Over 40s Dominate India’s Bank Deposits: RBI Data

Individuals above 40 years of age held over three-fourths, or 76%, of India’s individual bank deposits as of June 2026, according to data released by the Reserve Bank of India (RBI) in August 2026. This trend aligns with past observations indicating younger cohorts favor capital market instruments.

Generational Divide in Savings Preferences

The RBI’s findings highlight a significant generational divide in how Indians choose to save and invest their money. Policymakers have previously noted a stronger inclination among younger demographics towards instruments like shares and mutual funds, moving away from traditional bank deposits.

The Reserve Bank of India data highlights a clear preference:

Individuals over 40 years accounted for 76% of total individual bank deposits.

The working-age group of 25-40 years held less than 20% of individual bank deposits.

Overall Deposit Growth and Sector Performance

Overall deposit growth for scheduled commercial banks saw a notable increase compared to the previous year. This expansion was not uniform across the banking sector, with private banks demonstrating stronger performance in attracting deposits.

Examining the growth rates reveals distinct performance:

Overall deposit growth for scheduled commercial banks stood at 11.6% year-on-year.

Private banks recorded a deposit growth of 13.8%.

Public sector banks saw their deposit growth at 10.3%.

The household sector remained the largest contributor to the nation’s total deposits. This sector was responsible for nearly all incremental deposits accumulated during the quarter, primarily driven by term deposits.

The household sector’s contribution and the nature of deposits are significant:

The household sector held 58.8% of total deposits.

This sector contributed 98.9% of incremental deposits during the quarter.

Term deposits grew by 12.9% in June 2026, driving accumulation.

Term deposits of Rs 1 crore and above constituted 47.3% of total term deposits.

Deposits of Rs 5 crore and above made up 35.7% of total term deposits.

Accelerated Credit Expansion and Lending Rates

Beyond deposits, the banking sector also experienced an acceleration in credit growth during the same period. This surge was predominantly fueled by increased lending to the corporate sector, indicating robust business activity.

Credit expansion showed notable figures:

Bank credit growth accelerated to 16.5% in June 2026, up from 9.9% in the previous year.

Corporate sector loans grew by 21.1%.

Credit to female individual borrowers expanded at a faster-than-average rate of 19.7%.

The share of loans with interest rates below 9% increased to nearly two-thirds.

The weighted average lending rate (WALR) on outstanding credit eased by 45 basis points to 9.26%.

The data from the RBI underscores evolving financial habits among different age groups in India, alongside significant growth in both bank deposits and credit. These trends offer insight into the broader economic landscape and consumer financial behavior.