According to the latest RBI bulletin, the Net financial assets of Indian households have gone up to Rs 15.7 lakh crore or 7.7 per cent of the GDP in Financial Year 2019-20. It was Rs 13.7 lakh crore, or 7.2% of the GDP, in 2018-19.
The gross financial assets (GFA) rose Rs 21.23 lakh crore in FY’2018-19 to Rs 21.63 lakh crore last year, the financial liabilities (FL) witnessed a sharp decline from Rs 7.5 lakh crore to 6.01 lakh crore.
It indicates a sharper fall in bank borrowings compared with bank deposits.
In terms of percentage of GDP, the gross financial assets declined from 11.1 per cent to 10.6 per cent and the financial liabilities fell from 3.9 per cent of GDP to 2.9 per cent in Financial Y’ear 2019-20.
What is Net Financial Assets?
The Net financial asset is the difference between gross financial assets (deposits and investments) less financial liabilities (borrowings).
