Economists at the country’s largest lender State Bank of India (SBI) have said that retail depositors are earning negative returns on their bank deposits.
According to the research report ‘The Cost of Additional Liquidity and Credit Risks: Are We Doing Enough?’ by SBI’s Department of Economic Research, the total number of depositors in the banking system is around 207 crore, the number of creditors is 27 crore. total bank deposits ₹151 lakh crore formation ₹102 lakh crore retail deposits including senior citizens.
“Clearly, the real rate of return on bank deposits has been negative for a significant period of time and RBI has made it very clear that while supporting growth is the primary goal, lower banking interest rates will soon move north. is not likely. As liquidity remains plentiful,” the SBI report said.
It said the current rally in financial markets is probably a break from the past as families can indulge in the prediction of fulfilling a good return on their investment.
This means that the current boom in financial markets is probably a break from the past as families can indulge in the self-fulfilling prophecy of a good return on their investment.
Economists led by Soumya Kanti Ghosh said in a note that if not for all depositors, at least there should be a taxation review for deposits made by senior citizens, who depend on interest for their daily needs. Huh.
Presently, banks deduct tax at source while crediting interest income of more than Rs. ₹40,000 for all depositors, while for senior citizens the income exceeds the tax prescribed ₹50,000 per year.
Meanwhile, the note also said that banks are currently facing “significant margin pressure” due to excess liquidity in the system.
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