Aggregate deposits with scheduled banks increased by Rs 3.56 trillion in the fortnight ended September 30 on a sequential basis. While the sudden spurt in deposits is attributed to the Seventh Pay Commission pay-off, Diwali bonuses and a reported leakage of information related to demonetisation to a section of people, a closer look at RBI data shows that deposits have risen over the roof multiple times in the past.
For instance, aggregate deposits (sum of demand and time liabilities of banks to customers) rose by Rs 2.8 trillion during the week ended April 1.
The data for the last five years show that deposits generally rise during the last week of March and September or the first week of April and October.
State Bank of India’s economic research wing attributed the spurt in deposits to the income disclosure scheme, a seasonal surge and arrears from pay hikes for government employees.
There was increase in “incremental deposits in the terminal month” in 1997 also when the government had last launched a similar tax amnesty scheme, it said.
However, while deposits have grown by Rs 1 trillion in September over the last three years on an average, a surge of Rs 2.87 trillion in this September, ahead of the move to discontinue the Rs 500 and Rs 1,000 banknotes, made it a “curious case”, it said.
Like this report? Sign up for our daily newsletter to get our top reports.