Govt rolls back decision to cut interest rates on small saving schemes

The government withdrew the order slashing rates for small saving schemes on Thursday. Announcement was made by Union finance minister Nirmala Sitharaman on Twitter. On Wednesday, the government cut interest rates on small savings schemes, including NSC, PPF. Rates on both National Savings Certificate, Public Provident Fund were cut by up to 1.1%. This was done for the first quarter of 2021-22 in line with banks' falling fixed deposit rates. The interest rate on PPF was reduced to 6.4%, while to 5.9% on NSC. Interest rates for small savings schemes are notified on a quarterly basis. In 2016, the ministry had said small savings schemes rates would be linked to government bond yields.