Indians love to deal in cash, not stocks and shares | union-budget$budget-in-numbers | Hindustan Times
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Indians love to deal in cash, not stocks and shares

union budget Updated: Feb 28, 2016 15:54 IST
budget in numbers

When it comes to financial savings Indians are averse to risk.(Shutterstock)

Indians love to deal in cash. Even after a quarter century of reforms in the financial and capital markets, only about 5% of household savings are held in shares, debentures and mutual funds.

When it comes to financial savings Indians are averse to risk and prefer to keep their savings in provident funds - almost 20% - and bank accounts - almost 50%.


The graph shows a slump in post office and other small time savings from 2005-06. The graph also shows that bank deposits and LIC funds shot up after the same year.

One of the reasons for the slump is the withdrawal of 10% bonus in the post office monthly income scheme on 2006 February.

After the withdrawal, the deposits in post office schemes, fell by 30%. Banks benefitted by this dent as they offer easier liquidity.

Charts by Harry Stevens, Research by HT Business Desk