The Hindu Business Line : We will look into issue of raising interest rate on PF funds: PM

THE Prime Minister, Dr Manmohan Singh, on Thursday said the Government would look into the issue of raising the interest rate payable on provident fund deposits.

Dr Singh told reporters , "We have always said we will look into the matter but I cannot make any commitment because Parliament is in session."

Earlier during the day, the CPI MP and All-India Trade Union Congress (AITUC) President, Mr Gurudas Dasgupta, had said that the Prime Minister had agreed to increase the interest rate of provident fund for the current fiscal from 8.5 per cent to 9.5 per cent.

An AITUC delegation today met the Prime Minister. After the meeting, Mr Dasgupta had said that as far as his understanding goes, the Prime Minister had agreed to increase the interest rate from 8.5 per cent to 9.5 per cent.

As per the calculations of the Central Board of Trustees (CBT) of Employees Provident Fund Organisation (EPFO), offering 9.5 per cent would lead to a shortfall of Rs 927.15 crore between the current year's earnings and expenditure.

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