EPFO will withdraw equity investment equivalent to Rs 12,785 crore from ETFs. Out of this, about Rs 5529 crore will be used for paying interest for FY22. EPFO had made this investment during July-December 2017 under the accounting rule called FIFO. In the middle of the year 2017, EPFO invested Rs 7,255 crore and will now sell it for Rs 12,785 crore. Money Control has broken this exclusive news.
A senior EPFO board member said that selling this investment would result in a capital gain of Rs 5,529 crore. This profit will be added to the income of the financial year 2021-22. It will be used to pay interest for FY22.
EPFO’s decision making body CBT (Central Board of Trustees, CBT) has a meeting in Guwahati on 11-12 March. In this meeting on March 12, the EPF interest rate for the financial year 2011-22 will be announced. Therefore, all eyes are on this meeting.
100 crores amount
Employees’ Provident Fund Organization (EPFO) will propose to transfer Rs 100 crore from its unclaimed fund to Senior Citizens Welfare Fund of over Rs 58,000 crore, as per a 2015 government directive. According to a Finance Ministry notification issued in 2015, unclaimed savings for seven years in EPF and PPF accounts and other small savings schemes should be converted into Senior Citizens Welfare Fund.
The proposal to transfer unclaimed funds to senior citizens’ funds may face opposition from trade unions. A representative of a national trade union said on condition of anonymity, “We will consider the government’s proposal to transfer part of the unclaimed money. We feel that this is not unclaimed money but unresolved money and hence it should remain with EPFO.