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No intention to cut EPF interest from 9.5 percent: Verma
Kolkata, May 18: Union labour minister Sahib Singh Verma today ruled out any cut in the rate of interest on Employees Provident Fund and said EPFO was looking for ways to ensure better return on EPF to sustain the current rate of 9.5 per cent.
Kolkata, May 18: Union labour minister Sahib Singh Verma today ruled out any cut in the rate of interest on Employees Provident Fund and said EPFO was looking for ways to ensure better return on EPF to sustain the current rate of 9.5
per cent.
"There is no intention to cut the interest rate from current 9.5 per cent. An epf sub committee is examining how best we can invest the funds to ensure better return," he said here.
Once the committee submits its report "we will talk to the finance ministry and the Prime Minister on the issue", Verma said.
Meanwhile, the finance and investment sub committee of the central board of trustees of EPF was examining the investment strategies of over Rs 1,40,000 crore corpus of EPF.
The EPFO board, under pressure from the finance ministry to reduce the interest rate on EPF, is likely to meet on May 31 to take a view on the rate to be paid for the current year.
Admitting that the returns on EPF have dipped below the 9.5 per cent rate of interest, Verma said "some are saying how we can sustain the present interest rate in the low interest regime. But this can be done if the investment pattern is changed".
Bureau Report
Once the committee submits its report "we will talk to the finance ministry and the Prime Minister on the issue", Verma said.
Meanwhile, the finance and investment sub committee of the central board of trustees of EPF was examining the investment strategies of over Rs 1,40,000 crore corpus of EPF.
The EPFO board, under pressure from the finance ministry to reduce the interest rate on EPF, is likely to meet on May 31 to take a view on the rate to be paid for the current year.
Admitting that the returns on EPF have dipped below the 9.5 per cent rate of interest, Verma said "some are saying how we can sustain the present interest rate in the low interest regime. But this can be done if the investment pattern is changed".
Bureau Report