CBT to meet on February 21, decide on rates for 2017-18

The retirement fund body had announced 8.65 per cent rate of interest on deposits for 2016-17, a tad lower than 8.8 per cent in 2015-16.

By: ENS Economic Bureau | New Delhi | Published: February 13, 2018 1:45:30 am
CBT to meet on February 21, decide on rates for 2017-18 The EPFO had announced 8.65 per cent rate of interest on deposits for 2016-17, a tad lower than 8.8 per cent in 2015-16.

The Central Board of Trustees of Employees’ Provident Fund Organisation (EPFO) will meet on February 21 to finalise the interest rate for 2017-18, officials said.

The retirement fund body has already monetised its investments in exchange traded funds, which will have a bearing upon the fixation of interest rate for this fiscal. Officials said the EPFO has already sold about 2,886 ETF units and earned Rs 1,054 crore from offloading the ETF investment earlier this month, they said.

The cash flow from offloading of ETF units will be a part of the profit to determine the interest rate, they added.

The EPFO had announced 8.65 per cent rate of interest on deposits for 2016-17, a tad lower than 8.8 per cent in 2015-16.

The EPFO has been investing in ETF since August 2015 and after CAG objected to notional gains, it went ahead with monetisation of its ETF investments. Till date, the EPFO has invested around Rs 44,000 crore in the ETFs that have earned a return of 16 per cent.

The agenda listed for the meeting of the trustees includes the proposal for rate of interest on the EPF deposits for the current fiscal.

The trustees may also review the proposal to credit the ETFs into the members’ EPF account at the time of exit from the fund. It is proposed that the members should be given option to have ETF credits in their EPF account.

For all the latest Business News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement