New Delhi | Jagran Business Desk: The Centre on Thursday withdrew the orders issued on March 31 cutting interest rates on small savings including National Savings Certificates or NSC and Public Provident Fund (PPF). Announcing the same, Finance Minister Nirmala Sitharaman today morning said that the interest rates of small savings schemes shall continue to be at the rates of the last quarter of FY 2020-21. She also said that the orders issued oversight shall be withdrawn with immediate effect. 

"Interest rates of small savings schemes of the 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 Orders issued by oversight shall be withdrawn," Finance Minister Nirmala Sitharaman tweeted this morning.

The government on Wednesday announced a rate cut on interest levied upon small savings by up to 1.1 per cent for the June quarter. According to the previous order, the savings deposit was revised from 4 per cent to 3.5 per cent annually, while the PPF rate was brought down from 7.1 per cent to 6.4 per cent annually, the lowest since 1974NSC would be down to 5.9 per cent from 6.8 per cent.

Senior citizen savings schemes rate was also revised from 7.4 per cent to 6.5 per cent, quarterly and paid. Rates on the girl child savings scheme Sukanya Samriddhi Yojana would fall to 6.9 per cent from 7.6 per cent.

"In exercise of the powers conferred by Rule 9(1) of the Government Savings Promotion General Rules, 2018, the rates of interest on various small savings schemes for the Q1 of FY 2021-22 have been revised," the Finance Ministry said on Wednesday. 

Posted By: Talibuddin Khan