sectors – both retail and industrial – and incremental lending has been much diversified compared to in the mid – and late 1990s, the retail credit as a proportion of gdp has remained quite low ( table 2 ). with the low existing penetration levels and the fact that more than 30 per cent of indians who are below 15 years of age, will enter in the age group of 15 – 64 years over the next 5 to 10 years, the structural opportunity for banks is evident. the younger generation is far more open to consumer loans, financial products like insurance, mutual funds and wealth management and thereby offers a much bigger revenue base for financial - service providers. although significant financial deepening has been taking place in indian economy over the years as seen from the deposit - gdp ratio, bank assets - gdp ratio and credit - gdp ratio, the low levels of penetration in india can provide a medium term structural growth driver for banks. a noteworthy feature discernible in the indian context is that the rise in indicators of financial deepening takes place along with a noticeable rise in the domestic savings rate. this has to be seen in the backdrop of financial sector reforms, rise in total factor productivity and investment boom which has led to acceleration in the growth performance. low dependency ratio and saving nexus in the recent years, a virtuous cycle of growth, saving and investment has been in operation ( table 3 ) and is likely to continue in the near to longer - term being contributed by demographic dividends and decline in dependency ratio. these factors will facilitate both rise in saving and capital formation and are expected to further reinforce the virtuous cycle of growth in future. the existing studies on india suggest a near one - for - one relationship between the dependency ratio and national savings. according to recent studies ( goldman sachs 2007 ), 1 percentage point decrease in the dependency ratio adds 0. 8 per cent to the national saving ratio. rodrik and subramanian ( 2004 ) used estimation results by mulheisen ( 1997 ) on india's consumption behaviour, which shows a one - to - one relationship between the dependency and saving ratios. accordingly in india, a fall in dependency ratio from 37. 1 per cent in 2006 to 34. 6 in 2011 and 31. 7 per cent in 2026 will result in rise in saving from the present level of 37. 7 per cent in 2007 – 08. section 2 : a projection of housing and education loan requirement the vast business potential for banking can be ascertained from a

more complex landscape, however, has also presented risks – posing challenges for regulators, industry and consumers alike. this is particularly true when complexity leads to opacityor when novel innovations neglect to account for basic risks – either to the entity or their customersit is also true when information and " choice " grows in such abundance to be neither informative nor an enabler of decision making. such risks are ones we have been considering in a consumer context for some time now, and featured in our regulatory and supervisory outlook2 earlier this year – including : risks from unclear information being provided at various points in the customer journey ; risks to consumers from evolving business models ; and technologydriven risks from cyber security as well as frauds and scams – the latter one of the reasons combatting financial crime is the theme of our inaugural innovation sandbox to launch later this year. and these are just some examples of how the financial sector and financial risks are changing for consumers – mirroring the wider complexity and change in our daily lives. the paradox of choice " too many choices, too many decisions, too little time - " 3 no i am not talking about trying to keep up with my streaming habits, rather this is a quote from'the paradox of choice'– a book about how decision making had become too complex due to an abundance of choices. the point is while choice is obviously a good thing – too much choice can be counterproductive. published 20 years ago, i would suggest that the situation has significantly worsened in the intervening years. and while this issue extends to all parts of our lives, and is most often merely an annoyance, in a financial services context it increases the risks of consumer detriment and financial loss, and can run counter to empowering consumers to make decisions in their own best interests. in the health insurance context, in terms of in - patient plans, it does appear there is an abundance of choice. for example, at the end of 2023, there were 350 active in - patient plans. notwithstanding this proliferation of plans, around 50 % of people with health insurance are on one of only 30 plans. again, while consumer choice is obviously a good thing – there is a concern that too much choice is impacting how much engagement consumers are having with the options available to them, resulting in consumers not considering, or not being offered, the best and most suitable product available. 2 / 5 bis - central bankers'speeches this is something from a supervisory point of view that