The Narendra Modi government has apparently decided to play safe and not risk a politically sensitive decision by reducing interest rates on small savings.
On Monday, the government left the rates unchanged for the July to September 2016 quarter from what they were for the previous quarter. This marks a stark contrast to March quarter when the government slashed the rates on all small savings schemes, such as public provident fund, Kisan Vikas Patra and time deposits of various maturities.
“Given the furore over the rate cut in March, the government may not want to alienate the middle class before the assembly elections in 2017,” the Economic Times had quoted a mutual fund manager as saying.
You can read the entire story here. (https://www.ibtimes.co.in/govt-leaves-interest-rates-small-savings-unchanged-683565 )