Bank deposits crossed the Rs 200 lakh crore milestone in 2023, with the last Rs 50 lakh crore being mopped up in a record two years and nine months.

Bank deposits, in fact, have doubled from Rs 100 lakh crore in September 2016 over a span of seven years and three months. 

According to Reserve Bank of India (RBI) data, bank deposits stood at Rs 200.8 lakh crore as of 29 December, up 13.2% from the year-ago period.

While Rs 176 lakh crore of this was in term deposits, the rest was in current and savings accounts. 

The loan book of banks stood at Rs 159.6 lakh crore, up 20% from the earlier-year period.

Household savings in recent years has seen a significant shift to mutual funds. The mutual fund AUM (assets under management) has added Rs 10 lakh crore in 2023. The cumulative AUM of mutual funds has crossed Rs 50 lakh crore, which is one-fourth of total bank deposits.

In 2003, bank deposits stood at Rs 12.6 lakh crore while mutual funds had an AUM of only Rs 1.2 lakh crore.

Bank deposits in 1997 stood at Rs 5.1 lakh crore but then doubled to Rs 10 lakh crore by June 2001. The next doubling to Rs 20 lakh crore happened by March 2006. The fastest doubling took place between March 2006 and July 2009, with the deposits hitting Rs 40 lakh crore.

The deposit base expanded massively due to two pivotal events. Demonetisation of Rs 500 and Rs 1,000 notes in 2016 and the return of Rs 2,000 notes to banks in 2023 helped scale up deposits.