Friday, March 29, 2024
News

Interest rate on small savings schemes for Apr-Jun quarter hiked

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | April 1, 2023 3:35:06 PM IST
The government has raised the rate of interest on various Small Savings Schemes for the first quarter of the financial year 2023-24 starting April 1 (today) by up to 70 basis points (100 basis point is equal to 1 percentage point).

The interest rates on small savings schemes are typically reviewed every quarter by the government.

The formula to arrive at the interest rates for a small savings scheme was given by the Shyamala Gopinath Committee. The committee had suggested yields on government bonds should be the benchmarks for the interest on various small savings instruments and should be reset every first of April.

The interest rate on the Senior Citizen Savings Scheme was hiked by 20 basis points, National Savings Certificate by 70 basis points, Kisan Vikas Patra by 30 basis points, and Sukanya Samriddhi Yojana by 40 basis points.

Following is a table detailing the increase in interest rates on various small savings schemes:

Meanwhile, the Reserve Bank of India (RBI) has also been increasing the repo rate since May 2022 to manage rising inflation. In line with RBI's rate hike, banks too are following suit, which is a positive for various deposit schemes.

At the latest Monetary Policy Committee (MPC) of the RBI in early February, it decided to raise the repo rate by 25 basis points to 6.5 per cent to keep inflation expectations anchored, break the persistence of core inflation, and strengthen the medium-term growth prospects.

Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline. In early 2020 when Covid hit the world, the repo rate was 4 per cent. (ANI)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Vihasta: an initiative by Sanjeev Ojha t...
WV Connect hosts a press conference on e...
UCWL Inaugurates State-of-the-Art Cement...
Admissions for CA and CMA Courses Begin ...
USISPF Announces the Appointment of Mark...
'Healthcare, education and agriculture' ...
More...
 
INDIA WORLD ASIA
'A govt that can't protect life...,' Akh...
J-K: LG Manoj Sinha expresses deep shock...
'ED wants AAP's Lok Sabha strategy from ...
Madhya Pradesh: Crime branch confiscates...
BJP's Ravi Shankar Prasad backs letter b...
'Today justice has been served': Wife of...
More...    
 
 Top Stories
"Looking forward to restoring ties ... 
AIADMK's Edappadi K. Palaniswami op... 
"I'm getting fed up...": Adnan Sami... 
"It's going to be nice match-up": S... 
INDIA bloc holds protest against Ke... 
Madhya Pradesh: CM Mohan Yadav to p... 
Russian security services knew of I... 
Foreign investors turn net buyers i...