The Finance Minister Nirmalasitaraman has cancelled the steep cut in the interest rate on small saving scheme such as NSC and Senior citizens pension scheme.

This follows objections from Mamta Banerjee claiming that the cut was targeted at the west Bengal elections as most of the people in the state preferred investments in small savings.

Moreover the reduction in the interest rate against the code of conduct as no major decisions can be taken while the elections is going and the code of conduct is in place.

It has now been decided that the rate of interest on various small saving schemes for the first quarter of 2021 2022 starting April 1 and ending on June 30 will remain unchanged.