New Delhi. PM Modi led Central government has taken a major decission of slashing interest rates from April 1, 2020 on small savings schemes such as Senior Citizen Savings, Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra, Sukanya Samriddhi Accounts and Recurring Deposits in the range of 0.7% to 1.4% for the first quarter of 2020-21.
The government has reduced interest rate on Senior Citizen Savings scheme from 8.6% to 7.4%, which will be effective from April 1, 2020 till the end of the first quarter on June 30, a finance ministry notification said.
The interest rate of PPF has been reduced from 7.9% in the last quarter of previous financial year to 7.1% from for three months, it said. However, the Employees’ Provident Fund Organisation (EPFO), which is governed by a board of trustees, had on March 6, declared 8.5% interest rate for financial year 2019-20.