The country's largest retirement fund manager EPFO's trustees are likely to announce next month 8.5 per cent interest rate for over 4.71 crore depositors for 2010-11.
The Employees' Provident Fund Organisation's (EPFO) apex body Central Board of Trustees (CBT) headed by Labour Minister Mallikarjun Kharge is scheduled to meet on April 9 and approve 8.5 per cent rate of return on PF deposits for 2010-11, a Labour Ministry source said.
EPFO's advisory body Finance and Investment Committee (FIC), which met last month on February 26, recommended 8.5 per cent interest rate on PF deposits as at this rate of return there would be a surplus of Rs 15.26 crore, he said.
FIC had also said a return of 8.75 per cent for next fiscal would result in a deficit of Rs 426.53 crore. It is a general practice that the FIC recommendations are upheld by the CBT, which is the final authority to take a call.
EPFO has been maintaining the return rate of 8.5 per cent on PF deposits since 2005-06.
Besides this, the trustees would also vet the proposal of evolving a multi-banking model for PF collections as recommended by the FIC. At present, the State Bank of India (SBI) is the sole collection agent for EPFO.
Irked by SBI's unilateral decision to raise charges on PF collections, EPFO is considering handing over the business to other banks.
EPFO may set 8.5% rate for depositors
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