central Provident Fund commissioner K K Jalan, who is executive head of EPFO, has taken charge.