New Delhi: The central government has withdrawn the decision to cut the rate of interest on Small Savings Scheme. Finance Minister Nirmala Sitharaman has given this information by tweeting. After this tweet, crores of people have breathed a sigh of relief. It was reported on Wednesday night that the interest rate on small savings schemes has been reduced for the first quarter of the financial year 2021-22, but now this decision has been withdrawn.
The interest rates of the small savings schemes of the Government of India will remain at the rates which were present in the last quarter of 2020-2021, i.e. the rates applicable till March 2021. These schemes include Kisan Vikas Patra (KVP), Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF), and Sukanya Samriddhi Yojana.
- Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is a very popular scheme among the people. The interest received on Sukanya Samriddhi Yojana was reduced from 7.6 percent to 6.9 percent by the government. Which will remain the same as before. - Public Provident Fund (PPF)
PPF is the most popular tax savings scheme for the middle class. After the government cut interest on PPF by 70 basis points, the new rate was 6.4 percent, which was earlier 7.1 percent. - Senior Citizen Savings Scheme (SCSS)
The central government had reduced the interest in the Senior Citizens Saving Scheme from 7.4 percent to 6.5 percent. - Kisan Vikas Patra (KVP)
The Kisan Vikas Patra had a double whammy due to the decision of the Central Government to cut interest. Because with the reduction in interest rates on this, its duration was increased from 124 months to 138 days months. But now it will remain the same. Farmers get good interest from this scheme.
