Small savings interest to match market rates

“The decisions have been taken and notification will be out in a day or two,” he said. Small savings rates were linked to Government Securities’ and readjusted every year, he said, adding that now they would be adjusted on quarterly basis. 

The new rates would be applicable from April 1, 2016. Smalls saving schemes include Post Office Monthly Income Scheme (MIS), PPF, Post Office fixed Deposit Scheme, Senior Citizens Savings Scheme, Post Office Savings Account and Sukanya Samriddhi Accounts. 

“At the same time, taking into consideration the interest of small savers and some important social sector measures of the government, the rates under the girl child scheme, the senior citizen scheme… they will continue as it is. 

They will have quarterly adjustments but whatever spreads they have over the G-Sec rates will not be altered,” he said. Similarly, all long term savings over 5 years will continue to have the spread, he said.

Terming the 7.6 per cent growth projection for current fiscal as “noteworthy and very significant” amidst global turmoil, Finance Ministry on Thursday said the government is keeping a close watch on developments and is prepared to deal with challenges.

“Given this kind of volatility and turmoil prevailing all over the world in the global economy, the growth forecast for the current year at 7.6 per cent is definitely noteworthy and very significant,” Economic Affairs Secretary Shaktikanta Das told reporters here. 

He further said 7.6 per cent growth projected for 2015-16 by the Central Statistics Organisation (CSO) is reflective of the fact that “India is able to hold on to growth, which one can call robust under the current circumstances”.    

World over, nations are facing turmoil in stocks and currency markets and India is no exception, Das said, adding “every day there is a new challenge or there is a new development in some part of the world or the other”.

Observing that uncertainty and volatility have become a new norm, Das said “the government is keeping a very close watch on international and global developments and government is prepared to deal with all these challenges”.   

As regards India, Das said there are challenges in the agriculture sector, which has faced two consecutive years of drought and to deal with that the government has been taking necessary measures with regard to food crop production.  

Growth in manufacturing and industry sectors has been showing a steady improvement compared with the last four years, Das said, adding that the CSO projection for these is satisfying.   

Shaktikanta Das said the decline in stock markets in India is not as bad as in some other countries and the government is prepared to deal with challenges emanating from global developments. Attributing the turmoil in stock and currency markets to global developments, he said the rupee had not declined as steep as currencies of some other countries.