Wednesday, July 6, 2022
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Currencies

Currency holding with public impacted due to second COVID-19 wave: RBI

MtR by MtR
June 17, 2021
in Currencies
0


bredcrumb

India

oi-Vicky Nanjappa

|

Published: Thursday, June 17, 2021, 8:17 [IST]

Mumbai, June 17: Bank deposits and currency holding with the public have been adversely impacted during the second Covid wave, indicating a heavy outgo towards pandemic-induced medical expenditure, an RBI article said on Wednesday.

Related articles

‘Sin’ currency – Greater Kashmir

July 5, 2022

Pakistan approves imports in local currency from neighbouring Afghanistan

July 5, 2022

Bank deposits — having a share of around 55 per cent in total assets of households — decelerated by 0.1 per cent at end-April 2021 on a m-o-m (month-on-month) basis as against a growth of 1.1 per cent in April 2020.

Currency holding with public impacted due to second COVID-19 wave: RBI

The rate of decline in bank deposits vis-a-vis bank credit has also been higher, indicating that this time around the banking sector component of household savings declined. This is in sharp contrast with the spike in savings witnessed during the first wave, the article, published in RBI’s monthly bulletin, said.

“Currency holding with the public has also decelerated significantly to 1.7 per cent during April 2021 in comparison to the growth of 3.5 per cent a year ago, implying heavy outgo towards Covid-induced medical expenditure,” it noted.

From August 1 your salary will be credited on weekends too, thanks to RBI tweakFrom August 1 your salary will be credited on weekends too, thanks to RBI tweak

Amidst high uncertainty with respect to income, the article said precautionary savings tend to rise with decline in discretionary spending, as reflected in the private final consumption expenditure data on India during the pandemic period.

According to preliminary estimates by RBI, the household financial savings in Q3:2020-21 have come down to 8.2 per cent of GDP from 21 per cent and 10.4 per cent in the previous two quarters.

The savings of High Networth Individuals (HNIs) and retail individuals in liquid funds surged sharply in Q1:2020-21, mirroring the impact of uncertainty amidst COVID-induced lockdown. Households also parked their funds in gold Exchange Traded Funds (ETFs).

“Since then, HNIs’ investments in liquid funds has been negative (implying a drawdown), but retail individuals continue to park their savings in liquid funds,” the article said, adding that HNIs and retail individuals’ investments in gold ETFs have been positive since June 2020.

Further, it said that households’ savings in liquid mutual funds and gold ETFs taken together rose in Q1:2020-21, followed by drawdowns in the next two quarters, before an upturn again in Q4:2020-21.

The average one-year pre-tax return on liquid funds for period ended April 2021 is higher than the savings deposit rate as of June 4, 2021, it added.

Further, tax liabilities on returns earned by long term holders of liquid funds (beyond three years) turn out to be lower for individuals, particularly those in high income slabs, in comparison to holders of bank deposits.

Therefore, in a scenario of low interest rates, varied expectations of returns on different instruments may be altering the savings preferences of some households, the article said.

For Breaking News and Instant Updates

Allow Notifications

You have already subscribed

Story first published: Thursday, June 17, 2021, 8:17 [IST]



Source link

Related Posts

‘Sin’ currency – Greater Kashmir

by MtR
July 5, 2022
0

‘Sin’ currency  Greater Kashmir Source link

Pakistan approves imports in local currency from neighbouring Afghanistan

by MtR
July 5, 2022
0

Pakistan on Tuesday approved imports from neighbouring Afghanistan in exchange for local currency, a move mainly aimed at buying coal...

Crypto Currency 2022 Business Scenario – Designer Women

by MtR
July 5, 2022
0

A recent report on the global Crypto Currency market published by Market Reports provides a global overview and opportunity evaluation for...

bond market news: Want to save bonds, sacrifice equity; want to save equity, sacrifice currency: Maneesh Dangi

by MtR
July 5, 2022
0

“I cannot afford to run a $100-$125-billion current account deficit. We must be dreaming if we think that we can...

AUD edges higher as commodity currencies enjoy a boost

by MtR
July 5, 2022
0

Daily Currency Update The Australian dollar edged back above 0.6850 through trade on Monday yet remains pinned below 0.69 US...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
Fed tapering and emerging markets

Fed tapering and emerging markets

June 7, 2021
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Jim Cramer says investors should eye these three tech names in the Nasdaq 100

July 6, 2022

What is the Retirement Income Covenant?

July 6, 2022

Stone Real Estate adds new franchise location with Hawkesbury office

July 6, 2022

Wall Street recovery, currencies, oil

July 6, 2022

Recent News

Jim Cramer says investors should eye these three tech names in the Nasdaq 100

July 6, 2022

What is the Retirement Income Covenant?

July 6, 2022

Stone Real Estate adds new franchise location with Hawkesbury office

July 6, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter