The sharp reduction in small savings rates, which was to take effect from today, has been withdrawn by the government.
Finance Minister Nirmala Sitharaman said on Thursday morning that the orders issued by oversight shall be withdrawn.
The government had on Wednesday cut interest rates on various small savings schemes sharply by 40-110 basis points.
The revised rates were to come into effect from April 1 and remain in effect till June 30.
“Interest rates of small savings schemes of GoI (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 Orders issued by oversight shall be withdrawn,” Sitharaman said in a tweet at 7.54 am.
Small saving rates are linked to yields on benchmark government bonds, which have fallen over the last one year as the Reserve Bank of India cut rates to support the economy.
Surjitt Sahani
