Mumbai: Net financial savings of India’s household sector may reach Rs 22 lakh crore or 6.5 per cent of gross national disposable income (GNDI) in FY25 based on the current trends, according to an SBI report released on Friday.
With the latest RBI annual report indicating that the household sector showed strong financial resilience, with net savings rising to 5.1 per cent of gross national disposable income (GNDI) in FY24, the SBI report says this growing capital pool remains crucial for funding government and corporate deficits and supporting macroeconomic stability.
Further, as against the increase in household liabilities to 6.1 per cent of GNDI, the gross financial savings of households increased to 11.2 per cent of GNDI in 2023-24 from 10.7 per cent in the previous year.
As per the central bank report, the RBI’s balance sheet expanded by 8.19 per cent in FY25, less than the nominal GDP growth of 9.9 per cent. Despite contractions in traditional income, streams such as domestic interest and LAF earnings, strategic management of foreign exchange and efforts to mitigate rupee volatility materially enhanced surplus generation. A Rs 44,861.7 crore provision to the Contingency Fund kept realised equity healthy at 7.5 per cent of the balance sheet, enabling record Rs 2.69 lakh crore surplus transfers to the government and enhancing the fiscal space.
Further, total gold holdings were at 879.58 metric tonnes, reflecting an increase of 57.48 metric tonnes of gold during FY25. The share of gold in NFA increased to 12.0 per cent as at end-March 2025 from 8.3 per cent as at end-March 2024 due to appreciation in gold prices.
Currency in circulation expanded steadily in FY25, with banknotes in circulation rising by 6 per cent in value and 5.6 per cent in volume.
Rs 500 notes dominated both value and volume. Withdrawal of Rs 2,000 notes progressed well, reclaiming 98.2 per cent of those in circulation.
Increased issuance of durable Rs 10 coins alongside reduced Rs 10 notes marks a cost-effective currency shift.
Counterfeit note detections fell overall by 2.4 per cent to 2.17 lakh pieces but rose for the Rs 200 and Rs 500 denominations, necessitating ongoing advancements in anti-counterfeiting technologies and enforcement mechanisms.
In the digital domain, the RBI’s retail digital currency pilot, encompassing 17 banks and 60 million users, witnessed the value of the digital currency in circulation soaring by an impressive 334 per cent in FY25. The introduction of offline functionality and programmable features, coupled with the inclusion of non-bank wallet providers, augments financial inclusion and signals a transformative evolution in India’s payments ecosystem.
(IANS)
