EPFO to decide on interest rate for FY14 PF deposits on Jan 13

Business

oi-Staff

By Super

Published: Tuesday, December 24, 2013, 10:38 [IST]

The Employees' Provident Fund Organisation (EPFO) has rescheduled a meeting of its trustees to January 13, when it will announce the interest rate on provident fund deposits for 2013-14.

The Central Board of Trustees (CBT), headed by the Labour Minister, the apex decision-making body of EPFO, will consider the interest rate and other matters at the meet which was initially scheduled for January 14.

A decision on the interest rate is pending as the CBT has not met after it was reconstituted in May.

The retirement fund body is expected to offer its over 5 crore subscribers a little more than the 8.5 per cent given in 2012-13.

"EPFO had convened a meeting of CBT on January 14 which has been rescheduled to January 13 next year. The meeting is rescheduled because Eid Milad-un-Nabi will fall on January 14," EPFO's Central Provident Fund Commissioner KK Jalan said. "Among other issues, rate of interest for 2013-14 will be discussed and approved by the trustees. The decision on interest on PF deposits is pending for long and it would be taken by the board in the meeting," he said.

Once approved by the CBT, the decision on the interest rate requires concurrence of the Finance Ministry, which has to notify it. The interest is credited to the accounts of subscribers after the rate is notified.

According to the norms, EPFO is expected to announce the rate of interest on PF deposits before the start of the financial year. However, for the past few years, the announcement of the rates had been delayed.

EPFO's rate of interest was 8.5 per cent for 2012-13, up from 8.25 per cent in 2011-12.

PTI