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The article has been authored by Anupam Prakash, Suraj S, Ishu Thakur and Mousumi Priyadarshini, all officers from the RBI’s Division of Financial and Coverage Analysis.
“The buildup of monetary belongings and web monetary wealth jumped in 2020-21 because of the pandemic-induced restrictions on mobility and spending together with subdued progress in liabilities; web monetary wealth has since exhibited some normalisation as family consumption picked up on the return of normalcy,” the article acknowledged. As at end-March 2023, households’ monetary belongings stood at 135.0 per cent of GDP whereas their monetary liabilities have been 37.8 per cent of GDP; accordingly, their web monetary wealth was positioned at 97.2 per cent of GDP, it mentioned..
The spike in monetary belongings through the Covid-19 pandemic led to a rise of 12.6 proportion factors in web monetary wealth between end-March 2020 and end-March 2023.
“The listed fairness wealth of households rose to a peak of 19.4 per cent of GDP as at end-Dec 2021, subsequently moderating to 14.9 per cent of GDP as at end-March 2023. The compilation is restricted to the listed fairness holdings within the absence of estimates on unlisted fairness investments,” the article mentioned. It additional mentioned whereas households have leveraged up, their debt-to-financial belongings ratio has remained steady. It could even be famous {that a} vital proportion of wealth in India is held when it comes to non-financial belongings akin to housing, which aren’t lined on this article, the authors mentioned.
The central financial institution mentioned the views expressed within the article are these of the authors and don’t characterize the views of the RBI.
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