Provident Fund Trustees is likely to press for hiking the interest rates to at least 12% from the present rate of 8.5% on provident fund deposits, the media reported.
The reason for raising the interest rates was to prevent value erosion of deposits of over 4-crore government and non-government employees in view of soaring inflation, the report stated.
The CITU National Secretary, W.R. Varadarajan, who is also member of Central Board of Trustees of EPFO, understood to have told the media that his party would press for higher interest of around 12% for the current year 2008-09. He stressed that the interest rate should be restored to 2000 level of 12%, especially when the inflation is running amok.
Varadarajan reportedly stated that the issue of interest rate would be discussed at the net meeting of the Central Board of Trustees scheduled on July 5.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.