EPFO hikes interest rate on PF deposits for FY19 to 8.65%
22 Feb 2019
The Central Board of Trustees of the Employees Provident Fund (EPF) has recommended crediting interest at the rate of 8.65 per cent on accumulated accounts of EPF members for the year 2018-19.
Once approved by the CBT, the proposal is required the concurrence of the finance ministry. The interest rate is credited into the subscribers account after the finance ministry's approval.
The EPFO had provided a five-year low rate of interest of 8.55 per cent to its subscribers for 2017-18. The body had kept the interest rate at 8.65 per cent in 2016-17 and 8.8 per cent in 2015-16. It provided 8.75 per cent interest for 2013-14 as well as 2014-15. The rate of interest was 8.5 per cent in 2012-13.
The EPFO trustees also reviewed the performance of investments made by the body in stock markets.
The trusties ratified the amendment in EPF Scheme 1952, as approved in the 141st meeting of Financial Investment and Audit Committee (FIAC) held on 12 February 2019, to enable accounting of investment in exchange traded funds (ETFs), which include equity and related investment.
The 224th meeting of the EPF trustees, chaired by union minister of state for labour and employment Santosh Kumar Gangwar, also ratified the approval of chairman, CBT, EPF for continuation of C-DAC as a consultant to carry out the second phase of computerisation project.
The board gave extension to Standard Chartered Bank as custodian of the EPFO securities on the existing terms and conditions of agreement for the period up to 31 March 2019.
The trustees approved the revised estimate for the year 2018-19 and budget estimates for the year 2019-20 and recommended it to the Central Government for approval. The trustees gave consent to have performance review of the portfolio managers from a separate agency in addition to review by CRISIL Limited.