There are several extensive differences in India’s urban and rural economies. Many of them indicate the difference in income, lifestyle, opportunities, etc.

One such indicator is the vast difference in bank deposit amounts between urban and rural areas. Despite several central schemes, the wide difference seems to have persisted over time.

Urban areas see major share of bank deposits

According to the latest statistics released by the Reserve Bank of India (RBI), as of March 2023, the total deposits in the country’s banks were ₹185.33 lakh cr. This data has been obtained from the deposit statistics of the country’s 388 scheduled commercial banks.

Out of the total amount, ₹100.03 lakh cr or 54% of the deposits, are in the 63 metropolitan banking centres in the country. While ₹39.88 lakh cr, or 21.52% of the total amount, has been deposited in the country’s 356 urban banking centres. This indicates that urban areas constitute 75% of the total bank deposits.

Only about ₹16.67 lakh crores, or 9% of deposits, came from 748 rural areas. This data comes from the 388 scheduled commercial banks across the country.

Moreover, the depositors in the country’s 28 metro and urban banking areas account for 50% of the total deposits (savings account, current account, and fixed deposits combined) in the banks.

Gujarat’s share in bank deposits

Gujarat’s share in bank deposits is less than 6%, with an amount of ₹10.38 lakh cr deposited in the state’s banks.

The national trend is reflected in Gujarat as well, where metro and urban areas constitute a total of ₹7.81 lakh cr deposits out of the total. Three out of every four bank deposits belong to the state’s urban-metropolitan areas.

On top of that, the state’s four major centres - Ahmedabad, Vadodara, Surat, and Rajkot, have a share of more than 54%.

It is shocking that Gujarat, which is considered the engine of the country’s economy, has a share of less than 6%.

States ahead of Gujarat

Gujarat, despite the hefty bank deposit amount, still falls behind Maharashtra, Delhi, Karnataka, Uttar Pradesh, and Tamil Nadu.

The figures paint an astounding picture, where Mumbai’s metro and suburban banking areas constitute deposits worth ₹26.24 lakh cr in banks. This amount is not only more than the entire rural area but also more than that of the entire Gujarat.

What lacking rural deposits indicate

Despite several government schemes, the rural areas lack bank deposits.

In the last two decades, extensive efforts have been made to provide banking facilities to rural areas. This was followed in 2014 by the Pradhan Mantri Jan Dhan Yojana, a more aggressive campaign to create banking facilities with ease, zero balance and minimal documentation.

As per the data submitted by the government in Lok Sabha, as of July 2023, there are 49.49 crore ‘Jan Dhan’ accounts in the country and an amount of ₹2.009 lakh cr has been deposited in them. That is, on average only ₹4,061 is deposited in this account.

These numbers reflect several impending socio-economic factors like unemployment, lifestyle, education, per capita income, among others.

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