Small savings rate cuts will burden common man: Mamata

Kolkata: West Bengal Chief Minister Mamata Banerjee on Monday described as "disturbing" the cut announced by the central government in interest rates of Public Provident Fund, National Savings Certificates (NSC) and Senior Citizens Savings Scheme run by post offices.

She said it would further burden the common people, reeling under the impact of inflation.

The chief minister wondered whether it was not the duty of the politicians to protect the interest of the common people.[/caption]

"It is very disturbing. This will again put more burden on millions of small savers, senior citizens, NSC-holders and other common people, who are already badly affected by high inflation," Banerjee said in a post on online networking site Facebook.

"These are all anti-people decisions. Prices of LPG (cooking gas) and other essential commodities were hiked. People were compelled to use set-top boxes. All poor people and the commoners cannot afford to purchase set-top boxes. The agonies of common people continue unabated," she said.

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The chief minister wondered whether it was not the duty of the politicians to protect the interest of the common people.

"How do they survive, if everything is linked to the vagaries of market forces?" she wonderd.

On Monday, the PPF interest rate was lowered from 8.8 percent to 8.7 percent with effect from April 1.

The NSC having maturity of five and 10 years will yield 8.5 per cent and 8.8 per cent interest respectively, a cut of 0.10 per cent in each case. The interest rates would be in force for the entire 2013-14 fiscal.

The rate for senior citizens savings scheme (SCSS) has also been reduced from 9.3 percent to 9.2 percent.

IANS