Interest rates on small savings kept unchanged for fourth quarter of FY21

The rates have not been changed since September 1, 2020; status quo to help Centre raise additional resources, says Icra economist

The government has retained the interest rates on small savings for the quarter starting from January 1, 2021. The rates have not been changed since September 1, 2020. 

Aditi Nayar, principal economist at Icra, said the unchanged small savings rates for the fourth quarter of 2020-21 should help the Centre garner additional resources from this avenue. "This will aid in preventing a revision in its dated borrowing programme for the fourth quarter despite the expected sharp widening in the Centre's fiscal deficit for the current financial year," she said.