It's time to link small savings and PF returns to market rates

There is no need or incentive for political intervention.

Recent moves by the government to try and rationalise the multitude of savings rates in the country — many of which are still administratively set — are welcome and praiseworthy. The interest rate on seven of the eight “small savings schemes” such as the Public Provident Fund (PPF) and the Kisan Vikas Patra was cut by 0.1 percentage points. It has also been reported that the finance ministry has written to the Union labour ministry recommending that the return on the Employees’ Provident Fund (EPF) be reduced by as much as 0.5 percentage points — from 8.65 per cent per