Unions oppose cut to interest rates on small savings, PPF

The Centre of Indian Trade Unions (CITU) on Wednesday termed the government’s decision to cut interest rates on small savings an “anti-people” decision that would hit senior citizens who rely on returns on savings to survive.

“This is a second-time reduction in interest rate on small savings within a span of less than one year, last being in June 2019. This will affect financially the mass of the populace, the superannuated, income-less several crores of senior citizens in particular who survive mainly on the meagre return on their savings,” a CITU statement said.

Terming it a “discriminatory action”, CITU reiterated the demand of trade unions to treat interest rates on small savings and social security savings differently from commercial rates.

The government had on Tuesday slashed interest rates on small savings and public provident fund.