The Union Ministry of Labor and Employment has promised savings to consumers under the Employees' Provident Fund (EPF) scheme.
National Pension Scheme for Entrepreneurs and Self-Employed Persons
Corporate bonds of private companies will remain safe regardless of the return on investment of the company operating the scheme (EPFO).
Company
This comes after Anil Ambani-owned Reliance Capital failed to pay interest on EPFO.
As per a senior authority who addressed The Print in a state of secrecy, the public authority consistently has a cradle or surplus on returns.
EPFO is based on investment, which saves the employees.
No less than 80% of the EPFO corpus is put resources into public area protections and government protections, which don't default.
20% of the investment should be in corporate bonds issued by public sector entities that have a lot.
The interest we earn is enough to cover the liabilities,” the official said.
This is the position of Reliance Capital. Last week, Minister of State for Finance Dr. Bhagwat Karar told the Rajya Sabha that the agency,
Non-convertible debentures (NCDs) in which the EPFO had invested Rs 2,500 crore have paid interest in the range of Rs 536.64 crore to Rs 30 crore.
November 2021.
Karad, however, said there was nothing wrong with the principal payment of the NCDs.
The Ministry of Labor and Employment further stated that no investment has been made as there is no expiry date for this investment.
"Default on the headmaster," said Accord.
The Union Labor Ministry has fixed 8.5 percent interest for the subscribers of the EPF scheme for the year 2020-21, which will result in an estimated Rs.
Rupee. 70,000 crore as interest. 1,000 crore excluding surplus. This was stated in the meeting of the Central Board of Trustees of EPFO.
November 2021 as per official sources.
The Finance Ministry has approved 8.5% interest rate on EPF for the financial year 2020.
default in interest payment
Non-convertible debentures are loans that offer higher interest rates. Companies usually use these tools to raise money.
Collect the long-term value of their assets.
For the first time, Reliance Capital made a mistake in paying this interest in October 2019. Since then, various regulatory measures have been taken.
against the company.
The RBI has also filed an application in the Mumbai Bench of the National Company Law Tribunal (NCLT) to initiate bankruptcy proceedings.
Institute. According to official rules, this process will take 330 days.
No investment in private sector securities
As per the mandatory investment policy of the government, the EPFO will have to invest at least 20 percent of its growing inflows.
With Corporate Bonds issued by Public Sector Undertakings.
Be that as it may, later the breakdown of Infrastructure Leasing and Financial Services Ltd (IL&FS) in August keep going year and default on Reliance Capital
Board of Payments, Retirement Fund Company has decided to stop further investment in bonds issued by private sector companies.
The board additionally concluded that the EPFO will put uniquely in obligations of public area substances that meet specific rating rules.
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