July 3, 2019
Ahamed Hassan speaks on the reduction of interest rates in small savings schemes
Sir, the government has reduced the interest rates for small savings schemes by 10 basic points for the second quarter of this financial year. The government intends to match the sustaining interest rate in the banking sector since the Reserve Bank of India cut its benchmark policy rate thrice during the year.
However, the government has lowered the interest rates on small savings for the first time in 2019, which will fetch lower returns to the savers barring interest on savings deposit have been at four percent while the rates from term deposits, public provident funds, national saving certificates and even the girl child scheme, ‘Sukanya Samridhi’ have been cut. Also, the maturity period of the ‘Kisan Vikaspatra’ has been raised by a month.
Sir, moreover, the government has been systematically reducing the interest rates in small saving schemes over the past five years which has hurt the common people, especially the elderly who depend on the interest rates for their sustenance. It has also lead to the depletion of savings of the people.
Sir, we implore the government to look towards the welfare of the common man who are already burdened with high taxation and compliance issues who will now suffer further from their savings being drained. Sir, we ask the government to sustain interest rates on small saving schemes aimed at aiding financial equity among the people of the country.