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EPFO settling claims at 8.25% rate on PF deposits for FY13

According to the guidelines, EPFO should announce rate of interest on provident fund deposits before the beginning of each financial year

April 22, 2013 3:06 IST | India Infoline News Service
The Ministry of Finance this week is likely to approve payment of 8.5% rate interest to over 50 million EPFO subscribers for 2012-13, according to a media report.

The move is expected to ensure smooth settlement of claims.

The Employees Provident Fund Organisation’s (EPFO) and the Central Board of Trustee (CBT) had decided to pay 8.5% rate of interest to subscribers for 2012-13 on 25 February.

The CBT decision on interest rate requires approval by the Finance Ministry before it is implemented and has already been sent for the purpose.

According to the guidelines, EPFO should announce rate of interest on provident fund deposits before the beginning of each financial year. But, for the past few years, this has been taking place by the end of fiscal. This time, the rate of interest would be notified after the end of the financial year, All India Trade Union Congress (AITUC) said.

In the absence of any interest rate notification, EPFO is settling claims at 8.25% interest rate on PF deposits for 2012-13, AITUC added.



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