NFR pensioners resent interest cut in small savings

GUWAHATI, April 5: The Northeast Frontier Railway Pensioners’ Association (NFRPA) deeply resents Government’s decision to lower interest rates of various small savings schemes of the Indian Postal Service.

Interest on small saving schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi scheme has been curtailed by 0.1 per cent for the April-June quarter and investments in the Public Provident Fund scheme and the 5-year tiol Savings Certificate will now fetch a lower annual rate of 7.9 per cent as against the existing 8 per cent. Kisan Vikas Patra will bring in 7.6 per cent and mature in 112 months. Sukanya Samriddhi scheme for girl child will now offer 8.4 per cent, the same as the 5-year Senior Citizens Savings scheme, a press release issued by NFRPA general secretary SM Kanjilal said.

The NFRPA also rails against the move by the State Bank of India along with its now-merged associates of raising the minimum average balance to Rs.5000 in the six metros. Even for the urban and semi-urban branches, the MAB has been fixed at Rs 3,000 and Rs.2,000 respectively and in case of rural branches, the minimum balance has been fixed at Rs.1,000. Breach of MAB will attract a pelty ranging between Rs. 20 and Rs. 50, which will be effective from April 1. The association believes that taking this cue other commercial banks will also follow suit, the release added.

The Association strongly feels that the worst hit by these calibrations will be none other than the poor and the senior citizens who depend for their livelihood on the small income from small savings on their life’s earning and urges the Government to reconsider these moves and withdraw them with immediate effect.