Scaling the economic ladder: Indian savings climb, yet rungs remain

For instance, only 15 per cent of US households' assets are in banks, compared to 46 per cent in South Korea

Domestic households are pivoting away from keeping their savings in traditional bank deposits. Instead, they are opting to invest in mutual funds (MFs), direct equities, insurance, and pension schemes. This trend was recently underscored by Reserve Bank of India Governor Shaktikanta Das.

At Rs 61.2 trillion, the assets under management at domestic MFs are now almost a third of bank deposits, which stand at Rs 213 trillion, up from just 15 per cent during the peak of Covid-19.

Including other asset classes such as equities, insurance, and pension products, the share of non-bank instruments in Indian household