Bank Deposit: When ordinary people deposit their hard-earned money in banks, that money becomes the heartbeat of the country’s economy. However, recent data suggests that this heartbeat has slowed somewhat.

According to the latest data from the Reserve Bank of India, deposit growth in scheduled commercial banks declined to 9.9 per cent between July and September 2025.

Deposit Growth in Metropolitan Areas is Also Breaking

This slowdown has been most pronounced in metropolitan areas. Metropolitan branches handle a large portion of the country’s total bank deposits, but the pace has slowed here, too.

Deposit growth in metropolitan areas in September 2025 was 9.6 per cent, compared to 12.7 per cent a year earlier. This means that people in large cities are no longer able to deposit money in banks as quickly as before.

What could be the reasons behind the slowdown in deposits?

Experts believe that rising inflation and daily expenses are impacting people’s savings capacity. Furthermore, the increasing inclination towards the stock market, mutual funds, and other investment options is also slowing bank deposits. Uncertainty regarding interest rates may also be a factor, as people postpone decisions in the hope of higher returns.

What could change in the future?

However, the picture is not entirely gloomy. Deposit growth is continuing, but its pace has slowed slightly. The banking system remains strong, and the Reserve Bank is closely monitoring the situation. If economic activity accelerates in the future and confidence in interest rates increases, deposit growth may improve again.

Frequently Asked Questions (FAQs)

Question: What is the direct impact of declining bank deposit growth?

Answer: This could impact banks’ lending capacity and overall economic activity.

Question: Do ordinary depositors need to worry about this?

Answer: No, because the banking system is safe and deposits are still growing.

Question: Could this decline be temporary?

Answer: Yes, this situation could change with changes in economic conditions and policies.

Question: Where are people investing instead of bank deposits?

Answer: Many people are turning to the stock market, mutual funds, and other investment options.

Disclaimer: This article is for general information purposes only. The information provided here should not be construed as financial advice. Always seek expert advice before making any investment or savings decisions.

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