Sitharaman makes U-turn on interest rate reduction on small savings schemes

Sitharaman makes U-turn on interest rate reduction on small savings schemes

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Sitharaman makes U-turn on interest rate reduction on small savings schemes

New Delhi: On the announcement of reducing the interest rate on small savings schemes, the central government has taken a U-turn in a day. The scheme announced on Wednesday has been withdrawn on Thursday. Finance Minister Nirmala Sitharaman gave this information on Twitter on Thursday. She has told that with the withdrawal of this announcement, the old rates will remain applicable.

Let us know that on Wednesday, the announcement was made about interest rates for the June quarter on many small savings schemes and small deposits. Under this announcement, the annual interest rate on small deposits was also reduced from 4 percent to 3.5 percent. The PPF interest rate was also reduced from 7.1 per cent to 6.4 per cent per annum. The interest rate on deposits for a period of one year was reduced from 5.5% to 4.4%, while the rate of interest was reduced from 7.4% to 6.5% under the Senior Citizen Saving Scheme.

However, by tweeting from the Finance Minister’s Twitter handle this morning, it was told that the interest rates on small savings schemes will continue to be applicable as per the previous quarter and the decision to reduce the rates has been withdrawn.

Explain that the Finance Ministry releases the interest rates for small savings schemes on a quarterly basis. Earlier, the government had not made any change in the interest rates on small savings schemes including PPF and NSC for the January-March 2021 quarter.

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