New Delhi: The Modi government has withdrawn its decision to cut interest rates on small savings schemes. In a tweet, Union Finance Minister Nirmala Sitharaman has informed about the same. In fact, it was reported late in the night that the interest rate on small savings schemes for the first quarter of FY 2021-22 has been reduced, but now the government has withdrawn the decision. Finance Minister Nirmala Sitharaman has said that the order was passed by mistake.

In a tweet, Sitharaman said, "The interest rates of small savings schemes of the government of India will remain the first, which was in place in the last quarter of 2020-2021, i.e., march 2021 rates will remain in authority." The government on Wednesday cut interest rates on small savings schemes including Public Provident Fund (PPF) and National Savings Certificate (NCC) by 1.1 percent. The cut was announced for the first quarter of April 2021-22.

According to a finance ministry notification, interest in PPF was reduced by 0.7 percent to 6.4 percent while NSC was reduced by 0.9 percent to 5.9 percent. The interest rate on the five-year Senior Citizens Savings Scheme was reduced by 0.9 percent to 6.5 percent. The interest under this scheme is paid on a quarterly basis. For the first time, interest on savings account deposits was reduced by 0.5 percent to 3.5 percent.

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