Davos: India is seeing a huge surge in the net inflows into financial savings and has reached nearly Rs 28 lakh crore in the last 18 months – an amount equivalent to entire GDP of countries like Thailand, top banker Chanda Kochhar has said. She also said the flow into financial savings has surged significantly since the demonetisation exercise of November 2016. Kochhar, who was here to participate in the World Economic Forum annual meeting, said in an interview that formalisation of economy and digitisation of banking transactions have proved to be among the most significant benefits of the demonetisation exercise.
On the GST and other reforms undertaken in India, she said since 2014, the government has focused on several structural reforms which are strengthening the economy.
"The government has focussed on creating a sound policy framework, prudent fiscal management, strengthening the monetary policy framework, mitigating inflation risks, improving ease of doing business, encouraging adoption of digital technology. "Pioneering initiatives like GST and demonetisation have led to increasing formalisation of the economy and financialisation of savings. These changes are forging new paradigms and I expect the government to continue to focus on steps that will augur well for the economy," the ICICI Bank chief said.