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MoF keeps interest rates on Small Savings Schemes unchanged for Q2 FY26
Current Context: The Ministry of Finance has announced that interest rates for various Small Savings Schemes will remain unchanged for the second quarter of FY 2025-26 (July 1 to September 30, 2025), marking the sixth consecutive quarter without revisions.
Here are the key points:
- This decision, despite recent RBI repo rate cuts, maintains stability for risk-averse investors.
- Below are the key schemes and their interest rates:
- Public Provident Fund (PPF): 7.1%
- Sukanya Samriddhi Yojana (SSY): 8.2%
- Senior Citizen Savings Scheme (SCSS): 8.2%
- National Savings Certificate (NSC): 7.7%
- Post Office Monthly Income Scheme (POMIS): 7.4% (payable monthly)
- Kisan Vikas Patra (KVP): 7.5% (matures in 115 months)
- Post Office Time Deposit (3-year): 7.1%
- Post Office Savings Account (POSA): 4.0%
Mashreq became the 1st UAE Bank to Receive Approval for IBU in GIFT City
Current Context: On July 2, 2025, Mashreq Bank became the first UAE-based bank to receive in-principle approval from the International Financial Services Centres Authority (IFSCA) to set up an International Financial Services Centre Banking Unit (IBU) in GIFT City, Gujarat.
Key Highlights:
- First UAE bank to enter India’s GIFT City financial hub.
- The branch is expected to be operational by Q4 2025, pending final regulatory clearances.
- Services will include foreign currency loans, trade finance, and treasury & risk management.
- The move strengthens India–UAE financial ties, supported by the CEPA agreement and regulatory incentives like TDS exemptions.
This digest is not complete. Read the complete digest on the Financial Awareness Course.