The interest rates of Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Senior Citizens Savings Scheme, 2004, and Sukanya Samriddhi Account (the Girl Child Scheme) were reduced by 0.10 percentage point for the quarter 01.10.2016 to 31.12.2016, and not 0.10 percentage per annum.

The reduction in the rates of interest by 0.10 percentage point was necessitated by a significant fall in the yields on Government Securities of comparable maturities.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

Interest rate reduction for long-term government savings schemes announced due to lower government securities yields. A 0.10 percentage point reduction in interest rates was applied for the quarter 01.10.2016-31.12.2016 to Public Provident Fund, Kisan Vikas Patra, Senior Citizens Savings Scheme (2004) and Sukanya Samriddhi Account, described as a percentage point change rather than a percentage per annum, attributed to a significant fall in comparable Government Securities yields and communicated by the Minister of State in a written parliamentary reply.