Data Drive: Big cut for small savings?

The Centre is expected to review the interest rates on small saving schemes on March 31. Last year, it lowered the rates by up to 110 bps on April 1, but revoked this the next day because of assembly polls, including in West Bengal which accounts for the highest share of inflows into small savings. […]

Written by Saikat Neogi

March 28, 2022 08:15 IST

The administered rates are linked to market G-Sec yields with a lag and are fixed quarterly, at a spread of 0-100 bps over the G-Sec yields of comparable maturities. (Representational image)

The administered rates are linked to market G-Sec yields with a lag and are fixed quarterly, at a spread of 0-100 bps over the G-Sec yields of comparable maturities. As per RBI’s State of the Economy Report the existing rates need to cut by 9-118 bps in Q1FY23 to align them with the formula-based rates.

This article was first uploaded on March twenty-eight, twenty twenty-two, at fifteen minutes past eight in the morning.