India’s fixed deposit pile has swelled to its biggest share of bank money in years. But the easy explanation, that nervous savers are fleeing a shaky market, turns out to be the smallest part of the story. Behind the surge sit three quieter forces: vanishing savings-account returns, a banking system in need of deposits and a tax change. Stranger still, what's driving most of this surge isn't ordinary households. Here’s what the numbers actually show.
As per the RBI term deposits now make up 61.6% of all bank deposits, up from 55.2% four years ago. | Image: Shutterstock

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