Important News: Center withdraws the decision to reduce the interest rate on small savings schemes, PPF will get returns as before

Govt Rolls Back Small Savings Scheme Circular: The Central Government has withdrawn the decision to cut the interest rate on small savings schemes, Finance Minister Nirmala Sitharaman has given this information by tweeting. After this tweet, crores of people have breathed a sigh of relief.

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 The central government has withdrawn the decision to cut the rate of interest on Small Savings Scheme.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savings schemes has been reduced for the first quarter of the financial year 2021 22, but now this decision has been withdrawn.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.

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Orders issued by oversight shall be withdrawn.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

1. 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 per cent to 6.9 per cent by the government. Which will remain the same as before.

2. 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.

3. Senior Citizen Savings Scheme (SCSS)

The central government had reduced the interest on Senior Citizens Saving Scheme from 7.4 percent to 6.5 percent.

4. 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.