New Delhi: The Government has allowed private banks like Reliance Cap, ICICI Prudential and HSBC to manage provident fund for Government workers and the organised sector.
Earlier State Bank of India was the only bank that was managing the Rs 2.5 lakh crore provident fund that is serving over four crore workers in the Government and organised sector.
The decision was taken after the Finance and Investment Committee of EPFO shortlisted three banks from a lot of 10 financial bids.
The meeting, was chaired by Labour Minister Oscar Fernandes, took the decision amid protests by representatives of labour unions affiliated with Left parties.
Analysts say that the entry of private players may help EPFO to offer high interest rate to its subscribers as against 8.5 per cent at present.
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