Savings deposit growth in Q2 slumps to 9.4% YoY while FDs gain traction

Growth of money kept in current accounts moderated to 8.8% this September, from 17.5% a year ago

The growth of low-cost deposits – current accounts and savings accounts – slowed down sharply year-on-year in September 2022, due to the impact of liquidity conditions and interest rate hikes.

The growth of money kept in current accounts held with banks moderated to 8.8 per cent YoY this September, from 17.5 per cent a year ago. The saving deposits growth rate dipped to 9.4 per cent from 14.5 per cent in September 2021.

The Reserve Bank of India said in a statement that the share of savings deposit in total deposits had risen from 32.4 per cent in June 2019