New Delhi: Union Finance Minister Smt. Nirmala Sitaraman on Thursday morning rolled back the cut on interest rates on small savings schemes. The Centre had a day ago announced to cut the rates on schemes, including NSC and PPF, by up to 1.1 per cent for the first quarter of 2021-22 in line with falling fixed deposit rates of banks.

“Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn,” said Nirmala Sitaraman.

Former Finance Minister and Congress leader P Chidambaram took to criticize the rate cut and called out Sitaraman was phrasing the decision as “issued by oversight,” stating: “Announcement of interest rates on savings instruments for the next quarter is a regular exercise. There is nothing “inadvertent” about its release on 31st March.”

He criticised the government for “assault on the middle class” and making “lame excuses” when faced with backlash. “The BJP government had decided to launch another assault on the middle class by slashing the interest rates and profiting itself. When caught, the Finance Minister is putting forward the lame excuse of “inadvertent error”. When inflation is at about 6 per cent and expected to rise, the BJP government is offering interest rates below 6 percent hitting the savers and the middle class below the belt.” he added.