Roll back rate cut on small savings: Cong.

File photo: The Hindu

File photo: The Hindu  

‘This is the return gift to voters’

The Congress took a dig at the Union government on Saturday, dubbing its decision to reduce the interest rate on small savings schemes as its “return gift” to voters after they gave it a massive victory in the recent Lok Sabha polls.

Congress spokesperson Pawan Khera said his party will raise the issue in Parliament, where the budget session is currently underway, and demanded that the decision be rolled back.

The government on Friday reduced the interest rate on small savings schemes, including NSC and PPF, by 0.1 per cent for the July-September quarter.

Few governments in history have received such a mandate as has the Narendra Modi government, and it has gone on to “punish” them by trimming the interest rate on saving schemes relied upon by a majority of people, he told a press conference.

“This is the return gift this government has given to people,” Mr. Khera said.

During the Congress-led UPA government, interest rates on two-year deposit schemes, five-year deposit schemes, public provident fund and senior citizens’ saving scheme were 8.4, 8.5, 8.7 and 9.2%, respectively, he said.

Under the BJP-led NDA government, it is 6.9, 7.7, 7.9 and 8.6% respectively, he added.

“India’s household savings are at a 20-year low. One of the reasons for this is the unceasing relentless pursuit of the BJP government to reduce the interest rate on small savings schemes,” Mr. Khera said.

On why interest rates for loans were higher during the UPA government, he said he will not join the debate with “big economists” but such decisions should not harm people even if they do not help them.

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Printable version | Feb 24, 2020 6:02:37 AM |

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