NEW DELHI: Retirement fund body the Employees Provident Fund Organisation (EPFO) will make “every effort” to pay the 8.5% interest to its subscribers for 2019-20 at one go and is banking on an improvement in the financial markets for better returns on its investments, sources said.
This latest view comes day after the central board of trustees of the fund which met on Wednesday decided to recommend to the finance ministry that the interest rate should be paid in two tranches because of shortfall in its income due to Covid-19’s impact on the financial markets. It has recommended that the first tranche 8.15% be paid from the debt income and the balance 0.35% from the gains from its investment in exchange traded funds subject to their redemption by December 31.
“This is only a recommendation. Once the finance ministry gives its views we will make every effort to pay the interest rate in one shot and may not have to pay in instalments,” EPFO sources said reassuring subscribers.