Finance Ministry scraps order slashing small savings interest rates

New Delhi:  A day after announcing reduction in interest rates of various small saving schemes for the April-June quarter, the finance ministry today withdrawn the order. This is first time the government has scrapped the notified interest rates of small saving schemes after the adoption of the quarterly interest rate setting system in April 2016.

“Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, i.e. rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn” the finance ministry has twitted.

The government appears to have scrapped its decision after sharp backlash among middle class in the country.

Yesterday, the government has announced interest rate reduction in various small saving schemes including Public Provident Fund (PPF) , National Savings Certificate (NSC) and savings deposit.