Small savings, big retreat

By Anand Kalyanaraman in BFO #256, 05 Apr, 21

On the evening of 31 March, the Indian government announced a sharp cut (upto 1.1 percentage points) in the interest rates of small savings schemes for the April to June quarter of 2021. But in a lightning-fast U-turn, it rolled back the cuts the very next morning; it blamed the rate cut on “oversight”.

What gives?

Bitterly fought key state elections are underway.