PF deposits may fetch 9% interest this fiscal

New Delhi, February 4

Retirement fund body EPFO may announce 9 per cent interest rate on PF deposits for 2015-16 at its trustees’ meet on February 16, higher than 8.75 per cent provided in previous two financial years. “The 211th meeting of the Central Board of Trustees (CBT) has been scheduled to be held on February 16 in Chennai,” an EPFO circular said.

According to the circular, the issues to be placed for consideration of the CBT include the rate of interest to be credited to EPFO members’ account for 2015-16, cadre restructuring of the body and annual accounts in respect of the EPF Scheme 1952, EPS 1995 and EDLI Scheme 1976 for 2014-15.

Earlier, the Employees’ Provident Fund Organisation’s (EPFO) advisory body had recommended 8.95 per cent rate of interest for the current fiscal which is higher than 8.75 per cent provided in 2013-14 and 2015-16.

According to EPFO income projections worked out in September, providing 9 per cent interest on PF deposits will result in a deficit of Rs 100 crore.

“We are expecting that there will be a surplus of Rs 100 crore on providing 9 per cent rate of interest on PF deposits when the EPFO will work out the latest estimates. The FAIC can change its recommendation in the next meeting and suggest 9 per cent interest rate for 2015-16,” a CBT and FAIC member PJ Banasure had told PTI earlier. The proposal has to be endorsed by the CBT before the Finance Ministry notifies it.

However, there are indications from the Finance Ministry that it will slash interest rate on small savings such as the public provident fund in view of the rate cut by the RBI.

The EPFO provides the rate of interest from the earning on investments of formal sector workers’ funds without any assistance from the government. — PTI