Lok Sabha Question No. 1675 (UNSTARRED), answered on 2023-02-13
Subject: Interest Rate on Small Saving Schemes
Ministry: FINANCE
Asked by: Sangeeta Kumari Singh Deo, Jayanta Kumar Roy

## Government of India Ministry of Finance

## Department of Economic Affairs

## LOK SABHA UNSTARRED QUESTION NO.1675 TO BE ANSWERED ON MONDAY FEBRUARY 13,2023MMagha

## INTEREST RATE ON SMALL SAVING SCHEMES

## 1675. SHRIMATI SANGEETA KUMARI SINGH DEO:

## Will the Minister of Finance be pleased to state:

- (b) if s0, the reasons therefor;
- (a) whether despite the RBI repo rates by 190 basis points in the last nine months, rate of interest on small saving schemes like PPF, Sukanya Smridhi Accounts etc. has been increased less; hiking
- (c) whether rate of interest on Fixed Deposits of Scheduled Commercial Banks has increased 2-3 percent in recent times whereas increase in rate of interest on small saving schemes are comparatively lower at 20-30 basis; point
- (e) whether rate of interest on PPF have been decreased by 1.7 percent over the last ten years and if s0, the details thereof and the reasons therefor; and
- (d) if s0, the details thereof and the reasons therefor;
- (f) the other steps being taken by the Government for increasing the rate of interest on small savings schemes?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (f) Interest rates on select Small Savings Schemes were last revised for Q4 of FY 2022-23. Details of the prevailing interest rates on Small Savings Schemes are annexed.

Several factors determine the interest rates   that are applicable on   Small

Prevailing interest rates on Small Savings Schemes are better than those being offered   through similar   financial  instruments   being   made available by leading Scheduled Commercial Banks Rates applicable on Small Savings Schemes are periodically revised. being

Savings Schemes These, inter-alia includes, recommendations of Syamala Gopinath Committee, existence of taxation benefits for small investors and resultant rates(s) of return, interest cost; etc.

## 1944 (Saka) 24,

## Interest\_rates notified for\_Small Savings Schemes

| Name of schemes                       | Rates (%) notified in FY 2022-23   | Rates (%) notified in FY 2022-23   | Rates (%) notified in FY 2022-23   | Rates (%) notified in FY 2022-23   |
|---------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|
| Name of schemes                       | Q1                                 | Q2                                 | Q3                                 | Q4                                 |
| Savings Account                       | 4.0                                |                                    | 4.0                                | 4.0                                |
| 1 Year Time Deposit                   | 5.5                                | 5.5                                | 5.5                                | 6.6                                |
| 2 Year Time Deposit                   | 5.5                                | 5.5                                | 5.7                                | 6.8                                |
| 3 Year Time Deposit                   | 5.5                                | 5.5                                | 5.8                                | 6.9                                |
| 5 Year Time Deposit                   | 6.7                                | 6.7                                | 6.7                                | 7.0                                |
| 5 Year Recurring Deposit              | 5.8                                | 5.8                                | 5.8                                | 5.8                                |
| 5 Year Senior Citizens Savings Scheme | 7.4                                | 7.4                                | 7.6                                | 8.0                                |
| 5 Year Monthly Income Account         | 6.6                                | 6.6                                | 6.7                                | 7.1                                |
| 5 Year National Savings Certificate   | 6.8                                | 6.8                                | 6.8                                | 7.0                                |
| Public Provident Fund                 | 7.1                                | 7.1                                | 7.1                                | 7.1                                |
| Sukanya Samriddhi Account Scheme      | 7.6                                | 7.6                                | 7.6                                | 7.6                                |
| Kisan Vikas Patra                     | 6.9                                | 6.9                                | 7.0                                | 7.2                                |

Note:

Q1 April, 1 to June, 30

Q2 \_ July, 1 to September, 30

Q3 \_ October; 1 to December; 31

Q4 - January, 1 to March; 31