Government withdraws the reduced interest rates on small savings schemes, know what the Finance Minister said

The government on Thursday withdrew the order that reduced the June quarter interest rates on Public Provident Fund (PPF) and other small savings schemes. Finance Minister Nirmala Sitharaman has given a tweet informing that “the interest rates of small savings schemes will remain the same as they were in the last quarter of 2020-2021, ie the rates applicable till March 2021. First of the financial year 2021-22 The rates of interest on various small savings schemes for the quarter started from April 1 and will end on June 30, 2021.

On Wednesday, an order said that the interest rate on small schemes has been cut by up to 1.10 percent. Accordingly, the Finance Ministry has cut the interest rate on Public Provident Fund or PPF by 70 basis points. Till now it was getting an annual interest of 7.1 percent. This was reduced to 6.4 percent.

The 5-year National Savings Scheme interest rate was reduced by 90 basis points. Earlier, it used to get 6.8 percent interest, which has been reduced to 5.9 percent. With this, the interest rate on PPF had come down to the lowest level of 46 years. There was displeasure among the people by this decision of the government. It was being said that this may affect the assembly elections.