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19
December 2016
The Employees' Provident Fund Organisation
on Monday lowered the interest rate on deposits to 8.65% for fiscal 2016-17
from 8.8% in 2015-16, said a member of its apex board of trustees.
"The Central Board of Trustees
has take a decision to reduce the interest rate on EPFO's deposits to 8.65% as
per the guidelines of the Comptroller Audit General (CAG), which objected to
8.8% interest rate," CBT member and INTUC Vice President Ashok Singh told
IANS after the meeting here. The Total Investment & Insurance
Solutions
Admitting that the trade union
leaders and cadres were not happy with the board's decision to lower the
interest rate on their savings, Singh said they would appeal to the Finance
Ministry to retain the interest rate given in the last fiscal.
"We have conveyed to the board
chairman (Union Labour Minister Bandaru Dattatreya) our unhappiness on lowering
the interest rate by 0.15%, which has been calculated on the basis of the CAG
guidelines.
The Total Investment & Insurance Solutions
"The CAG has observed that
interest earned on the retirement fund (EPF) cannot be considered as income to
retain the interest rate on its deposits at 8.8%," he said.
The retirement fund will recommend
the lower interest rate to the finance ministry for notification soon. The Total Investment
& Insurance Solutions
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