Last month, the Employees' Provident Fund Organisation had brought down the rate of interest to 8.25 per cent for 2011-12 from 9.5 per cent provided in 2010-11, evoking sharp criticism within and outside Parliament.
"EPFO is working on income estimates to provide 8.6 per cent rate of return on provident fund deposits during this fiscal," a source privy to the development said.
He further said the EPFO's apex decision making body, Central Board of Trustees, headed by the Labour Minister could meet next month to take a call on the issue.
The source said EPFO can provide higher returns in the current fiscal as the government has increased interest rate on special deposit scheme 1975 to 8.6 per cent from 8 per cent with effect from December 1, 2011.
The EPFO has parked about Rs 55,000 crore (Rs 550 billion) in the scheme which was launched by the Central government on July 1, 1975 to provide better returns to non-government
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