'Issued By Oversight': Govt Withdraws Order Slashing Rates For Small Saving Schemes

The government on Thursday morning withdrew the order slashing rates for small saving schemes. The announcement was made by Union finance minister Nirmala Sitharaman on Twitter.

"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 Orders issued by oversight shall be withdrawn," she said on Twitter.

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Orders issued by oversight shall be withdrawn. @FinMinIndia @PIB_India

— Nirmala Sitharaman (@nsitharaman) April 1, 2021

On Wednesday, the Centre had decided to cut interest rates on small savings schemes, including National Savings Certificate (NSC) and Public Provident Fund (PPF), by up to 1.1 per cent for the first quarter of 2021-22 in line with falling fixed deposit rates of banks.

Interest rate on Public Provident Fund (PPF) was reduced by 0.7 per cent to 6.4 per cent, while National Savings Certificate (NSC) was to earn 0.9 per cent less at 5.9 per cent.

The steepest fall of 1.1 per cent was effected in the one-year term deposit. The new rate was brought down to 4.4 per cent as compared to 5.5 per cent.

Interest rates for small savings schemes are notified on a quarterly basis.

With PTI inputs