India's Narendra Modi government has shocked the small investors in India. The government has reduced the interest paid on public provident fund (PPF) accounts, Kisan Vikas Patra (KVP) and National Savings Certificate (NSC) under the Small Savings Scheme. On Friday (June 30th) the government has cut the 10 basis points interest rate on these small investments.

Now, PPF and NSC will get 7.8 percent interest, while KVP will get 7.5 percent interest. Apart from these, the interest rates of Senior Citizens Savings Schemes and Sukanya Samridhi Yojana have also been revised. According to the news of the Economic Times, it has been kept at 8.3 percent. The new rates will be applicable from July 1.

Earlier, 7.9 percent on NSC and PPF accounts and 7.6 percent interest on the Kisan Vikas Patra was being given. Earlier, the Modi government's ambitious Sukanya Samridhi Yojana was being given 8.4 percent interest. Earlier, on March 31, interest rates had also been cut. At that time, interest rates were cut by 0.1 percent.

Significantly, PPF is considered to be the safest way to save tax. The interest rate in this scheme determines the government, which changes every year. At present, PPF received interest at an annual rate of 7.9 percent. Any person can open a PPF account for 15 years in any national bank, private bank or post office. It can deposit minimum 500 to 1.5 million rupees annually. Loan may be taken on this amount from the third year. The interest on PPF also does not seem to be taxed. After six years of opening the account, you can withdraw a fixed amount.

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