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Rural India's FD Growth Surges Past Metros
11 Dec, 2025
Summary
- Rural fixed deposit balances surged 14% year-on-year to Rs 9.7 lakh crore.
- Rising rural incomes are fueling savings deposit growth, fastest in six quarters.
- Metro investors are shifting funds to mutual funds and equities for higher returns.
India's rural centers are now the primary engine for fixed deposit (FD) growth, reversing a long-standing trend. In the September quarter, rural FD balances climbed 14% year-on-year to Rs 9.7 lakh crore, significantly outpacing the 10% rise in metropolitan areas.
This shift is attributed to increasing rural incomes and a preference for safer investments in these areas. In contrast, urban and semi-urban centers have also lagged behind rural growth, with FDs growing by 12% and 13% respectively in the September quarter.
Meanwhile, metro investors are increasingly diverting funds into higher-yielding options like mutual funds and equities. This trend highlights a growing financial sophistication among urban consumers, leading them to explore avenues beyond traditional bank deposits.
