Overseeing oversights (GS-3, The Hindu)

02 Apr Overseeing oversights (GS-3, The Hindu)

Context:- Recently government issues a notification to reduce the saving rate and now government has taken it back.

Why such move:- Indian economy is the high interest rate economy due to high saving rates.

• previously economic survey also gave suggestions about low interest rate.
• Low saving interest rate means, low interest rate for business.
• Low saving rate will boost the demand because people will spend more.
• It will also encourage the investment in the other areas such as real state, share markets etc.

Why recalled:-

• Low saving rate will discourage the small saving rate.
• People will not have security in deposits.
  

  Daily Current Affairs of 2nd April 2021

  

  Swarn Singh

  Plutus IAS Current Affair Team Member