Household financial savings climb to 7-year high, says RBI report

Household financial savings — the most important source of funds for investment in an economy — climbed to a seven-year-high in 2017-18 (FY18), the annual report of the Reserve Bank of India released on Tuesday showed. In 2016-17 (FY17), it was 9.1 per cent of the gross national disposable income (GNDI); in FY18, it climbed to 11.1 per cent.

However, much of this increase was in the form of cash. The incremental savings in the form of bank deposits stooped to their lowest in seven years, at 2.9 per cent of the GNDI. In the form of cash, it rose