Lok Sabha Question No. 3924 (UNSTARRED), answered on 2019-01-04
Subject: Interest on Saving Schemes
Ministry: FINANCE
Asked by: VIKRAM USENDI, BANSHILAL MAHTO

## Government of India

## Ministry of Finance

## Department of Economic Affairs

## LOK SABHA UNSTARRED QUESTION NO.3924

TO BE ANSWERED ON FRIDAY 04 TH  JANUARY, 2019

## 'INTEREST ON SAVING SCHEMES' QUESTION

No.3924

SHRI VIKRAM USENDI

DR. BANSHILAL MAHATO

Will the Minister of FINANCE be pleased to state:-

- (a) whether  the  Government  has  reduced  the  rate  of  interest  for  various  saving schemes;
- (b) if  so,  the  details  thereof  during  the  last  three  years  and  the  current  year, scheme-wise along with the reasons thereof and its likely effect on the holders of the said saving scheme;
- (c)whether efforts have been made/are being made to protect the said holders from any loss;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE ( SHRI P. RADHAKRISHNAN )

- (a)  to (e) Madam, the scheme of quarterly fixation of interest rates of small saving schemes was introduced from April 1, 2016. The interest rates of small savings schemes  are  revised  every  quarter  on  the  basis  of yield of  G-Secs  of comparable maturity period.

Details  of  change  of  interest  rates  from  the  year  2015-16  onward  are  at Annexure. Government also provides spread upto 100 bps  over the G-sec yield in certain small savings schemes in the interest of the depositors.

*****

## Annexure

| Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   | Rate of interest for Small Savings Schemes   |
|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
|                                              | 2015- 16                                     | 2016-17                                      | 2016-17                                      | 2016-17                                      | 2016-17                                      | 2017-18                                      | 2017-18                                      | 2017-18                                      | 2017-18                                      | 2018-19                                      | 2018-19                                      | 2018-19                                      | 2018-19                                      |
|                                              |                                              | Q1                                           | Q2                                           | Q3                                           | Q4                                           | Q1                                           | Q2                                           | Q3                                           | Q4                                           | Q1                                           | Q2                                           | Q3                                           | Q4                                           |
| Savings Account                              | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          | 4.0                                          |
| Time Deposit 1 Yr.                           | 8.4                                          | 7.1                                          | 7.1                                          | 7.0                                          | 7.0                                          | 6.9                                          | 6.8                                          | 6.8                                          | 6.6                                          | 6.6                                          | 6.6                                          | 6.9                                          | 7.0                                          |
| Time Deposit 2 Yr.                           | 8.4                                          | 7.2                                          | 7.2                                          | 7.1                                          | 7.1                                          | 7.0                                          | 6.9                                          | 6.9                                          | 6.7                                          | 6.7                                          | 6.7                                          | 7.0                                          | 7.0                                          |
| Time Deposit 3Yr.                            | 8.4                                          | 7.4                                          | 7.4                                          | 7.3                                          | 7.3                                          | 7.2                                          | 7.1                                          | 7.1                                          | 6.9                                          | 6.9                                          | 6.9                                          | 7.2                                          | 7.0                                          |
| Time Deposit 5 Yr.                           | 8.5                                          | 7.9                                          | 7.9                                          | 7.8                                          | 7.8                                          | 7.7                                          | 7.6                                          | 7.6                                          | 7.4                                          | 7.4                                          | 7.4                                          | 7.8                                          | 7.8                                          |
| Recurring Deposit                            | 8.4                                          | 7.4                                          | 7.4                                          | 7.3                                          | 7.3                                          | 7.2                                          | 7.1                                          | 7.1                                          | 6.9                                          | 6.9                                          | 6.9                                          | 7.3                                          | 7.3                                          |
| Monthly Income Account                       | 8.4                                          | 7.8                                          | 7.8                                          | 7.7                                          | 7.7                                          | 7.6                                          | 7.5                                          | 7.5                                          | 7.3                                          | 7.3                                          | 7.3                                          | 7.7                                          | 7.7                                          |
| Senior Citizens Savings Scheme, 2004         | 9.3                                          | 8.6                                          | 8.6                                          | 8.5                                          | 8.5                                          | 8.4                                          | 8.3                                          | 8.3                                          | 8.3                                          | 8.3                                          | 8.3                                          | 8.7                                          | 8.7                                          |
| NSC VIII Issue                               | 8.5                                          | 8.1                                          | 8.1                                          | 8.0                                          | 8.0                                          | 7.9                                          | 7.8                                          | 7.8                                          | 7.6                                          | 7.6                                          | 7.6                                          | 8.0                                          | 8.0                                          |
| Public Provident Fund                        | 8.7                                          | 8.1                                          | 8.1                                          | 8.0                                          | 8.0                                          | 7.9                                          | 7.8                                          | 7.8                                          | 7.6                                          | 7.6                                          | 7.6                                          | 8.0                                          | 8.0                                          |
| Kisan Vikas Patra, 2014                      | 8.7                                          | 7.8                                          | 7.8                                          | 7.7                                          | 7.7                                          | 7.6                                          | 7.5                                          | 7.5                                          | 7.3                                          | 7.3                                          | 7.3                                          | 7.7                                          | 7.7                                          |
| Sukanya Samriddhi Account Scheme             | 9.2                                          | 8.6                                          | 8.6                                          | 8.5                                          | 8.5                                          | 8.4                                          | 8.3                                          | 8.3                                          | 8.1                                          | 8.1                                          | 8.1                                          | 8.5                                          | 8.5                                          |