Chidambaram slams govt for reducing rates for small savings instruments

New Delhi: Senior Congress leader P Chidambaram on Monday slammed the Narendra Modi government for reducing the interest rates for small savings instruments and scrapping the 8 per cent Government Savings Bonds, saying the move was a "severe blow" to the middle class.

In a series of tweets, the former Union finance and home minister said the government has reduced interest rates for small savings instruments and discontinued 8 per cent taxable bonds.

Chidambaram said inflation is rising, which is a double whammy for the middle class.

"GoI 8 per cent taxable bonds have been the safe harbour of the middle class, especially retirees and senior citizens, since 2003. Government has taken away their only safety net (sic).

"Modi government scraps 8 per cent taxable bonds dealing a severe blow to the middle class. How will the risk-averse average citizen save?," he tweeted.

Chidambaram wondered whether the government has been pushing people into the stock market and mutual funds.