Government reversed by decision to cut interest rates on Small Savings Schemes

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New Delhi (Loksatya). Reverting to the decision to cut interest rates on Small Savings Schemes, the government said on Thursday that these schemes will continue to receive interest as before.

In a tweet, Finance Minister Nirmala Sitharaman said on Thursday that the rates from which interest was being received on small savings schemes in the last quarter of the year 2020-21, will continue to be the same in the first quarter of 2021-22. He said that the orders which were issued to cut interest rates are not being withdrawn and they will continue to get interest as before. The Finance Ministry announces interest rates on these schemes every quarter.

It is noteworthy that the government had decided to cut the interest rates on small savings schemes from half a percent to one percent, bringing the interest rate on PPF to a low of 46 years. For the first time in 46 years, the interest rate came down to 6.4 percent from 7 percent. Similarly, the rate of interest on National Savings Certificate was also reduced from 6.8 per cent to 5.9 per cent.

Along with this, the interest rate on Sukanya Samriddhi Yojana was also reduced from 7. 6 percent to 6.9 percent. Interest rates on saving schemes of senior citizens were also reduced from 7.4 percent to 6.5 percent. The interest rate on Kisan Vikas Patra was also reduced from 6.9 percent to 6.2 percent. The interest rate on the Post Office Savings Scheme was reduced from four percent to 3.5 percent.

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