The Centre on Thursday kept interest rates on various small savings schemes for the second quarter (July-September) of FY23 unchanged.
The rates of interest on various small savings schemes for the second quarter of financial year 2022-23 starting from July 1, 2022, and ending on September 30, 2022, shall remain unchanged from those notified for the first quarter (April-June 2022) of financial year 2022-23,” an office memorandum of Ministry of Finance said.
Commenting on the development, Aditi Nayar, Chief Economist, ICRA, said, ”The interest rates on small savings schemes have been left unchanged for Q2 FY2023, contrary to our expectations that they would be hiked given the sharp increases seen in the G-Sec yields of various maturities, to which such rates are linked.”
”The average month-end G-Sec yields for one-year, two-year and 5-year bonds have increased substantially to 5.26%, 5.65% and 6.79%, respectively, during Mar 2022- May 2022, from 3.88%, 4.72% and 6.0%, respectively, during Dec 2021-Feb 2022, as well as 3.50%, 4.41% and 5.69%, respectively, during Sep 2021-Nov 2021,” she said.
