NEW DELHI - The Indian government has increased interest rates on some small savings schemes for the July-September quarter, it said on Friday.

The interest rate on the five-year recurring deposit has been hiked by 30 basis points (bps), the highest for any instrument in this revision.

The interest rate on one-year deposits and two-year deposits have been raised by 10 bps each, while rates on savings deposits will remain unchanged at 4%.

The government reviews and revises interest rates every quarter, and has aligned the increase in deposit rates with higher interest rates.

The new rates will be applicable from July 1.

(Reporting by Shivangi Acharya; Editing by Nivedita Bhattacharjee)