By: Rajesh Mishra
New Delhi, Feb 11 (ANI): Economic Affairs Secretary Shaktikanta Das said on Thursday that India will link the interest paid to millions of small savers in a USD137-billion central deposit scheme to market rates that will be revised every quarter.
An estimated USD700 million a year could be save by the government by cutting the small savings rate.
But the move is likely to irk small savers and could be unpopular politically, particularly in rural areas where few banks have branches.
Economic affairs secretary Shaktikanta Das said the rates, previously adjusted annually, would be tweaked for shorter-term deposits and be aligned to government securities of comparable maturity.
“There will be no change in the Rates on two social security schemes,” added Das. (ANI)