Ahead of monetary policy review, the government today kept unchanged the interest rates on small savings schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi for October-December quarter. Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. The interest rate on the senior citizens scheme is paid quarterly. While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields. The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.

Source: Economic Times September 29, 2017 15:33 UTC