Former Union Finance Minister P. Chidambaram has slammed the government for reducing the interest rates om small savings and PPF and said it may be “technically correct but it’s wrong time” as the country is amid lockdown due to fear of Covid-19 and people have no way of income.
“In times of acute distress and uncertainty about income, people depend on the interest income on their savings.” tweeted Chidambaram.
The former Minister demanded roll back, saying, “Government must reconsider immediately and restore old rates until June 30. While reducing the interest rate on PPF and small savings may be technically correct, it is absolutely the wrong time to do so.”
The Union Government has reduced the interest rates on small savings schemes by 70 to 140 basis points for the year 2020 during April-June quarter.
Public provident fund interest rates in the quarter have been brought down by 80 bps to 7.1 per cent and for KVP (Kisan Vikas Patra) the rate has been slashed by 70 bps to 6.9 percent and after reduction of 0.8 percent, the girl child-focussed Sukanya Samriddhi scheme now stands at the interest rate of 7.6 per cent.-IANS News
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