Govt may announce revised Small Savings Scheme soon

The government has been working on a new formula to fix the small savings rate and will be unveiling the same by this month end. Sources say the Small Savings Scheme Revision will be implemented from April 1, 2016.

A 50 basis points downward revision in terms of interest rates is on the cards. Under the revised scheme, interest rates may be revised every quarter. Sources also add that the maximum impact is likely to be on schemes of up to five years.The impact on short-term papers is going to be larger and on longer term papers such as PPF it will be minimal.

However, sources also add that no changes are likely in schemes such as Sukanya Samriddhi Yojana and Senior Citizen Scheme.Watch video for more...