New Delhi, Jan. 27 -- The central government in the upcoming budget 2026 should announce reforms across taxation, insurance and pension sectors to boost household financial savings, reduce compliance challenges and improve social security coverage in the country, highlighted a report by State Bank of India (SBI)

The report highlighted that bank deposits as a share of household financial savings have declined from 38.7 per cent in FY24 to 35.2 per cent in FY25. To encourage savings through the banking system, SBI suggested tax relief measures for depositors.

It said that the tax treatment for interest income on bank deposits should be brought at par with long-term and short-term capital gains (LTCG and STCG).

It stated, "To boost financ...