oppn parties The Small Savings Interest Rates Fiasco

News Snippets

  • Maratha quota bill likely to be tabled in Maharashtra assembly today
  • Arvind Kejriwal skips ED summons for the 6th time, says the case is in court and will follow court's decision
  • PM Modi says UP has gone from 'red tape' to 'red carpet' in 7 years of 'double engine' government
  • Farm unions reject government offers, to resume Delhi march from today
  • Centre says some Aadhar cards in Bengal 'deactivated' due to technical glitz, will be activated back soon
  • Supreme Court stays LS privilege panel summons to Bengal officials over BJP MP Sukanta Majumdar injury case
  • Supreme Court junks Sandeshkhali petition, says it cannot be compared to Manipur, asks petitioner to approach Calcutta HC
  • Supreme Court gets tough on Chandigarh mayoral elections, asks for ballot papers and video footage, does not order re-election
  • Government starts withdrawing old small tax demands, up to Rs 25000 per entry till FY 2009-10 and up to Rs 10000 per entry from FY 2010-11 to FY 2014-15 with an overall ceiling of Rs 1 lakh per tax payer
  • Stocks remained positive on Monday: Sensex gained 281 points to 72708 and Nifty 81 points to 22122
  • Jasprit Bumrah likely to be rested for 4th Test while K L Rahul may be back
  • FIH Pro League hockey: India beat Spain 8-7 in shootout
  • SP leader Salim Sherwani, miffed at no Muslim candidate given RS ticket, quits party
  • Army going for big (Rs 57000cr) upgrade in combat vehicles to replace T-72 tanks
  • Mamata Banerjee says the BJP is doing nothing to resolve the Sandeshkhali dispute but instead fanning the fires to escalate it
History created in Supreme Court as Chandigarh mayoral poll ballots counted in court, judges declare AAP candidate Kuldeep Kumar winner after taking into account the votes defaced by returning officer Anil Masih
oppn parties
The Small Savings Interest Rates Fiasco

By A Special Correspondent
First publised on 2021-04-02 07:56:55

In what can be considered as one of the biggest howlers (it cannot be considered a rollback as the government has admitted that it happened by 'oversight') of the NDA government, the Centre withdrew its notification slashing the interest rates on small savings schemes within a day of notifying the same. The government said that the notification was issued through 'oversight'. It is difficult to understand that how such an important notification, the decision on which could be taken only after a series of high-level meetings in the finance ministry and which can only be issued after being vetted by several high ranking officials, could be issued by 'oversight'.

That the notification was drafted clearly shows that meetings must have taken place to decide about slashing the interest rates. It also proves that the government had decided to slash the rates after such meetings. The only thing is that someone in the ministry jumped the gun and issued the notification at an inappropriate time when elections are being held in five key states. There is no doubt that the notification will be issued again, sooner or later. It has been withdrawn now only not to spoil BJP's prospects in the ongoing elections in the states.

But the incident shows the government in very poor light. It must conduct an internal inquiry to find out how this could happen. Today it is a notification about slashing interest rates that got issued by 'oversight', tomorrow it could be some other, more vital, notification that can be issued likewise. The government needs to reexamine the chain of command that is responsible for such decisions and exercise better control over it. Obviously, there are shortcomings in the system and they need to be addressed at the earliest. Care should be taken to ensure that such a blunder does not happen again.