Finance ministry on Wednesday has introduced a lower in rates of interest of small financial savings schemes. According to the round by ministry dated 31 March, the rates of interest of small financial savings schemes have been decreased by 50-100 foundation factors for April-June quarter of the monetary yr 2021-22. The rates of interest for small financial savings schemes are reviewed and notified by the finance ministry on a quarterly foundation.
From 1 April, Public Provident Fund (PPF) will get an rate of interest of 6.4%. The curiosity for National Savings Certificate (NSC) have been decreased to five.9%. Among different small financial savings scheme, the Sukanya Samriddhi Yojana will fetch the rate of interest of 6.9%.
Similarly, the rate of interest for the five-year Senior Citizens Savings Scheme has been lowered to six.5%. The curiosity on the senior residents’ scheme is paid quarterly. The rate of interest on Kisan Vikas Patra (KVP) has been lower to six.2%.
Interest fee on put up workplace financial savings deposits has been slashed to three.5%. On the opposite hand, time period deposits of one-five years will fetch rate of interest within the vary of 4.4-5.1%, to be paid quarterly, whereas the rate of interest on five-year recurring deposit is pegged at 5.8%.
The authorities continues to depend on small financial savings for financing its fiscal deficit, say economists. “For FY22 again financing from small savings is pegged at a significant ₹3.9 lakh crore or 26% of the fiscal deficit,” SBI economists had earlier stated in a notice.
For the April-June quarter of final yr, the federal government had lower rates of interest on small financial savings schemes by as much as 140 foundation factors and since then they’ve remained regular. With this discount, the rates of interest of small financial savings schemes have been slashed by a complete of 120-250 bps throughout the present monetary yr.
The finance ministry additionally prolonged the deadline for linking the Permanent Account Number (PAN) to Aadhaar by one other three months.”Central Government extends the last date for linking of Aadhaar number with PAN from 31st March, 2021 to 30th June, 2021, in view of the difficulties arising out of the COVID-19 pandemic,” the Income Tax division tweeted.
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