Govt cuts interest rate on small savings schemes by 0.1 pc for Sept quarter

Public Provident Fund (and National Savings Certificate will fetch annual interest rate of 7.9 per cent.

The government Friday reduced interest rate on small savings schemes by 0.1 per cent for the July-September quarter.

The decision is aimed at matching the softening of interest rates in the banking sector after the RBI cut its benchmark policy rate thrice during the year.

Barring interest on savings deposits, which has been retained at 4 per cent annually, rate on all other schemes has been slashed by 0.1 per cent.

"On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis," the Finance Ministry said while notifying the rates for