Graphic by Ajay Negi/MintThe Reserve Bank of India’s (RBI’s) recently published Quarterly Estimates of Households’ Financial Assets and Liabilities shows the total amount of households’ gross financial assets fell from Rs141 trillion in September 2016 to Rs137 trillion by end-December 2016. Another way of looking at the numbers is to see the rate of growth in household financial assets. Clearly, demonetisation led to a slowdown in the growth of household financial assets. However, net financial assets of the households turned negative…in the third quarter of 2016-17, reflecting the transitory effects of demonetisation.”Demonetisation has led to a shift in the composition of households’ financial assets. RBI’s annual report showed that households’ gross financial savings as a proportion of gross national disposable income went up to 11.7% in 2016-17 from 10.9% in 2015-16.
Source: Mint March 13, 2018 02:03 UTC