FM must explain the flip-flop: Ashok Gehlot targets govt over interest rates

Rajasthan Chief Minister Ashok Gehlot on Thursday asked Finance Minister Nirmala Sitharaman to explain to the nation the flip-flop over interest rates on small saving schemes.

Sitharaman on Thursday morning said the government will roll back a steep interest rate cut on small saving schemes such as PPF and NSC, saying it was an oversight.

"The Finance Minister must explain the flip-flop to the nation why first such anti-people decision was taken to cut the interest rates on small saving schemes including PPF & NSC and then taken back?" Gehlot said in a tweet.

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"Is the government playing a very cruel prank on common people on April 1 by announcing interest rate cuts at night and then next morning reversing the decision," he asked.

The government's decision to rollback citing "oversight" was taken hours after announcing the steepest cut in the rate on small savings schemes.

The interest rate on Public Provident Fund (PPF) was reduced by 0.7 per cent to 6.4 per cent while National Savings Certificate (NSC) was to earn 0.9 per cent less at 5.9 per cent.