"The Employees Provident Fund organisation has been consistently transferring to its members the best returns by way of high interest," Singh told fund trustees in a speech.

"It will be our constant endeavour to provide higher rates of interest in future also," he said. The EPF scheme now offers fund holders an interest rate of 9.5 per cent.

He earlier told reporters that 2003/04 contributions under the EPF scheme were expected to total some Rs 86.49 billion.

The central board of trustees will set up a panel whose main task will be to recommend the rate of interest the EPF should offer, a pension fund document stated without elaborating.

There had earlier been speculation the EPF might lower rates of return in line with a generally softer interest rate environment.

The panel will also oversee investments by the State Bank of India, which acts as portfolio manager, to ensure "timely investment of trust funds with a view to realising optimum returns".