According to a recent economic research report by the State Bank of India (SBI), the net financial savings of the household sector in India is expected to reach ₹22 lakh crore, or 6.5% of the Gross National Disposable Income (GNDI), in the financial year 2024-25. This represents a significant increase from the previous fiscal year, where the net financial savings stood at 5.1% of GNDI. The growing capital pool is crucial for funding government and corporate deficits, as well as supporting macroeconomic stability.
The report highlights the importance of the Reserve Bank of India’s (RBI) efforts to contain the volatility of the Rupee, which has been a major factor in determining its surplus. During the fiscal year 2024-25, the RBI’s balance sheet expanded by 8.19%, which is less than the nominal GDP growth of 9.9%. As a result, the RBI has transferred a surplus of ₹2.69 lakh crore to the government, which is expected to enhance the fiscal space.
However, the report also notes that while the incidence of fraud cases has declined, the defraud amount has tripled to ₹36,014 crore. On the other hand, the volume of card and internet fraud has decreased significantly, from 29,802 in 2023-24 to 13,516 in 2024-25. This suggests that while the overall number of fraud cases may be decreasing, the amount of money being defrauded is increasing.
Overall, the report suggests that India’s financial system is at a crossroads, and is both resilient and transformative. The growing capital pool and increasing financial savings are positive signs, but the increasing defraud amount and volatility of the Rupee are areas of concern. The report highlights the importance of continued efforts to support macroeconomic stability and contain the volatility of the Rupee. With the RBI’s surplus transfer to the government, the fiscal space is expected to be enhanced, which could have a positive impact on the economy.