EPFO panel skirts proposal on 8.5% interest on deposits

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'Even a partially higher interest rate of 8.6 per cent could result in a deficit of Rs 240.49 crore.' (Reuters) 'Even a partially higher interest rate of 8.6 per cent could result in a deficit of Rs 240.49 crore.' (Reuters)
Summary'Even a partially higher interest rate of 8.6 per cent could result in a deficit of Rs 240.49 crore.'

worried that it could receive flak for not proposing a higher return on PF deposits, the EPFO chose to place it at the last minute.

However an EPFO official said, “We had listed it as part of the agenda but could not send it before hand as the calculations took us longer than expected.” Trade union leaders had earlier pitched for hiking the return on PF deposits to 8.8 per cent, which would bring it at par with the interest rate offered by the Public Provident Fund (PPF).

The increased payout, they had argued, would be possible by using returns on inoperative accounts, which have deposits of around Rs 22,000 crore.

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