The government on Thursday withdrawn the order which slashed interest rates on Public Provident Fund (PPF) and other small savings schemes for the June quarter.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. Orders issued by oversight shall be withdrawn,” read a tweet from Finance Minister Nirmala Sitharaman.
The PPF rate was cut to 6.4% from 7.1% and the rate on National Savings Certificates (NSCs) was reduced to 5.9% from 6.8%.
The Senior Citizens Savings Scheme (SCSS) saw its rate cut to 6.5% from 7.4% and the Sukanya Samriddhi Scheme, which was the highest-paying small savings instrument, saw its rate reduced to 6.9% from 7.6%. Also, the Kisan Vikas Patra (KVP), which has a tenor of 124 months, will now mature in 138 months. This amounts to a rate cut of 6.2% from 6.9%.