BJP’s Rajya Sabha MP Subramanian Swamy has said that the decision to sensationally rollback the slash in interest rates on PF savings was of the Prime Minister’s Office and not that of Finance Minister Nirmala Sitharaman. This was after Sitharaman faced widespread public ridicule for terming the government order reducing the interest rates on PF savings an ‘oversight’ as she announced the rollback.
Sitharaman had tweeted on Thursday morning, “Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn.”
Many felt that Sitharaman’s decision to reverse the government order was in light of the adverse impact on the BJP’s electoral chances in five states that are going through assembly polls.
Reacting to the development, Swamy tweeted, “All such decisions are made in PMO.”
All such decisions are made in PMO.
— Subramanian Swamy (@Swamy39) April 1, 2021
The decision to reduce the interest rate on Public Provident Fund (PPF) by 0.7 percent to 6.4 percent had caused largescale anger. Adding insult to the government’s injury was the decision to reduce the interest rate on National Savings Certificate (NSC) by 0.9 percent bringing it to 5.9 percent.
The steepest fall of 1.1 percent was effected in the one-year term deposit. The new rate was brought down to 4.4 percent as compared to 5.5 percent. Interest rates, as reported by news agency PTI, for small savings schemes are notified on a quarterly basis.