The Central government has rolled back cuts on interest rates on small savings schemes. According to a tweet shares by Finance Minister Nirmala Sitharaman on Thursday morning, the interest rates on small savings like National Savings Certificates (NSC) and Public Provident Fund ( PPF) will to be retained at level of fourth quarter of last financial year.
"Interest rates of small savings schemes of the Government of India shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn," the FM tweeted.
Earlier on Wednesday evening, the government revised the interest rates on small savings with effect from April 1 with a massive cut. While the interest on savings deposit was cut from 4 per cent to 3.5 per cent annually, PPF interest rate was brought down from 7.1 per cent to 6.4 per cent.
Similarly, 1 year time deposit interest rate was reduced from 5.5% to 4.4% quarterly. The senior citizen savings schemes rate was also slashed from 7.4% to 6.5%. The interest rate on NSC was cut from 6.8 per cent to 5.9 per cent, Sukanya Samridhi Yojana from 7.6 per cent to 6.9 per cent and Kisan Vikas Patra from 6.9 per cent to 6.2 per cent.
Interest rates for small savings schemes are notified on a quarterly basis by the government.
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