It has happened perhaps for the first time in the country that a major decision purportedly taken at ministerial level has been reversed within 12 hours and the ‘explanation’ that accompanied it failing pathetically to generate any sort of credence among people. On Wednesday evening the country’s lower middle class came across the devastating news that there’s going to be a drastic cut in rates of small savings schemes, for whom the interest generated is a major and even the only source of sustenance. However, much to their relief, an early morning tweet on Thursday by the FM conveyed the ‘assuring message’ that the said circular had been issued “by oversight” and would be withdrawn. Throughout the day, the U-turn became the talk of the nation pushing aside even the current hot topics like escalating corona caseloads, vaccination for all above 45+ etc. But that the ‘explanation’ has not been convincing and has been taken with a grain of salt needs no mentioning and since it came on April 1, quite naturally there’s a mass query whether it was a cruel April Fool joke to ‘commemorate’ the day. Beyond the lighter vein however, the compulsion prompting the reversal which will give breathing space for the time being is clear to understand- the ongoing assembly elections in four states and one UT, 70 % of which are yet to be completed. The assembly polls indeed have emerged as ‘saviours’ for the second time in quick succession. The popular notion is that without it, the almost-daily hike in petrol and diesel prices weeks earlier would have continued unabated.

Leaving aside the ‘celebrations’ for the respite that in all probability is going to be temporary, it’s necessary to have an idea of the impact that would have entailed if the “inadvertent error” came into force. The proposed-yet-quickly-withdrawn ‘cuts’ would have been deep enough to aggravate the unstoppable bleeding being experienced now by the country’s lower middle class and those below. The savings deposit rate (as earned through money parked in savings account in banks) would have gone down from 4% to 3.5%; 1-year time deposit from 5.5% to 4.4%; 5-year time deposit from 6.7 % to 5.8%; 5-year Senior Citizen Savings Scheme from 7.4% to 6.5%; MIS from 6.6% to 5.7%, PPF from 7.1% to 6.4%; KVS from 6.9 % to 6.2%; Sukanya Samriddhi from 7.6% to 6.9% and several others.

Economy has seen no ‘green shoots’ yet, inflation is about to cross 6% and the second Covid wave has just begun. And in a milieu of extreme financial distress as this, such drastic measures are being mooted and presumably kept in pipeline. One can only wish the polls continue forever!

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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