RBI hiking repo rates by 190 basis points in the last nine months : Interest Rate on Small Saving Scheme

RBI hiking repo rates by 190 basis points in the last nine months : Interest Rate on Small Saving Scheme

SHRIMATI SANGEETA KUMARI SINGH DEO

DR. JAYANTA KUMAR ROY

Will the Minister of Finance be pleased to state:

(a) whether despite the RBI hiking repo rates by 190 basis points in the last nine months, rate of interest on small saving schemes like PPF, Sukanya Smridhi Accounts etc. has been increased less;

(b) if so, the reasons therefor;

(c) whether rate of interest on Fixed Deposits of Scheduled Commercial Banks has increased 2-3 percent in recent times whereas increase in rate of interest on small saving schemes are comparatively lower at 20-30 point basis;

(d) if so, the details thereof and the reasons therefor;

(e) whether rate of interest on PPF have been decreased by 1.7 percent over the last ten years and if so, the details thereof and the reasons therefor; and

(f) the other steps being taken by the Government for increasing the rate of interest on small savings schemes?

(a) to (f) Interest rates on select Small Savings Schemes were last revised for Q4 of PY 2022-23. Details of the prevailing interest rates on Small Savings Schemes are annexed.

Several factors determine the interest rates that are applicable on Small Savings Schemes. These, inter-alia includes, recommendations of Syamala Gopinath Committee, existence of taxation benefits for small investors and resultant rates(s) of return, interest cost, etc.

Prevailing interest rates on Small Savings Schemes are better than those being offered through similar financial instruments being made available by leading Scheduled Commercial Banks. Rates applicable on Small Savings Schemes are being periodically revised.

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