The Ministry of Finance on Thursday withdrew the order reducing interest rates for Small Savings Scheme. The order issued on 31st March had slashed the interest rates for Public Provident Fund (PPF) and other small savings schemes for the June quarter.
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.— Nirmala Sitharaman (@nsitharaman) April 1, 2021
Orders issued by oversight shall be withdrawn. @FinMinIndia @PIB_India
Taking to Twitter, Finance Minister Nirmala Sitharaman said that the interest rates will continue to be same as previous quarter, i.e. the ones which prevailed as of March 2021. The orders were issued by oversight, she said.
Earlier on Wednesday, the ministry had issued orders reducing interest rates for first quarter of the new financial year starting 1st April 2021.
The interest rates for Small Savings Schemes are issued on quarterly basis. The interest rate on savings deposit was reduced from 4.0% to 3.5% in the order while the senior citizen savings scheme interest was slashed from 7.4% to 6.5%. However, now the order stands withdrawn.