There is no proposal to increase the rate of Employee Provident Fund (EPF) to bring it at par with the rates provided by banks, minister of state (independent charge) for labour and employment, Oscar Fernandes told the Lok Sabha in a written reply today.

He said the rate of interest declared to be credited in EPF Accounts in any particular year is determined in such a manner that there should be no overdrawal on the 'interest suspense account' as a result of debit of the interest credited to members accounts.

Fernandes said that while recommending the rate of interest for a particular year, the estimated liabilities on account of interest payable to members as well as estimated interest earnings are taken into consideration by the EPF board. The recommended interest rate is directly proportional to the earnings realised on EPF investments.

The minister said that as per the information provided by SBI, the rates of FDs offered to senior citizens have ranged between 5.50 per cent to 8.75 per cent during the period 1 January, 2004, to 31 March, 2007.

Fernandes said that the rate of interest declared by the government for the years 2004-05 and 2005-06 was 9.5 per cent and 8.5 per cent respectively. The rate of interest recommended by the central board of trustees, for 2006-07 is 8.5 per cent. However, the rate of interest for the year 2007-08 has not so far been recommended by the Board.