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Govt slashes interest on PPF, NSC and other small savings schemes - PPF to fetch 7.1%, NSC 6.8%


The new interest rates for small savings schemes will remain in effect for the first quarter of financial year 2020-21, that is from April 1, 2020 to June 30, 2020.

The Centre has slashed interest rates on small savings schemes by 70 to 140 basis points (bps) for the April-June quarter of the financial year 2020-21.

Interest rates on public provident fund the quarter have been brought down by 80 bps to 7.1 percent while the same for Kisan Vikas Patra have slashed by 70 bps to 6.9 percent. Meanwhile, after a cut of 0.8 percent, the interest rate on the girl child-focussed Sukanya Samriddhi scheme now stands at 7.6 percent.                                                                                                                                                                 
In the case of the National Savings Certificate, the government has brought down interest rates by a staggering 110 bps to 6.8 percent. The same for 5-year recurring deposits and 5-year time deposits have been slashed by 140  bps and 100 bps to 5.8 percent and 6.7 percent respectively.

The move by the government has followed the Reserve Bank of India's (RBI) recent 75 bps cut in its key interest rate to counter the economic fallout of the coronavirus pandemic.
Interest rates on small savings schemes are revised by the government on a quarterly basis.

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