Regarding reduction of interest rate of Small Savings Schemes

F.No.5/3/2016-NS.II

Government of India

Ministry of Finance

Department of Economic Affairs

To,

1.Shri S C Maheswari,

Secretary General BPS,

2/13-A-LGF Backside,

Jangpura-‘A’, New Delhi — 110 014.

Also read :Clarification on operation of Joint B Account in Post Offices

North Block, New Delhi

Dated: 09/05/2016

Sub: Regarding reduction of interest rate of Small Savings Schemes.

Sir,

I am directed to refer to above cited subject. High small savings interest rates limit the banking sector’s ability to lower deposit rates in response to the monetary policy of the Reserve Bank of India. In this context by quarterly re-fixing the Small Savings interest rates the transmission of the lower interest rates in the economy has been eased. This will help India transition to a lower interest rate economy. While doing so, the Government has taken a comprehensive view on the social goals of certain National Small Savings Schemes. The issue raised by you is a policy related issue and the same has been noted.

Yours faithfully

sd/-

Also read :Service Requests of Savings Bank/ Savings Certificates - Guidelines

(Anil Kumar Jha)

Under Secretary to the Govt. of India

Tele. — 01123093035.

Regarding reduction of interest rate of Small Savings Schemes