What’s causing deposit growth rates to slow? Mutual funds? Gold? Property? None of these, says RBI .
None of these, says a central bank research paper. Rather, deposits quicken when incomes rise fast — and the latter is often aided by a robust economy.
Household savings data show that there is a shift from bank deposits to stocks & mutual fund schemes, where comparative returns have been more lucrative in the recent past.
That apparent shift prompted Reserve Bank of India (RBI) researchers to study the dynamics of savings deposit behaviour in the country.