Interest rates on small savings schemes will fall further in the current financial year.
The interest rate on small savings could be 0.20 to 0.25 per cent lower in the July-August quarter compared to the April-June quarter. (Representational image)
Mumbai: Interest rates on small savings schemes (SSS) will fall further in the current financial year as the government has decided to reset interest on small savings quarterly based on the G-Sec yields of the previous three months.
The rate could be 0.20 to 0.25 per cent lower in the July-August quarter compared to the April-June quarter. “This is due to new liquidity management framework and the monetary easing of the RBI and the narrowing of the policy corridor to 0.5 per cent from one per cent in the recent monetary policy which will bring down the government securities rate,” said India Ratings (Ind-Ra) chief economist Devendra Pant. He, however, acknowledged that this would adversely affect a large number of small investors.
( Source : Deccan Chronicle. )
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