THE Centre of Indian Trade Unions(CITU), in a statement issued on April 1, condemned the hasty move of the central government in announcing a sharp reduction in all small savings instruments including Public Provident Fund (PPF), Kisan Vikas Patra and other term deposits through a notification. CITU also noted the hurried announcement, later by the finance ministry saying that such announcement on interest rate cut has been done by mistake ‘due to oversight’ with a clear intent to avoid criticism in the run-up to assembly elections. But the cat has come out of the bag with the real intention of the government.

A year ago in 2020, the  BJP government had made similar move in reducing interests on all small savings instruments by around 140 basis point as a follow up of similar drastic reduction in June 2019, immediately after assuming power at the centre for the second round.  Now within a year’s span same atrocious onslaught on common peoples’ savings has been repeated and the extent of reduction in interest rate is ranging from 40 to 110 basis point.

Such a move will affect the common people most, particularly the employees and very severely senior citizens and superannuated persons who practically survive on return on their lifetime savings.

The consistent reduction in return on small savings instruments almost every year is also aimed at diverting savings and deposits of common people away from the banking system towards various deceptive and fraudulent speculative instruments, chit funds and similar businesses promising huge returns to finally cheat them. These businesses have mushroomed in a big way with the patronisation of those in governance.