Interest rates on SDS, GPF cut

new delhi: in a significant move towards a softer interest regime, the government on saturday announced cut in interest rates on special deposit scheme, general provident fund and on other deposits from 9.5 per cent to nine per cent. in another major decision, interest rates on advances and loans given to government employees for house purchase and construction and also for purchase of vehicles, bicycles and computers have been lowered by 0.5 per cent. the reduced interest rates would be applicable from april 1, 2002, it was officially stated here. the decision followed reduction of interest rates on small savings schemes by 0.5 per cent announced in the union budget for 2002-03 by finance minister yashwant sinha as part of measures towards a softer interest rate mechanism. the government had reduced interest rates on provident fund and other deposits by 1.5 per cent from 11 per cent to 9.5 per cent last year.