PF interest reduction fallout of PNB scam, says Mamata

Hemtabad : West Bengal Chief Minister Mamata Banerjee on Thursday claimed that the fresh reduction in provident fund interest is a fallout of the  Punjab National Bank (PNB) scam and that the working class would suffer hugely due to the rate cut.

The Trinamool Congress supremo claimed that the funds were being drawn from the people’s pockets to balance the loss of an estimated Rs 11,400 crore suffered due to the PNB scam.

Stating that the working class would suffer hugely due to the latest cut in the interest rate, she said that the PF rates, which were 8.82 per cent when the BJP-led NDA government came to power in 2014, has now come down to 8.55 per cent, reports PTI.

The Employees’ Provident Fund Organisation’s (EPFO), the retirement fund body had on Wednesday lowered the rate of interest on employees provident fund to 8.55 per cent for its over six crore subscribers for 2017-18 from 8.65 per cent in the previous fiscal.

”Funds are drawn from people’s pockets to balance the accounts whenever there is a loot. Think of the loss to a common man owing to this 0.10 per cent reduction in the PF interest rate,” she told a public rally in this North Dinajpur’district hamlet in north Bengal.

Alleging that the BJP’s policy was to ”snatch farmers’ and general public’s money and make them pennyless”, she said that senior citizens, who keep their money in banks, have been hugely hit with the reduction in interest rates in different savings schemes of the PSU banks and small savings.

”PF, small savings interest rates have been reduced drastically by this government and now people don’t even know whether they will get back the money they have kept in banks,” Banerjee said.

The chief minister said that the Centre is planning to bring the Financial Resolution and Deposit Insurance (FRDI) Bill through which banks would decide whether a depositor would get his money back or not even if it has been invested in fixed deposits.