India rolls back decision to cut interest rates on small savings

India has rolled back its decision to lower interest rates on the small savings scheme, Finance Minister Nirmala Sitharaman said on Thursday, adding that orders to cut rates to a more than four-decade low were issued due to oversight.

"India shall continue to be at the rates which existed in the last quarter of 2020-2021, i.e., rates that prevailed as of March 2021," Sitharaman said in a tweet on Thursday.

"Orders issued by oversight shall be withdrawn," she said.

India had cut interest rates on small savings by up to 1.1% for the June quarter on Wednesday, the last day of the financial year. The government reviews interest rates on government-backed schemes every quarter.