Steep cuts on interest rates on small savings schemes, announced last evening, were rolled back by the government today with Finance Minister Nirmala Sitharaman declaring that “orders issued by oversight” would be withdrawn.
The cuts in schemes ranging from the National Savings Certificates or NSC and Public Provident Fund or PPF, would have hurt millions of middle class depositors.
“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 Orders issued by oversight shall be withdrawn,” Finance Minister Nirmala Sitharaman tweeted this morning.
Last evening, on the last day of the financial year, the government had announced a huge cut in interest rates of up to 1.1 per cent for the first quarter of 2021-22. The interest rate on PPF was reduced from 7.1 per cent to 6.4 per cent. NSC would be down to 5.9 per cent from 6.8 per cent.
The new interest rate on PPF would have been the lowest since 1974.