“This will affect financially the mass of the populace, the superannuated, income-less several crores of senior citizens in particular who survive mainly on the meager return on their savings,” Tapan Sen, general secretary of CITU said in a statement.
“It will also act as disincentive for generations of small savings of the common people through government-run savings instruments, which is an important source of resources for both the central and state governments for developmental work,” Sen said.
According to CITU, this is a second in interest rate on small savings within a span of less than one year, last being in June 2019.
CITU is of the view that this decision will also act in promoting the mutual funds and other speculative financial instruments being run by major big corporate, in collaboration with foreign financial agencies.
“CITU denounces the brazenly anti-people discriminatory action of the government in slashing down the interest rate on small savings,” it said, reiterating the government should not treat the interests rates on social security savings and small savings instruments from commercial interest rate differently.