People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


No. 43

October 28, 2007

8.5% Rate Of Interest On PF Not Acceptable: CITU


The CITU has strongly condemned the government of India’s decision to pay interest on PF at 8.5 per cent for 2006-2007 despite strong opposition by trade unions and lack of unanimity in the Central Board of Trustees of PF organisation.


The NDA government had brought down the rate of PF interest on the dubious plea that price rise has gone down and the rates of interest on bank deposits were low. The CITU in a statement issued on October 22 charged the UPA government of going further than the NDA government by sticking to 8.5 per cent interest rate at a time when prices are rising sky high and bank rates are also much higher.


The CITU has always made irrefutable arguments that if banks can give 9.5 per cent to 10 per cent interest for 2-3 year term deposits then the government can given more than that on PF money, which is a life long deposit for 30-40 years.


The CITU regretted that while government is refusing to pay more that 8 per cent interest on Special Deposit Scheme money taken from PF deposits, the Reserve Bank has spent nearly one lakh crores of rupees to support the falling value of dollar and the government has given thousands of crores of subsidy to exporters to sustain their profits.


The CITU demanded from the government of India to increase the rate of interest as demanded by the trade unions so that industrial peace is not disturbed by such pro-employer and anti-workers decision.


The CITU appealed to all trade unions to jointly organise a countrywide movement to oppose this arbitrary decision of the government of India, so that it is forced to enhance the rate of interest and the workers can have a proper retired life in their old age.