The government on Thursday reversed the order that had slashed interest rates on small savings schemes. “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,” Finance Minister Nirmala Sitharaman tweeted on Thursday. 

Sitharaman said that the order was being withdrawn as it had been issued in oversight. 

On Wednesday, the government had cut interest rates on small savings schemes, including NSC and PPF, by up to 1.1% for the first quarter of 2021-22 in line with falling fixed deposit rates of banks.

Interest rate on Public Provident Fund (PPF) had been reduced by 0.7% to 6.4% while National Savings Certificate (NSC) will now earn 0.9% less at 5.9%.