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Key Points

The RBI's latest report highlights a slowdown in bank deposit growth to 10% for FY25, compared to 13% the prior year. Despite this deceleration, the deposit base remains robust with a continued preference for term deposits due to higher interest rates. Interestingly, households contributed predominantly to these deposits, notably featuring a 20.7% share held by female depositors. Metropolitan areas experienced the highest growth, suggesting a regional shift in deposit trends.

Key Points: RBI Reports Slower Bank Deposit Growth in FY25

  • RBI records a decline in deposit growth in FY25
  • Term deposits with 7% interest surged to 72.7%
  • Households accounted for 60.2% of bank deposits in March 2025
2 min read

Bank deposits grew by 10% in FY25, growth decline from 13% recorded in FY24: RBI Data

India's bank deposits grew 10% in FY25, declining from 13% the previous year, per RBI.

"Nearly 68.4% of term deposits had the original maturity of one to three years as on March 2025 - RBI"

New Delhi, June 2

The growth of bank deposits in India slowed down to 10.6 per cent year-on-year in the financial year ended March 2025 as compared to 13 per cent in the previous fiscal, according to new data released by the Reserve Bank of India (RBI).

Despite the slower growth, the overall deposit base remains strong. Term deposits continued to make up the largest share of total deposits, accounting for 59.5 per cent as of March 2025.

This was slightly lower than the 60 per cent recorded in the previous year. Savings deposits saw a drop in share to 29.1 per cent from 30.8 per cent in March 2024 and 33 per cent in March 2023. Current deposits, however, remained steady at 9.8 per cent.

The RBI data showed a clear trend of increasing preference for term deposits over the past few years. Higher interest rates on these deposits encouraged more people to invest in them.

The RBI said, "Nearly 68.4 per cent of term deposits had the original maturity of one to three years as on March 2025".

Also, the share of term deposits offering interest rates of 7 per cent and above rose significantly to 72.7 per cent in March 2025 from 64.2 per cent in March 2024 and 33.5 per cent in March 2023.

Large-sized deposits also grew. Term deposits of Rs. one crore and above made up 45.1 per cent of total term deposits in March 2025, up from 43.7 per cent in the previous year.

RBI also noted that the households continued to be the main contributors to bank deposits, accounting for 60.2 per cent of the total in March 2025. Within this, female depositors held a 20.7 per cent share. Senior citizens' deposits made up 20.2 per cent of the total deposits.

It also highlighted that the growth varied by region. Bank branches in metropolitan areas saw the highest deposit growth at 11.7 per cent in March 2025. Rural areas recorded 10.1 per cent growth, semi-urban areas 8.9 per cent, and urban centres 9.3 per cent.

The RBI data suggests that while overall deposit growth remains healthy, there is a shift in deposit composition, with term deposits gaining more popularity due to higher returns.

- ANI

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Reader Comments

Here are 6 diverse Indian perspective comments for the article:
R
Rahul K.
The shift to term deposits shows Indians are becoming more financially savvy! With interest rates above 7%, it's better than keeping money idle in savings accounts. But I worry about senior citizens - 20% share is huge, shows many still depend on fixed deposits for regular income. Govt should ensure their interests are protected.
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Priya M.
Interesting to see metro areas growing fastest while rural growth slows. This urban-rural divide in banking needs attention. Also happy to see women holding 20%+ deposits 💪 Shows financial independence is increasing, but still long way to go for gender parity in banking.
A
Amit S.
The slowdown from 13% to 10% is concerning. Maybe people are moving money to mutual funds and stocks for better returns? RBI should analyze why savings account share is dropping so fast - from 33% to 29% in just 2 years! Banks need to make savings accounts more attractive again.
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Neha T.
As a middle-class saver, I've moved most of my money to term deposits after seeing the interest rates go up. But banks should simplify the process - too much paperwork for senior citizens and rural folks. Digital banking needs to reach villages better to improve their deposit growth.
S
Sanjay P.
The data shows 45% of term deposits are above ₹1 crore! This indicates wealth concentration among few. RBI should encourage more small deposits through better schemes for common people. Also, why no breakup between private and public sector banks? Would be interesting to see who's gaining more trust.
K
Kavita R.
Good analysis but missing one key point - how much are corporate deposits contributing? With businesses booming, their banking patterns matter too. Also, with inflation around 5%, the 7% FD rates give just 2% real returns. Not exactly getting rich but safer than risky assets 👍

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