Govt withdraws order slashing interest rate on small savings

The government on Thursday withdrew the order slashing rates for small saving schemes. The announcement was made by Union finance minister Nirmala Sitharaman on Twitter. Interest rates for small savings schemes are notified on a quarterly basis. The government has rolled back cuts on interest rates on small savings schemes, including National Savings Certificates or NSC and Public Provident Fund or PPF, announced on Wednesday evening.

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Orders issued by oversight shall be withdrawn.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 government on Wednesday 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.The interest rate on PPF was reduced by 0.7 per cent to 6.4 per cent while the rate on NSC was cut from 6.8 per cent to 5.9 per cent.