RBI Report: India’s Bank Deposit Growth Slips to 10.6% in FY25 from 13% in FY24.
Banking & Finance
In June 2025, the Reserve Bank of India (RBI) reported that India’s bank deposit growth slowed to 10.6% year-on-year (YoY) in Financial Year 2024–25 (FY25), down from 13% recorded in FY24.
- Despite the deceleration, the overall deposit base remains strong, indicating continued household savings and institutional trust in the banking system.
- In FY25, term deposits remained the largest component of total deposits at 59.5%, slightly down from 60% in FY24. Notably, 68.4% of TDs had an original maturity of 1–3 years. The share of TDs offering 7% or higher interest rates rose to 72.7% (from 64.2% in March 2024), and large-value TDs (₹1 crore and above) increased to 45.1% of total TDs (from 43.7%).
- The share of savings deposits declined to 29.1% in FY25 from 30.8% in FY24, reflecting a shift toward higher-yielding options.
Main Point :- (i) Current deposits remained unchanged at 9.8% of total deposits in FY25, indicating stability in short-term liquid funds held by businesses and individuals.
(ii) Households continued to be the largest contributors to total deposits, comprising 60.2% as of March 2025. Among them, female depositors accounted for 20.7%, while senior citizens contributed 20.2%. Regionally, metropolitan areas led deposit growth at 11.7%, followed by rural (10.1%), urban (9.3%), and semi-urban (8.9%) areas.
(iii) A growing preference for higher-interest term deposits was evident, with a noticeable jump in the share of TDs offering 7%+ returns, reflecting depositor behavior aligning with tightening monetary conditions.
About RBI
Governor : Sanjay Malhotra
Headquarter : Mumbai
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