Public Provident Fund: Will the government give a present to buyers investing in Public Provident Fund on 31 December 2024? Will the government finish the injustice being performed to PPF buyers? Public Provident Fund rates of interest had been final elevated in October 2018. Before the 2019 Lok Sabha elections, the rates of interest on Public Provident Fund had been elevated to 8 p.c. But since then the rates of interest on PPF have by no means elevated. That means, PPF rates of interest haven’t been elevated for greater than 6 years.
Sukanya Samriddh is getting extra curiosity, PPF is getting much less curiosity!
When RBI elevated the repo charge by 2.5 p.c from May 2022, banks additionally elevated rates of interest on deposits. After this, the government additionally elevated the rates of interest on small financial savings schemes, Sukanya Samriddhi Scheme, Kisan Vikas Patra, National Savings Certificate, and different publish workplace financial savings schemes. But the rates of interest of Public Provident Fund weren’t elevated, on which at the moment 7.1 p.c curiosity is being given. Whereas 8.2 p.c curiosity is being given on Sukanya Samriddhi Yojana.
Interest on PPF didn’t improve after 2018
The rates of interest on Public Provident Fund had been final elevated in October 2018 and it was elevated to 8 p.c. But from the monetary yr 2020-21 it was lowered to 7.1 p.c. When rates of interest on small financial savings schemes had been lowered by 50 to 140 foundation factors. In the final two years, the rates of interest of small financial savings schemes have been elevated however the Public Provident Fund was stored out of it and there was no improve in its rates of interest.
Interest is getting lower than method charges
RBI additionally admitted that 41 foundation factors i.e. 0.41 p.c much less curiosity is being given on PPF than the charges given on the foundation of method. The panel led by former RBI Deputy Governor Shyamala Gopinath had really useful the government to give rates of interest on small financial savings schemes primarily based on the yield given on securities.
What present will you get in the new yr?
The query arises that why this discrimination between buyers of PPF and buyers of Sukanya Samriddhi Yojana? Will the government give a present to PPF buyers when it evaluations the rates of interest of small financial savings schemes for the fourth quarter of the monetary yr 2024-25 on 31 December 2024?
learn this additionally
Small Saving Schemes: Will buyers of PPF-Sukanya Samriddhi and different small financial savings schemes get a present in the new yr? Decision will probably be taken on thirty first December
