The Finance Ministry has cut interest rate on PPF (Public Provident Fund) and National Savings Certificates (NSC) by 0.1 percent to 8.7 percent and 8.5 percent, respectively.
Millions of small investors will get lower returns on the popular post office scheme, Public Provident Fund (PPF), with the government cutting the interest rate with effect from 1 April, 2013.
The ministry has also cut interest rate on five-year postal recurring deposits to 8.3 percent but has kept the savings deposit rate unchanged at 4 percent.
The finance ministry, however, has left savings deposit rate and one-year time deposit unchanged.
The government is still trying to protect small investors, the ministry said adding “G-Sec (Government securities) rates have fallen more sharply than reduction in small saving instruments.”
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