The government has cut the interest rates on Public Provident Fund (PPF) and National Savings Certificates (NSC), but has left the rates on savings deposits and one-year time deposits unchanged, the Finance Ministry said.

While the rate on PPF has been cut to 8.7 per cent from 8.8 per cent, the 10-year NSC rate has been slashed to 8.8 per cent from 8.9 per cent.

The savings deposit rate has been left unchanged at 4 per cent as has the one-year term deposit rate at 8.2 per cent.

The government is still trying to protect small investors, the ministry said adding, "G-Sec (government securities) rates have fallen more sharply than (the) reduction in small saving instruments."