Interest rate cut on small savings heartless, must be rolled back: Congress

The Congress on Wednesday termed the cut in interest rates on small savings as a heartless and shameful act, and demanded its immediate rollback.

Congress spokesperson Jaiveer Shergill said the reduction in interest rates on small savings is irrational, illogical and ill-timed as it has come at a time when the people are already facing hardship due to the lockdown and the economic recession.

The 21-day lockdown was imposed in the country from March 25 to check the spread of the novel coronavirus.

He also demanded that the government waive interest on EMIs for the three-month period from March to June, saying the moratorium in EMIs is merely hogwash and a postponing exercise.

The Congress leader also demanded that the government comes out with a second tranche of economic relief packages to help small and medium enterprises, and the poor and common people from the economic downturn the country is facing.

"The BJP government's decision to cut interest rates on small saving schemes is a heartless and shameful act that will hit the common people, especially the farmers, middle class and the poor who are already suffering due to the downturn in the economy," Shergill told reporters at a press conference held through video conferencing.

"The decision to reduce interest rates on small savings is ill-timed, illogical and irrational,"he said, adding that it will snatch the incomes of 90 crore people in the country.

Shergill said the government will earn an additional 26,000 crore through this reduction in interest rates and said it should not act like "Sherlock to extract a pound of flesh from the people".

He said the government should instead work towards raising incomes of people instead of shrinking it, for helping them survive this economic downturn.