Household financial savings being moderated
Covid-19 last year impacted households as their financial savings moderated up to 8.2 per cent of GDP in the December quarter from 10.4 per cent in the previous three-month period, revealed RBI Data on Wednesday.
RBI Said” The moderation was driven by significant weakness in the flow of the financial assets, which more than offset the moderation in the flow of financial liabilities.
There is a 3 per cent decline in the GDP in comparison to the third quarter. deposits in banks for household purposes. RBI also said” debt to GDP ratio, which is based on select financial instruments, has been steady since end-March 2019.
The household’s financial liabilities were lower in the 3rd quarter despite higher borrowing from the bank. The loan stood at Rs. 2,48,418.7 crore in the third quarter.