The move can help mop up about Rs 1.2 lakh every day for the purpose.
According to sources, the proposal is listed in the agenda of the meeting of the Union Cabinet scheduled for Friday.
The Union Labour Minister Sahib Singh Verma said on Friday that he would soon make public the names and other details of the major provident fund defaulters.
The over 3.2 crore subscribers to the provident fund may get a lower 9 per cent interest from April instead of the prevailing rate of 9.5 per cent.
The Central Board of Trustees of Employees Provident Fund Organisation is likely to cut the EPF interest by one per cent from the present 9.5 per cent when it meets on May 31.
Reliance Capital Asset Management Company (RCAM) and ICICI Securities Primary Dealership have been selected to manage Rs 60,000 crore (Rs 600 billion) provident fund corpus of coal industry workers.
The payroll data has been revised downwards for each of the nine months between September 2017 and May this year
As per the EPFO income projections, retaining 8.8 per cent rate of interest for the current fiscal would have left a deficit of Rs 383 crore. Hence, it was lowered to 8.65 per cent
A formal sector worker can contribute towards pension scheme till the age of 58.
Despite the labour ministry's claims that it is vigourosly chasing the employees provident fund defaulters, the money that employers owed to the fund mounted to Rs 1,758 crore till July, but EPFO might be able to realise only Rs 571 crore.
Labour Minister Sahib Singh Verma on Tuesday expressed confidence that the 9.5 per cent EPF interest rate could be maintained next year, in spite of the falling interest rates.
Agreeing to a partial rollover of the interest rate, the Central Board of Trustees of the EPFO on Friday asked the IFCI to pay 10 per cent on bonds issued by it for the next 10 years, starting from this fiscal.
Under the proposed scheme, there will be tripartite agreement with member, bank/housing agency and EPFO for pledging future PF contributions as EMI payment.
EPFO has allotted Universal Account Number (UAN) for portability and consolidation of all previous accounts.
The government on Thursday ruled out any cut in interest rates on Employees' Provident Fund this fiscal from the present 9.5 per cent, but said it would be reviewed only next fiscal based on the surplus position, Labour Minister Sahib Singh Verma
'It was to be a two hour long surgery and anything could go wrong,' recalls Veenu Sandhu.
EPFO has a subscriber base of around 6 crore (Rs 60 million).
Concerned by the continuous downward revision in the monthly net enrolment numbers, the EPFO has begun counting people quitting their previous jobs and joining a new one as an addition to the net payroll. According to experts these people cannot be counted as those who got a new job.
The government has reduced the stipulated period for settlement of various claims like PF withdrawal, pension and insurance by the retirement fund body EPFO to 20 days from the existing 30 days.
EPFO has an ambitious plan to settle the claims within few hours after filing of application
Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral free automatic loan for businesses, including MSMEs, to benefit 45 lakh small businesses. Detailing parts of the Rs 20 lakh crore economic stimulus package, she said this loan will have a 4-year tenure and will have 12-month moratorium, she said.
Every bank offers a different slab of minimum balance to customers, based on which 'free services' are provided
In view of the proposed one per cent slash in interest rate on special deposit scheme from April, the Central Board of Trustees of Employees Provident Fund Organisation will meet on Friday to decide on the rate of interest on EPF for 2003-04.\n\n\n\n
Most economists were of the view that the NSSO should release the data, as any move to withhold it will dent the image of country's statistical system.
As per the recommendations of the 2nd National Commission on Labour, the ministry is codifying existing 44 central labour laws into four codes by simplifying, amalgamating and rationalising the relevant provisions of the legislations.
The Employees' Provident Fund Organisation's apex decision making body, the Central Board of Trustees, had decided to provide 8.65 per cent rate of interest on EPF deposits last December.
The government has approved payment of 8.75 per cent rate of interest on PF deposits in 2013-14 for over five crore subscribers of retirement fund body EPFO.
If someone does reduce his contribution, he should scale it back to the 12% level as soon as he can, suggests Sanjay Kumar Singh.
The EPFO pays rate of return to its subscribers on the basis of returns it generates from its investments.
"People in India are benefiting from the whole process of liberalisation," Finance Minister Arun Jailtey said.
The online application of such claims would enable EPFO to eventually settle those within three days.
Employees' Provident Fund Organisation has been allowing members to contribute more than mandatory amount towards their pension account.
As of now, foreign employees applying for withdrawal of provident funds are required to open bank accounts in India.
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