Core Insights - The report emphasizes the decline in bank deposits as a share of household financial savings, decreasing from 38.7% in FY24 to 35.2% in FY25 [2][4] - SBI recommends various tax relief measures to encourage greater participation in the banking system, including aligning tax treatment of interest income on bank deposits with long-term and short-term capital gains [2][4] - The report suggests reducing the lock-in period for tax-saving fixed deposits to three years, making them comparable to Equity Linked Savings Schemes (ELSS) to enhance deposit mobilization [2][4] - SBI proposes the removal of TDS on savings bank deposit interest or raising the threshold to alleviate the burden on small savers [2][4] - The report calls for changes to GST provisions related to Input Service Distributors (ISD) to provide clarity and limit litigation [2][4] - Practical difficulties in applying GST TDS on payments such as interchange fees are highlighted, with a recommendation that GST TDS should not apply to banking services [3][4] - The report notes a decline in insurance penetration rates, dropping to 3.7% in FY25 from 4% in FY23 and 4.2% in FY22, raising concerns about achieving IRDAI's "Insurance for All by 2047" goal [3][4] - SBI points out that 69% of complaints in FY25 were related to claims, indicating a need for reforms, especially in health insurance [3][4] - Implementing these measures in the Budget 2026 is expected to support long-term economic stability and enhance the financial wellbeing of households [5]