The decision has been withdrawn just hours after the government announced a cut in interest rates on Small Savings Schemes Government withdraws. The Finance Minister, through his Twitter handle, informed about the withdrawal of the announcement of reduction in interest rates of small savings schemes. Finance Minister Nirmala Sitharaman has announced the withdrawal of this order, hours after the Finance Ministry issued a notification to cut interest rates on small savings schemes including NSC and PPF.
In the tweet, he wrote that the interest rates of small savings schemes will remain the same as they were in the last quarter of 2020-2021. The order which was issued last evening is being withdrawn.
These are the old rates that have been retained
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Significantly, the government on Wednesday announced a cut in interest rates on PPF and other small savings schemes for the March to June 2021 quarter. The government reduced the interest rate on PPF from 6.4 percent to 6.4 percent for the first quarter of the next financial year, the interest rate on National Savings Certificates (NSC) was reduced from 6.8 percent to 5.9 percent, the interest rate on Senior Citizen Savings Scheme (SCSS) It was announced to be reduced from 7.4 per cent to 6.5 per cent. But the decision has been withdrawn after a few hours. The PPF interest rate below 7 percent was the lowest in 46 years since 1974 for the first time since 1974 by the government.
Yesterday, the interest on the savings scheme Sukanya Samriddhi Yojana Account for Girls was reduced by 0.7 per cent to 6.9 per cent for the first quarter of 2021-22. The annual interest rate on Kisan Vikas Patra was reduced by 0.7 percent to 6.2 percent. But, now all the rates are present as before.
Interest rates on small saving schemes are fixed for each quarter. The government fixes these rates. After a large rate cut in April 2020, the interest rates on small savings schemes were kept unchanged throughout the financial year 2020-21.
