RBI | In Q2, household debt fell to 37 per cent and savings to 10 per cent, the RBI said
MUMBAI: India’s household debt rose to 37.1 per cent of GDP in the second quarter of last year, while household savings fell sharply to 10.4 per cent. This has had a negative impact on the Indian economy due to a year-long lockdown, according to a report by the Reserve Bank of India. & Nbsp;
During this time billions of people lost their jobs. So people had to put their savings in their hands. During this time people started withdrawing their savings from the bank as they had no means of income. As a result, 51.5 per cent of the total credit in the economy during this period was family savings, which came into the market.
21 percent. With the end of the lockdown and the resumption of business, people have begun to save again. & Nbsp;
Generally, families tend to save when the economy is shrinking or shrinking. But when the economy gets back on track or in a growth phase, people tend to spend. This is because during this period, people have faith in the economy, said an RBI expert.
A similar trend was observed during the global recession in 2008-09. Even then, people had to withdraw their savings and spend heavily. The RBI report also said that the figure is likely to go down further in the third quarter. & Nbsp;
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