Agency. The craze for IPOs in the Indian market has been going on rapidly for the last 12-18 months in India. People have come to the situation of withdrawing money from their term deposits and investing in the market. As a result, bank deposits have declined by Rs 2.67 lakh crore in the last fortnight. According to the Reserve Bank of India (RBI), bank deposits have declined sharply since Diwali. Bank deposits fell by Rs 2.67 lakh crore to Rs 157.8 lakh crore in mid-November. Deposits had increased by Rs 3.3 lakh crore in mid-November.

SBI chief economist Soumyakanti Ghosh said in his report that the rise in deposits and the subsequent sluggish trend were quite opposite. This is the fifth largest increase in deposits since 1997.

The report states that the increase in bank deposits in November 2016 was due to the ban on banknotes. Banks say that people have withdrawn money from banks in the hope that the stock market will rise after the advent of the new age and the problems of other companies. In the fortnight ended November 5, 2021, the flow of deposits in the banking system has increased. However, without such growth, the pace of banking deposits slowed down and about 80 percent of deposits were returned.

He said that the use of cash has decreased in the current financial year due to the boom in digital transactions. Meanwhile, if we look at the quarterly data of all commercial banks, the deposit growth in the first and second quarters has been at the same level of 2.5 percent.