EPFO weighs ₹25,000 crore reserve to keep PF interest rates steady

The EPFO is discussing a dedicated ₹25,000-crore Interest Stabilisation Reserve to protect annual payouts for its nearly 30 crore members from shocks such as corporate bond defaults. An IIM Kozhikode proposal, reviewed by EPFO's investment committee, suggests building the fund gradually from ETF gains and surplus income and parking it only in safe government securities.