Govt retains interest rates on small savings; depositors may cheer decision

A cheer for depositors, the move is contrary to what RBI and banks had advised

The government has kept interest rates on small savings schemes intact for January-March 2020, compared to those during October-December 2019, contrary to what the Reserve Bank of India (RBI) and banks had advised. 

Depositors are, however, likely to cheer the decision.  

“On the basis of the decision of the government, the rates of interest on various small savings schemes for the fourth quarter of 2019-20... shall remain unchanged from those notified for the third quarter,” said an office memorandum by the Department of Economic Affairs (DEA) in the finance ministry. 
 

At present, fixed deposits up to 10 years offered by State Bank