After taking on the Modi dispensation over the EPF tax, Congress vice-president Rahul Gandhi on Saturday attacked the NDA Government for cutting down interest rates on small savings, including PPF, terming it as an assault on the middle class. RSS-affiliate Bharatiya Mazdoor Sangh (BMS) also opposed the cut in interest rates saying market-driven economic policies were not suitable for India.
“Slashing interest rates on small savings — on PPF and KVPs — is yet another assault by the Modi Govt on hard working middle class people,” Rahul said in a series of tweets. “This Govt has failed farmers, failed the poor & now it’s failing the middle class. Modiji ppl are seeing through your event management politics!,” he tweeted.
In a move that will hit common man, the Government had cut interest rates on all small savings schemes, including PPF, Kisan Vikas Patra (KVP) and senior citizen deposits, to make them more market aligned. Interest rate on Public Provident Fund (PPF) scheme has been cut to 8.1 per cent for the period April 1 to June 30, from 8.7 per cent, at present.
The Congress had reacted strongly against the Gover-nment’s latest move by saying it is “fleecing” the poor and is a “criminal breach” of trust of hapless people. It had described it as an overt attempt at “robbing money by snatching it from unsuspecting individuals”.
Meanwhile, BMS general secretary Virjesh Upadhyay said the reduced interest rates has badly hit the common man, who in turn, will not keep their money in banks which are already in bad shape.
“Bharatiya Mazdoor Sangh opposes reduction in interest rates on small and long term savings. We demand that Government should reconsider its decision keeping in mind the feelings of common people investing in small savings,” Upadhyay said.
The BMS also asked the Government to make a paradigm shift in the country’s economic model as “market-driven economic policies were not suitable for India.” The BMS had in the past also criticised the Government’s economic policies and said the recent announcement will also affect Prime Minister’s Jan Dhan Yojna.
The Centre had termed the decision as a “normal exercise of resetting” rates in March every year and being in line with market conditions.