Household savings rise to 21.7% of GDP in FY25 as higher incomes, policy support boost financial security: Govt

Household savings as a share of India's GDP increased to 21.7 per cent in 2024-25 from 20 per cent in 2022-23, reflecting an improvement in household financial security amid higher incomes and policy support, the government informed Parliament on Tuesday.

In a written reply to the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said household savings, including physical savings, rose from ₹52.25 lakh crore in 2022-23 to ₹69.01 lakh crore in 2024-25, based on the new GDP series with 2022-23 as the base year released by the Ministry of Statistics and Programme Implementation.

"The Government and the RBI have undertaken measures to enhance incomes and consequently higher savings for strengthening household financial security," Chaudhary said.

The minister said the Reserve Bank of India (RBI) has introduced several regulatory measures to strengthen the financial system and improve consumer protection. These include increasing risk weights on select consumer credit segments and bank lending to non-banking financial companies (NBFCs) in November 2023 as a prudential measure.

He also referred to the RBI's Developmental and Regulatory Policies announced on February 6, 2026, under which banks and other regulated entities have been asked to ensure that third-party financial products sold through their branches are appropriate for customers' financial needs and risk profiles.

On the fiscal side, Chaudhary said the income tax exemption for annual incomes of up to ₹12 lakh has boosted disposable incomes, enabling higher consumption, savings and asset creation. He added that GST rate rationalisation has improved the financial position of micro and small businesses, while the government's focus on ease of doing business, skilling, employment generation and infrastructure development continues to support income growth.

In separate replies, the minister said the Deposit Insurance and Credit Guarantee Corporation (DICGC) had settled claims worth ₹18,931.40 crore relating to 488 banks as of March 31, 2026.

He also informed the House that the Centre collected around ₹32.05 lakh crore through cesses and surcharges over the last five financial years. Of this, about ₹21.38 lakh crore was transferred to designated cess and reserve funds against cess collections of ₹18.88 lakh crore during the period.

Highlighting the growing use of technology in banking, Chaudhary said financial institutions are increasingly deploying artificial intelligence and machine learning for credit underwriting, fraud detection and investment decisions. He added that the RBI has directed scheduled commercial banks to strengthen safeguards against AI-related cyber risks, while its Standing Committee on Cyber Security and CERT-In continue to monitor emerging threats and issue advisories.