Government to link savings deposit terms to market rates
Feb 12, 2016 01:41 AM IST
India will link the interest paid to millions of small savers in a $137-billion central deposit scheme to market rates that will be revised every quarter, Economic Affairs Secretary Shaktikanta Das said on Thursday.
New Delhi
India will link the interest paid to millions of small savers in a $137-billion central deposit scheme to market rates that will be revised every quarter, economic affairs secretary Shaktikanta Das said on Thursday.
Hindustan Times - your fastest source for breaking news! Read now.
Cutting the small savings rate could save the government an estimated $700 million a year. But the move is likely to irk small savers and could be unpopular politically, particularly in rural areas where few banks have branches.
Das said the rates, previously adjusted annually, would be tweaked for shorter-term deposits and be aligned to government securities of comparable maturity.
Rates on two social security schemes will not be changed, Das said.
Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
Share this article