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Consider the following statements regarding small savings schemes in India.
  1. Public Provident Fund (PPF), Sukanya Samriddhi Yojana and the National Savings Certificate (NSC) are categorised as small savings schemes.
  2. Generally the Small savings schemes rates are linked to yields on benchmark government bonds.
  3. As a social responsibility, the RBI always keeps the interest rates of small savings schemes higher than the CPI inflation.
Which of the above statements is/are correct?
  • a)
    2 only 
  • b)
    1, 2 
  • c)
    1, 3 
  • d)
    2, 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding small savings schemes in I...
  • The government’s move to keep interest rates on small savings instruments unchanged comes as a setback for small investors. At a time inflation is ruling over 7% and bond yields have risen over 7.4%, not only will the decision result in negative real rate of return – after adjusting for inflation — for savers and pensioners, but the status quo is also likely to prompt banks to go slow in hiking deposit rates.
  • Schemes like Public Provident Fund (PPF) and the National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1% and 6.8%, respectively, in the first quarter of the next fiscal.
  • Barring PPF and Sukanya Samriddhi Yojana, all other small saving instruments are currently fetching negative real returns amid high inflation. 
  • Small savings rates are linked to yields on benchmark government bonds, but despite the upward movement in G-Sec (government securities) yields, the government has not increased interest rates.
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Consider the following statements regarding small savings schemes in India. Public Provident Fund (PPF), Sukanya Samriddhi Yojana and the National Savings Certificate (NSC) are categorised as small savings schemes. Generally the Small savings schemes rates are linked to yields on benchmark government bonds. As a social responsibility, the RBI always keeps the interest rates of small savings schemes higher than the CPI inflation.Which of the above statements is/are correct?a)2 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements regarding small savings schemes in India. Public Provident Fund (PPF), Sukanya Samriddhi Yojana and the National Savings Certificate (NSC) are categorised as small savings schemes. Generally the Small savings schemes rates are linked to yields on benchmark government bonds. As a social responsibility, the RBI always keeps the interest rates of small savings schemes higher than the CPI inflation.Which of the above statements is/are correct?a)2 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding small savings schemes in India. Public Provident Fund (PPF), Sukanya Samriddhi Yojana and the National Savings Certificate (NSC) are categorised as small savings schemes. Generally the Small savings schemes rates are linked to yields on benchmark government bonds. As a social responsibility, the RBI always keeps the interest rates of small savings schemes higher than the CPI inflation.Which of the above statements is/are correct?a)2 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding small savings schemes in India. Public Provident Fund (PPF), Sukanya Samriddhi Yojana and the National Savings Certificate (NSC) are categorised as small savings schemes. Generally the Small savings schemes rates are linked to yields on benchmark government bonds. As a social responsibility, the RBI always keeps the interest rates of small savings schemes higher than the CPI inflation.Which of the above statements is/are correct?a)2 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer?.
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