It is believed that the decision to cut interest rates was withdrawn in the ongoing assembly elections in West Bengal, Assam and three other states to save the BJP from any loss.
Decision to cut interest rate on small savings schemes was withdrawn.
The Finance Ministry has withdrawn the decision to cut the interest rate on small savings schemes within 24 hours. Regarding this, it was said on behalf of the Finance Ministry that this had happened by mistake. Opposition parties have become aggressive about this decision of the Finance Ministry. It is believed that the decision to cut interest rates was withdrawn in the ongoing assembly elections in West Bengal, Assam and three other states to save the BJP from any loss. Bengal has the highest contribution to the National Small Saving Fund (NSSF). This is the reason why the government has withdrawn its decision to avoid voters’ displeasure.
Today the second phase of voting in Bengal has ended. There is still six phases of voting. There, the third phase of voting will be held on 6 April followed by 10 April, 17 April, 22 April, 26 April and 29 April. According to the data of NSI India for the financial year 2017-18, the contribution of West Bengal to the gross contribution of NSSF is the highest at 15.1 per cent. Uttar Pradesh is at second place with 11.7 per cent contribution. Apart from this, West Bengal also contributes 13.20 percent in net contribution. Uttar Pradesh’s contribution is 9.8 percent. According to the trend, Bengal’s contribution to the Small Savings Fund has increased steadily.
Had cut interest rates by 1.1 percent
In a setback to those who invested in small savings schemes, the government on Wednesday cut the interest rates on small savings schemes including Public Provident Fund (PPF) and NSC (National Savings Certificate) by up to 1.1 per cent. A day after this, it was announced to withdraw this decision on Thursday, when the second phase of voting in West Bengal ended on April 1. Today, there is also a vote on Nandigram seat, from where West Bengal Chief Minister Mamata Banerjee is contesting elections. Sitharaman tweeted on Thursday morning, “The interest rate on small savings schemes of the Government of India will remain the same as it was in the last quarter of 2020-2021, that is, the rates till March 2021. The order placed earlier will be withdrawn. ”
PPF interest was announced to be reduced by 0.7%
According to the Finance Ministry notification, interest on PPF was reduced by 0.7 per cent to 6.4 per cent, while that on NSC was reduced by 0.9 per cent to 5.9 per cent. Interest on small savings schemes is notified on a quarterly basis. The maximum reduction of 1.1 percent in interest was made on one-year term deposits. It was decided to reduce the interest on this from 5.5 per cent to 4.4 per cent. Interest rates for small savings schemes are notified on a quarterly basis.
Interest rate of 7.1% on PPF and NSC
After the old rates are restored, the interest on PPF and NSC will continue to be at the rate of 7.1 per cent and 6.8 per cent. In this way, the interest for Sukanya Samriddhi Yojana will continue to be 7.6 percent, whereas earlier it was said to reduce it to 6.9 percent. The interest rate for the five-year Senior Citizen Savings Scheme will be retained at 7.4 per cent. Interest is paid on a quarterly basis on the scheme of senior citizens. The rate of interest on savings deposits will be four per cent, while it was proposed to reduce it to 3.5 per cent.
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(With language input)