Bank deposits grow 17.8% in August, fastest pace in a decade

Bank deposits expanded at 17.8% year-on-year in August, marking the fastest growth in a decade. The surge was primarily driven by a significant increase in FCNR-B (Foreign Currency Non-Resident Bank) deposits following the RBI's opening of a special window to facilitate dollar inflows.

Credit growth moderated slightly to 19.1% during the same period. Despite the overall deposit expansion, banks continued to grapple with challenges in mobilising domestic savings, indicating reliance on external inflows to meet deposit growth targets.