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India's Deposit Shortage Mirrors China's Economic Strategies

share-iconSaturday, January 11 comment-icon1 week ago 8 views
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indiatimesINDIATIMES
India's Deposit Shortage Mirrors China's Economic Strategies

Credited from: INDIATIMES

  • A **deposit shortage** is causing concern among India's bankers and policymakers, echoing strategies used in **China** two decades ago.
  • The central bank's efforts to control money growth to address **inflation** are leading to challenges in securing credit and investment.
  • **Government taxation** on savers is exacerbating the deposit crunch, while banks are facing scrutiny for their low interest offerings to customers.
  • The **Reserve Bank of India** warns of structural liquidity issues, especially regarding the impact of technology on deposit erosion from **internet-enabled accounts**.
  • Authorities are urged to develop innovative solutions to balance keeping banks liquid while managing **money creation** trends.

For the full article, visit: Times of India

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