Key Points
Household debt levels need close monitoring while financial liabilities have risen in the post-Covid period, the overall household savings too have dipped from average levels seen in the decade before, the Reserve Bank of India said in a report on Thursday...
Overall household savings have declined to 18.4 per cent of GDP in FY23, down from the average of 20 per cent of GDP seen between 2013-22..
Among this, the share of net financial savings declined to 28.5 per cent in FY23 from an average of 39.8 per cent in 2013-22...
In addition to a rise in financial liabilities, net financial savings declined to 5.3 per cent of GDP in FY23, down from an average of 8 per cent in 2013-22...
"With overall household savings declining, coupled with an increasing trend in financial liabilities, household debt warrants close monitoring from a financial stability perspective," the RBI said in its Financial Stability Report, June 2024 edition...
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