Having cut the interest rate on the small savings and the public provident fund, Finance Minister Jaswant Singh on Friday said he has sent a clear signal that the interest rate regime will continue to move downward.
While there is no move to immediately cut the interest rates on the Employees Provident Fund scheme, the finance minister said a decision would be arrived at in due course.
However, he would not like to dictate terms to the EPF Board, which is under the purview of the labour ministry.
Talking to Star News immediately after presenting his maiden Budget, Singh said the decision on giving a southward movement to the interest rates was taken in consultation with Reserve Bank of India Governor Bimal Jalan.
While the higher interest rates could be a boon for the present generations, it would lead to a debt trap for the coming generations. ''I can continue to benefit (from higher interest rates) but it will be at the cost of my grand children,'' he said.
UNI
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