Casa, term deposits more than double in 10 years, says Pankaj Chaudhary

Low-cost current account and savings account (CASA) and term deposits in the economy increased by over 100 per cent between FY15 and FY24, Pankaj Chaudhary, minister of state (MoS) for finance, said in Lok Sabha in a written response.

 

“Current and savings account deposits have increased from Rs 31.51 lakh crore in FY15 to Rs 84.69 lakh crore in FY24, registering an increase of 168.7 per cent. Term deposits have grown from Rs 59.59 lakh crore in FY15 to Rs 128.9 lakh crore in FY24, registering an increase of 116.4 per cent,” Chaudhary said.

 

In the last decade, there has also been significant investment in the equity market, mutual funds, and pension funds due to increased investor awareness, rapid digitisation, technology-driven user-friendly investments, robust economic growth, and other measures taken by the financial sector to aid ease of investment.

 

The amount raised by equity issuances registered a compound annual growth rate (CAGR) of 9.2 per cent, reaching Rs 1.97 trillion at the end of FY24.

 

The assets under management (AUM) of mutual funds clocked a 20.5 per cent CAGR, reaching Rs 53.41 trillion, while that of the National Pension System (NPS) and Atal Pension Yojana (APY) grew by 37.6 per cent to Rs 11.73 trillion.

 

“The increasing trend of investments in mutual funds, equities, and pension funds has led to greater financial inclusion and increased capital inflow into financial markets, which, in turn, has enhanced liquidity and depth in financial markets and strengthened domestic savings participation in capital formation,” Chaudhary said.