Market participants have often cited Small savings schemes interest rates as bottlenecks in transmission of rate cuts. To remove such inefficiencies, government had decided to calibrate the interest rates on these small savings schemes to G-sec yields of corresponding maturities. This calibration is done by finance ministry on a quarterly basis and yields are revised accordingly. However, even though over the last quarter the yields on the government securities have fallen by 50-80 bps across maturities, government has decided to […]
