Small savings rates are linked to Government Securities' and readjusted every year, he said, adding that now they will be a adjusted on quarterly basis.
    
The new rates would be applicable from April 1, 2016, he added.

Small 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, adding that at the shorter end of the curve the effort has been such that the reduction in rates is passed on and given effect to the system.

Latest News  from Business News Desk