Mint Street Memos (MSM) is a series of documents that are in the form of brief reports and analysis on contemporary topics, prepared by the staff of RBI and Centre for Advanced Financial Research and Learning (CAFRAL), or drawn from one of the recent publications of the Bank.

August 2017

Demonetisation and Bank
Deposit Growth

The study estimates ‘excess’ bank deposit growth following demonetisation employing alternative scenarios. It finds that there appears to have been a significant increase in bank deposits due to demonetisation. If sustained, such gains could have a beneficial impact in the form of financialisation of savings.


Financialisation of Savings into Non-Banking Financial Intermediaries

The study shows that an important positive impact of demonetisation has been to induce a shift towards formal channels of saving by households, particularly into equity/debt oriented mutual funds and life insurance policies. Non-banking financial companies (NBFCs) also seem to have been positively impacted. The challenge, going forward, would be to channelise these funds into productive segments of the economy.


Disclaimer- The views and opinions expressed in Mint Street Memos(MSM) are those of the authors and do not necessarily represent the views of the RBI.

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