Labour Minister Sahib Singh Verma said on Monday that he will try to maintain the present interest rate of 9.5 per cent on Employees Provident Fund for 2003-04, but a final decision would be taken at the Central Board of Trustees meeting, likely to be held in the last week of May.

Speaking to reporters after releasing a report prepared by the International Labour Organisation in New Delhi, Verma said CBT would take the final decision only after scrutinising the report of its finance and investment sub committee, which had been mandated to look into the various aspects of CBT's investments.

Asked about reports that the regional provident commissioners had been asked by the CBT to stop the interest payment on EPF from April, he admitted it was a "routine" measure and an appropriate order would be given only after getting the report of the sub-committee.

According to sources, Verma's assertion that he would "try to maintain" the present interest rate of 9.5 per cent, was rather "toning down" from his earlier stance in Parliament where he ruled out a cut in rates.

Citing the recent 0.25 per cent cut in bank rate by the Reserve Bank of India and coupon rate of little over five per cent on Government securities, finance ministry sources said the CBT would have to cut down the interest rates as the present rates were not sustainable.

The finance ministry had recently issued a notification barring investments in Special Deposits Scheme, which comprise over 80 per cent of the over Rs 1,40,000 crore (Rs 1,400 billion) EPFO corpus, from June.