Interest on PPF, other small savings schemes may come down
4 years, 11 months ago

Interest on PPF, other small savings schemes may come down

Live Mint  

New Delhi: A top government official has hinted that there could be some moderation in small savings rates going forward in line with market rate. For this quarter, January to March, the government had kept interest rates steady on small savings schemes, including PPF, despite moderating bank deposit rates. "In India, right now we have about ₹12 lakh crore in small savings schemes and roughly ₹114 lakh crore in bank deposits. Sukanya Samriddhi Account and Senior Citizen Savings Scheme offer higher rates than other small savings schemes. However, this formula for fixing small savings rates based on comparable yields on government securities, as recommended by Shyamala Gopinath committee, has however not been strictly followed in some quarters.

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