Nirmala Sitharaman tweets small savings rate cut order to be withdrawn; Congress calls it 'poll-driven hindsight'

In a tweet on Thursday morning that simultaneously gave rise to cheer and dismay, Finance Minister Nirmala Sitharaman said that the "interest rates of small savings schemes will continue to be at the rates which existed in the last quarter of 2020-2021". However, what caught everyone's attention was that "Orders issued by oversight shall be withdrawn."

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Orders issued by oversight shall be withdrawn.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

The finance minister's tweet in the morning when the states of Assam and West Bengal are voting in the second phase of Assembly elections in 39 and 30 constituencies respectively even led to speculations if the decision was motivated by the state polls with Congress general secretary Priyanka Gandhi Vadra dropping hints of a more political decision rather than financial.

Really @nsitharaman “oversight” in issuing the order to decrease interest rates on GOI schemes or election driven “hindsight” in withdrawing it? https://t.co/Duimt8daZu

— Priyanka Gandhi Vadra (@priyankagandhi) April 1, 2021

Congress leader Vineet Punia responded to the finance minister's tweet accusing the BJP government of repeatedly harming citizens on the economic front.

भाजपा केवल ‘हम दो, हमारे दो’ की सरकार है, जनता के बीच अपना भरोसा खो चुकी है।

2014 की ब्याज दरें नीचे दी गई हैं पर आम भारतीय पर BJP ने बार-बार आर्थिक चोट मारी है। बार-बार लघु बचत योजनाओं, कर्मचारियों के पीपीएफ बचत खातों, किसान बचत योजना/सुकन्या की ब्याज दरों में भारी कमी की है। pic.twitter.com/TNeYEZzMy4

— Dr Vineet Punia। विनीत पुनिया (@VineetPunia) April 1, 2021

On Wednesday, in a jolt to savers, the finance ministry had reduced interest rate by up to 1.1 percent across various small savings schemes, including the National Savings Certificates (NSC) and Public Provident Fund (PPF).

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

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

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

With inputs from PTI