India. Government pension scheme to offer fixed rate of interest to investors
Interest rates will “slowly” become “reasonable”, Finance Minister Arun Jaitley said on Thursday, a day after the RBI cut interest rates by 0.25 per cent.
He also said that the government insurer LIC has come out with a pension scheme to offer fixed rate of interest to investors.
A day after the RBI cut the interest rates, Jaitley said lending rate of 14-15 per cent will make India uncompetitive in the global market and industry cannot invest at such higher interest rates.
“Slowly interest rates will become reasonable,” he said in the Lok Sabha while replying to a debate on the Banking Regulation (Amendment) Bill, 2017. He added that pension funds are safe investments.
Jaitley said the government has taken steps to offer stable interest rates to investors so that they are not lured into chit fund schemes, which attract investors by offering a meagre 1-1.5 per cent interest rate higher than what is given by banks.
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