Statsguru: Households' financial assets recover from demonetisation shock

Gross financial assets of households fell from 95.2% of GDP at the end of Q2 of 2016-17 to 89.2% at the end of Q3 of 2016-17, the period when the note ban was announced

Recently, analysts at the National Accounts’ analysis division published the first quarterly estimates of household financial assets (HFAs) and liabilities in India. According to these, gross financial assets (GFAs) of households fell from 95.2 per cent of gross domestic product (GDP) at the end of Q2 of 2016-17 to 89.2 per cent at the end of Q3 of 2016-17, the period when the note ban was announced. Much of this decline was due to the collapse of currency with households. As remonetisation gathered steam, households’ GFAs rose to 95.4 per cent of GDP at the end of Q1 of 2017-18,