A report from RBI states that there is increase in Household Deposits held in banks.
- The increase is said to be around 2 percentage points and stands at 63.5 per cent in FY 2017 which is said to be due to note bank driven spurt in saving deposits by individuals.
- The Government had pulled out high denomination notes during demonetisation, in November-December last year which resulted in a huge increase in Cash Deposits with banks.
- This in turn forced RBI to advice banks to part the excess funds with it and allowed interest on them.
- The household deposits increased by 14.14 per cent to Rs. 69,13,900 crore as against an 11.20 per cent in the total deposits to Rs. 1,09,43,700 crore.
- The annual data compiled by RBI reveals further, that the share of household deposits rose to 63.2 per cent in FY 2017 from 61.5 per cent during the previous fiscal year, resulting in increased Savings Bank deposits.