How can the government improve the returns on Public Provident Fund (PPF)
What is the current status of PPF returns compared to formula-based rates, as highlighted by RBI?
- One way the government can improve the returns on Public Provident Fund (PPF) is by periodically reviewing and adjusting the interest rates based on market conditions and inflation rates.
- Another method is to link the PPF interest rates to a formula-based approach such as the one suggested by the Reserve Bank of India (RBI) in the past.
- The current status of PPF returns is fixed by the government and may not always align with market rates or inflation. This can result in varying returns for investors.
- By shifting to a formula-based approach, the PPF returns could potentially be more competitive and reflective of prevailing economic conditions.
Answered
9 months ago