India faces deposit shortage due to RBI's inflation control measures and government tax policies, leading to reduced credit and investment.

India is experiencing a deposit shortage due to the Reserve Bank of India's efforts to control inflation and government taxation policies that deter savings. This has led to concerns about reduced credit and investment. Banks are not offering competitive interest rates, prompting households to shift funds to capital markets. The RBI has warned about potential liquidity issues and is urging banks to mobilize household savings. HDFC Bank is selling advances to address its loans-to-deposit ratio.

September 03, 2024
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