India’s RBI Holds Talks With Banks on Ways to Boost Deposits

India’s central bank is seeking input from commercial lenders on how they can bring in larger and more stable deposits, as a shift in household savings into equities and other investment products threatens to snowball into a bigger problem for the country’s banks.

In meetings with banks over the past few weeks, officials from the Reserve Bank of India discussed how the growing participation in financial markets has changed the nature of bank deposits — which are now sourced more from institutions such as mutual funds as opposed to lower-cost individual household savings, according to people familiar with the matter.