“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,” the Finance ministry tweeted at this time morning.
Orders issued by oversight shall be withdrawn, it added.
Interest rates of small savings schemes of GoI shall proceed to be on the rates which existed in the final quarter… https://t.co/CKQryM8yUN
— Nirmala Sitharaman (@nsitharaman) 1617243845000
A day earlier, in a blow to savers, the federal government had cut interest rates on small savings schemes, corresponding to publish workplace deposits and public provident fund, by as much as 110 foundation factors.
The new rates have been to be efficient at this time.
Coming after the transfer to tax interest on worker provident fund contributions of over Rs 2.5 lakh every year, yesterday’s price cut determination had left India’s small savers deeply distressed.
If the cut had been imposed, the interest on public provident fund would have gone down to six.4%, its lowest since 1974.
Yesterday’s motion would have notably damage the woman little one and senior residents — probably the most important beneficiaries of authorities’s small savings schemes. Senior residents have already been severely impacted and reeling from low earnings after the nosedive in fastened deposit rates.