People aged above 40 account for 76 pc of individual deposits in banks: RBI data

Mumbai: People over 40 years of age account for over three-fourths of individual deposits in the country's banks as of June this year, data released by the Reserve Bank said on Monday.

Those aged between 25-40 years, who are in what can be defined as working age, account for a little less than 20 per cent of the individual deposits, the data said.

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It can be noted that in the past, policymakers have spoken about a larger preference among the younger cohorts for the capital market instruments like shares and mutual funds as compared to their older counterparts.

The overall deposit growth for scheduled commercial banks came at 11.6 per cent on year, with private banks witnessing a 13.8 per cent growth and the public sector banks trailing at 10.3 per cent, the RBI said.

The household sector remained the largest contributor, holding 58.8 per cent of total deposits as at end-June 2026 and accounting for 98.9 per cent of the 'incremental deposits' during the quarter.

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Term deposits -- the primary driver of deposit accumulation -- recorded growth of 12.9 per cent in June 2026, outpacing the 5.3 per cent growth of current deposits and 10.6 per cent in savings deposits.

Term deposits of size 'Rs 1 crore and above' accounted for 47.3 per cent of the total term deposit as at end-June 2026, of which 35.7 per cent came from deposits of size 'Rs 5 crore and above', category, the RBI said.

The bank credit growth at the end of June accelerated to 16.5 per cent in June as against 9.9 per cent in the year-ago period, driven by the corporate sector loans, which grew at 21.1 per cent, the RBI said.

Credit to female individual borrowers expanded at a faster-than-average clip at 19.7 per cent in June 2026 as compared to 12.9 per cent in June 2025, it said.

Share of loans bearing interest rate below 9 per cent increased to nearly two-thirds in June 2026, from 54.1 per cent in June 2025, it said, adding that the weighted average lending rate (WALR) on outstanding credit eased by 45 basis points to 9.26 per cent in June 2026.