Monday, February 3, 2020
The interest rates on small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vitac Patra (KVP) etc. may come down in the next quarter. The revision could be in line with the market rate, a development that could lead to speedier transmission of the monetary policy rate. The Central government had ceased from cutting interest rates on small savings schemes for the current quarter. The bankers’ complain that high small savings rates prohibit them from cutting their deposit rates. At present, there is a difference of nearly 100 basis point between deposit rate of banks and small savings rate for one-year maturity.
