Search the Internet          Tips  Sites: Finance, Investment

Govt not to lower 9.5% rate on provident fund

Union Labour Minister Sahib Singh Verma said on Monday his ministry would continue to offer a 9.5 per cent interest rate return on the country's largest state-run pension fund, rejecting a finance ministry call to lower the rate.

The finance ministry has been urging the trustees of the Employees Provident Fund to offer lower rates on member accounts in line with the government and central bank's policy of softer rates.

"The EPF interest is 9.5 per cent. It continues. Where is the problem?" Singh said to reporters when asked whether the labour ministry would lower the rate on the pension fund.

The pension panel had earlier rejected the proposal to reduce the rates, saying it would continue to offer a higher rate of 9.5 per cent because it had enough reserves and earnings.

ALSO READ:
More Money Headlines