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 internet monetary wealth jumped in 2020-21 as a result of pandemic-induced restrictions on mobility and spending together with subdued progress in liabilities; internet monetary wealth has since exhibited some normalisation as family consumption picked up on the return of normalcy,” the article said.
As at end-March 2023, households’ monetary belongings stood at 135.0 per cent of GDP whereas their monetary liabilities had been 37.8 per cent of GDP; accordingly, their internet monetary wealth was positioned at 97.2 per cent of GDP, it mentioned..
The spike in monetary belongings in the course of the Covid-19 pandemic led to a rise of 12.6 share factors in internet 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 secure. It could even be famous {that a} vital proportion of wealth in India is held by way of non-financial belongings similar to housing, which aren’t coated 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 symbolize the views of the RBI.
