NEW DELHI, Mar 19:
RSS-affiliate Bharatiya Mazdoor Sangh (BMS) today opposed the reduction in interest rates on small savings, stating that market-driven economic policies were not suitable for India.
“Bharatiya Mazdoor Sangh opposes reduction in interest rates on small and long term savings. We demand that government should reconsider its decision keeping in mind the feelings of common people investing in small savings,” BMS general secretary Virjesh Upadhyay said.
The Sangh also asked the government to make a paradigm shift in the country’s economic model as “market-driven economic policies were not suitable for India.”
Upadhyay said the reduced interest rates has badly hit the common man, who in turn, will not keep their money in banks which are already in bad shape.
The RSS body has been critical of the government’s economic policies and said the recent announcement will also affect Prime Minister’s Jan Dhan Yojna.
In a move that will hit common man, the government had yesterday slashed interest rates on all small savings schemes, including PPF, Kisan Vikas Patra (KVP) and senior citizen deposits, to make them more market aligned.
Interest rate on Public Provident Fund (PPF) scheme has been cut to 8.1 per cent for the period April 1 to June 30, from 8.7 per cent, at present.
The interest rate on KVP will be reduced to 7.8 per cent from 8.7 per cent while senior citizen savings scheme of five years would earn 8.6 per cent interest compared with 9.3 per cent. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 per cent as against 9.2 per cent, according to a Finance Ministry order.
The Centre had termed the decision as a “normal exercise of resetting” rates in March every year and is in line with market conditions. (PTI)
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