Accordingly, interest rates for small savings schemes are to be notified on quarterly basis.

For the April-June quarter, the interest rate on PPF has been reduced to 7.9 per cent from the earlier 8 per cent.

Interest rate on Kisan Vikas Patra has been reduced to 7.6 per cent (which will mature in 113 months) from the earlier 7.7 per cent (with maturity in 112 months).

The Sukanya Samriddhi Account scheme interest rate has been reduced to 8.4 per cent from the earlier 8.5 per cent.

The interest on five-year Recurring Deposit, Senior Citizens Savings Scheme, Monthly Income Scheme and National Savings Certificate has also been reduced by 0.1 per cent each.

Only the interest on savings deposits has been retained at 4 per cent.

Interest on 1-year, 2-year, 3-year and 5-year time deposit has also been lowered by 0.1 per cent each.