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India seeing inflows worth $28 trn into financial savings: Kochhar at WEF

Mobile banking transactions have almost doubled to nearly 150 million in October 2017 as compared to over a year back

Press Trust of India  |  Davos 

Chanda Kochhar, managing director & chief executive officer, ICICI Bank at the ICICI Prudential Life Insurance IPO press conference in Mumbai. Photo: Suryakant Niwate
Chanda Kochhar, managing director & chief executive officer, ICICI Bank at the ICICI Prudential Life Insurance Photo: Suryakant Niwate

India is seeing a huge surge in the net inflows into financial savings and has reached nearly Rs 28 trillion in the last 18 months -- an amount equivalent to entire of countries like Thailand, top banker has said.

She also said the flow into financial savings has surged significantly since the exercise of November 2016.

Kochhar, who was here to participate in the annual meeting, told PTI in an interview that formalisation of economy and digitisation of banking transactions have proved to be among the most significant benefits of the exercise.

On the and other reforms undertaken in India, she said since 2014, the government has focused on several structural reforms which are strengthening the economy.

"The government has focussed on creating a sound policy framework, prudent fiscal management, strengthening the monetary policy framework, mitigating inflation risks, improving ease of doing business, encouraging adoption of

"Pioneering initiatives like and have led to increasing formalisation of the economy and financialisation of savings. These changes are forging new paradigms and I expect the government to continue to focus on steps that will augur well for the economy," the chief said.

On her take on the economic impact of after more than one year having passed, Kochhar said an important outcome of has been the structural shift in terms of financialisation of savings.

The financial services sector, including banks, insurance companies and mutual funds, are the biggest beneficiaries of the formalisation of savings, she added.

"Post demonetisation, there has been a net inflow of Rs 19 trillion of financial savings into bank deposits, mutual funds and life insurance put together.

"If we look at the 18 month period from April 2016 onwards, the net inflow into financial savings in the country has been about Rs 28 trillion which is equivalent to the of an entire country like Thailand," she said.

Kochhar further said the second impact of is the acceleration in the digitisation of banking transactions.

The monthly volume for during in November 2016 was 1 million transactions which have increased to 145 million transactions as of December 2017.

have almost doubled to nearly 150 million in October 2017 as compared to over a year back, she added.

Similarly, the number of debit card transactions has also more than doubled post These are important benefits that will have a far-reaching impact on the economy," Kochhar said.

First Published: Thu, January 25 2018. 16:02 IST
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