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

Last updated on Feb 8, 2011

Posted on Feb 8, 2011

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.

Share on

Tags

Subscribe to see what we're thinking

Subscribe to get access to premium content or contact us if you have any questions.

Subscribe Now