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Friday, Jul 23, 2004

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Opinion - Letters


EPF rate

This is with reference to "No decision on EPF rate; next meeting on Aug 9" (Business Line, July 21). It is unfortunate that the decision on EPF interest has been deferred again. It is simple to understand that the returns on investment of EPFO (80 per cent of which is invested in Special Deposit Scheme) is too low to give an interest rate higher than 8 per cent to the members. It is also pertinent that the EPF deposits are accredited interest on `monthly running balances'. This is almost equivalent to crediting of compound interest reckoned monthly.

The dissenting members of the CBT should realise the situation and cooperate with other members to arrive at a workable decision at the earliest. They may also find ways and means to give 12 per cent interest from next year onwards.

C. Ramesh

Keeramangalam (TN)

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

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