New Delhi . People’s bank deposits and cash in hand have been adversely affected during the second wave of the COVID pandemic. Due to the epidemic, people have got a lot of money from the expenditure on treatment. This is stated in an article by officials in the monthly magazine of the Reserve Bank of India. The share of bank deposits in the total wealth of a family is about 55 percent. It declined by 0.1 per cent at the end of April, 2021, while it increased by 1.1 per cent in April, 2020. The rate of decline in bank deposits has also been higher than that of bank loans.
People save more in uncertainty
When there is more uncertainty in this, people save more as a precaution and there is a reduction in deliberate spending. The family’s financial savings declined to 8.2 per cent in the third quarter of 2020-21 from 21 per cent and 10.4 per cent, respectively, in the previous two quarters.
Investing in Gold ETFs Positive-
According to the article, HNIs have since withdrawn money from liquid funds, while retail investors have kept their money there as savings. On the other hand, the investment of rich people and retail investors in Gold ETF is positive since June 2020. The gist of the article is that due to the Kovid epidemic, a lot of money has been spent on the treatment of people.
The investment has been done like this-
Savings have increased in High Net Worth Individuals (HNIs) and Liquid Funds of Individuals (a fund from where it is possible to withdraw money immediately). It explains the uncertainties arising due to the COVID pandemic and the lockdown imposed for its prevention. The family has also invested their money in a gold exchange traded fund.