PF Interest Rates Unchanged

New Delhi, July 23 (IANS) The interest rate on the employees' provident fund (EPF) scheme will remain unchanged at 8.5 percent for 2006-07 and the current fiscal, it was decided here Monday.

The decision, which will bring cheer to more than 40 million subscribers of the social security net in the country, was taken at a meeting of the Central Board of Trustees (CBT) for EPF chaired by Labour Minister Oscar Fernandes, official sources said.

The decision will now be conveyed to the government for its consideration and a formal notification needs to be issued by the finance ministry, they added.

Successive meetings of the board had deferred decision on the interest rate on grounds that any move to hike payouts would pressure the exchequer and lead to a deficit of Rs.4.50 billion ($110 million).

But trade unions said since some commercial banks were currently offering up to 10.5 percent interest on fixed deposits, the EPF rates should, in fact, be hiked accordingly.