Indian Government Hikes the Interest Rate of Small Savings Schemes
The Indian government has come up with new hikes in the interest rate on small savings schemes including public provident fund or PPF and also on Kisan Vikas Patra or KVP.
The interest rate of PPF has been altered to 8% interest rate for the October to December quarter, up from 7.6% in the current quarter. On the other hand, for the KVP, the interest rate has been taken to 7.7% from 7.3% in the current quarter. This means that KVP will now mature or double in 118 months as compared to 112 months earlier.
The announcement regarding the change in these interest rates was made by the finance ministry today. The interest rate on small savings schemes, which are benchmarked to yields on government bonds, are revised on a quarterly basis. With the 10-year benchmark yield now above 8%, many...