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PF subscribers may get only 9% interest for 2004-05
New Delhi, Mar 09: The over 3.2 crore subscribers to provident fund may get a lower nine per cent interest from April instead of the prevailing rate of 9.5 per cent.
New Delhi, Mar 09: The over 3.2 crore subscribers to provident fund may get a lower nine per cent interest from April instead of the prevailing rate of 9.5 per cent.
The Central Board of Trustees of Employees Provident Fund Organisation (EPFO) had cut interest on PF by 0.5 per cent but granted a golden jubilee bonanza of 0.5 per cent to virtually retain 9.5 per cent for the current fiscal.
With Parliament being dissolved and Election Commission announcing the four-phased polls in the country, the EPFO, whose chairman is the Labour Minister, cannot take any decision in this regard for the next financial year and therefore, one has to assume that interest rate would be lower at nine per cent, said officials. "There are chances that interest rates may be revised after the new government comes in," an official told media persons.
When asked whether it would mean a downward revision, officials did not specify since nothing could be "uttered" because of its possible political ramifications for the polls.
Already there are two views on the interest rates with one school of thought believing if the Centre could introduce higher returns bearing instruments like Varishta Pension Bima Yojana and Dada-dadi bonds, then the market certainly would have an "appetite" for it.
The other group, which comprises mainly the financial markets, feels the sustainability of higher returns for the EPFO was "untenable" due to low interest regime.
Bureau Report
With Parliament being dissolved and Election Commission announcing the four-phased polls in the country, the EPFO, whose chairman is the Labour Minister, cannot take any decision in this regard for the next financial year and therefore, one has to assume that interest rate would be lower at nine per cent, said officials. "There are chances that interest rates may be revised after the new government comes in," an official told media persons.
When asked whether it would mean a downward revision, officials did not specify since nothing could be "uttered" because of its possible political ramifications for the polls.
Already there are two views on the interest rates with one school of thought believing if the Centre could introduce higher returns bearing instruments like Varishta Pension Bima Yojana and Dada-dadi bonds, then the market certainly would have an "appetite" for it.
The other group, which comprises mainly the financial markets, feels the sustainability of higher returns for the EPFO was "untenable" due to low interest regime.
Bureau Report