The common man has been facing the perils of the Pandemic situation for a long time now. In this duration, the common man has been facing intense financial difficulty and problems in the consumption, purchase, and disbursal functions of the consumer, and thereby such period has been very challenging for the people of this country. With lockdowns and economic sanctions being imposed by the Central Government Authorities, people have been facing acute economic and financial crunch thereby accelerating the problems associated with the functioning of the banking and infrastructural service in the country, and thereby the infrastructural sector in the country needs to amplify the opportunities provided by the banking institutions in the country. As a major relief to the common man, the Narendra Modi government has withdrawn the rate cut order on the small saving schemes. In a brief message on Twitter, Union Finance Minister Nirmala Sitharaman said that interest rates for all saving schemes — which existed in the last quarter – will continue. She has instructed the financial authorities that Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn.
The Central Government authorities on Wednesday had announced the new interest rates. The rates were allocated to the small savings schemes for the quarter ending June 30, 2021. According to the circular issued by the Ministry of Finance, the interest rate on PPF had been revised from 7.1 percent to 6.4 percent per annum while for the Senior Citizen Savings Scheme, the interest rate had been fixed at 6.5 percent instead of 7.4 percent earlier. Interest on the 5-year Monthly Income Account Scheme had been revised from 6.6 percent to 5.7 percent payable monthly. On the 1-year time deposit, the rate of interest had been fixed at 4.4 percent while on the 5-year deposit, the rate was fixed at 5.8 percent per annum. The above figures quoted show that the rates have been revised keeping in mind the consumption criteria of the borrower.
Therefore a revision of rates is considered to be one of the foremost changes in the procedure of economic recovery and stabilization of economic principles.