Recently Central bank Reserve Bank of India has released its data on the Bank Credit and Deposits.

Points To Note

  • RBI data shows that, the Bank credit grew by 5.93% which now accounts for Rs 5 lakh crore for the fortnight that ended 29th January 2021.
  • Data also highlights that, the deposits in the banks have rose by 11.06% that accounts for Rs 98 lakh crore for the same period.
  • Thus, in the fortnight that ended 31st January 2020, the bank credit stands at Rupees 05 lakh crore while the deposits stand at Rs 133.24 lakh crore.
  • Data further shows that, during the first 9 months of the fiscal year 2020-2021, the bank credit increased by 3.2% while the deposits increased by 8.5%.
  • The non-food credit growth of banks was 5.9% in December 2020.
  • The growth in the credit to agriculture and allied activities has increased to 9.4% as compared to 5.3% growth in December 2019.
  • Data also highlights that, Loans to industry have decreased by 1.2% because of contraction in the credit to large industries by 2.4%.
  • Further, the Personal loans decreased by 9.5% in the current financial year (2020-2021).

What is Bank Credit?

The Bank Credit refers to the amount of credit which is available for a business or individual from any banking institution. It is credited in the form of loans. Thus, the total amount of money that a person or business can borrow from any bank or the financial institution is called Bank Credit. The bank credit of the borrower depends upon their ability to repay the loans. Bank Credit also depends upon the total amount of credit available by the banks or financial institutions to lend. Car loans, personal loans and mortgages are the examples of bank credit.

RBI Data on Bank Credit and Deposits RBI Data on Bank Credit and Deposits