Retirement
CBT allows EPFO to park funds in CDs, long duration bank FDs

The decision will allow EPFO, which has a corpus of Rs3.5 lakh crore, more flexibility in its investment

 
New Delhi: The Central Board of Trustees (CBT) has given green signal to retirement fund body Employees' Provident Fund Organisation (EPFO) to park its funds in fixed deposits (FDs) upto five years, short term securities and certificate of deposits (CDs) of public sector banks, reports PTI.
 
The proposal to provide greater freedom to EPFO in additional financial instruments, was approved by the CBT at a meeting in the capital.
 
However these approved proposals will have to be cleared by the government before implementation.
 
EPFO has corpus of Rs3.5 lakh crore and needed to increase its returns on investments to provide higher rate of interest to subscribers.
 
"What has been agreed....which again will be recommended to the government and it has to take a view, is that the borrowing in the collateral borrowing lending obligation (CBLO) is to be permitted, the investment in the CDs of the public sector banks also is to be permitted and and the investment in FDs for more the one year and less than five years is also be permitted," Central Provident Fund Commissioner RC Mishra told reporters after the CBT meet.
 
As per the proposal, the EPFO would be allowed to participate in CBLO, approved by the the Reserve Bank of India (RBI).
 
The decision will allow EPFO more flexibility in investment in the primary options of short term securities by the RBI.
 
The PF body also got approval of trustees to park its funds in certificate of deposits (CDs) issued by public sector banks as they provide higher returns.
 
CDs are issued by banks to raise funds from the market and are tradeable instruments.
 

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MLM employees demand enactment of Central law

While there is no guarantee of a MLM company's survival, the AITUC want these companies to provide PF, gratuity and other benefits to their employees

 
New Delhi: Several employees of multi-level marketing firms staged a protest in the capital demanding enactment of a Central law which would identify and protect the interests of the genuine companies and employees working in the sector, reports PTI.
 
The workers under the aegis of the All India Trade Union Congress (AITUC) marched from Barakhamba to Jantar Mantar where they sat on a dharna.
 
Addressing the protesters, senior CPI leader Gurudas Dasgupta said, "There are more than 20 lakh employees working in the multi-level marketing sector and their number is bound to grow due to market competition." 
 
"However, the current working conditions that are provided to them by MNCs are very unsatisfactory. Income of multi-level marketing officials is very unreliable, where they have no stability or social security.
 
"We will fight to procure benefits like provident fund, maternity benefit for the marketing people by the companies," he added.
 
AITUC National Secretary Amarjeet Kaur alleged the high- power seven member inter-ministerial committee set up by the Ministry of Consumer Affairs with nominees from various ministries and the RBI does not have any employee representation.
 
"This lacuna will seriously affect the quality of the fact finding report which will recommend and finally be submitted to the government by 31st August. Therefore, we do hope that the government will take appropriate steps to consult all stakeholders," she said.
 

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COMMENTS

mohan

5 years ago

Good move by the Union

mohan

5 years ago

Good move by the Union

PSU banks' frauds nearly doubles to Rs3,799 crore in FY11

While CBI registered criminal cases involving Rs4,000 crore in 2011, cases regarding frauds worth Rs2,500 crore have already been registered from January to July this year  

 
New Delhi: Losses suffered by Indian public sector banks in frauds nearly doubled to Rs3,780 crore in 2010-11 over the previous year, Central Bureau of Investigation (CBI) chief AP Singh said, prompting the probe agency to work on a database of bank fraudsters, reports PTI.
 
Singh said on Tuesday the increasing amount of frauds in the banking sector is a 'disturbing factor'.
 
"Banks lost Rs2,017 crore due to frauds in 2009-10. This has seen a quantum jump (88%) in 2010-11, with the loss amount rising to Rs3,799 crore," he told the annual conference of Chief Vigilance Officers of public sector banks and financial institutions.
 
"While CBI's Bank Securities and Fraud Cell registered criminal cases involving Rs4,000 crore in 2011, cases regarding frauds worth Rs2,500 crore have already been registered from January to July this year," he said.
 
Singh said CBI is developing a 'Bank Case Information System' (BCIS) which contains names of accused persons, borrowers and public servants in its records.
 
"This information may also be made accessible to field functionaries of the banking sector in collaboration with the Indian Bank Association (IBA), once modalities are worked out," he said.
 
Delivering the keynote address at the conference, the CBI chief also said the agency would now probe only those bank fraud cases where loss is more than Rs three crore while those below it would be investigated by the state police.
 
"On the request of CBI, CVC has notified revised threshold limits for reporting bank fraud. CBI will now only register bank fraud cases involving loss of over Rs three crore. Frauds involving loss of below Rs three crore shall be reported to state police," he said.
 
Singh pointed out that the losses incurred by public sector banks and financial institutions clearly suggest that a better system of checks and balances is required to prevent such frauds.
 
He said existing loopholes need to be plugged, manuals updated and Standard Operating Procedures framed to ensure that lending and borrowing takes places in a healthy environment, free of fraud.
 
The CBI Director also raised the issue of according sanction of prosecution of accused officers concerned which gets delayed resulting in subsequent delay in probe for such cheating cases.
 

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