Slashing interest rate on deposits by 1.25 per cent for 2011-12, the retirement fund bodyEPFO (Employees’ Provident Fund Organisation) may raise it to 8.6% for this financial year (2012-13) to benefit about 5 crore subscribers.
Last month, EPFO had brought down the rate of interest to 8.25% for 2011-12 from 9.5% provided in 2010-11.
EPFO is working on income estimates to provide 8.6% rate of return on provident fund deposits during this financial year.
EPFO’s apex decision making body, CBT (central board of trustees), headed by the labour minister could meet next month to take a call on the issue.
EPFO can provide higher returns in the present financial year as the government has increased interest rate on special deposit scheme (SDS) to 8.6% from 8%t, with effect from December 1, 2011.
The central government has hiked PPF rate to 8.8 per cent from 8.6 per cent last month.
Last month, EPFO had brought down the rate of interest to 8.25% for 2011-12 from 9.5% provided in 2010-11.
EPFO is working on income estimates to provide 8.6% rate of return on provident fund deposits during this financial year.
EPFO’s apex decision making body, CBT (central board of trustees), headed by the labour minister could meet next month to take a call on the issue.
EPFO can provide higher returns in the present financial year as the government has increased interest rate on special deposit scheme (SDS) to 8.6% from 8%t, with effect from December 1, 2011.
The central government has hiked PPF rate to 8.8 per cent from 8.6 per cent last month.
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