A cut has been announced on interest rates on small savings. PPF interest rates have been reduced from 8.7% to 8.1%, while that on 5 year recurring deposit has been reduced to 7.4% from 8.4%.
The interest rate on Kisan Vikas Patra has been slashed to 7.8% from 8.7%.
Besides, the government also has slashed interest rates on 3-year time deposit to 7.4% from 8.4%; 5 year time deposit to 7.9% from 8.5% and on girl child scheme to 8.6% from 9.2%.