In India, the Central Government has cut the interest rate on the small savings schemes like Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samrudhi Yojana for the first quarter of FY 2017-18, by 10 basis points i.e. 0.10 per cent, which Will be effective from 01 April.

The Finance Ministry has changed the interest rates of small savings schemes for the first quarter of the financial year 2017-18 through a notification issued today.

This deduction will not apply to post office savings accounts.

After this cut, the investment in PPF will now get 7.9 per cent interest every year whereas the first eight per cent was available. Similarly, the National Savings Certificate with a five year maturity will also get 7.9 percent interest. The Kisan Vikas Patra (KVP) will get 7.6 percent interest on investment and it will mature in 112 months.

The annual interest rate on Sukanya Samrudhi Yojana will now be 8.4 percent. The interest rate on the Senior Citizens Savings Deposit Scheme will also be reduced to 8.4 percent. Apart from this, the interest rate on the recurring deposit (RD) will be 7.2 percent.

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