Post Office Small Savings Schemes – FY 2016-17 Interest Rates – PPF @ 8.10% & Sukanya Samriddhi Yojana @ 8.60%

by Shiv Kukreja on March 19, 2016

in Investments

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at

Last Year’s Post – Post Office Small Saving Schemes – FY 2015-16 Interest Rates – PPF @ 8.70% & Sukanya Samriddhi Yojana @ 9.20%

In a move which could disappoint many small savers here in India, Finance Ministry today decided to reduce interest rates on many of its small saving schemes, including Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC) and Senior Citizen Savings Scheme (SCSS) among others. These rates will be effective April 1, 2016 and will be subject to a quarterly revision based on a new formula to determine these rates.

Here you have the table having all the small saving schemes with their applicable interest rates and tax benefits for the next financial year 2016-17:


Public Provident Fund (PPF) – Rate Cut from 8.7% to 8.1% – There has been a significant cut in the interest rate offered by PPF, India’s most popular small savings scheme. PPF will earn you 8.10% for the next financial year as compared to 8.7% for the current financial year. However, interest rate on PPF continues to remain tax-exempt on maturity and investment up to Rs. 1,50,000 will keep getting exemption under section 80C.

Sukanya Samriddhi Yojana (SSY) – Rate Cut from 9.2% to 8.6% – Government’s pet scheme for girl child, Sukanya Samriddhi Yojana, has seen a rate cut to 8.60% from its present rate of 9.20%. But, there is still a gap of 0.50% between this scheme and PPF, which would likely keep its popularity intact.

Interest earned on Sukanya Samriddhi Yojana is also tax-exempt on maturity and investment up to Rs. 1,50,000 will keep getting exemption under section 80C.

Senior Citizens Savings Scheme (SCSS) – Rate Cut from 9.3% to 8.6% – Senior citizens will also feel disappointed as the interest rate on Senior Citizen Savings Scheme has also been reduced to 8.60% from 9.30% earlier. The interest earned on this scheme is taxable and subject to TDS as well. But, the investment made gets you a deduction of up to Rs. 1,50,000 under section 80C.

Post Office Monthly Income Scheme (POMIS) – Rate Cut from 8.4% to 7.8% – Post Office Monthly Income Scheme will also have a steep cut in interest rate from an earlier 8.40% to 7.80% effective April 1. Following this rate cut, Post Office MIS will go out of favour with many of the investors.

National Savings Certificates (NSCs) – Rate Cut from 8.5% to 8.1% – Effective December 20, 2015, the government stopped issuing 10-year NSCs. Now even 5-year NSCs will have a rate cut, from 8.50% to 8.10%. Your investment in NSCs will keep giving you tax exemption under section 80C.

Kisan Vikas Patra (KVP) – Tenure Raised from 100 Months to 110 Months – Your investment in KVP was promised to get doubled in 100 months earlier. But, from April 1, you’ll have to wait for 10 months more to get the same benefits. Effectively, this scheme will earn you 7.85% now.

Impact of Rate Rationalisation on Small Savers, Borrowers and Indian Economy

Though the government would be criticised badly for this move and the opposition parties would try to take maximum benefit out of small savers’ emotions, I would term it as one of the best moves by the Modi Government. Why am I saying this? This move will send the right signals to the global investors as well as to the Reserve Bank of India (RBI) that the government is serious about removing anomalies existent in our systems and also meeting its fiscal deficit target of 3.5%. This move, along with an expected rate cut by the RBI, is going to put more pressure on the lenders to cut lending rates in the system. It will also reduce the borrowing costs of the government, as well as many of the corporates which are currently burdened with high debt in their books.

CPI Inflation, which matters to you and me the most and was ruling in double digits during the UPA tenure, has come down to 5.18% in February 2016. WPI Inflation, which measures wholesale prices of goods and services, has been ruling in the negative zone for a very long time now. This fall in inflation is a result of a slump in the global commodity prices and crude oil prices.

Small savers need to understand that interest rates on deposits and other investments have also come down in the last 2-3 years. During FY 2013-14, our favourite ‘AAA’ rated tax-free bonds carried as high as 9.01% rate of interest. These same ‘AAA’ rated tax-free bonds carried a maximum coupon of 7.69% in the current financial year. So, effectively a fall of 1.32%.

If you compare this fall of 1.32% with a 0.60% reduction in PPF’s rate of interest or 0.40% in NSC’s rate of interest, I think the cut is truly justified. Rest I think it is very difficult to keep everyone happy in the country and at the same time, carry out economic reforms for an overall development.

Ahead of polls in five states in April-May, I would call it a truly bold move by the government. This act of rationalising interest rates will benefit the borrowers immensely, which in turn will create a right balance in the economy.

{ 208 comments… read them below or add one }

Suresh Kumar March 19, 2016 at 9:15 AM

Forced to buckle under pressure for his ill willed attempt to tamper EEE on EPF, now the Finance Minister took revenge on general Public by reducing int rates on providence funds and also, to frequently review them. This Jaitly will be safe bet for Cong opposition to bring down Modi govt by 2019. Seems, thats his personal goal ??? but Public are to bear his brunt.


Shiv Kukreja March 19, 2016 at 12:30 PM

Hi Mr. Suresh,
Can you please let us know what personal goals does Mr. Jaitley have achieved by cutting these rates? That too, at the cost of getting a lower vote share by you people. It takes many years to build a country, but it takes only a few bad steps to destroy it. This step is a wonderful move to rebuild our economy. We need to support it. It is not politics, it is simple economics. Would you pay 11% interest rate on your home loan when you can get the same loan at 8% or even lower?


irfan March 23, 2016 at 10:36 AM

I dont care what jaitley Does whether right or wrong, He will get positive or negative result for that. Big thing is Bjp has stop Post Office Monthly Income Scheme. Many were shock yesterday as post office were no longer accepting Re deposit after their period was over For India Post Mis scheme.


Shiv Kukreja March 23, 2016 at 7:57 PM

Hi Irfan,
That is not correct. Post Office MIS scheme is still running and will continue to exist even after March 31, 2016.


Govindan March 26, 2016 at 6:24 PM

The reason may be March month is a financial year end and they may accept from next month.


Ajay Sharma June 15, 2016 at 1:49 PM

Bandar Kya janey adrak ka swad


Samuel Chhetri September 1, 2016 at 11:26 PM

Please let’s reply in modest word .its a serious matter.
Cos of one word one’s image will change…..


Abhinav Singh March 23, 2016 at 12:21 PM

Dear Shiv,

Just think for once that before doing what Mr. Jaitley did, it would have been very simple for him to understand that lot of public criticism will follow.

But as the author rightly pointed out that yields on bonds have been falling since 2 years you can check yourself by looking at the rates offered on tax free bonds. Hence these rates were long due to be revised downwards.

Also we need to understand that inflation has come down. See we should not be stupid as investors to ignore that component. We should always focus on “real returns” of our investment.

Lastly the move is not to save money for the government but to maintain prudent fiscal policies and channelizing of investments into development. What if this cut of 0.6-0.7% give a fillip to the economy and / or the real estate sector. We are bleeding money on those investments and we need money to be put in there.

Narrow / Short term view will make us see this as a cruel move, but its not a rocket science for the government to understand that few votes will turn against them by this action. Still they chose to go ahead with it makes it a bold long termish move!


Shiv Kukreja March 23, 2016 at 8:13 PM

Thanks Abhinav for sharing your views, I absolutely agree with all of them!


RLK July 8, 2016 at 9:53 AM

I completely contradict your statement and thought….
As an individual citizen this rate cut in interest will have a big blow on me….
In future I will not make any investment in government..
Rate cut of 0.5 to 0.6 % for one person will not be a big money , but from a total population of 120 CR even if 10% of population had invested which is 12 CR people the amount is significantly high…..


Mukesh nangia March 24, 2016 at 9:00 PM

Best step that the goats should take is to take away all the money lying in ppf,mis,and other such schemes and distribute among industrialists like Mallya.
This govt is not at all thinking how the poor pensioners will survive when there is no social security net available.pensioners have to take care of their food and health.And this needs money.
Hope better sense prevail upon the existing rulers.


Govindan March 28, 2016 at 6:44 PM

Who are the poor pensioners.? What is the yearly In come an individual?


Anil Kumar March 31, 2016 at 4:45 PM

BJP is the enemy of Aam adami.


Govindan March 27, 2016 at 8:37 AM

I am a Senior Citizen and not a blind supporter of any leader. But Modi ji is the best leader. I do not agree to some of his actions. Bullet train and purchase of 36 Rafale planes etc But I support the reduction in interest rate. I have explained my views in my comments. Please go through.Today’s middle class people and Senior Citizens are the luckiest people in India. Today’s middle class people are the most pampered society in India. Senior Citizens and our school education are mainly responsible for the present condition. Majority of Senior Citizen’s brought up their children without them knowing the pinch of poverty. They do not know the sufferings of the poor people. Most of the middle class families are small and a maximum two children. They want all kinds of luxury items. I do not blame them. I also felt of purchasing electronic gadgets at that age. People particularly commies are blaming industrialist for not repaying the loan. It is not easy to run business in India so long commies are there in this country. But how many men in the middle class family have not repaid the money withdrawn through ATM cards. They won’t look after their parents and leave them in old age home. They think money is everything. Old people want the company of their grand children. When people become old the out look to wards life will change. So the expenditure will come down. But expenditure towards medicine will go up. Only thing they must do is that they should save good amount to cover hospital charges if they become sick. For that PPF is the best. Those Senior Citizens getting a yearly income Rs.2laks and more can invest money on PPF immediately after retirement. If required they can withdraw half the amount after six years, So the decrease in interest rate is not going to affect the middle class family or Senior Citizens as projected by the media or the slaves of the Sonia Congress or CPI(M) party.


Shiv Kukreja March 28, 2016 at 6:53 PM

Thanks Mr. Govindan for sharing your thoughts!


RAMESH September 8, 2016 at 8:05 AM

I am also a senior citizen who got retired in 2012 and after 38 years service in Govt U/T and a Pvt co. drawing pension of Rs.1917/M from EPS ( due to cumbersome rules of EPS on shift from Family pension to EPS). I am able manage my life since I properly planning funds since the beginning. But what about people in Pvt firms drawing a meager salary which fulfills only their essential food, clothing and education needs that too with great difficulty. Did he mean that the poor should not even think of giving good education to their children which is generally not there in most of the govt schools. Do Mr Govindan mean that recent amount of pension paid to all Category employees on retirement under the new pension scheme of EPF is 2 Lakhs per year as he assumes? (May be he thinks of only highly paid employees group not a middle class or Govt employees who take at least double digit pension) . Really for most of the retirees it never crosses above 1 Lakh. Now at market price even drinking water during travel costs Rs.20/ltr. and Life saving medicines and food grains prices has increased. How Mr. Govindan can expect people to save in PPF from pension amount. It is possible only if he don’t eat properly or don’t take timely suitable medicines for diseases he suffers due to old age.
Can Govindan explain how a person belonging to a upper caste will survive with his meager pension when he is not entitled for any type of subsidy / facility extended by central and state govts.
Reducing interest rates should be applicable only to the creamy layer people but not to one and all.


Khajan September 18, 2016 at 9:10 AM

Salary is also growing as well as pension. All of Indians want is there money to grow, (country and its ppl are stupid idea, the poor sud die). It’s ppl like u who don’t know what is hard-work, get easy money as salary every month. But in this country there are hardworking ppl like industrialists(who have to earn livelihood for many), small labourers plus lots of unemployed youth for whom the leadership need to think. A country spends much than what it earns and it has to cut the expenses. If you are worried about the rate cuts why don’t you invest in shares. You will get to know what is difference between these trusted government schemes and others


Raj April 2, 2016 at 5:55 PM

Hi Mr Shiv, Please help me understand how country is getting build by the government. Government is pulling money from public and putting it into banks or industrialist pockets (corporate tax reduction). Small saving are people money already with government that they take for 15 years. Reduction of interest rate should not be allowed on money deposited in earlier year. If I deposited 150000 in FT15-16 then that amount should continue to earn interest at 8.7%. If they reduced interest to 8.1% then it should be applicable for money paid post april 2016 onwards and not on earlier amount. By looking at corpus amount that people have saved and deposited with government, doing back calculation and figuring out saving is back stabbing. Government can easily afford to pay even 10% interest rate on this amount if the wish is there (epf already pays more). However this government is industrialist friendly and support bankers who wipe out lakhs of crs every year from system. Paper currency gives government unlimited power and hope they would have utilized it to share country rich resources with people and not just with few chosen individuals. Government ideally should reduce bureaucrats/banks and have aadhar based, online review, disbursal of money. Wonder why banker who have already wiped crs are being trusted with being judicious this time in their loan grants. Lastly government does not change interest rates on bonds sold for 15-20 years, so why they change interest rate on money borrowed from small investor/savers in between period. Government has to wake up and do things drastically different. From service class perspective life is no different and even government servant continue their lavish corrupt life-style..


LAXMAN April 5, 2016 at 5:05 PM

Home loans will reduce up to 8%!! That is good, but why someone will go for loan if the small saving schemes interest rates will give better return. They can do savings and fulfill their requirements at here own.


n c bhowmick April 29, 2016 at 7:25 PM

very bad……………your think is very bad


n c bhowmick April 29, 2016 at 7:34 PM

shiv kuk very bad……………….your think is very bad.


Govindan March 26, 2016 at 5:43 PM

.Many people who are criticizing the Govt. do not know how to calculate the interest. Those who are criticizing the Govt. should calculate simple interest and find out the loss of money for a period of 10 years at the rate of 8.1% as compared to 8.7%. if an individual deposited Rs 1 lakh in PPF to get in come tax reduction. If an individual not deposited one lakh in the PPF that person has to pay an in come tax at the rate of 10%.if his income is more than Rs.2 lakhs. Otherwise he has to pay Rs.10000/- as tax. From PPF a person will get an amount of Rs. of 8.1% (New rate). After one year he will get Rs.8100/ as interest.and it will be added in the PPF. That means a man is saving at least Rs18000/- from this invest. If the interest is 8.7% he will get Rs.8700/- as interest. From new financial years ownwords if any body invest in PPF he will get Rs.600/- less yearly. That means monthly a person will get Rs.50.less. This is a very small amount for an individual’s middle class family or Senior Citizen and can manage without having any change in their standard of living. At the same time for the Govt. it is a huge amount and this amount can be used to improve the standard of living of the people who are getting less money than the middle class.


Santhosh March 30, 2016 at 4:58 PM

Mr. Govindan, you are telling the reduced interest rates are very minimal and a Middle class person can sustain a loss of Rs. 50 per month. I agree with you when Mr. Jaitly asks all the MPs to pay their electricity, Phone, fuel charges to be born by them but not the government (not from so called, minimal Rs. 50 from middle class person). you are telling Middle class is the luckiest in INDIA… by this statement, I may need to understand that you never be a middle class person or Mr. Mallya is a middle class person in your view for whom Rs. 50 is nothing.


Raj April 2, 2016 at 5:33 PM

Sir, I can not understand the rationale of ppf interest rate reduction. It’s a small saving limited upto 1.5 lakhs/annum. Government spends cr of Rs on wasteful spending every year. Banks have given Crs in loan to industrialist who don’t pay back to bank(or after many year try to make deal for 1/2 the principal amount). Banks change terms for these willful defaulters so loan don’t show up in NPA. Industrialist in India manage to keep high prices of commodity in India. Cost of living is thus high (Real estate industry prices has jumped 10-20 times in last 12 years and caters to only 1% of Indian population). Why these folks need government support. If we compare our interest rate with developed nation, then pls do compare social security, medicare and unemployment benefits as well. I feel government working will ensure India will not make progress, common man will never come out of bank loan and household expense management, & old people will suffer. People will have lesser money and food item inflation will continue in double digits. Has government hospitals operation shown improvement under NDA, are more medicine and care provided. Wonder who will create industries/businesses in India that will employ 95% of our population and increase our GDP. Government plan are clearly not working. IT industry did empower common service class person but business sucked that capital by increasing cost of living around IT community. I feel our politician have run out of ideas. They are not including additional people in gdp. Our gdp revolves around inflation and not volume growth. Government need to think and do some miracle to be reelected next time.


PAULOSE KO March 19, 2016 at 9:38 AM

Slashing Interest rate on PPF,Post office savings, Senior citizen saving scheme etc- is unfair.
Why the FM put axe on the neck of poorer sector, the common man in India.
Twenty-nine state-owned banks wrote off a total of Rs 1.14 lakh crore of bad debts between financial years 2013 and 2015 and the billionaire defaulters don’t understand what is poverty..
Bleed the ones who pay tax even more! This is unfair.


Shiv Kukreja March 19, 2016 at 12:49 PM

That is not correct Dr. Paulose! It is a move which would remove some of the anomalies in the system, we badly need to take such moves. No country in the world has so many small saving schemes and that too with such high rates. Even a growing country like China does not provide such high rates. Poor people do not pay any tax in this country. Poor people need work, employment and not subsidies.


PAULOSE KO March 19, 2016 at 1:57 PM

Shiv, I politely disagree.We all know whats happening to the “growing” economy of China. Poor people do work hard, they are not leeches, they find it hard to survive these days . Hon. FM is indirectly telling the common man to use his tears as hair gel!!!!!


Shiv Kukreja March 19, 2016 at 6:02 PM

Agreement & Disagreement is part of a healthy discussion Dr. Paulose! I respect your disagreement! Next three years of this government will tell whether this decision was good for the country or not.


PAULOSE KO March 19, 2016 at 6:15 PM

Hope and pray, It will turn out good for all of us…


santh1946 March 20, 2016 at 11:34 AM

What is not correct ? Is it correct that huge bank loan defaulters are left free to leave the country and common man has to bear the loss in the financial system? If the 2 lakh crore NPA is collected no need to burden the common man. Make new laws to recover the bad loans. Comparing with China is meaningless as the total environment of our country is different from foreign countries.India is not equal to China in all aspects. We need other changes like banning 10 cars following a minister and many wasteful expenditures to revive the economy. Govt thinks it is easy to get money form honest tax payers than from defaulters.


Shiv Kukreja March 20, 2016 at 12:31 PM

Hi Santh,
I agree with many of your views here. I think now is the time to act. Not only for the government, but we should also act. Why do we leave people like Mallya to leave his house? Can’t we stop him to step out on roads and board some airlines to leave this country? Can’t we stop him from celebrating in parties at places like Goa or Bangalore? Can’t we get hold of him in IPL auctions? If the law cannot force him to pay up for KFA loans, I think the same law will free you as well if you do something unlawful with him. Why don’t you do something? If you cannot, then please don’t blame the government because the law of this country does not allow the government to act unlawfully. But, I agree that now is the time to act and the government has done it right by reducing interest rates on these small saving schemes.


Saurabh March 21, 2016 at 1:50 PM

Sorry Mr. Shiv, I totally disagree with what you have written. It should not be expected from common man to come on streets for recovering loans from is govt job..these are elected set of representatives who are suppose to get it done..this is part of there job entitlements….I am not against BJP…but at the moment, there inaction is just a replica what cong has done over the years. General public is not holding them from preparing strict laws against these defaulters, then why only public has to face consequences of there inefficiency…He is a wilful defaulter from so many months..why he is still a MP…Slashing rates of small saving schemes is obvious and good news for public sector banks. I am not denying that. People are ready to support govt decisions, provided they are not politically motivated…like 7th pay commission is a big hole in govt pocket..don’t you think it is politically motivated…


Shiv Kukreja March 21, 2016 at 4:11 PM

Thanks Saurabh for expressing your views!
I also agree with you that it is not a common man’s job to come down on streets for recovering loans from the defaulters like Mallya. But, agree with me or not, it is not the government’s job either. The government also cannot order his arrest for what he has done. I am sure you would not agree with me on this, as most of the Indians. Just go to the court and check with some of the lawyers that Mallya cannot be arrested and made liable to pay for KFA’s loans. That is where the bankruptcy law is required and this government is already working very hard to get it passed –

If you think this government is just sitting idle and not doing anything, like Manmohan Singh’s UPA government, then you are probably living in your own world. Go outside and check what all this government is doing on the ground level. Check what all India’s Railway Minister Suresh Prabhu is doing, you’ll be surprised by the pace of actions taken by his ministry. Talk to the companies which are associated with some of the government’s projects, talk to the companies which placed their bids for the mining auctions held last year.

Talk about the social welfare schemes started by this government, like Sukanya Samriddhi Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, Make in India, Skill India and many other schemes. Has PM Modi started all these schemes for himself? He has not taken a single leave since taking over this challenging role of a PM. That too, in a country like India, where people give 80 seats to Lalu Yadav for the dramas he does on TV and make a leader like Jagmohan lose in elections and then get lost from the media limelight altogether. Why you question only Mallya for still being an MP, why not Lalu Yadav, why not A Raja, why not Kanimozhi, why not so many other politicians?

I don’t know whether implementation of 7th pay commission is politically motivated or not, but I am sure it was required and is not going to benefit Mr. Modi or Mr. Jaitley personally.


Govindan March 27, 2016 at 9:49 AM

I agree with your views. Please read my comments and spread the right message where ever possible.


Santhosh March 30, 2016 at 5:02 PM

Mr. Shiv, I think you know our laws. If a common man stops an individual, it is a crime. and it is the responsibility of Government bodies.


Govindan March 27, 2016 at 9:34 AM

During UPA time major changes were made in the post office schemes. because all these interests are based on inflation. What ever I am writing here is based on detailed study. because I am a Senior Citizen and I am depositing a large amount in PPF. If i am deposited Rs. 100000/- in P F I may loss may loose Rs. 100/- compared to old rate. This is a negligible amount. If you want to know more read my comments.


Vikas Pandey March 19, 2016 at 9:57 AM

This is a well written article , for a growing economy , one should have the mindset like the author of this article ,


Shiv Kukreja March 19, 2016 at 12:50 PM

Thanks Vikas!


PAULOSE KO March 19, 2016 at 1:01 PM

Article is well written and understand the mindset of the author, but the common man is not mindless.If the elected politician of our society cannot help the many who are poor, it cannot save the few who are rich .
They will be paying the price in the coming elections..


Shiv Kukreja March 19, 2016 at 1:11 PM

That would again be a bad decision by the voters. If the current government is not able to take this country in the right direction, then God knows what will happen when leaders like Lalu Yadav, Akhilesh Yadav, Mamata Banerjee, Rahul Gandhi, Kejriwal would rule this country.


Debasis Chakravorti March 19, 2016 at 4:09 PM

Shiv Kukreja
Please do not quote the names of political leaders.It proves you are also biased.You can disclose your opinion about Hon’ble FM decision either in favour/against for the betterment of the country obviously.rgds


Shiv Kukreja March 19, 2016 at 6:04 PM

Thanks Debasis for your suggestion!


Govindan March 27, 2016 at 9:46 AM

Main responsibility lie on politicians and the media. Majority of them and their followers do not know how to calculate simple interest. They make comments without any study, Without basic mathematics there is no economics. Most of the politicians particularly commies are liars. To know more about interest rate read my comments


Debasis Chakravorti March 19, 2016 at 4:21 PM

Please let me know whether the reduced rate is applicable for the existing MIS/NSC holders also,or it will applicable for those purchasing from 01.04.2016 on wards.
Please confirm.


Shiv Kukreja March 19, 2016 at 6:06 PM

Hi Debasis,
Except PPF and Sukanya Samriddhi Yojana (SSY), it will not affect any of your past investments, including MIS and NSC.


Abhinav Singh March 23, 2016 at 12:25 PM

Thanks Shiv. What about Senior Citizen Saving Sceheme. If I had put money in Jan-2015 say 15 lacs. Will it continue to fetch 9.3% for the entire 5 years?


Shiv Kukreja March 23, 2016 at 8:14 PM

Yes Mr. Singh, you’ll keep getting 9.30% for the entire tenure of 5 years.


Govindan March 28, 2016 at 6:51 PM

It will be applicable to new Accounts. or in any scheme is maturing after 1.4.2016 and a person want to renew the scheme further.


Mohanan March 19, 2016 at 4:29 PM

Hello Shiv,
all what you mean is this rate cut good for this country, but see practically, the govt/RBI has cut the interest rate many times, but how many time or was there any interest rate cut implemented by any banks? or was there any price decrease in the necessary articles those mostly using by common people. OK, take this petrol/diesel, how may time the price went down in international market and was this govt reduced the price accordingly?


Shiv Kukreja March 19, 2016 at 6:39 PM

Hi Mohanan,
Banks did not cut interest rate aggressively due to high interest rates elsewhere. Tax-Free Bonds and post office schemes carried artificially high interest rates so far, which increased the effective cost of deposits for banks. Now, tax-free bonds are history and interest rates on these schemes have been rationalised somewhat. Next 6-12 months will see at least 1% fall in the cost of deposits for these banks and many of us will also have a fall in our loan EMIs. Next 6-12 months will result in high credit offtake for these banks and will increase corporate spending for newer projects.

I have observed a price fall in around 90% of the products I use in my daily life, including food articles (except Dal etc.). Also, I can guarantee you that India is one of the cheapest countries to live in as far as the cost of living is concerned.

As far as the prices of Petrol/Diesel are concerned, again I personally think what this government did was the best thing a government could have done in a country like India. Firstly, the government was required to meet its fiscal deficit target of 3.9%, which it did by increasing excise duty on Petrol/Diesel. I think it was a good move. Moreover, I think, in a country like India, the prices of Petrol should be increased by at least Rs. 30-40 per litre for cars costing Rs. 10 lakh & above. Price of diesel should also be increased as diesel vehicles create a lot of pollution. Every penny of this rate hike should be given to organisations like Delhi Metro for creating public infrastructure. Go to Singapore and try to buy a car there, you’ll get to know what a bomb it costs to buy a car in that country. India needs to take some harsh decisions to become a superpower and compete with countries like China and the U.S. It is Now or Never my friend!


Makbul Tamboli March 20, 2016 at 8:26 AM

Mr.shiv kukreja have u gone mad to support such a mad move of government. All senior citizens who do not get pension will suffer very badly. Are u really going in market to purchase. Neeta peya has gone up from rs Four to rs.ten.simple vada pao has increased three fold.people who are buying big houses should not at the cost of poor old people.


Shiv Kukreja March 20, 2016 at 12:20 PM

By the grace of God, I am perfectly fine Mr. Makbul! Yesterday itself, I purchased 2 kgs. of Potatoes for Rs. 10 a kg., 1 kg. of good Tomatoes for Rs. 15 a kg and 1 kg. of Onions for Rs. 15 a kg. FYI, I live in Lajpat Nagar, New Delhi. I would advise you to cook your food in house so that you save on paying huge margins to the restaurant owners and service tax to the government on your food bills sitting in an A/C. You will definitely save a lot of money for your retirement years. Thanks!


Gaurav March 21, 2016 at 6:12 AM

Perfect reply Shiv !!! Its funny how people want low interest rates for their loans and want higher interest rates for their savings…. There are a bunch of free loaders in our country who want the govt to baby feed them all the time !!!


Shiv Kukreja March 21, 2016 at 3:02 PM

Completely agree Gaurav, we need to change our mindset!


Vasu March 19, 2016 at 11:48 AM

Cutting down PPF interest rate is very bad idea. It’s a special financial instrument for common man to make some savings for retirement in a Country where social security is nil.
I’m afraid with this kind of over enthusiastic approach the Govt. digging it’s own grave. It’s deceiving the very same people who has voted it.
I have been supportive of govt efforts so far, but it seems the Babus (so called Economists specially inducted in to finance ministry) are misleading the govt.
PPF always had a special status and crores of people, mainly those who can’t use EPF are solely dependent on PPF for their retirement planning. Treatment PPF at par with all other products is a foolish act.
Why Govt is after, hard earned middle class and poor people’s money and watching largest corporate defaulters openly ‘escape’?
Govt already taken a U-turn in case of EPF withdrawal issue, hope better sense prevails again.


Shiv Kukreja March 19, 2016 at 1:04 PM

Hi Vasu,
For retirement, one should invest in NPS or EPF or probably equity mutual funds. It is not the government’s job to keep on subsidising these schemes. PPF always had a special status and continue to have a special status by being an EEE scheme. Interest rates on PPF, SSY and SCSS are still subsidised even after this reduction. The government in this country cannot be against its people, at least in the public domain. Can you send your children abroad for a lavish holiday when you don’t have money even for your basic necessities like food, shelter etc.?


Govindan March 27, 2016 at 10:02 AM

You are an educated person. Education is not only meant for getting a job but also to find out what is good and bad. Why don’t you find out the fact by calculating how much money you loose every month with the new rate and old rate. You may read my comments


venkatraman March 19, 2016 at 12:53 PM

I have already invested in SCSS in Jan 2016 with the interest rate 9.3% at SBI. Will this investment affect due to yesterdays declaration of reduction of interest rates from 1st April? Will I continue to get interest at 9.3 or it shall be 8.6 ?


Shiv Kukreja March 19, 2016 at 1:12 PM

No Venkatraman, this reduction will not affect your investment in SCSS.


Srinivasan R March 19, 2016 at 3:11 PM

Govt does not mean that it is for business and generating rvenue. They have to consider all section of people. Poor, middle and upper class for their well being.

These kind of savings are not only help for retirement, we have to consider children education which fees/donation are all sky rocketting and medical.

I doubt inflation rates are calculated considering these factors also.


Shiv Kukreja March 19, 2016 at 6:59 PM

Hi Srinivasan,
Inflation is calculated considering most of these factors. But, why don’t we raise our voice against private schools charging abnormal fees and asking for high donations and hospitals for having high medical charges? I think a government should always work like a company i.e. with 100% professional attitude. It must be made accountable for every rupee spent on infrastructure and for growth. People have been looted here for years by the previous governments and many of the state governments. Now is the time to work for a better India.


Srinivasan R March 20, 2016 at 12:16 AM

Thanks Shiv,

In my opinion, govt should not act like a banker. It is not only for business.

As you told, we raised our voice and brought change of guard in last lok sabha elections. However if current govt does not make any difference with previous govts it is frustrating.

When MMS took over as fin minister he told people should be ready to take bitter pills. If a patient has to take more and more bitter pills than food every year for 25 years, the patient will think why should he live?

I beg to differ on your opinion on this…


Shiv Kukreja March 20, 2016 at 11:12 AM

Hi Srinivasan,
Differences in opinion are most welcome here on this forum! If people are not ready to take bitter pills for better health, they should keep themselves fit on their own.


nitesh patel March 19, 2016 at 11:32 PM

if I open recurring account in a post office before 1st April 2016 will I get 8.40 % or 7.8%


Shiv Kukreja March 20, 2016 at 11:14 AM



PAULOSE KO March 20, 2016 at 7:09 AM

Hi Shiv,
As you are a wise financial planner, you may write an article and advice average middle class people like me what are the best options available for right investment road to take at the current scenario, say from 1st April 2016 onwards.
Now TFBs are the thing of past, what about corporate FDs, Bank FDs,Gold funds,MFS, SIPs, Stockmarket etc…I think many people will be interested to read. You are doing a good job.
kind regards


Shiv Kukreja March 20, 2016 at 12:07 PM

Thanks Dr. Paulose!
I will definitely try to write a post on it sometime in April.


Hemant March 20, 2016 at 9:16 AM

Good article and good discussion. In my opinion, the Govt. is doing a right thing by lowering interest rates on small savings, which will trigger lowering of interest rates on fixed deposits first and then lowering of interest rates on loans (be it home loan/personal loan), good for boosting spending and infrastructure developments.

However, at the same time, Govt. although the prices of Fuel are de-regulated, by raising excise duty several times in the recent past, in a way again bringing a regulation in place. Which I think is not fair!

Also, the timing of some these moves, like first announcement of tax on EPF and then rollback of that decision and now immediately lowering the interest rates is not going well for the Govt.

Govt is not acting swiftly on defaulters and bad NPAs of the banks, afterall for all the Govt. funded banks the money is going through taxpayers pockets.

If the Govt. expects us middle class tax-payers to co-operate then it should also act Swiftly against many such things..


Shiv Kukreja March 20, 2016 at 12:01 PM

Yes, I agree with you Hemant, by raising excise duty several times, it seems that the government has once again brought in some kind of regulation. But, trust me, a country like India does not deserve low Petrol & Diesel prices and I am sure, more than 90% of urban population would agree with me on this. Won’t you?

Moreover, will you pay Rs. 150 for 1 litre of petrol, if crude prices cross $100 per barrel in 6 months time i.e. a jump of 150% from $40 per barrel now ?? You will not and I am sure nobody will. That is when this government will have to absorb the losses and cut its excise duty on petrol & diesel. This is a democratic country with mindless media, unlike North Korea.

As far as the matters of NPAs and wilful defaulters are concerned, you would also agree with me that businesses do fail. Very few people expected crude prices to fall from a level of around $120 per barrel to $26.50 per barrel and nobody knows (except God) where the prices would be in 6 months from now. Very few people expected big American banks to fail during sub-prime crisis in 2007-08 and you know what, this crisis was a result of two big anomalies in the system – low interest rates and sky rocketing property prices.

If people knew about KFA’s fate, its employees would have been the first to shun the airlines. I am not advocating here any wilful defaulters, like Vijay Mallya. But, businesses do fail and it becomes difficult sometimes to survive. You will see the KFA case going to the Supreme Court and Vijay Mallya coming out of it without any major liability to pay banks’ loans because under the law, a business and an individual are two distinct entities and the law cannot force an individual to pay up for the defaults of a business.

However, I do agree that the government now has the opportunity to make stricter laws against wilful defaulters.


Sandeep March 20, 2016 at 1:18 PM

Just going a bit offtrack from this topic, can the lenders to Mallya’s venture auction assets of KFA or lease it to some other airline /or service. Like Amazon is looking to lease flights for its single day delivery of its ecommerce consignments 🙂 … this way atleast something can be recovered … otherwise its no use just beating the bush & wait for Mr. Mallya to return


Shiv Kukreja March 21, 2016 at 12:28 PM

Hi Sandeep,
Banks are trying their best to monetize KFA’s assets, but either the value of the assets is too less to recover even 5-10% of their loans or they are not easily saleable.


Kumar March 20, 2016 at 6:50 PM

Hi Shiv
As these rate cuts are effective from 1st april can i buy KVP and NSC at old rates NOW?. If i buy now will the rate reduction will be applicable for those purchases also once we reach 1st april?

Also what abt the KVP/ NSCs which i hold now. Will there be any change in interest / marurity period for those instruments


Shiv Kukreja March 21, 2016 at 12:32 PM

Hi Kumar,
This rate reduction will NOT impact your new as well as existing investments made in KVP and NSC prior to April 1, 2016.


priyam March 20, 2016 at 8:30 PM

Hello Shiv and others, this one seems to be a good discussion with Shiv having provided some insightful responses.
But Shiv, without going into a whole lot of detail here, I would like to mention that though the steps taken by the Govt might be in the right direction, they pitifully address only one side of the story. Multiple other critical things need to be addressed before or alongside this. Having gone ahead with just the angle of rate cuts shows lack of knowledge and understanding on what needs to be done to arrive at a better overall economic state in the country. These so called economists and their quasi economics gets so lame, every time.
Just comparing on similar instruments between say India and the advanced countries (example US), you can see the wrong that is being done here – cost of living is much cheaper there, people have social security, etc. Many other countries even have free health insurance. Simply put, people are not at high risk on their livelihoods before and after retirement. Please also check on the proportionate income and expenditure quotients between India and US. Does the average Indian even know now how much is going to be enough to support his family even the next year? Prices of life essentials in US have not moved for so many years now beyond a necessary minimum. And you see the state of affairs in India…
Whoever tries to justify govt actions, is doing nothing but giving a big thumbs up to the act of the real Indian working class, salaried private workers and retirees, perpetually being forced to pay for the expenses of govt and govt employees at the cost of their future.
What the govt needs to do rather to counter their debts, etc is to have educated people in the govt, understand the uniqueness attached to India as a country, revise the constitution, have govt establishments become profit centers or sell them off, generate increased and new sources of revenue, cut out sick establishments including their own free perks. govt offices should become accountable and stop handing out default pay, perk and pension packages to themselves. Then come things like social security, savings instruments, etc. There is so much more, but this can be a start. Thanks.


Shiv Kukreja March 21, 2016 at 1:56 PM

Hi Priyam,
I agree with you that a whole lot of things need to be corrected here in India and the time is NOW, NOW and NOW. We’ll be very unfortunate to live in India if we let away this golden opportunity to rebuild India as the next superpower.

But, can you please explain me how other developed countries achieved high growth? By creating anomalies or by removing them?
Who is responsible for India’s current state – Modi Government, Congress, State Governments or we the people of India? I think Indian democracy and its constitution are its biggest strength as well as its problems. It takes a lifetime in India to correct anomalies. GST bill, which even Congress supports and says it is our bill, has failed to see the light of the day till today because Congress will not allow the bill to get passed till Mrs. Sushma Swaraj is made to resign for her so called support to Lalit Modi to fly out of India. This is pure politics and nothing else. These politicians are not for you, but for your votes only most of the times.

You are saying that there is a hell lot of difference between India and the developed countries like the U.S., but then you are comparing India only with the U.S. Please compare India with all other countries, not only with the U.S., with Japan, U.K., Singapore, Pakistan, North Korea, Somalia, Zimbabwe, Greece, Spain etc. Each country has its positives and negatives.

I think India still is a much cheaper country to live in as compared to the U.S. and other developed countries. If the prices of essential goods have risen here in India in the last 15 years, so have the income levels of a common Indian citizen. What was your family’s average monthly income in 2001 and what is it now? I am 100% sure that standards of living of more than 90% Indians have improved considerably in the last 15 years.

I completely agree and strongly support your thoughts you have listed out in the last para of your comment. India needs more people like you with positive and growth-oriented mindset.


Arun Basak March 21, 2016 at 8:26 AM

If I invest in Senior Citizen FD account before 31st March, will I still get annual fixed interest rate of 9.3% for 5 years, payable quarterly ?


Shiv Kukreja March 21, 2016 at 2:00 PM

Yes Arun, you’ll get 9.30% rate of interest.


R Hariharan March 21, 2016 at 10:35 AM

Hi Shiv

First and foremost, I appreciate your positive outlook on both pros and cons of the issues involved. I live in Bangalore. Only thing that has come down during the Modi regime is the interest rate on all investments. We, senior citizens are squeezed by both the Centre and the State Govts. Prices of every single essential items like milk, water. power, fuel, vegetable and provisions has gone up while every investment options have cut their rates. This is economy!!!!!!!!!!


Shiv Kukreja March 21, 2016 at 2:31 PM

Thanks Hariharan!
I do not agree with you here. I think the prices of most of the essential items have either fallen here in India in the last 18-24 months OR have risen at a slower pace than the growth in income levels. Please make a list of 50 items you use in your household and compare their prices today and the prices which were there in May 2014 and you’ll get to know what I am saying is correct and I don’t want to give all of its credit to the Modi government. It is the global factors in many of the cases which have led to a sharp decline in commodity prices.

Moreover, you would agree with me that it is our income levels which are giving us more liberty to spend higher outside. We spend a minimum of Rs. 2,000 for a weekend movie and dinner for two these days as compared to around Rs. 300-400 for the same 15 years ago. Our children easily buy iPhones worth Rs. 30-40K these days as compared to how we used to buy phones for ourselves 15 years ago.

We easily spend Rs. 5 lakhs on foreign holidays and many Indians do that these days, it was not easy to spend such a money 15 years back. School fee for 2 children costs us a minimum of Rs. 1 lakh per annum these days as compared to Rs. 10,000 per annum 15 years ago. Medical costs were also lower 15 years ago. So, it is our income levels or our lifestyle which is resulting in higher spending rather than the government acting against its pubic.


PRAKASH March 21, 2016 at 12:35 PM

I would like to know from any expert , how much reliance industry is benefitted by not lowering base rate of oil. I have not come across any article towards this aspect and want to know more towards this.


Shiv Kukreja March 21, 2016 at 2:58 PM

Hi Prakash,
You mean market rate of petrol prices or base rate of gas/oil?


TMM RAO March 21, 2016 at 12:38 PM

my opinion the intrest rates on small savings may be good in long way..
please think about senior citizens who will depend on this intrest .they don’t have any alternate investments like mutul funds which will give good returns after 5to6 years and no garentee…
pl. govt has to think about senior citizens .they can be given more tax exemption or no tax on their intrests…


Shiv Kukreja March 21, 2016 at 2:52 PM

Hi Mr. Rao,
I think the government is first required to think about those poor people of India who do not have money to get even two meals a day to survive and to live to see their children grow and become responsible citizens of India. Then only the government is required to think about Senior Citizens who can at least invest in these schemes.

Senior Citizens are already tax exempt up to Rs. 3 lakh of their income and over & above that it is very easy to avoid paying any tax if you invest to save tax u/s 80C. What else a common senior citizen of India requires to survive? We need to first think about the poor people of India. Not only this government, we also need to work for them.


Shailender Bali March 21, 2016 at 1:07 PM

Are these rates applicable for older deposits as well. Suppose, I open a SCSS (currently at 9.3%) on 31st March, 2016. Will reduced rate of 8.6% (effective from April 1, 2016 and to be reviewed quarterly) be applicable on my savings as well. Regards


Firoz March 21, 2016 at 5:16 PM

No Mr.sailender,
Once u booked before 31st March, u will get 9.30% till the end of the tenure of ur deposit.


hemant March 21, 2016 at 5:26 PM

Yes Mr. Bali, I also was worried as no official clarification yet from Govt., BUT I think it will not be so for old deposits, so still few days before 31 st March 16 comes, hope some authority or Mr.Shiv confirms immdtly now with full confidence for all such readers like u and me !!


Shiv Kukreja March 23, 2016 at 8:19 PM

Hi Mr. Hemant, Hi Mr. Bali,
SCSS investors will keep earning 9.30% (or whatever rate they invested at) for the entire tenure of 5 years.


hemant p March 25, 2016 at 4:53 PM

thanks a lot Shiv,for your swift response,

also pl.let me know if the same fix interest for PPF also ? OR effective from April 1, 2016 to be reviewed quarterly ? then what a person like me will get after long 15 years in PPF !! may be interest rate that time will come down to 2 % ??

I think this is very ridiculous step of govt.


Shiv Kukreja March 26, 2016 at 9:55 PM

Hi Mr. Hemant,
PPF interest rate will be reviewed on a quarterly basis w.e.f. April 1, 2016. At 2% PPF rate, India will be a developed economy. Then you’ll not call this move a ridiculous step of the government.


harinee March 21, 2016 at 3:39 PM

Hi Shiv
It is very much true that the interest rates offered in India are offered nowhere else in the world.Govt has to show significant infrastructure growth for all these cuts.Education is one place I see useless direction and interference in universities but nothing at school level. Improving the municipality school standards and conditions will kill the private school business and take this country far ahead. This is where US wins over rest, an extremely strong public school system. Singapore is definitely a great example for public transit. Delhi govt should have put more focus in building a exemplary public transit system instead of the silly odd/even rule.
People will appreciate economic moves when they see accountability in the system.More than Vijay Mallya the banks are more culpable and we are never going to see any action taken against the people who did the reckless lending.US subprime crisis was driven by greed and again no action was taken against the key participants(You must have watched or read “The Big Short”). Sadly it will never happen not in India nor anywhere in the world, only small fish get caught because politics is so interwined with the financial world.


Shiv Kukreja March 21, 2016 at 4:30 PM

Hi Harinee,
I completely agree with your views here. But, trust me, this government is working really hard to get things in order, unlike the dramas Delhi government is doing. It will take this government some more time to get its acts together and then once this big ship starts sailing, you will see a healthy growth taking this country to the next level. Vajpayee government also did an excellent job during his tenure, but the next 10 years whitewashed all his efforts. Privatisation/strategic sale of PSEs or their planned revival is the key here.


harinee March 23, 2016 at 10:41 AM

Yes Vajpayee govt never gets the credit it deserves.It is the divisiveness within BJP which doesn’t allow marketing of their achievements.The only power surplus states are BJP ones but most people have no awareness of this.


Shiv Kukreja March 23, 2016 at 8:25 PM

Hi Harinee,
India’s time will come, negative forces will be defeated sooner or later.


srinivas March 21, 2016 at 4:13 PM

If i invest in 5 year term deposit in post office before 31 march 2016
will i get 8.5% rate of interest for the coming 5 years r will it be reviewed quarterly as per new rules


srinivas March 21, 2016 at 4:37 PM

If i invest in 5 year term deposit in post office before 31 march 2016
will i get 8.5% rate of interest for the coming 5 years or will it be reviewed quarterly as per new rules


Shiv Kukreja March 21, 2016 at 7:21 PM

Hi Srinivas,
Interest Rate will remain 8.50% for the full tenure of 5 years.


Uday March 21, 2016 at 4:45 PM

The interest rate reducing on senior citizens scheme (SCSS) from 9.3% to 8.6% is not reasonable.FM has to re think on this issue.Other way is to reduce the max.investment amount from 15,00,000 to reasonable limit.


Shiv Kukreja March 21, 2016 at 7:38 PM

Thanks Uday for your inputs! The idea behind Rs. 15 lakh investment limit was to allow Senior Citizens to park their retirement corpus in this scheme and get regular quarterly income as pension for their regular expenses. It is up to the Finance Ministry to rethink about lowering or increasing this investment limit.


Vijay March 21, 2016 at 5:53 PM

Hello Shiv,

Few points on the decision taken:
1. Firstly, good move by the govt. for the long run
2. Income tax is being levied on PPF (if I am not wrong) and is it correct to cut the interest rates?
3. Does these new rates apply to previously saved money eg., if I have SSA account these interest rates will be applied on the amount saved during the previous FYA 2015-2016?
4. New taxes like Swachh Bharath Cess are really needed? Only tax payers are being targetted & further levied new taxes like these. Can the govt. really catch hold of people with black money? I am really disappointed of this tax in particular.


Shiv Kukreja March 21, 2016 at 7:58 PM

Hi Vijay,
2. PPF maturity value is tax exempt, no tax gets levied on it. In my opinion, it is a move in the right direction to cut its interest rate, but your view against this move is also welcome!
3. Yes, for SSA and PPF, these new rates will be applicable for a period of 3 months from April 1, 2016 to June 30, 2016. However, your deposit in SSA will earn you 9.20% p.a. from the date of deposit till March 31, 2016 and the accumulated amount will earn 8.60% p.a. from April 1, 2016 to June 30, 2016.
4. If we the Indians start maintaining our country, our roads, our infrastructure like our homes and our cars, then probably there is no need for the Swachh Bharat Cess. I personally want the government to start scrutinising/raiding more and more people with black money and take each and every penny of black money out of its systems.


R K Mitra March 21, 2016 at 6:06 PM

Dear Shiv,

I totally agree with your views. Though I am a retired person and will be affected the most by these rate cuts and the resultant cuts in Bank FD interest rates, I would still prefer to reduce my household expenses rather than take subsidy from the Government. In my view many of the benefits from Government subsidies are enjoyed by the middle class and the comparatively affluent class. Do the truly poor families of our country put money in PPF, Senior Citeezen savings scheme etc. I wonder.

I only hope that the money saved by reduction in rates in small savings scheme will go in development activities such as Education and Health which will benefit the entire society.

Thank you Shiv for your articles which has helped me take investment decisions in the past.


Shiv Kukreja March 21, 2016 at 8:03 PM

Thanks a lot Mr. Mitra for your encouraging words and support! We need more and more people with a mindset like yours so that we become the best country in the world to live in. 🙂


pradeep March 21, 2016 at 9:16 PM

Only 2-3 % people pay tax. Rest 97 % are poor people. Many people who dont pay a single paise tax have big cars and big properties. They won’t be impacted by any reduction of interest rate. 😀 After 2-3 days tax paying will foget all this.


Usha sadanandan March 21, 2016 at 7:21 PM

Govt. started sr. Citizen pension bima yoga a last yr inaugust 2015 n it was closed within a very short period. Does they confirm that those who r availing this facility they r not sr. Citizen but most of them r working n in the age between 55 to57. Then where the retired people will go. What is the use for the scheme which is meant for retired person?


Shiv Kukreja March 21, 2016 at 8:12 PM

Hi Mrs. Sadanandan,
You can invest in Senior Citizen Savings Scheme, it is meant for senior citizens only. It currently provides a good 9.30% per annum if invested before April 1, 2016. Interest will be paid on a quarterly basis.


PAULOSE KO March 21, 2016 at 7:43 PM

Hi Shiv
Regarding the health care, the cost of medicines and treatment is sky rocketting. Its part of the inflation you may say. Like the price of petrol its not going to come down in the future.
There is hardly any investment in public health care system by the Govt. This Govt is encouraging private sector and medical insurance system like in the west, but how many of the poor can afford and get a decent treatment in rural villages.Yes the private sector “medicities” are booming. Its good for the urban class. But the remote villages of India, the health care system is primitive.
Its nice to hear all these talks of health care developmental activities, but in reality its not true. The health of all the sectors of community- poor middle class and upper class-are getting worse, newer disease,costlier medicine all add the agony.
In future,every one should be prepared to shed more from the pocket if you fall ill, so live a healthy life style.Its easy to preach those live on burgers and pizza, but what about those “less fortunate”who live on air breathing (Yoga)..!!!!


Shiv Kukreja March 21, 2016 at 8:36 PM

Hi Dr. Paulose,
Let me share my experience with you despite of the fact that you are more experienced in these matters than me. People who practice Yoga & Meditate regularly require minimal medical support as compared to those who love to live on burgers and pizzas.

Also, people in villages, who work hard to earn their livelihood, are less likely to fall ill and succumb to healthcare problems than urban Indians. So, the Modi government wants every Indian citizen to practice Yoga and Meditation so that the government is able to spend more money on other important infrastructure related expenditures.

Jokes apart, I completely agree with your views here! The government is required to work very hard and implement its policies efficiently to improve healthcare facilities for the rural population and I am confident that the new healthcare scheme announced in the current budget will take care of your concerns.


PAULOSE KO March 21, 2016 at 8:58 PM

My Dear Shiv, Its not easy to advise one to breathe air (Yoga) when you are hungry and starved..I am glad our Hon.Prime minster did not advocate to practise Kundalini yoga to the common man (which is a dangerous type of Yoga if you don’t know what you are upto).
Any way your forum is getting heated up, let it fire…
Very intersting..


PAULOSE KO March 21, 2016 at 9:44 PM

Shiv, readers may wonder what dangers hidden in Kundalini yoga they are welcome to read one of my post in my blog-
btw-Spritual Industry is growing in India as it needs no investment, only air to breathe….


Hemant March 22, 2016 at 9:08 AM

Nice article on Kundalini Yoga Dr. Paulose!


PAULOSE KO March 22, 2016 at 10:17 AM

Thank you Hemant…Let me thank Shiv Kukreja allowing me to write on his space…


Shiv Kukreja March 23, 2016 at 8:42 PM

Thanks Dr. Paulose for becoming a part of this OneMint family! 🙂 Would you like to write a Guest Post for OneMint Dr. Paulose, which you think could be of interest to our readers here?


PAULOSE KO March 23, 2016 at 9:05 PM

My dear Shiv
You want me to get engaged in the vigorous combat zone of One mint forum?? My resources are limited..Any how it’s a great complement..let me think about it…:-)


Shiv Kukreja March 23, 2016 at 8:39 PM

Nice article indeed Dr. Paulose!


Shiv Kukreja March 23, 2016 at 8:38 PM

Hi Dr. Paulose,
Nature has given us many essential things to live “free of cost”. Many other essential things which are good for health are very cheap to buy. Practising Yoga, Pranayama, Meditation and living a healthy lifestyle keeps you away from Doctors and medicines. Huge money is required for non-essential things, luxury items and desires most of the times and there is no end to one’s desires. I agree that you cannot practice Pranayama when you are hungry and starved, but if you practice these things, you can live a healthy life.


PAULOSE KO March 23, 2016 at 8:52 PM

I agree desire has no end..who will say “enough enough”, the only word we say enough is when our stomach is full…
I agree with you we need to keep a healthy life style (but what we “guys” will do to earn a living, if there is no illness around..bit selfish thought!!!)


Shiv Kukreja March 23, 2016 at 8:57 PM

🙂 No selfish thoughts here Dr. Paulose, Sorry! 🙂 “Om Sarve Bhavantu Sukhinah !!”


PAULOSE KO March 23, 2016 at 9:09 PM

“Aum Bhur Bhuvah Swah, Tat Savitur Varenyam
Bhargo Devasya Dhimahi, Dhiyo Yo Nah Prachodayat”


PAULOSE KO March 23, 2016 at 9:12 PM

…Eliminates suffering and Embodies happiness….:-)


Shiv Kukreja March 26, 2016 at 10:54 AM

True !! 🙂


T.C.Parthasarathy March 22, 2016 at 2:12 PM

Retired Senior Citizens, who have no pension benefits, have to depend on the interest earned on the Small Saving Schemes, like SCSS, PPF, NSC etc.
Government can exempt the rate cuts for these deposits from Senior Citizens and this will help them to continue their normal life.


Shiv Kukreja March 23, 2016 at 8:52 PM

Senior Citizens already get many extra benefits Mr. Parthasarathy! Why do we always need subsidies to live a normal life? SCSS, PPF and NSC are already subsidized, even after these cuts.


B D GUPTA March 23, 2016 at 3:13 PM

Dear Shiv
Is there any authentic official Circular to the effect that if a deposit is made in Sr citizen savibgs scheme before 31 March 16,the rate of interest till 31 March 2021 will be 9.3 p.a.and not as revised by GOI from time to time.PL urgent response.


Shiv Kukreja March 26, 2016 at 5:04 PM

Hi Mr. B D Gupta,
As per the rules governing SCSS – “In case of an account, continued after maturity under sub-rule (3) of rule 4, the deposit in such account shall earn interest at the rate applicable to the new accounts opened or to be opened under the provisions of these rules on the date of maturity”.

This clearly means interest rate will remain 9.30% till maturity if invested before April 1, 2016.


Nem Kumar Jain March 23, 2016 at 3:14 PM

Pl let me know that if RD is opened upto 31 Mar 2016, the maturity value will remain the same i.e. Rs 746.53 for Rs 10/- RD which will be maturing in Mar 2021.

Thanking You

Nem Kumar Jain

Mob: 9450111316


Shiv Kukreja March 26, 2016 at 5:06 PM

Yes Mr. Jain, the maturity value in Post Office Recurring Deposit will remain Rs. 746.53 if invested before April 1, 2016.


Narendra M Apte March 23, 2016 at 4:54 PM

Today I visited SBBJ today and was informed that if I deposit say Rs. one lac today in SCDS, interest payable to me would be 9.3% for period up to 31.3.2016 and thereafter it will be 8.6%. Earlier it was not so, I presume. Am am correct?


Shiv Kukreja March 26, 2016 at 5:13 PM

No Mr. Apte, that is not correct. Deposits made before April 1, 2016 will keep earning 9.30% till maturity.


Narendra M Apte March 23, 2016 at 4:55 PM

Today I visited SBBJ today and was informed that if I deposit say Rs. one lac today in SCDS, interest payable to me would be 9.3% for period up to 31.3.2016 and thereafter it will be 8.6%. Earlier it was not so, I presume. Am I correct?


George March 25, 2016 at 12:54 PM

This is wrong Fd Nsc carry fixed interest untill maturity. If you deposit in Po TD or Sr Citizen Fd in any branch you will continue to enjoy the same rate untill maturity. If you deposit after 31st Mar you will get the new rate untill maturity. Every qtr the govt will review rate which will affect new deposits only. In the case of PPF the rate will keep changing every qtr if there is a change. Some mis communication happened


Shiv Kukreja March 26, 2016 at 5:13 PM

Thanks George!


hemant pandya March 23, 2016 at 6:06 PM

pl. do give me your confirmed clarification – I m senior citizen, I have put 1.50 lacs in SCSS scheme on 8-3-16 @ 9.30 % for first time in a bank branch , now-
1.what interest rate will I get on this deposit for next full 5 years by quarterly interest credit in my SB a/c, and ,
2.if I put further 5.00 lacs before 31-3-16 in the same branch, will it be accepted, and if yes, whether I will continue to get 9.30 % interest for full 5 years ? or will it keep changing every quarter or year ?
3. if I put 1 lac in my existing PPF a/c, what rate of interest will I get from 1-4-16 and upto which date ? whether it will keep changing every quarter ?


Shiv Kukreja March 26, 2016 at 5:19 PM

Hi Mr. Pandya,
1. You’ll get 9.30% till maturity
2. Yes, your investment of an additional Rs. 5 lakh will be accepted. You’ll continue getting 9.30% till maturity.
3. PPF will earn you 8.10% w.e.f. April 1, 2016 and it will remain 8.10% till the time it gets changed in any of the quarterly revisions.


Sourav Ganguly March 25, 2016 at 4:43 PM

Just wanted to increase the dimension of the discussion and increase the frame of reference in terms of time and savings avenues …
Unlike the West where personal savings have a large (at times 80%) component or more in market linked equity instruments (Including Govt. Mandated Schemes like 401k and Roth schemes in US), in India for years we have been preaching a pseudo ‘Government/welfare scheme/welfare state culture’ which has no political/economic basis… the state is an administrator of the limited resources available to it.. it is not your guiding angel or protector… every person in the state is on his own…if you have to make money/retire rich/be of use to yourself and the society… you have to make every effort to study hard in early life….make your job useful so that it can generate sufficient cash surplus for you…(or you have to squeeze yourself so that you manage to save every small bit… by making Sacrifices) and then invest that money saved in so called Risky (but I believe the only possible avenue) Equity investments over a long term so that your financial future is protected… believe me.. anybody who has invested continously in equity for 20 to 30 years in life… whatever be his economic condition… will end up being rich…in the current situation… whatever little you will lose due to reduction in interest rates of small savings instruments… you will make much more through the interest rate reductions in long term bonds/higher eps earning for companies in equities… its a mindset issue we have in terms of our choice of financial instruments/our expectations from government and our overall idea of ‘entitlement’… friends grow up… there is no free lunch….


PAULOSE KO March 25, 2016 at 10:16 PM

Shiv, I could not understand what Mr.Sourav Ganguly meant by his comments . May be I am an airhead to understand all his view points or dimensions of discussions.
Can you please translate into simple english.


Shiv Kukreja March 26, 2016 at 9:10 PM

Hi Dr. Paulose,
Sourav wants people to change their mindsets and invest more and more in market-linked securities, preferably equity-linked instruments, for high returns, as they give the highest returns over a long period of time.


Shiv Kukreja March 26, 2016 at 9:05 PM

Thanks Sourav for your inputs here! I agree with you that investors here need to change their mindsets and try to stand on their own feet for their brighter future instead of depending on the government subsidies for artificially high returns!


SRINIVAS April 2, 2016 at 1:56 PM

well said. Investments for market linked returns is the key. An economy which survives on fixed returns is doomed to fail.


Mrugen Shah March 25, 2016 at 6:54 PM

It is too loses for the people.. & Govt donot take good decisions for middle class people.. I do not vote it..


Shiv Kukreja March 26, 2016 at 9:41 PM

Hi Mr. Shah,
Inflation has fallen over the past 18-24 months and that has made banks to cut their deposit rates. Now, it was natural for the government to cut interest rates on these schemes which was long overdue as well. This would result in the RBI cutting its rates and then lending rates would also come down. This is good for the economy overall. Good steps taken never get a thumbs up from the voters in this country, we need false promises!


SRINIVAS April 2, 2016 at 2:01 PM

Beautifully said. I can”t agree with you more on the subject. The wrong and misplaced concept of Nehruvian socialism is the main reason for poverty and wretchedness in society . That socialistic way of thinking which has done all the harm to the society is so well entrenched in our minds ,that any such daring step by progressive Government like the one which we have now is criticised. Time that people realize whether they want real or artificial progress financially.


Shiv Kukreja April 16, 2016 at 8:47 PM

I am with you Mr. Srinivas! 🙂


Shiv Kukreja March 25, 2016 at 9:27 PM

Just Posted – Should You Invest in NPS Post Budget 2016? –


Nem Kumar Jain March 26, 2016 at 1:43 PM

What is the amount of the yearly interest earned on NSC (10 and 5 Years maturity) for reflecting in ITR to pay the income tax as it used to be in tabular form in earlier NSC issues.


Shiv Kukreja March 26, 2016 at 9:49 PM

Hi Mr. Jain,
We do not have such ready reckoner with us.


G. S. Kundapur March 27, 2016 at 4:59 AM

Whether investment made in Senior Citizens Savings Scheme before 31/03/2016 will continue to earn interest at9.3% for next five years or it is subject to quarterly revision?


Shiv Kukreja March 28, 2016 at 6:42 PM

Hi Mr. Kundapur,
SCSS will keep earning 9.30% for you for 5 years if invested before April 1, 2016.


vishal agrawal March 28, 2016 at 3:05 PM

You can support this government for swach bharat, service tax, black money, low interest rates, ppf nsc slash, water tax, uturns etc etc but the fact is a fact. This government is taking money from us and giving it to Ambani/Adnai/Mallya. Sooner you realize better for you.


Shiv Kukreja March 28, 2016 at 6:47 PM

I am glad Mr. Agrawal that you have realized what this government is doing. Good for the country. Thanks for sharing!


Amit March 30, 2016 at 9:40 PM

Mr. Vishal,
I suggest you to watch the documentary “The Men Who Built America”.
It is a 5 hr documentary about 5 businessmen who built America from scratch. While Americans respect their businessmen, sadly, we Indians hate them. Difference is visible.
Hope it is available on Youtube.


Rabinarayan swain March 29, 2016 at 1:03 PM

Now i open SSY account in post office in this year & i deposit amount yearly, my doubt is “if i could not deposit the amount on 1st April of the year & i deposit it on 2nd or 3rd April of every year the interest rate &maturity value should be same or decrease. please tell me.


Shiv Kukreja March 29, 2016 at 3:34 PM

Hi Mr. Swain,
Interest rate on SSY will change on a quarterly basis. So, the maturity value will change based on the rate of interest and the timing of your deposits.


Satish Dhingra March 29, 2016 at 10:46 PM

If I invest in Senior Citizen Savings Scheme,2004 on or before 31st March,2016, would I get interest @ 9.3% payable quarterly for the next
five years?


Satish Dhingra March 29, 2016 at 10:49 PM

If I invest in Senior Citizen Saving Scheme,2004 on or before 31st March,
would I get interest payable quarterly for the next 5 years?


Shiv Kukreja March 30, 2016 at 12:30 AM

Yes Mr. Dhingra, you’ll get 9.30% rate of interest payable quarterly. Interest will remain 9.30% for all 5 years.


VS March 30, 2016 at 2:07 AM

It is amusing to read all the comments expressing angst on these steps. Inflation has come down by a lot more than the decrease in interest rate so even with the reduced rate, it is better than before when inflation was running higher. I guess not many people understand this.
But, the govt should be smart about this. They shouldn’t announce periodic revisions like this which make it seem discretionary. They should announce an inflation-based rate which will adjust automatically semi-annually or quarterly based on inflation and/or some other market indexes. Then people will atleast not blame the govt for something that the govt doesn’t (or rather, shouldn’t) control.


Shiv Kukreja April 16, 2016 at 7:57 PM

I completely agree with you here VS! Linking it with some index or inflation data or G-Sec rates would free the govt from making people understand the reasons behind such cuts/hikes.


Anil Kumar March 31, 2016 at 4:39 PM

BJP will get the result of next assembly elections…BJP will loose all elections.


Shiv Kukreja April 16, 2016 at 7:59 PM

Let’s see what happens going forward!


SRINIVAS April 2, 2016 at 1:50 PM

I have the following questions:
a) Kindly clarify whether the revision in interest rates is applicable for new accounts or for existing accounts also for SCSS AND SUKANAY SAMRIDHHI? There is some confusion on this.
b) Assuming that the revision is applicable for new accounts opened after 01/04/16, fresh contributions to the existing accounts opened before 31/03/16 will continue to fetch old interest or revised interest till maturity? In such a scenario what will be the applicable interest rate on contributions made till 31/03/16?
c)We know that in case of PPF account every year new rates are applicable, even for contributions made in previous years.


Shiv Kukreja April 16, 2016 at 8:14 PM

Hi Srinivas,
1. Quarterly revision in interest rates is applicable for all the PPF and Sukanya Samriddhi Yojana (SSY) accounts, but not applicable to older SCSS, NSCs, KVPs, MIS and other schemes opened prior to April 1, 2016.
2. Revised interest rates will be applicable to your fresh contributions in all the schemes opened after March 31, 2016. But, your older investments, except PPF and SSY, will continue earning higher rates.


Srinivas April 16, 2016 at 9:10 PM

Thanks shiv.


Krishna April 3, 2016 at 1:05 AM

Hello Shiv,

As now the ppf rates are revised for quarterly change, how is the interest calculated? Previously, it used to be the lowest balance between 5th to end of the month is considered for interest calculation.
Is it the same process considered for this year too?



Shiv Kukreja April 16, 2016 at 8:27 PM

Hi Krishna,
Deposit & interest calculation rules have not changed, it is the same process for the current financial year as well.


K V N RAO April 3, 2016 at 9:08 AM

It is not clear whether the lower interest of 8.6% is applicable for new SCSS S=Deposits post April 1, 2016 or to deposits made before that date.

Dr. K V N Rao


Shiv Kukreja April 16, 2016 at 8:28 PM

It is clear Mr. Rao, 8.60% rate of interest is not applicable for older deposits made prior to April 1, 2016.


inder singh nayal April 7, 2016 at 8:26 PM

my rd acct in post office rs 300
0/APM from 31 mar after 5year what is the maturity amount.


Shiv Kukreja April 16, 2016 at 8:30 PM

Hi Mr. Nayal,
Your maturity amount will remain the same as it was promised in 2011.


Srikumar April 8, 2016 at 8:32 AM

Hi Shiv,
I am a regular follower of your article and thanks a ton for valuable information that you are providing. The government has indeed taken a bold unpopular decision by reducing the interest rates. Jobs are the need of the hour and corporate lending rates needs to be reduced for us to be competitive. Though I am also affected by this ….. what is the use of wealth if there is social unrest in society due to unemployment. We should whole heartedly support central govenment.
One problem is bank depositis are reducing and to make it popular govt needs to make interest tax free or apply long term gains to interest income tax.
The lethargic behaviour of IT department towards me and your good suggestions made me move all my FD to tax free bonds.

I am waiting for your writeup on last years TFB’s and thier dividend payout dates.

Thank you


Shiv Kukreja April 16, 2016 at 8:34 PM

Thanks Srikumar for your kind words! These are steps in the right direction and I think the government will do everything to support corporates and the public at large.


Shalabh Srivastava April 10, 2016 at 12:41 PM

Hi Sir,
I need your help regarding my father’s investment, he was retired at March 2015 at age 58 but govt. of India & ITI (sick psu) giving his retirement fund by May mid 2016. His total corpus is 29 lacs (23 lacs as PF & 6 lacs from gratuity).As his age is 59 so he is not eligible Senior Citizen scheme.

I would be grateful please provide investment tips so he could get monthly income.

Some of the concerns & inputs are as follows:
a) As interest are decreases sharply and in future chances are there chances of more cuts, so he doesn’t wants to take risk now he needs safe and monthly income from interest.
b) Monthly expenses he needed atleast 30k per month. (25k for expenses & 5k for saving).
c) Other source income are
1) Getting pension Rs 2400 per month.
2) Getting Rent 5000 per month.

Some of the queries are:
1) Where to invest and what is best option to get the better interest return?
2) Our focus is more for senior citizen scheme available in market as interest rate is higher than and after 6 months he would be in senior citizen category as of now we think to invest in bank FD, Is it is a right decision?
3) Like MIS in post office/banks is Mutual Fund MIP is good to invest and as compared to bank/post office which gives higher return in short term and do this scheme giving monthly interest.
4) Investing in Non-Convertible Debentures (NCD), is this investment give better monthly income. (I don’t know anything about it just heard from someone)
5) Where to invest 5k in MF via SIP or 3k in MF and 2k in banks.
Fund selected: HDFC or Tata Balanced Fund
6) How much money to put for emergency fund 1.5 lacs or more please suggest?

Request you to please provide your input on the above query and which will help us to create a path for next upcoming few years.



Shiv Kukreja April 16, 2016 at 8:40 PM

Sorry Shalabh, I cannot take such individual queries here on this forum. You can mail me your queries on my mail id – Your queries would fall under our one time paid service for which our fee would be Rs. 2,000.


S.Bhattacharya April 10, 2016 at 3:43 PM

Dear Shri Shiv Kukreja
I follow you through your posts which are so informative and helpful to all. Many thanks for your excellent work. I need a clarification on the interest received from NHAI TFB Tranche I ,2015 issue on 2nd April 2016.I had applied 100 bonds 7.39% & 900 bonds 7.60% and have got full allotment on 11.1.2016. Hence,my yearly interest works out as Rs. 75790/-. So, for 80 days (from 11.1.16 to 31.3.16) the payble amount should be Rs.16611/- whereas I Have got only Rs.15325/. Why is this differnce? In another case,in which my friend had applied and got 200 bonds 7.39% & 800 bonds 7.60%. He has got only Rs. 13622/- against payable amount of Rs. 16565/-. Please clarify the anomalies also. With regards.


Shiv Kukreja April 16, 2016 at 8:43 PM

Hi Mr. Bhattacharya,
I am not sure why such anomalies are there. You need to contact the Registrar for the same and check with them the reason for such a difference.


S.Bhattacharya April 10, 2016 at 4:15 PM

It is showing ‘ your comment is awating moderation’. If i required to do any moderation,how to do it?


S.Bhattacharya April 10, 2016 at 5:44 PM

Dear Shri Shiv Kukreja
I follow you through your posts which are so informative and helpful to all. Many thanks for your excellent work. I need a clarification on the interest received from NHAI TFB Tranche I ,2015 issue on 2nd April 2016.I had applied 100 bonds 7.39% & 900 bonds 7.60% and have got full allotment on 11.1.2016. Hence,my yearly interest works out as Rs. 75790/-. So, for 80 days (from 11.1.16 to 31.3.16) the payble amount should be Rs.16611/- whereas I Have got only Rs.15325/. Why is this difference? In another case,in which my friend had applied and got 200 bonds 7.39% & 800 bonds 7.60%. He has got only Rs. 13622/- against payable amount of Rs. 16565/-. Please clarify the anomalies between these two cases also( as per calculation I have got less amount and my friend has got much lesser amount).With regards.


Anuj April 23, 2016 at 3:49 PM

Hi shiv
I have a respect for you but such articles try to justify goonda govt and does not look apolitical. When it is about taking from aam admi then it is economics but when it is turn of paying it back then simply refusal and again economics.

If everything is to be market linked then fuel prices are not down?

Aam admi spends most of his money on food medical tution fees etc. All those things have inflation much above CPI.

When scams take place like bank NPA, Punjab food scam, over priced coal etc. then public money which is several times more is looted.

Why the tax slabs are not changed based on inflation?

Everything has to be looked in totality and if govt just takes and does not give back then it will be rightly called as luteri sarkar !!!


Shiv Kukreja April 23, 2016 at 9:27 PM

Hi Anuj,
Call it a politically motivated article or whatever you want, I still think it is an excellent move by the government to lower artificially high interest rates on small saving schemes. The government should have done it last year itself and I think not doing it last year was a politically-driven decision.

Now coming to your points, crude prices have gone up by 65% in the last 2 months from a low of around $26.50 per barrel to $43.50. Had this government cut the prices earlier, would you have allowed the government to increase the petrol/diesel prices by 65% in 2 months. No, nobody would have tolerated such a hike.

Now, compare your income with your expenses, I am sure you would find your living standards going up considerably in the last 10-15 years or so. Check these tax slab rates for FY 2004-05 – Income less than Rs. 50,000 – No Tax, Income Rs. 50,000 – Rs. 60,000 – 10%, Income Rs. 60,000 – Rs. 1,50,000 – 20%, Income above Rs. 1,50,000 – 30%.

Now, check these tax slab rates for the current financial year – Income less than Rs. 2,50,000 – No Tax, Income Rs. 2,50,000 – Rs. 5,00,000 – 10%, Income Rs. 5,00,000 – Rs. 10 lakh – 20%, Income above Rs. 10 lakh – 30%. There is a jump of at least 5 times in the tax exemption rates for every tax slab in the last 10 years.

Now, I would like to have your comments on these. Why don’t we raise our voice against schools raising their fees? Why don’t we raise our voice against cinema owners against raising their ticket prices? Why don’t we cut down out visits to restaurants, holidays and other places of entertainment to save money for our future? I don’t think food/milk prices produced by our farmers have gone up substantially in the last 10 years or so. So, if we have developed the habit of complaining, then it is the time to change our mindsets and work for the betterment of this country.


SRINIVAS April 24, 2016 at 3:08 PM

Are not fuel prices down? Please note that in the past, fuel prices were artificially kept low even when crude was at very high prices for petty political reasons. Now, since the prices are by and large market linked, when the crude has become lower, fuel prices are still at the same level. How can you compare the current market linked prices to the artificially suppressed prices of the past and cry foul? By the way, misplaced oil economics of congress governments and its populist policies even at the cost of country’s progress played havoc with the economy.

Surprised to note that you are trying to attribute the Bank NPA scam to the present government. It is the result of decades of corrupt policies of congress which has to come out at some point of time. Now when government is trying to do something on this monumental problem, you are trying to say that this has been created by them!!!!

By the way, depiction of Aam aadmi has become some sort of a joke, for his failure to look beyond and understand the truth(I may be little politically incorrect in saying this). Unfortunate that, politicians of some parties are trying to project Aam aadmis as greedy for everything free, timid and unintelligent. Do not fall into this trap.


PAULOSE KO April 24, 2016 at 6:51 PM

Dear Srinivas
“Aam aadmi udaas hai, baaki sab first class hai” calling then timid and unintelligent shows clearly your upper class mindset. This attitude towards the common man of India is an insult to every “Indian”.
Making such comments are rude.I think you should appologize.


Srinivad April 24, 2016 at 8:48 PM

Dear paulose,

Looks like u have not read my comment or read it with a pre-conceived notion. My objection is to the opposition politicians trying to raise passions for everything the Government does, by branding them as anti aam aadmi, even though they are path breaking. Also, let us be clear that, pto-aam aadmi does not mean pro- populism. This sort of warped thinking has brought the country to this level. Years of fuel, ration, and fertiliser subsidies without proper supply chain has made our country one of the most corrupt in the world. Status quoism will only set the country backward. There is no need for me to apologise, but there is a need for you to not to fall prey to populistic , misplaced nehruvian – socialistic thinking. It is easy to be politically correct, but does not take us any where.


Srinivas April 24, 2016 at 8:50 PM

Dear paulose,

Looks like u have not read my comment or read it with a pre-conceived notion. My objection is to the opposition politicians’ trying to raise passions for everything the Government does, by branding them as anti -aam aadmi, even though they are path breaking. Also, let us be clear that, pro-aam aadmi does not mean pro- populism. This sort of warped thinking has brought the country to this level. Years of fuel, ration, and fertiliser subsidies without proper supply chain has made our country one of the most corrupt in the world. Status quoism will only set the country backward. There is no need for me to apologise, but there is a need for you to not to fall prey to populistic , misplaced nehruvian – socialistic thinking. It is easy to be politically correct, but does not take us any where.


PAULOSE KO April 24, 2016 at 9:17 PM

Dear Srinivas
Point taken.
I sense what you are against? But what do you stands for-Catpitalism-Minority privileges and class rule?


PAULOSE KO April 23, 2016 at 8:14 PM

Hi Shiv
Anuj says- “Govt just takes and does not give back public money”…
A good point made.
It is a time one should ask ourself what is being done by the Govt. to the drought hit areas of India these days?.
Villages after village is becoming like desert, not even a drop of water in sight. Humans and animals are fleeing or dying every day. This is a man made and climate disaster happening all over the world and mostly affecting our rural India.

We are all waiting for our investment get a decent return,including me, but don’t forget where we heading for a calamity if the climate gets worse year after year.

We are boastful of our economic growth in percentages and waiting for the Monsoon to come . We are all waiting for the inflation linkage to bountiful Monsoon. Suppose if less or no monsoon comes?

Most of the readers including me are sitting under the AC watching IPL in lush green field and we heard how much precious water was used there. This is a crime and its cruel.

We must not blame the Govt alone, every one of us has got a responsibility, plant a small plant in your balcony, or small tree in a road side or any public place, if you can.Who is bothered about it? We all have our eyes on the “returns” of our investment, don’t even want to discus or hear about any bad news from drought hit areas.

We all need cars and Acs and fridges, but just think of the poor suffering in drought hit areas.

Time to interospect….
(*Apologies if I have spoken out of topic…)


Shiv Kukreja April 23, 2016 at 11:59 PM

Hi Dr. Paulose,
I agree with you, every one of us has the responsibility to do something for the society, bigger or smaller. But, blaming/halting/shifting IPL matches for the drought hit areas is completely unacceptable. There are so many other things which we do to waste our natural resources, why only to blame IPL for this?

Yes, we need to introspect. But, when we are not ready to understand the problems this country as a whole is facing, then why to blame the government alone? Are we not responsible for the problems we are facing these days. We are moving from eating healthy fruits & vegetables to fast foods, from working hard in day to late night working, from Yoga to Gym, from waking up early to do meditation to late night parties, and many other such things.

We are exploiting the nature to live a comfortable life and air conditioners & cars are the biggest examples of it. More and more homes in Delhi/NCR these days are having multiple air conditioners, cars at their disposal. I think these are one of the biggest sources of pollution to our environment. Can we stop using these two things and contribute our savings to the drought hit areas of India? If yes, good for the countrymen, we should do that. If not, then we should stop blaming the government for not doing anything for the drought hit areas.


PAULOSE KO April 24, 2016 at 6:47 PM

My Dear Shiv
I cannot concur your opinion on the misuse of water for IPL fields and shifting them to no drought hit areas. This statement reminds me of a minister taking shameful “drought selfie” in Latur. If you have seen the pictures of fleeing farmers from souring heat and drought hit areas in 10 states of India, you will not say this. By these comments we are making mockery of the poor farmers.Some people call them “timid” but if this poor courageous farmers are kept alive and produce the crops, what will you metro guys eat for dinner?


GOVINDA KAMATH April 26, 2016 at 6:17 PM

Sir Please specify the maturity amount of NSC as per rae of interest 8.1%


GOVINDA KAMATH April 26, 2016 at 6:25 PM

Sir Please specify the maturity amount of NSC as per rae of interest 8.1%
(NSE for Rs. 10000/-)


Dr Bhupesh Ch GOSWAMI May 29, 2016 at 5:16 PM

Maturity amount of NSC for Rs 10000 is Rs 14761


Sheela May 13, 2016 at 7:49 PM

I start deposit in SSY in post office on last November(2015) @9.2% as yearly, Rs 150000/-(one time) Is the interest valid all through the year or to the end of scheme. Also should I wait up to coming November 2016 for the next year deposit or can I deposit now? If so will the interest rate will go to 8.6% for the year. Please explain as detail.


ANIL K SHARMA May 15, 2016 at 4:19 PM

Dear sir I have read all the question and answers provide by professional shri Kukreja. Dear sir what is social security provided by government to common man specially the middle class man. Although i shall be retiring from a Govt. PSU having no pension facilitates accept that the the PF what i could save i will have to eat out of it, beside getting other family responsibilities carried out of it. Still i am lot worried how i shall carry on further. If govt can not give pension and is slowly getting rid of this responsibility than at last it should not cut on or touch the postal saving scheme rates of SCSS or monthly schemes where the individual is investing the money Is not the responsibility of govt that the person who is retiring after putting 30 year or more year of service lives a respectable life. what contribution govt has made on soscial security scheme of middle class family. Even the LPG subsidies are also withdrawn once u come in income tax bracket. all are nit conversant with the market based schemes of investment. Who will pay if the amount invested in trhe market gets doomed. Govt should not have touched on to atleat SCSS this is only income or pension poor fellow have which he gets after investing his hard earned money which remains with the Govt for quite a few year as a capital money


Jone May 16, 2016 at 1:36 PM

PF body may invest Rs 6,000 crore in Equity Market for year 2016-17
More info @


radeyshyam June 16, 2016 at 8:22 PM

sir sukanya smiriti yojana ka account online kisey check kar tey hai


radeyshyam June 16, 2016 at 8:24 PM

post office may uski website bataa do please


Sanjay Dinkar Suryawanshi June 29, 2016 at 7:43 PM

Plz gove me the updates regards fd


GS July 8, 2016 at 8:42 PM

Just look how each central govt is befooling the native people. Earlier PO MIS was really lucrative for a regular income @8% pa for a tenor of 6 yrs with a maturiy bonus of 7.5% then in the year 2011, the so called secular cheats reduced the tenor to 5 yrs and abolished the bonus but raised the interest rate to 8.4%. Up to this, the situation was somehow acceptable. Now the sangh paribar cheats additionally reduced the interest rate to 7.8%! Where is the charm now?


AMIT KAPDI July 27, 2016 at 7:10 PM

By children’s monthly 1000 rs paid ro s s y
So please 21 year what amount paid


Rs Mundhe July 28, 2016 at 8:06 PM

My daughter’s age is 9 yrs and contribute amount yearly 24000/ after 21 yrs how much maturity amount received me so pls tell me


prem kumar sethi August 3, 2016 at 10:59 AM

Is interest accuring from NSC taxable as in the case of FD for 5 years interest is taxable.? Which should be preferred NSC or FD.


santhoshi August 26, 2016 at 2:28 PM

how to calculate interest amount for saving account in post office & what time will credited interset for our account, plz give me information regarding this issue.

kindly give rules & regulation of the post office.


sanjay sawant August 29, 2016 at 2:25 PM

Hi Shiv,
I am looking to invest in post. Is there any scheme in which interest will not deduct from interest & can get tax excemption too.
Is it good compare to investment schemes in bank. PLease guide.

Sanjay Sawant


Biswanath Dawn September 5, 2016 at 6:56 PM

Interest rate reduced from 8.5% to 8.1% w.e.f 01.04.2016. Previously it was half yearly compounded (10,000.00 on maturity become 15,162.00) but now, though there are no notifications of becoming it “yearly compounded” but practically it has effected (10,000.00 on maturity become 14,761.00). It is mentioned in India Post web that the rate being offered as half yearly compounded. Need clarifications.


Hemant November 4, 2016 at 12:26 PM

10 Differences between Tax Saving Tools like PPF and ELSS.
More info@


Deepa February 6, 2017 at 1:21 AM

Hi Shiv,

Very useful article indeed. The interest rate of Sukanya Samriddhi Yojana has been reduced a lot compared to its starting rate. However, it still is the best savings scheme for a girl child in India. Thank you for sharing the information along with your detailed insights.


Vanita Samat February 13, 2017 at 7:01 PM

How and where does one apply for NSC?


Devilal Kumar Solanki March 5, 2017 at 10:51 PM

Sir mostly text free scheme in post office


Devilal Kumar Solanki March 5, 2017 at 10:53 PM

Sir please mostly text free scheme in post office


Nishanth April 2, 2017 at 3:40 AM

I hv an investment in Birla Sun Life Dynamic Bond Fund – Regular Plan – Dividend (Dividend reinvestment plan) NAV 11.76, Amount-5lakhs approx. Couple of days ago it fell 6% in a day ,what do I do ,shud I book loss & go to another better debt or balanced fund scheme… if so plz suggest which one.


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