Govt hikes interest rates on some small savings schemes by up to 30 bps in Q3

Image Source : FILE/REPRESENTATIVE The Reserve Bank since May has raised the benchmark lending rate by 140 basis points, prompting banks to raise interest rates on deposits as well.

The government on Thursday raised rates on some small savings schemes by up to 30 basis points (bps) in line with the hardening interest rate in the economy.

With the revision, a three-year time deposit with post offices would earn 5.8 percent from the existing 5.5 percent, an increase of 30 basis points for the third quarter of the current financial year.

Senior Citizen Savings scheme will earn 20 basis points more to 7.6 percent from the existing rate of 7.4 percent during the October-December period, a finance ministry notification said.

With regard to Kisan Credit Card, the government has revised both tenure and interest rates. The Reserve Bank since May has raised the benchmark lending rate by 140 basis points, prompting banks to raise interest rates on deposits as well.

Meanwhile, the finance ministry in a statement said that government plans to stick to borrowing for the second half of FY 2022-23 while plans on borrowing Rs 5.92 lakh crores in the second half. 

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