Pension fund body EPFO on Monday thought we would increase the interest rates on Provident Account deposits to 8. 75 % for 2013-14, a move that could benefit about 5 crore members.
"We have thought we would recommend to the government 8. 75 per cent interest rates for 2013-14 for you to its subscribers, " said Your time Minister Oscar Fernandes following a meeting of the actual EPFO trustees.
The actual Central Board involving Trustees, which would be the apex decision-making body of the Employees' Provident Account Organisation (EPFO), met on Saturday and approved the interest rate.
According for you to sources, the system had surplus cash, which enabled the interest rate to possibly be increased from 8. 5 per cent in the previous financial year (2012-13).
The EPFO's recommendation will be vetted by the actual Finance Ministry. When the ministry approves deciding, the interest will be credited to the actual accounts of members.
According to solutions, the decision to further improve the rate was taken in view of the actual forthcoming Lok Sabha polls.
The EPFO is estimated with an income of Rs 20, 796. 96 crore in the present financial year.
Payment of interest with the rate of 8. 5 % to subscribers would've required Rs 20, 740 crore and left a extra of Rs 56. ninety-six crore, according for you to earlier projections.
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