Govt Takes a U-Turn; No Change in Interest Rates on Small Savings Schemes, PPF, NSC
After issuing an order to reduce interest rates on small savings schemes that would have delivered a blow to savers who depend on these schemes for income and social security, the Union government had withdrawn the order issued on 31 March 2021. Finance minister Nirmala Sitharaman (FM) says, the orders were issued by oversight and would be withdrawn.
 
In a tweet, she says, "Interest rates of small savings schemes of government of India (GoI) shall continue to be at the rates which existed in the last quarter of 2020-2021, i.e., rates that prevailed as of March 2021."
 
  
 
On Wednesday, the government reduced interest rates on small savings that would have taken place from 1 April 2021.
 
The interest on savings deposits was cut to 3.5% from 4% annually, while for public provident fund (PPF) it was reduced to 6.4% from 7.1%.
 
Similarly, quarterly interest on one-year time deposit was cut to 4.4% from 5.5%. The senior citizen savings schemes rate was reduced to 6.5% from 7.4%.
 
The interest rate on National Savings Certificate (NSC) was cut to 5.9% from 6.8%, Sukanya Samridhi Yojana to 6.9% from 7.6% and Kisan Vikas Patra to 6.2% from 6.9%. 
 
However, with the clarification from the FM, there would be no change in interest rates of small savings and they would continue as they were.
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    COMMENTS

    Ramesh Popat

    6 days ago

    farmers, poor, corporate all benificiries of package cof trillions.
    but middle class and senior citizens are not completely ignored,
    but insulted by not giving a single rupee benefit since pandemic.
    low interest rates, no tax relief while real inflation has eroded a
    substantial purchasing power of all. very merciless authority indeed!

    ssk.pab

    1 week ago

    It is interesting to read all uncomfortable comments against the Government....yet, we as a Society, collectively elect the same Government........

    komalhema4

    1 week ago

    The order is now withdrawn but will be issued after election.This government's intention is to take out as much money as possible from pockets of senior citizens and honest taxpayers to further increase the wealth of 2 businessmen,under the pretext of poor people's welfare schemes.

    bajaj3

    1 week ago

    Obviously because of elections.
    Maybe rates will be reduced afterwards, which will be most unfortunate for us seniors. I am a retired (forcibly) senior citizen, 73 years.

    Kamal Garg

    1 week ago

    These kinds of decisions are formally and in writing approved by the FM and cannot be issued the secretaries without formal in-writing approval.
    And therefore whether it is "oversight" or "election hindsight" is anybody's guess.

    srinivasanhkrh

    1 week ago

    A classic example of hypocrisy / hypocritical attitude on the part of the govt. Election -time gimmick. When there is an election , price of petrol and diesel would not rise. Just wait and be ready to face all kinds onslaught on your purse.

    sampadole

    1 week ago

    This is a pre election stunt. Let Bangla election get over and wait till July 1. This move is on cards, although rolled back as of now.

    dayaka58

    1 week ago

    May be it was fiasco by disgruntled burocracy during election time or may be a planned game plan to prove that it is not only favorable to public decisions even unfavorable to public decisions have to be differed during election. An escape route not to be accountable for not taking decisions during elections.

    sureshtb4246

    1 week ago

    Requesting the Honourable Prime Minister to Change Portfolio and reorganise the Departments of Finance Ministry at the earliest

    ragup

    1 week ago

    What is the meaning of this flip flop?

    REPLY

    sanjit.sca

    In Reply to ragup 1 week ago

    A bad decision which would hurt a huge No of citizens needlessly. The continuous reduction of interest rate in small savings schemes over past 3 to 4 yrs must be stopped & reversed forthwith (as done for EPF) - as it has begun to directly effect the well being of the people, specially senior citizens. The P M - who always takes grt care and ensures the well being of the people may like to review this policy and advise the finance ministry babus before it becomes too late

    Nahom

    In Reply to ragup 1 week ago

    It means the Cronies and their Comrades in Crime (Bureaucracy) wants Vasooli from Senior Citizens though delayed for now.

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