Congress calls Govt's decision to reduce interest rates and discontinue RBI Bonds "Brainless"

Congress Chief Spokesperson, Randeep Surjewala said, "Middle Class/ Lower Middle Class are in 'economic grief'. The decision to reduce interest rates and discontinue RBI Bonds during lockdown is brainless, Heartless, and shameless."

New Delhi: As the Central Government has discontinued the 7.75% Savings (Taxable) bond schemes or RBI Bonds amid falling interest rates of small saving products, Congress party, on Friday, called it a "brainless" and "senseless" decision while mentioning about the "economic grief" which is being faced by Middle class of our country due to nationwide lockdown.

In a statement, Congress Chief Spokesperson, Randeep Surjewala said, "Middle Class/ Lower Middle Class are in 'economic grief'. The decision to reduce interest rates and discontinue RBI Bonds during lockdown is brainless, Heartless, and shameless."

"Due to to the already existing economic crisis, worsened by Corona crisis, the income of people is down, saving investment avenues are down, the market is down, employment is down and now Government and public sector banks are consistently reducing the interest rate on small saving schemes fixed deposits and SB deposits," he added.

Surjewala also said that the interest rate cuts in PPF, KVP, NSC, and other saving instruments are further "badly damaging" the already "shrinking" savings of approximately 30 crore depositors, who have deposited Rs 14 lakh crore in various saving schemes.

He claimed that the impact of the decision over the interest rate cut on March 31, amounts to the loss of Rs 19000 crore income per year for the depositors. The RBI Bonds are popular among retail investors who are looking for the safety of principal and a regular income.

The Congress leader alleged that the economy is "sinking", despite that government is consistently "shrinking" the savings and income of the common man by reducing the savings bank deposit and fixed deposit rates of Public sector banks.

"In the last 2.5 months, the total combined reduction in income of 30 crore depositors in saving schemes and 44.51 crores account holders of State Bank of India is Rs 44,670 crores annually," he said.

"Rs 44,670 crores is 24% of the actual fiscal stimulus measures announced by Government. So around one-fourth of whatever is announced is already taken back by Government by the reduction in interest rates. If we include other PSBs, this figure will increase by at least 3 times," he pointed out.

Reportedly, Congress party demanded that the Centre should immediately restore the interest rates on all small saving schemes, fixed deposits, and saving bank deposits at the pre-March 12 level.