2024-08-08 13:58:43
He said households saved a higher proportion of financial assets during the pandemic, both as a precautionary measure and because consumption outlets had dried up, and as the pandemic subsided, people tended to invest more in real assets.
“If you combine the two, the total household savings rate has stabilised at around 20 per cent. It was declining for quite some time and has now stabilised. All in all, I see household savings behaviour returning to normal,” he told reporters here.
It is noteworthy that there have been recent concerns that the net financial savings rate will fall to 5.3% in FY23, a four-decade low.
Meanwhile, Governor Shaktikant Das advised banks to leverage their branch network to ensure they receive enough deposits to sustain and support their credit growth.
However, he made it clear that banks must find solutions on their own and the RBI will not take any steps to help.The RBI also said it was too early to review the measures introduced in November last year to increase risk weights on personal loans.
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