An Indian Civilizational Perspective

ANOTHER SCAM? Indian PF body didn’t credit any cash to 4.7 Crore accounts

A 1,731 crore “hidden treasure” that was not credited to 4.7 crore Provident Fund (PF) accounts is what enabled fund manager Employees Provident Fund Organisation (EPFO) to offer a higher 9.5 interest rate to subscribers this financial year, the Comptroller and Auditor General (CAG) has found.

The EPFO has been giving 8.5 percent interest to PF subscribers since 2005-06. However, in 2010-11, the PF fund manager increased the rate to 9.5 percent, citing a surplus of 1,731.57 crore.

The accumulation in the Interest Suspense Account (ISA) of the fund manager which the CAG has termed as a hidden treasure was due to non-updation of accounts of 4.72 crore members as of March, 2010, sources in the finance ministry said. There are about 10 crore accounts with the EPFO.

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