Decision to cut interest on small savings withdrawn after intervention of Prime Minister’s office- Report

Prime Minister Narendra Modi Union Minister and Nirmala Sitharaman (PTI Photo / Atul Yadav)

Prime Minister Narendra Modi Union Minister and Nirmala Sitharaman (PTI Photo / Atul Yadav)

Interest rates on small savings schemes are reviewed on a quarterly basis and notified.

new Delhi. When the Central Government announced a cut in the interest rates of small savings on Wednesday night, everyone’s senses got teared up. People started registering protest on social media. After this, on Thursday morning, the Prime Minister’s Office (PMO) contacted the Finance Ministry and gave directions in this regard. Then Finance Minister Nirmala Sitharaman had given information by tweeting that this decision has been made in error. The decision, which came about 54 minutes after the commencement of voting in Bengal, is very important. Sitharaman tweeted in the morning, ‘The rate of interest on small savings schemes of the Government of India will remain the same as it was in the last quarter of 2020-2021, i.e. the rates which were till March 2021. The order placed earlier will be withdrawn.

According to the Finance Ministry notification released on Wednesday, the interest rate on Public Provident Fund (PPF) for the first quarter of the new fiscal was reduced by 0.7 percent to 6.4 percent, while on the National Savings Certificate (NSC), it was reduced by 0.9 percent to 5.9 percent. was.

PMO interfered
According to Business Today, a senior official informed that ‘the directive to withdraw the notification of change in interest rates came from the Prime Minister’s office in the morning. New rates were withdrawn only during its hour. This had indeed become a big issue. ‘Every quarterly review meeting is held to cut interest on small savings. In this, officials talk for about a week. In this process, officers of different departments of Finance Ministry, RBI, Department of Posts are also involved. This notification is issued only after the approval of the Finance Minister. According to the report, these sources said that this time also the entire process was followed.

Congress expressed fear of another Utern

Congress on Thursday targeted Finance Minister Nirmala Sitharaman after the government reduced interest rates on small savings schemes and then withdrew its decision and questioned whether there was a ‘lapse’ in ordering the reduction of rates. Then due to the assembly elections, he had to withdraw. The main opposition party also said that now Nirmala has no moral right to continue in the post of finance minister.

Former Congress president Rahul Gandhi tweeted, ‘There was already loot on petrol-diesel, after the end of the election, the interest of the middle class will be looted again by reducing interest. Of lies This government looted from the public! Congress General Secretary Priyanka Gandhi Vadra claimed that after the assembly elections have passed, the central government will re-implement its ‘economics’. He tweeted and asked, ‘There was a’ lapse ‘in issuing orders to reduce the interest rate on the savings schemes of the Government of India or they had to be withdrawn due to the elections?’

Earlier, he said in a Facebook post, ‘Last night, the government had cut the interest rates of small savings schemes of the common people. When the government woke up this morning, it came to know that it is election time. As soon as the morning woke up, the government withdrew the verdict on the word “oversight” (omission). Priyanka claimed, ‘If elections are there, the prices of petrol, diesel and cooking gas are not going up. Once the elections go, the BJP will re-apply its economics.

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