Curious case of revision and rollback of interest rate cut for small savings schemes | RTI

An RTI application filed by India Today TV has revealed why interest rate cuts on small savings schemes were rolled back in less than a day after the initial announcement. While Finance Minister Nirmala Sitharaman said it was an "oversight", the RTI query reveals a different story.

At 7:54 am on April 1 this year, Union Finance Minister Nirmala Sitharaman reversed the move to lower interest rates on small savings. It had barely been 12 hours since the announcement was made on March 31 evening for lowering of interest rates on instruments such as the Public Provident Fund (PPF). It was the fastest rollback of a policy announcement so far. The rollback decision had left many people puzzled, though small investors were relieved. The Union finance minister in her Twitter post called the previous evening’s announcement an “oversight”. The original announcement had triggered panic among PPF investors. Read | Centre withdraws order cutting interest rates on small savings schemes