Financial Daily from THE HINDU group of publications
Monday, Jul 05, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Opinion - Letters


EPF interest rates

This is with reference to "Decision on EPF interest rate deferred" (Business Line, July 1).

It has become rather customary that the interest rate on EPF is decided with some tussle year after year.

The rate of interest on EPF is, in fact, to be decided by the Central Board of Trustees (CBT), EPF and the Central Government is expected to declare the interest rate as decided by the CBT.

The CBT is a trust representing employees, employers and the Government, invested with the power to administer the Fund.

The intention of the legislators is very clear that the rate of interest should be decided by those who are administering the fund and not by the Government.

The Government is expected to give its formal assent and to notify it.

It is imperative that the decision on the interest rate should be left to the CBT to ensure that it is taken on scientific lines.

Interference of any political and populist considerations, if allowed, will make the administration of the Fund difficult and may lead to situations such as those faced by UTI recently.

C. Ramesh

Keeramangalam (TN)

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

More Stories on : Letters | Small Savings | Interest Rates

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Not by bank credit alone


Debatable recommendations
A belated Budget session
Why the government needs inflation
2004 second half — Holding a mirror to 2003
MF must look beyond dividend plans
Row over Governors
Spare shared services from tax
GDP growth
EPF interest rates



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line