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Savings in deposits and small savings of individuals increased in the 2013-14, while saw a drop in mutual funds and currency.
As per the Annual Report of the RBI, savings in deposits by the household sector increased by Rs 1 lakh crore in a year to Rs 6.91 lakh crore in 2013-14 as against Rs 5.91 lakh crore in 2012-13.
The saving deposits are about 59 per cent to the gross financial savings, of which about 53 per cent constitute deposits with commercial banks.
Net financial savings of household sector grew 13 per cent to Rs 8.19 lakh crore as against Rs 7.22 lakh crore in the previous year.
This is for the first time that the RBI released data on the financial saving of the household sector.
Mutual funds, currency savings drop
Saving by individuals in Mutual Funds (through shares and debentures) saw a 40 per cent drop to Rs 21,000 crore in 2013-14 as compared with Rs 35,000 crore a year ago.
While savings in currency declined by 9 per cent to Rs 1.02 lakh crore from Rs 1.12 lakh crore.
Net financial savings of household sector grew 13 per cent to Rs 8.19 lakh crore as against Rs 7.22 lakh crore in the previous year.
The gross domestic saving rate as per Centrsal Statistics Office’s estimates declined to 30.1 per cent fin 2012-13 from 31.3 per cent in 2011-12 mainly on account of a decline in the rate of household physical savings.
The saving rate dipped to its lowest in the past 9 years and the household saving rate has hovered around 23 per cent since 2003-04. After a one-off sharp increase to 25.2 per cent in 2009-10, it declined to 21.9 per cent in 2012-13 due to drop in financial savings by individuals.
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