Finance Minister Sitharaman has said that the rates applicable to small saving schemes will remain at the same level as they were in the last quarter of the financial year 2020-21.
New Delhi| In what can be called as a face-saving attempt, the govt on Wednesday rolled back its order announcing interest rate cuts on Small Saving Schemes. Finance Minister Nirmala Sitharaman took it to Twitter to announce the decision to roll back the order. It is noteworthy that the order was withdrawn within 12 hours of being issued on the eve of second phase of polling in high stake West Bengal and Assam assembly elections.
Finance Minister Nirmala Sitharaman tweeted on Thursday morning that the order was issued by “oversight”. She wrote, “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 Orders issued by oversight shall be withdrawn.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”
Finance Minister Sitharaman has said that the rates applicable to small saving schemes will remain at the same level as they were in the last quarter of the financial year 2020-21.
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Orders issued by oversight shall be withdrawn.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
As per the order, the interest rates on PPF, Sukanya Samriddhi Yojana, Kisan Vikas Patra, Senior Citizen Saving Scheme, National Savings Certificate, Monthly Income Scheme, Time Deposit, Lending Deposit and Savings Account deposits were reduced. Now, the beneficiaries will continue to get interest in these savings schemes as before.
However, several Twitter users pointed out that the order was withdrawn only after the outrage over it and possibly keeping in mind the impact on elections.
How can this be an oversight? Such policy decisions can't be just typed and broadcasted by some Babu or PA in a jiffy without the perusal of who's who of fin min. It looked deliberate and probably withdrawan due to outrage or the fear of impact on ongoing elections.
— THE SKIN DOCTOR (@theskindoctor13) April 1, 2021
April 1, 2020, there was a cut in interest rates
The government had cut interest on small savings schemes only on 1 April 2020 last year. Their interest rates were then cut by 1.40%. After this, the decision to cut was also taken on 31 March 2021, which was withdrawn today.
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