Government withdraws order that announced big interest rate cuts in small savings schemes
Withdrawing the order, Finance Minister Nirmala Sitharaman said: "Interest rates of small savings schemes of 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."
FollowThe Narendra Modi government has rolled back the order issued late last night that announced the slashing of interest rates on small savings schemes including National Savings Certificates and Public Provident Fund.
Withdrawing the order, Finance Minister Nirmala Sitharaman said: "Interest rates of small savings schemes of 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."
The Finance Minister said that the order was issued by oversight, and hence was being withdrawn.
The controversial order, which was widely criticised, said that the interest rate on PPF was being reduced from 7.1 per cent to 6.4 per cent while the interest rate on NSC was being revised to 5.9 per cent from 6.8 per cent.
The interest rate for the five-year Senior Citizens Savings Scheme, which is paid quarterly, was also been reduced steeply by 0.9 per cent to 6.5 per cent.
The government order issued last night that has now been withdrawn
For now, with Nirmala Sitharaman withdrawing the controversial order, the Middle Class can breathe slightly easier.
