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PF interest rate cut ruled out
New Delhi, Nov 23: Finance minister Yashwant Sinha on Tuesday said the Centre has no proposal at present to reduce interest rates on provident fund from the present 12 per cent. "At the moment we have no proposal to reduce interest rates on provident fund," Sinha told reporters after inaugurating the International Organisation of Securities Commissions meeting.He, however, said that cutting PF rates was a sensitive issue and would need a political consensus. There have been demands from various quarters to reduce provident fund rates so as to bring down overall lending rates. The Government has already reduced interest rates on small savings in an attempt to dissuade investors as the burgeoning small savings was putting pressure on fiscal deficit. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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