RBI, in it Financial Stability Report for June 2013 said, "Gross Domestic Saving as a proportion to GDP has fallen from 36.8 per cent in 2007-08 to 30.8 per cent in 2011-12. A large part of this decline has been due to fall in financial savings of households which have declined from 11.6 per cent of GDP to 8 per cent of GDP over the corresponding period. Of late, the shift from financial assets to real estate and gold has become stark. inflation, low penetration of banking services across the country, credibility of the financial institutions in the wake of mis-selling of products and financial frauds, low post tax return on bank deposits, negative/low real interest rates etc. could be some of the issues that need to be addressed to redirect non-financial savings towards financial savings. The government has been taking steps to increase the financial savings in the country; one such step is the issuance of inflation indexed bonds (IIBs)."
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