Nirmala Sitharaman withdrawal her decision of reducing interests in small saving schemes

Nirmala Sitharaman withdrawal her decision of reducing interests in small saving schemes

Union Finance Minister Nirmala Sitharaman said the directives to reduce interest rates on small savings schemes were came out by mistake. She said the orders were withdrawn on Thursday which gave a huge relief to the common people.

For every three months, interest rates on small savings plans are announced. On Wednesday, the Union Finance Minister said interest rates on these schemes are cut by 50 to 110 basis points in the first quarter of the 2021-22 financial year. It has announced a reduction in interest rates on small savings plans, National Savings Certificates and the Public Provident Fund. There was outrage from the common people to the opposition over the government’s decision.  

With this, the government came down.  On Thursday, Finance Minister Nirmala Sitharaman said in a tweet that she had withdrawn orders to cut interest rates. It has been announced that the interest rates implemented in the last quarter of the financial year 2020-21 will be applicable in the first quarter (March-June) of the financial year 2021-22.