Letter to the Editor
Rate cuts rollback
The Union Government’s move to withdraw its decision to cut the interest rates on small savings by 40-110 basis points from April-June 2021, is a step in the right direction. The rollback came within one day.
Finance Minister Nirmala Sitharaman has tweeted that the interest rates on small savings schemes of the Government of India shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021.
These schemes are generally subscribed by senior citizens and the middle-class for future needs and small savings are also a key source of financing the government deficit. To cut interest rates is not the appropriate solution. The government should take the initiative to encourage small savings schemes. This will motivate more people to save money by investing in these schemes.
Amit Singh Kushwaha, Satna (MP)