Provident funds ‑prohibits payment of interest at higher rate - Companies Law - Letter : No. 8/20(418)/65‑CL‑V,

Letter : No. 8/20(418)/65 CL V, dated 28 9 1965. Subject:- Provident funds prohibits payment of interest at higher rate Sub section (2) of section 418 only imposes a restriction on the right of an employee of a company to receive interest at any rate exceeding that specified therein. It does not prohibit an employee from receiving and the trustees of a provident fund from paying voluntarily interest at a higher rate if they can afford to do so.