2009 ). scheduled commercial banks ( scbs ) ( excluding small finance banks, payments banks and regional rural banks ) have been permitted to set board approved limits for borrowing in call and notice money markets, within the prudential limits for ibl. such liability - the other main driver of profits is the provision requirement which is dependent on the asset quality. page 3 of 9 based concentration limits are unique to india and reflect the reserve bank ’ s early cognizance of these risks. liability structure and growth 7. deposits continue to be the primary source of funds for scbs, amounting to ₹217 lakh crore, which represented 77 per cent of total liabilities at the end of fy 2024. in contrast, capital funds ( i. e., capital, reserves & surplus ) and borrowings, each constituted around 9 per cent of liabilities 3. the comparison of data between fy 2016 to fy 2024 indicates that the deposits have grown at an annual rate 4 of around 10 per cent, aligning with the overall balance sheet growth, and their contribution to total liabilities has remained stable at around 77 per cent ( charts 1 and 2 5 ). meanwhile, borrowings have grown at a slower rate3 of 7 per cent as a result of which its share in total liabilities has decline from 11 per cent to 9 percent. on the other hand, capital funds have grown at close to 13 per cent and its share has increased progressively from 7. 6 per cent to 9. 3 per cent, indicating the deleveraging of banks ’ balance sheets, boosted by higher profitability and capital raising efforts. 9 % 4 % 9 % 78 % capital funds deposits borrowings others chart 2 : composition of liabilities of scbs - fy 2016 to fy 2024 share of total liabilities ( per cent ) chart 1 : composition of liabilities of scbs - end march 2024 financial year capital funds deposits borrowings others 8. maturity wise, during the same period, the contribution of term deposits has declined from 65. 8 per cent of total deposits to 60. 9 per while the shares of savings and current account deposits have increased from 25. 3 per cent and 8. 9 per cent to 29. 2 per cent and 9. 9 per cent, respectively. consequently, casa ratio has improved from 34. 2 per cent to 39. 1 per cent. this trend may have contributed to the borrowings include inter alia borrowings from rbi

k c chakrabarty : furthering financial inclusion through financial literacy and credit counselling address by dr k c chakrabarty, deputy governor of the reserve bank of india, at the launch of federal ashwas trust, kochi, 30 november 2009. * * * i am happy to be here this morning and feel privileged to launch the federal ashwas trust for running the financial literacy and credit counselling centres ( flcc ) of federal bank. at the outset, let me warmly congratulate my old friend and colleague shri m. venugopalan, md and ceo, federal bank, and his team for bringing the flcc of federal bank to fruition. even though kerala has the highest literacy rate amongst all states in the country, i am sure that centres such as these have a vital role to play in providing valuable services to the people in the district. as our hon ’ ble finance minister emphasized in his budget speech, our approach to banking and financial sector has been to ensure robust oversight and regulation while expanding financial access and deepening markets. the merit of this balanced approach has been borne out in the recent experience as the turbulence in the world financial markets has left the indian banking and financial sector relatively unaffected. the recent turmoil which engulfed the western world and its financial sector brought to even sharper focus the pressing need to protect the vulnerable from ponzi schemes through safety nets of financial education, counselling and timely advice. the establishment of flccs is an important milestone in furthering financial inclusion. as i have emphasised time and again, opening a no frills account is by itself not financial inclusion. that is just the beginning. financial inclusion is a much broader term which can be construed as the process of ensuring fair, timely and adequate access to financial services, namely, saving, credit, payment and remittance facilities, and insurance services at an affordable cost in a fair and transparent manner by the mainstream institutional players. educating people and making them financially literate thus becomes integral to achieving financial inclusion, which is why centres such as these are needed. with the above perspective, i organize the rest of my remarks under the following sections. in section 1, i propose to talk about the importance of financial education. in section 2, i would briefly touch upon the need for credit counselling. section 3 discusses the specific objectives of setting up the flccs. section 4 covers the role of rbi and, finally, i shall share some of