The government has drastically reduced the interest rates of all saving schemes including PPF-Sukanya

Due to the corona virus, the Reserve Bank of India used scissors at the repo rate and reverse repo rate, and now the government has given a blow to the common man. The government has made a big cut in the interest rate on small savings schemes.

Due to the corona virus, the Reserve Bank of India used scissors at the repo rate and reverse repo rate, and now the government has given a blow to the common man. The government has made a big cut in the interest rate on small savings schemes.

Scissors on common man’s savingsActually, the central government has reduced the interest rate on small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC) and Sukanya Samriddhi Yojana. The government has reduced the interest rate of small savings scheme from 0.70 percent to 1.40 percent. This reduced interest rate will be applicable in the April-June 2020 quarter.

Apart from PPF, interest rates will now be reduced in Kisan Vikas Patra and Sukanya Samriddhi Yojana. The interest rate on PPF has been drastically reduced by 0.80 percent, now during April-June quarter, PPF will get interest of 7.1 percent.

Farmers will also get less interest on savings

At the same time, 0.70 percent interest rate has been reduced to 6.9 percent on Kisan Vikas Patra. On the National Savings Certificate, there has been a big cut of 1.10 percent in the interest rate, now investors will get interest at 6.8 percent on the investment in this scheme.

Apart from this, the interest rate on investment in Sukanya Samriddhi Yojana has been reduced from 8.4 per cent to 7.6 per cent. There has been a big 0.8 percent reduction in this scheme. It is worth noting that for a long time there were speculations that the government may reduce the interest rate on small savings schemes.