The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.
The Employees Provident Fund Organisation's (EPFO) finance panel has recommended raising the interest rate for more than 5 crore subscribers to 8.95% from 8.75% during FY16, reports a national daily.
The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.
If it goes through, it will be the highest interest rate on EPF since the 9.5% paid in 2010-11, according to the daily.
Meanwhile, the Finance Ministry is expected to lower interest rates on several small savings schemes such as public provident fund (PPF) or National Savings Certificate (NSC) by up to 50 basis points to signal lower interest rate regime, reports the daily.
The Government and the Reserve Bank of India (RBI) are looking to reduce deposit rates so that banks can cut lending rates.
The EPFO is hoping to convene a meeting of the CBT headed by Labour Minister Bandaru Dattatreya at the earliest for the interest rate proposal, according to the newspaper.
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