Subscribers withdrawing their provident fund deposits now will earn a return of 8.25 per cent that was announced for 2011-12. This is because despite the start of a new financial year, the finance ministry is yet to notify the 8.5 per cent interest for 2012-13.
?We had forwarded the interest rate proposal to the finance ministry but are yet to get any word on the issue. Till then, as per the provisions of the EPF Act, we can only credit the rate that was notified for the previous financial year,? said a senior EPFO official.
The EPFO?s Central Board of Trustees had on February 25 recommended an interest rate of 8.5 per cent for 2012-13. It had then forwarded the proposal to the finance ministry.
The delay in the notification will not only impact the 8.15 crore subscribers of the EPFO but also over 48 lakh members of 3,000-odd private PF trusts that are run and managed by companies for their employees. ?There is always a lag between the recommendation of the CBT and the notification by the finance ministry, but this is an unusual situation. However, it may just be a procedural delay as the EPFO?s calculations are sound and would not raise any doubts,? said a member of the CBT.