Union Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman
Photo by PTI

Hours after the finance Ministry issued a notification cutting interest rates on small savings schemes, including NSC and PPF, Finance Minister Nirmala Sitharaman has said the order has been withdrawn.

"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 Orders issued by oversight shall be withdrawn," she tweeted.

On Wednesday, the government had cut rates by up to 1.1% for the first quarter of 2021-22 in line with falling fixed deposit rates of banks. Interest rate on Public Provident Fund (PPF) had been reduced by 0.7% to 6.4% while the order clarified that National Savings Certificate (NSC) would now earn 0.9 less at 5.9%.

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

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Free Press Journal