If the month of March has seen the roaring march of coronavirus in the country resulting in a lockdown, which has thereby brought untold economic anxiety for common people, last day of the 2019-20 financial year has brought some news that will upscale it to more higher levels. Central government has slashed interest rates on deposits of almost all types, which can best be described as a body blow to millions of small savings depositors particularly the senior citizens. Cutting of interest rates on small savings schemes is nothing new and  whenever such steps are taken,  the silent sufferers are the bulk of the nation’s population- middle class and lower-middle class. Although there was a hint that it’s going to come sooner or later, keeping in view the timing and the cuts which are unbearably deep, it wouldn’t be any wrong to term the decision as unprecedented and unkind.

Avoiding the technicalities consciously since most of the common people will fail to grasp, coming straight to the new interest rate chart, there will be extreme discomfort over how the nation as a welfare state has failed miserably in fixing its priorities. At a time when the lockdown has blocked the usually available routes of income generation almost in total and when common people are suffering from phobia of what to eat the next day, these exorbitant cuts will leave little room to swim over the crisis period. From term deposits of 1 to 5 years locked periods to MIS or the NSC or PPF & Kisan Vikas Patra or Senior Citizen Savings Scheme- none of the small savings schemes have been spared. The hardest hit will obviously be the senior citizen class, literally running into millions, who, after toiling hard all over their service lives sustains only on the interest derived from these parked principal amounts in post offices.  Now, a series of tall technical reasons will be ready explaining the ‘rationale’. Restoring parity with overall national interest rates offered by banks, liquidity infusion in economy to negate the corona-triggered slowdown etc etc. But, not for a moment there was a second thought how these millions, among which a large percentage are the elderly will  face the  coming months as prices of essentials are already climbing high, so as the medicines.

 

When it comes to seeking solutions for macro economic woes, why should cutting small savings interest rates be applied as the only method and why should the axe fall on middle class always? It then means the ‘efforts’ of recovering black money have been just tales only.

 

The current reduced rates will be applicable till June 30 next. From July 1, hopefully, amends will be made. The policy makers must be caring at this hour of national crisis. 

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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