Having dipped into its reserves for paying 9.5 per cent interest for four crore subscribers in 2004-05, the EPF trustees would meet in New Delhi on July 30 to arrive at returns to be offered this fiscal.
Official sources confirmed that the meeting of Central Board of Trustees of EPFO would take place on July 30 and the main agenda would be to arrive at interest rate for 2005-06.
With only over Rs 200 crore (Rs 2 billion) in its reserves, the sources view that any rate suggestion by CBDT would have to be based on rationality considering the expected returns on investment.
Bowing to pressure from the Left parties and the finance ministry, which refused subsidies, the EPF board had on May 28 recommended 9.5 per cent interest for 2004-05, leaving a Rs 716 crore (Rs 7.16 billion) deficit, which would be covered by dipping into its special reserves.
The board had earlier suggested an "interim" return of 8.5 per cent, which was subsequently raised to 9.5 per cent.