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EPF board recommends 9.5% interest rate

The board of trustees of India's largest pension fund manager, the state-run Employees' Provident Fund, on Friday decided to keep the interest rate on its scheme at 9.5 per cent for the year ending March, 2003.

Labour Minister Sharad Yadav told reporters after a meeting of the board of trustees that "the board had decided by consensus to retain the interest rate at 9.5 per cent."

Yadav said the board would take up the issue with the government as the finance ministry had earlier informed them that the rate should be reduced to 9 per cent in line with the government's policy of low interest rates.

The board forwards its recommendations to the finance ministry at the beginning of each financial year, which then takes a final decision on rates.

The EPF, managed by a board of trustees consisting of members from various ministries, industry bodies and labour unions, has some Rs 1,000 billion invested in assets, including 80 per cent in the special deposit scheme.

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