The Reserve Bank of India (RBI) has clarified that interest rates on small savings schemes, except the PPF, will remain fixed throughout the term of schemes. In a circular, RBI said interest rate for small savings will be declared on April 1 every year and will remain valid till the maturity of the scheme.
The circular has been released as a clarification after it observed that news items are appearing in media conveying an impression that the interest rates on small savings schemes linked to government securities are floating in nature and will undergo change depending on the yields.
RBI's clarification comes a few days after a similar one was issued by the Finance Ministry.
