Government slashes interest rates on PPF, other small saving schemes
The Union Government, on Wednesday, slashed interest rates on small savings schemes, including public provident fund (PPF) and national savings certificate (NSC) for the first quarter of the 2021 financial year with effect from April 1.
“In exercise of powers conferred by Rule 9 (1) of the Government Savings Promotion General Rules, 2018, the rates of interest on various small savings schemes for Q1 of FY 2021-22 have been revised,” read an official notification from the Ministry of Finance.
The interest rate on PPF has been reduced from 7.1 per cent to 6.4 per cent and the interest rate on NSC has been slashed to 5.96 per cent from 6.8 per cent.
According to reports, the new interest rates will be the lowest since 1974.
(Edited by Shankar Kumar Turha)