Summary of this article
Salary not keeping pace with rising costs of livelihood
Bank accounts increasingly positioned as comprehensive financial management platforms
As households face persistent inflation pressures, which include a rise in medical expenses, it raises the urgency for better financial planning among working individuals, a presentation by Sunil Abhilash Ramanuja, product head – savings, retail liabilities at IDFC FIRST Bank, said at Outlook Money’s 40After40 Retirement Expo, held in Mumbai on February 20, 2026. The presentation raised an important question for salaried Indians: Is the money credited to bank accounts every month actually working hard enough for account holders?
The presentation underscored the need for a broader shift in India’s banking landscape—from simply holding money to actively helping customers manage liquidity, protection, and long-term investments. With rising living costs and longer life spans, financial institutions are increasingly positioning bank accounts as comprehensive financial management platforms rather than just places where salaries are deposited, it said.
Ramanuja, in his presentation, highlighted a growing financial paradox in India. On one side, the country’s population aged 60 and above is projected to double over the next decade, while life expectancy continues to rise. On the other hand, consumer price inflation is hovering around 5–6 per cent, and medical inflation is estimated at 12–14 per cent.
At the same time, data points to worrying trends in household finances. Household net financial savings have dropped to about 5.2 per cent of GDP, a multi-decade low. Insurance penetration also remains limited, with only about 37 per cent of Indians having health insurance coverage and just 41 per cent of households having at least one insured member.
The presentation argued that traditional savings accounts have often acted as “leaky buckets” for customers due to transaction charges, lower interest on idle balances, and interest payments credited only quarterly. As a result, many individuals may not be fully utilising their salary income to build financial security.
To address these challenges, the bank’s approach focused on building a stronger financial foundation for customers through digital banking tools and improved account features. According to the presentation, offerings such as zero-fee banking subject to certain conditions, higher interest rates on balances, and monthly interest credits have helped customers maximise the value of their deposits.
A key framework in the presentation showed dividing personal finances into three distinct “buckets” aimed at improving money management, highlighting the features of the bank’s mobile application. The first bucket, referred to as “The Working Liquid,” focused on day-to-day liquidity management. It included tools that allow users to allocate budgets across spending categories, track expenses, and schedule recurring payments such as bills. The second bucket, called “The Shield,” centred on protection through insurance solutions. Curated plans from insurers with digital onboarding are offered in the app, aiming to make purchasing insurance simpler and more accessible, the presentation said.
The third bucket, “The Growth Engine,” focused on long-term wealth creation through goal-based investing. The presentation highlighted digital investment management options, including funds tailored to different risk profiles and life goals, along with fully digital KYC processes for new investors.
Another feature of the app was the ability for users to track their net worth through the banking app, the bank said. By consolidating assets and financial information in one place, customers can assess their financial health, set goals, and plan more effectively, the presentation said.
