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Wrong time to reduce interest rates on small savings: Chidambaram Last Updated : 01 Apr 2020 11:29:37 AM IST 
Former Union Finance Minister P. Chidambaram (file photo) Former Union Finance Minister P. Chidambaram has slammed the government for reducing the interest rates on small savings and PPF and said it may be "technically correct but it's wrong time" as the country is amid lockdown due to fear of coronavirus and people have no way of income.
"In times of acute distress and uncertainty about income, people depend on the interest income on their savings." tweeted Chidambaram.In times of acute distress and uncertainty about income, people depend on the interest income on their savings.
— P. Chidambaram (@PChidambaram_IN) April 1, 2020
Government must reconsider immediately and restore old rates until June 30.@narendramodi @PMOIndia @nsitharaman @nsitharamanoffcThe former Minister demanded roll back, saying, "Government must reconsider immediately and restore old rates until June 30. While reducing the interest rate on PPF and small savings may be technically correct, it is absolutely the wrong time to do so."The Union Government has reduced the interest rates on small savings schemes by 70 to 140 basis points for the year 2020 during April-June quarter.Public provident fund interest rates in the quarter have been brought down by 80 bps to 7.1 per cent and for KVP (Kisan Vikas Patra) the rate has been slashed by 70 bps to 6.9 percent and after reduction of 0.8 percent, the girl child-focussed Sukanya Samriddhi scheme now stands at the interest rate of 7.6 per cent.
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