New Delhi, Jun 29 (IANS): The Congress on Saturday took a swipe at the BJP-led central government for reducing the interest rate on small savings schemes, terming it among the reasons for the two-decade low in India's household savings.

Addressing a press conference at the party headquarters, Congress spokesperson Pawan Khera said: "This is the return gift this government has given to people, which gave the huge mandate in the elections."

"During the Congress-led UPA government, interest rates on two-year deposit scheme, five-year deposit scheme, public provident fund and senior citizens' saving scheme were 8.4, 8.5, 8.7 and 9.2 per cent, respectively.

"While under the BJP-led NDA government, it is 6.9, 7.7, 7.9 and 8.6 per cent, respectively," he said.

Noting "India's household savings are at a 20-year low", Khera claimed that "one of the reasons for this is the unceasing relentless pursuit of the BJP government to reduce the interest rate in small savings schemes".

He also said that Congress will raise the issue in the ongoing Budget Session of Parliament and seek the government reverse the decision.

Despite getting the huge mandate, the Narendra Modi government was punishing the common people by reducing the interest rate on savings schemes, he added.

The government on Friday decided to reduce the interest rate on small savings schemes, including NSC and PPF, by 0.1 per cent for the July-September quarter.