Why are small savings schemes so important?
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On 31 March, the govt slashed interest rates on small savings schemes. The Public Provident Fund (PPF) interest rate was cut from 7.1% to 6.4%. On 1 April, the Centre withdrew its order, saying it was issued due to an oversight. Mint explains the importance of these rates
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On 31 March, the government slashed interest rates on small savings schemes. The Public Provident Fund (PPF) interest rate was cut from 7.1% to 6.4%. On 1 April, the Centre withdrew its order, saying it was issued due to an oversight. Mint explains the importance of these rates.
Interest rate cut rollback oversight or political hindsight? A TMC-BJP faceoff
Interest rate cut rollback oversight or political hindsight? A TMC-BJP faceoff
Rajdeep Sardesai spoke to TMC MP Mahua Moitra and BJP MP Syed Zafar Islam over the interest rate cut rollback by the Modi government.
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Union Finance Minister Nirmala Sitharaman
The Centre has quickly withdrawn its order cutting interest rates on small savings schemes, with Union Finance Minister Nirmala Sitharaman saying it had been “issued by oversight”.
This prompted the Opposition to say that the rollback was done for electoral gains as elections are on in four states and one Union Territory.
Synopsis
A day earlier, in a blow to savers, the government had cut interest rates on small savings schemes, such as post office deposits and public provident fund, by up to 110 basis points. The new rates were to be effective today.
Order on small savings interest rate cuts withdrawn: FM Nirmala Sitharaman
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The finance ministry has withdrawn its decision to slash interest rates on small savings schemes like the Public Provident Fund and the National Savings Certificate (NSC), terming it an oversight , on Thursday.
The rates on such schemes will continue to remain as they were during the January-March quarter, reversing the cut on interest rates of up to 110 basis points or 1.1 percentage points announced a day earlier.
PPF, NSC, other small savings schemes interest rate cut withdrawn
Sitharaman recently said that blockchain experiments would be allowed
(Photo: Mint)
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The government on Thursday withdrawn the order which slashed interest rates on Public Provident Fund (PPF) and other small savings schemes for the June quarter. Interest rates of small savings schemes of GoI 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, read a tweet from Finance Minister Nirmala Sitharaman.
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CPI(M) leader Sitaram Yechury (file photo)
Taking order back not going to fool anyone: Yechury after Centre rolls back interest rate cut on small savings ANI | Updated: Apr 01, 2021 16:49 IST
By Amit Kumar
New Delhi [India], April 1 (ANI): Communist Party of India (Marxist) General Secretary Sitaram Yechury on Thursday alleged that the Central government postponed the cuts on the interest rate on small savings schemes in view of ongoing Assembly elections in four states and one Union Territory, adding that taking the order back is not going to fool anyone .
In a tweet, Yechury said: Modi government clearly wants to further destroy peoples lives and slash small savings. Taking the order back is not going to fool anyone. Their intentions are clear. Cronies incomes are growing into trillions, but the majority are squeezed and destroyed.