EPFO may provide 8.6% interest rate for 2012-13

Faced with criticism for slashing interest rate on deposits by 1.25% for 2011-12, the retirement fund body EPFO may raise it to 8.6% for this fiscal to benefit about 5 crore subscribers.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Business

Apr 05, 2012, 10.04 PM | Source: PTI

EPFO may provide 8.6% interest rate for 2012-13

Faced with criticism for slashing interest rate on deposits by 1.25% for 2011-12, the retirement fund body EPFO may raise it to 8.6% for this fiscal to benefit about 5 crore subscribers.

Like this story, share it with millions of investors on M3

EPFO may provide 8.6% interest rate for 2012-13

Faced with criticism for slashing interest rate on deposits by 1.25% for 2011-12, the retirement fund body EPFO may raise it to 8.6% for this fiscal to benefit about 5 crore subscribers.

Post Your Comments

Share Cancel

Faced with criticism for slashing interest rate on deposits by 1.25% for 2011-12, the retirement fund body EPFO may raise it to 8.6% for this fiscal to benefit about 5 crore subscribers.

Last month, the Employees' Provident Fund Organisation (EPFO) had brought down the rate of interest to 8.25% for 2011-12 from 9.5% provided in 2010-11, evoking sharp criticism within and outside Parliament.

"EPFO is working on income estimates to provide 8.6% rate of return on provident fund deposits during this fiscal," a source privy to the development said.

He further said the EPFO's apex decision making body, Central Board of Trustees (CBT), headed by the Labour Minister could meet next month to take a call on the issue.

The source said EPFO can provide higher returns in the current fiscal as the government has increased interest rate on Special Deposit Scheme (SDS) 1975 to 8.6% from 8% with effect from December 1, 2011.

The EPFO has parked about Rs 55,000 crore in the scheme which was launched by the Central government on July 1, 1975 to provide better returns to non-government provident funds and other such funds.

"EPFO was finding it difficult to maintain rate of return above 8.5% because of low interest rate on investment in SDS. But since that income would go up, it would be easier to provide interest rate over 8.5%," EPFO trustee D L Sachdev told PTI.

He said the other investments made by EPFO are well managed by the fund managers and yield rate of returns which are higher than 8.5%.

During the previous CBT meeting, the unionists had demanded matching EPFO's interest rate with that of Public Provident Fund (PPF). The government has hiked PPF rate to 8.8% from 8.6% last month.

Buy, Hold, Sell ? Hear it first on M3
EPFO may provide 8.6% interest rate for 2012-13

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login