Mumbai— India’s net household financial savings are expected to reach ₹22 lakh crore in FY25, or approximately 6.5% of the Gross National Disposable Income (GNDI), according to a new report from the State Bank of India (SBI). The projection reflects sustained financial resilience among Indian households, as highlighted in the Reserve Bank of India’s (RBI) latest annual report.
In FY24, household net financial savings rose to 5.1% of GNDI, signaling an improving financial position for Indian families. According to the SBI report, this growing pool of capital is critical for funding both government and corporate deficits, while also underpinning broader macroeconomic stability.
Gross financial savings climbed to 11.2% of GNDI in FY24, up from 10.7% in the previous year. Though household liabilities also increased, rising to 6.1% of GNDI, the net balance remains positive and supportive of investment and consumption.
The RBI’s balance sheet for FY25 expanded by 8.19%, slightly below the nominal GDP growth of 9.9%. Despite declines in conventional revenue sources like domestic interest income and Liquidity Adjustment Facility (LAF) earnings, the central bank generated substantial surplus through prudent foreign exchange management and strategies to stabilize the rupee. A provision of ₹44,861.7 crore to the Contingency Fund maintained the realized equity at 7.5% of the balance sheet, enabling a record surplus transfer of ₹2.69 lakh crore to the government—boosting fiscal space considerably.
India’s gold reserves also grew significantly, with total holdings reaching 879.58 metric tonnes—an increase of 57.48 tonnes over the fiscal year. The share of gold in net foreign assets rose to 12% by the end of March 2025, up from 8.3% the previous year, driven largely by higher global gold prices.
Currency in circulation expanded steadily in FY25, with the value of banknotes increasing by 6% and volume by 5.6%. ₹500 notes continued to dominate both in value and volume. The withdrawal of ₹2,000 notes progressed smoothly, with 98.2% of them returned to the system.
A shift toward more cost-effective currency distribution was also evident, with greater issuance of durable ₹10 coins and a decline in ₹10 banknotes.
While counterfeit currency detections dropped by 2.4% to 2.17 lakh notes, instances involving ₹200 and ₹500 denominations rose slightly, underlining the need for ongoing enhancements in anti-counterfeiting technologies and enforcement.
On the digital front, the RBI’s retail digital rupee pilot saw a massive 334% surge in value during FY25. The initiative now involves 17 banks and over 60 million users. New features such as offline functionality, programmable payments, and integration with non-bank wallet providers have further strengthened financial inclusion and signaled a major leap in India’s digital payments infrastructure. (Source: IANS)