In what is thought to be an unprecedented move, the finance ministry has today set aside the recommendations of CBT and decreased the interest rate on Employees Provident Fund. The Central Board of Trustees (CBT) often decides the interest rate to be granted on EPF. The decision of CBT would normally be accepted by the Finance Ministry. But this time, as the CBT fixed the rate at 8.8%, finance ministry has ratified it at 8.7%. This move has of course ignited the wrath of trade unions across the country. The trade unions including RSS-affiliated Bharatiya Mazdoor Sangh (BMS), have already announced nationwide protests against the decision, until it is rolled back.
The central government from a few months, has been trying to profit on the lakhs of crores accumulated through EPF. At first, the finance minister has tried to impose tax on it and failed. Later, several restrictions were laid on the withdrawal of EPF. But as the protests against the decision turned violent in Bengaluru, the government has moved back from its war front on EPF. And now the latest move seems to lead one more spur between the middle class India and the government.
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