The State Bank of India (SBI), in a report, has said that India’s household sector exhibited robust financial health. Net financial savings increased to 5.1 per cent of gross national disposable income (GNDI) in FY24, up from 4.9 per cent in FY23. SBI Research estimates that this could rise to Rs 22 lakh crore or 6.5 per cent of GNDI in FY25.
Gross financial savings rose to 11.2 per cent of GNDI in FY24, driven by higher investments in insurance, provident funds, and government claims. Meanwhile, household liabilities dropped to 6.1 per cent of GNDI from 6.5 per cent in the previous year, further contributing to improved net savings.
The RBI transferred a record surplus of Rs 2.69 lakh crore to the government in FY25. This was made possible through strategic foreign exchange operations and active rupee management, despite declining income from domestic interest and Liquidity Adjustment Facility (LAF) earnings. A provision of Rs 44,861.7 crore was added to the Contingency Fund, maintaining the RBI’s Realised Equity at a healthy 7.5 per cent of its balance sheet. The RBI’s balance sheet itself expanded by 8.19 per cent in FY25, below the nominal GDP growth rate of 9.9 per cent.
India’s central bank digital currency (CBDC), the retail digital rupee (e₹-R), saw a 334 per cent surge in circulation in FY25. Piloted with 17 banks and adopted by 60 lakh users, the e₹-R has now expanded to include offline capabilities and programmable features. The inclusion of non-bank wallet providers aims to enhance financial inclusion and distribution.
This growth marks a critical step in transforming India’s payments ecosystem and signals the RBI’s commitment to innovation in financial technology. Currency in circulation rose steadily during FY25, with Rs 500 notes accounting for 86 per cent in value and 40.9 per cent in volume. Lower denomination notes like Rs 10, Rs 20, and Rs 50 made up nearly one-third of the total volume.
The withdrawal of Rs 2000 notes was nearly complete by March 2025, with 98.2 per cent of Rs 3.56 lakh crore returning to the banking system. Notably, the RBI has shifted to increased issuance of Rs 10 coins while reducing the number of Rs 10 notes — a move aimed at enhancing currency durability and cutting costs.
While the total number of counterfeit notes fell by 2.4 per cent to 2.17 lakh pieces, instances of fake Rs 200 and Rs 500 notes rose sharply, by 13.9 per cent and 37.3 per cent respectively, indicating an urgent need for improved anti-counterfeiting measures.
The number of bank fraud cases reported dropped from 36,060 in FY24 to 23,953 in FY25. However, the total value of frauds tripled to Rs 36,014 crore, largely due to a rise in advances-related frauds, which jumped from Rs 10,072 crore to Rs 33,148 crore. Card and internet frauds, in contrast, declined significantly in both volume and value. Private banks reported the highest number of fraud cases, while public sector banks accounted for the majority of the fraud value.
The RBI undertook 43 customer-centric reforms in FY25, part of 173 initiatives rolled out over the past four years. These measures focus on improving service quality, grievance redressal, and consumer protection across regulated entities. Additionally, the central bank conducted 87 public consultations since 2021, aimed at refining regulations, including harmonising interest rates on advances across financial institutions.