New Delhi: A day after announcing steep cuts on interest rates on small savings schemes, the government on Thursday rolled back the order.
Finance Minister Nirmala Sitharaman declared that “orders issued by oversight” would be withdrawn.
“Interest rates of small savings schemes of the 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 Orders issued by oversight shall be withdrawn,” Sitharaman tweeted on Thursday morning.
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Orders issued by oversight shall be withdrawn.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
Incidentally, the rollback was announced as Bengal and Assam vote in the second round of state elections.
On the last day of the 2020-21 financial year on Wednesday, the government had announced a huge cut in interest rates up to 1.1% for the first quarter of 2021-22.
The interest rate on Public Provident Fund (PPF) was reduced from 7.1% to 6.4%. For National Savings Certificates (NSC), the interest rate was brought down to 5.9% from 6.8%.
Similarly, the interest rate of Senior Citizen Savings Scheme (SCSS), one of the primary sources of income for retired senior citizens, was revised to 6.5% (quarterly and paid) from the previous rate of 7.4%.
The cuts in schemes would have hurt millions of middle class depositors, NDTV reported.