EPFO defers decision on interest rate hike

New Delhi, May 27 (UNI) EPFO (Employees Provident Fund organization) Board of Trustees here today took up the issue of hiking the interest rate on employees provident fund but deferred the decision until July 2 or 3.

Briefing newsmen after the meeting held at the EPFO office here, Labour Minister Oscar Fernandes said the members discussed among themselves the question of hiking the interest rates on EPF.

But a further discussion was needed to settle issues one way or the other, he said.

Mr Fernandes said some of the members were proceeding to Geneva tomorrow to attend the meeting of the ILO (International Labour Organization) while others were preoccupied with the Goa by-elections.

He said after the members returned from their engagement, the board will again take up the issue of hiking interest rate.

'The next meeting will be held either on July 2 or 3,'Mr Fernandes said.

Left parties and trade unions have been pressing the government to increase the interest rate on EPF.

Informed sources told UNI that the change in political equations following the defeat of Congress Party in recent hustings had made the climate for increasing the interest rate more conducive.

The board which met for more than two hours late in the evening did, however, take up some other impending issues.

Besides, the creeping inflation rate and heartening of the interest rate all around have strengthened the hands of Left parties for hiking the interest rate on EPF.

UNI