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Standard Chartered Bank appointed custodian of EPFO securities

Mallikarjun Kharge (left), Union Minister for Labour and Employment, and P. C. Chaturvedi, Labour Secretary, at the meeting of the Central Board of Trustees of EPFO in Bangalore on Wednesday. Photo: K. Gopinathan  

The Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) on Wednesday approved the appointment of Standard Chartered Bank as the custodian of securities of the EPFO. The 196th meeting of the CBT, held here for the first time, also approved the appointment of Mumbai-based Chandbhoy and Jassoobhoy as External Concurrent Auditor to audit the investments of the EPFO funds.

Speaking to reporters after the meeting, Union Labour Minister Mallikarjun Kharge, who chaired the session, said the CBT made the appointments following the calling of bids on an all-India basis.

In an earlier meeting held in Delhi recently, the CBT had approved four fund managers to handle EPF funds, invested in public and private sectors, including the stock market. The fund managers are: State Bank of India, ICICI Bank, HSBC Bank and Reliance Capital. The members of the PF Board, which includes representatives of employers, employees and the government, were present at the Bangalore meeting.

A top EPFO official who attended the meeting said a total of five crore employees came under the EPFO. The total fund size was Rs.3.50 lakh crore. Of this, about Rs.60,000 crore was reinvested every year, while Rs.40,000 crore was collected annually.

Of the total funds, Rs.50,000 crore was invested in special deposit schemes of the government, while a fixed amount of Rs.50,000 crore would be with the Central Government. The remaining Rs.2.50 lakh crore would be distributed among the four fund managers, who would manage the funds under government supervision, said the official.

The fund managers would invest funds as per the pattern of investment specified by the Ministry of Finance and approved by the Ministry of Labour.

New office

Mr. Kharge said a new multi-storeyed PF office would be built in Bangalore at a cost of Rs.25 crore. New sub-regional offices would be set up in Karnataka in Yelahanka, Belgaum, Tumkur, Begalkot and Bidar. District offices would be set up in Mandya, Hospet and Karwar, he added.

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Printable version | Jan 18, 2021 9:02:10 AM | https://www.thehindu.com/business/companies/standard-chartered-bank-appointed-custodian-of-epfo-securities/article2300091.ece

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