EPFO trustees may fix provident fund interest rate for FY18 on Nov 23

The issue was listed on the agenda of CBT meeting earlier and was referred to the CAG

Retirement fund manager EPFO is likely to decide on the rate of interest on provident fund deposits for this fiscal at its trustee meeting on November 23.

The apex decision-making body of the Employees' Provident Fund Organisation (EPFO), the Central Board of Trustees (CBT) headed by Union labour minister is set to meet on November 23, 2017, a senior official said.

The official further said, "The interest rate on provident fund deposits for 2017-18 may be placed before the trustees for approval."

The EPFO has over 45 million subscribers.

In December last year, the CBT had decided to lower the rate of interest on EPF to 8.65 per cent for 2016-17, from 8.8 per cent for 2015-16.

The trustees may consider a proposal to credit subscribers' share of Exchange Traded Fund (ETF) investments to their provident fund accounts which can be redeemed at the time of withdrawal, the official also said.

The issue was listed on the agenda of the CBT meeting earlier this year and was referred to the Comptroller and Auditor General (CAG).

According to the official, the CAG had agreed to the proposal in principle, but sought a few clarifications.

As per estimates, the EPFO's investment in ETFs is expected to touch Rs 45,000 crore by the end of the current fiscal.

The retirement fund body had started investing in ETFs in August 2015, putting 5 per cent of its investible deposits in stock-linked products. It was raised to 15 per cent for the current fiscal.