Household savings as a share of GDP have risen from 20 per cent in FY23 to 21.7 per cent in 2024-25, and both the government and the RBI have undertaken measures to enhance incomes, Parliament was informed on Tuesday. "According to the new series of GDP estimates (Base Year 2022-23) released by the Ministry of Statistics and Programme Implementation, household savings (inclusive of physical savings) increased from Rs 52.25 lakh crore in 2022-23 to Rs 69.01 lakh crore in 2024-25," Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha. As a share of GDP, he said, household savings have grown from 20 per cent in 2022-23 to 21.7 per cent in 2024-25.
Government, RBI measures
The Government and the RBI have undertaken measures to enhance incomes and consequently higher savings for strengthening household financial security, he said. From a regulatory perspective, the RBI increased risk weights on select segments of consumer credit and bank lending to Non-Banking Financial Companies (NBFCs) in November 2023, also as a prudential measure to strengthen the resilience of the financial system, he said. In its Statement on Developmental and Regulatory Policies announced on February 6, 2026, the RBI outlined measures to regulate advertising, marketing and sales of financial products and services by Regulated Entities (REs). These are aimed at ensuring that third-party products and services sold at bank counters are suitable to customer needs and aligned with the risk appetite of individual clients.
Furthermore, the income tax exemption for annual incomes up to Rs 12 lakh has enhanced households' disposable incomes, enabling improved consumption, savings and asset creation, he said, adding that GST rate rationalisation measures have improved the business environment for micro and small businesses, supporting their incomes and financial position. Above all, the Government’s focus on ease of doing business, skilling, employment generation and infrastructure creation continues to foster income growth, he added.
DICGC settles claims of Rs 18,931.40 crore
Replying to another question, Chaudhary said the Deposit Insurance and Credit Guarantee Corporation (DICGC) has settled claims amounting to Rs 18,931.40 crore in respect of 488 banks as on March 31, 2026.
J&K assistance increases
In another reply, Chaudhary said the Government of India’s assistance to Jammu and Kashmir, through the Demand for Grant "Transfers to Jammu and Kashmir", has increased from Rs 30,757 crore in FY21 to Rs 43,290.29 crore in the Budget Estimates for 2026-27.
Cess collections
An amount of about Rs 32.05 lakh crore was collected as cesses and surcharges during the last five financial years. "Out of these, only cesses are collected for designated purposes. An amount of about Rs 21.38 lakh crore was transferred (Actuals/RE) to the designated Cess/Reserve Funds to enable utilisation of collections for designated purposes, against the cess collections of about Rs 18.88 lakh crore during the last five years," he said.
AI in banking
Replying to another question, Chaudhary said India’s financial sector has witnessed significant digital transformation driven by emerging technologies such as Artificial Intelligence and Machine Learning (AI/ML). Banks and financial institutions have deployed AI-based solutions for various purposes, including credit underwriting, fraud detection and investment decisions, he said.
Cyber security safeguards
Various initiatives have been taken to strengthen regulatory and supervisory safeguards in the adoption of AI technology. To strengthen regulatory safeguards, the Reserve Bank of India has advised Scheduled Commercial Banks (SCBs) to adopt appropriate risk mitigation measures against AI-driven cyber threats and risks arising from AI adoption. The RBI has also constituted an inter-disciplinary Standing Committee on Cyber Security to review threats associated with existing and emerging technologies and recommend policy interventions to enhance cyber resilience. The RBI and the Indian Banks' Association (IBA) continue to engage with banks and other stakeholders through periodic interactions to assess preparedness, improve awareness, facilitate information sharing and address emerging AI-related risks. The Indian Computer Emergency Response Team (CERT-In) also issued an advisory on April 26, 2026, he added.