#LutGaiSaving trends on Twitter; Govt withdraws order to cut interest rate on PPF, other small saving schemesNew Delhi, March 31: The government on Thursday withdrawn the order which slashed interest rates on Public Provident Fund (PPF) and other small savings schemes for the June quarter.
Announcing the same, Finance Minister Nirmala Sitharaman today morning said that the interest rates of small savings schemes shall continue to be at the rates of the last quarter of FY 2020-21. She also said that the orders issued oversight shall be withdrawn with immediate effect.
''Interest rates of small savings schemes of government of India 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 Orders issued by oversight shall be withdrawn,'' Union finance minister wrote on Twitter.
Earlier on Wednesday, the government cut interest rates on small savings schemes, including NSC and 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) has been reduced by 0.7 per cent to 6.4 per cent while National Savings Certificate (NSC) will now earn 0.9 per cent less at 5.9 per cent.
The new interest rate on PPF will be the lowest since 1974. According to reports, the PPF interest rate was 7 per cent between August 1974 and March 1975. Prior to that, the rate was 5.8 per cent.