The share of current and savings accounts (Casa) deposits of commercial banks has increased to 44.8 per cent as of March 2022-end, from 41.7 per cent three years ago, latest data released by Reserve Bank of India (RBI) showed.

Casa are low-cost deposits of banks, which are margin accretive. Casa deposits accounted for 60.9 per cent and 55.6 per cent of incremental deposits during 2020-21 and 2021-22, respectively.

Interest rates on fixed deposits, which have begun rising recently, were quite low during the past few years as RBI followed an ultra loose monetary policy since the start of the Covid-19 pandemic.

“Consistent with the monetary and liquidity conditions, interest rates on term deposits moderated further during 2021-22; the share of term deposits bearing over six per cent interest rate came down to 14.4 per cent in March 2022 (31.0 per cent a year ago; 78.7 per cent two years ago),” RBI said.