Growth in bank deposits falls to five-decade low

Bank deposit growth fell to a five-decade low in fiscal year ended March 2018 as the demonetisation bonanza withered away and the lure of other savings instruments such as mutual funds and insurance eroded banking competitiveness.

Data from the Reserve Bank of India (RBI) website shows aggregate deposits in the banking system grew a mere 6.7% in 2017-18, the lowest since fiscal 1963.

During November-December 2016, banks received Rs 15.28 lakh crore as people deposited highdenomination currency notes that were withdrawn from circulation. As a result, aggregate deposits in the fiscal ended March 2017 grew 15.8% to Rs 108 lakh crore.

This pace of growth has now come down by 6.7% with deposits aggregating Rs 114 lakh crore. Savings have also moved to other asset classes from bank deposits.
Total mutual fund assets under management have increased 22% to Rs 21.36 lakh crore in March 2018 from Rs 17.55 lakh crore in March 2017.

This had grown 42% from Rs 12.33 lakh crore in March 2016 to Rs 17.55 lakh crore in March 2017. This trend is also visible in insurance investments as first premiums have increased to Rs 1.93 lakh crore in March 2018 from Rs 1.75 lakh crore in March 2017 and Rs 1.38 lakh crore in March 2016.
 
 https://economictimes.indiatimes.com/industry/banking/finance/banking/growth-in-bank-deposits-falls-to-five-decade-low/articleshow/64023063.cms