Govt 'shrinking' savings, income of common man: Congress

Congress chief spokesperson Randeep Surjewala said in a statement that "The impact of interest rate cut decision on March 31 amounts to loss of Rs 19,000 crore income per year for the depositors".

Middle class and lower middle class is in "economic grief". The decision to reduce interest rates and discontinue RBI Bonds during lockdown is "brainless, heartless and shameless". Due to the already existing economic crisis worsened by COVID-19 the income of the people is down, added the Congress spokesperson.

The interest rate cuts in PPF, KVP, NSC and other saving instruments further hit the already shrinking savings of approximately 30 crore depositors, who have deposited Rs 14 lakh crore in various savings schemes, he said.

The latest blow for middles class, farmers, pensioners and women is discontinuation of 7.75 per cent RBI bonds and further reduction of interest rates by SBI, said Surjewala.

In the last two months, the total combined reduction in income of 30 crore depositors in saving schemes (PPF, NSC, KVP etc) and 44.51 crore account holders of State Bank of India (SBI) depositors is Rs 44,670 crore annually (from reduction in interest rates on savings scheme and reduction in SBI savings, fixed deposit interest rates), he claimed.

"Rs 44,670 crore is 24 per cent of actual fiscal stimulus measures announced (Rs 186,650 crore) by the government. So around one-fourth of whatever is announced is already taken back by the government by reduction in interest rates. If we include other Public Sector Banks this figure will increase by at least 3 times," he said.

The Congress demanded that interest rates on all small saving schemes, fixed deposits (FD) and savings bank deposits must be restored immediately to pre-March 12 level.