Modi govt hastily rolls-back small savings interest rate cut as Assam, Bengal vote

Union Finance Minister Nirmala Sitharaman has informed that the order to cut the interest rate on small savings schemes has been withdrawn. She gave this information on social media after which Congress has attacked Finance Minister. Congress General Secretary Priyanka Gandhi retweeted the Finance Minister’s tweet that whether Nirmala Sitharaman reviewed or thought before taking this decision of the Central Government … or was it because of the election that the Modi government changed its decision. She jibed that once the elections are over, the BJP will re-implement its economics.

What did Finance Minister Nirmala Sitharaman say
Finance Minister Nirmala Sitharaman said on Thursday that the government would withdraw the decision of reduced interest rates on small savings schemes and assured to bring the interest rates to the level of the last quarter of the financial year ended March 31. Sitharaman tweeted on Thursday morning that the interest rate on the small savings schemes of the Government of India will remain the same as it was in the last quarter of 2020-2021, i.e. the rates as of March 2021. Previously placed orders will be withdrawn.

Interest rate cut

In a setback to those who invested in small savings schemes, the government on Wednesday cut the interest rates on small savings schemes including Public Provident Fund (PPF) and NSC (National Savings Certificate) by up to 1.1 percent. This deduction was made for the first quarter of 2021-22 starting April 1. According to the Finance Ministry notification, interest on PPF was reduced by 0.7 percent to 6.4 percent, while on NSC, it was reduced by 0.9 percent to 5.9 percent. Interest on small savings schemes is notified on a quarterly basis. Maximum 1.1 percent reduction in interest was made on one-year term deposits. It was decided to reduce the interest on it from 5.5 percent to 4.4 percent.

Also read: “No onions, no memory, no principles. Maami rocks”: Actor Siddharth mocks FM Nirmala Sitaraman over hikes in fuel prices

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