If you have been saving your money lately, then you are among hundreds and thousands of others who are managing the income in better ways. In the recent past, people in the country have been saving – a little more compared to years before. Most banks in the country have reported more than a 20 percent increase in deposits over the past more than one year – an unusual surge in years.
From about Nu 46 bn in 2018, the Bank of Bhutan (BoB) reported a deposit of Nu 80 bn as of September this year. The annual increase in the past would be less than 10 percent but last year, it saw an unusual increase of 31 percent.
According to the General Manager of the bank’s head office, Dorji Wangchuk, people who get salaries have been opening various bank accounts (recurring, term deposits, and recurring deposits) which improved the figure.
Similarly, the Bhutan National Bank (BNB) also reported over 20 percent growth in the deposit since the pandemic began The bank reported a whopping increase of Nu 46 bn in September this year from Nu 29 bn in 2017.
“Saving culture hasn’t been popular in the past, but after the pandemic, people might have realized the need for money during emergencies, there has been a drastic increase in savings,” said Hem Kumar Acharya, the Chief Operating Officer of the bank’s head office.
He said that no banks in the country would have witnessed such a drastic increase in savings in a particular year.
According to the State of Financial Inclusion Report 2020, bank account holders have also increased by over eight percent last year compared to the previous years. It might as well be due to improved saving culture among the less-educated people.
Gap Sithu, a resident in Thimphu, said that he started saving in his recurring account as he is not educated and doesn’t have an ATM card. “I have a recurring account in which I deposit Nu 1000. I use it whenever I am in need, otherwise, I don’t.”
According to the banks, the sudden shift in the saving culture among Bhutanese could be due to easy access to banking services, a shift in spending habits, and the realisation of the need for money during emergencies.
The pandemic has been a hard blow to many, but if it is one thing that has come as a lesson, it has taught people the value of saving.
Samten Dolkar
Edited by Chayku
