EPFO weighs Rs 25,000 crore reserve to steady interest payouts to members

The Employees' Provident Fund Organisation is considering creating a Rs 25,000-crore Interest Stabilisation Reserve. The proposed fund would shield members' interest payments from losses caused by corporate bond defaults and other market swings. According to a report, the reserve would be built from surplus gains on the organisation's ETF investments. It would be invested in government securities. The report also argues that such a reserve has historically helped keep interest rates stable.