The Finance Ministry on Wednesday said that there will be no change in the interest rate on small savings instruments like the National Savings Certificate and the Public Provident Fund.

“The rate of interest on various small savings schemes for the first quarter of financial year 2018-19 starting April 1, 2018 shall remain unchanged from those notified for the fourth quarter of financial year 2017-18,” it said in a memorandum.

For the current quarter ending March 31, the Finance Ministry had slashed the interest rate on small savings schemes by 0.2 percentage points.

Despite bond yields hardening, Economic Affairs Secretary Subhash Candra Garg had earlier this week ruled out an increase in the interest rate on small savings in the first quarter of the new fiscal starting April 1.

Meanwhile, in a separate missive, the Finance Ministry has also given an indefinite extension for seeding Aadhaar number at the time of opening of a small savings account or purchasing certificates.

The earlier deadline was March 31, but the Supreme Court had given an indefinite extension for seeding the 12-digit biometric identity number to utilities such as mobile phones.

“It has now been decided to extend the last date for submission of ‘Aadhaar’ number from 31 March, 2018 until further orders,” said the Ministry.

Further in a separate memorandum, the Ministry has also withdrawn the approval to the Department of Posts to credit the interest and maturity proceeds of small savings instruments run by post offices into the basic savings account opened in post office.

“There have been complaints from depositors on idea of another basic savings account,” it said.

Accordingly, all the interest and maturity proceeds of small savings instruments operated by the Department of Posts may be paid to the depositors through the depositor's savings account standing at a post office or any commercial bank, by cheque or in cash.

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