For the first time in four decades, bank deposits plunged to 25 per cent of overall household financial assets in FY18 as against 67 per cent a year before.
MUMBAI: For the first time in four decades, bank deposits plunged to 25 per cent of overall household financial assets in FY18 as against 67 per cent a year before.
The startling downfall of bank deposits is a first, at least, in four decades* when their share touched a quarter of the total household financial assets (excluding small savings and including PF).
It comes at a time when public and private banks are crumbling under the NPA pile, while big-ticket frauds like the $2 billion PNB scam are eroding their credibility. Making matters worse are interest rates of 6.5 per cent, insultingly lower than rates of small savings schemes.
The unglamorous state of bank deposits punctures government’s achievement of opening bank accounts for all Indian households – a feat achieved only last year – to inculcate financial savings culture.
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