New Delhi, Nov. 25 -- India's banking system continues to exhibit strong and predictable seasonal rhythms, with the financial year-end emerging as the most influential driver of banking activity, according to the Reserve Bank of India's latest bulletin.

The RBI study shows that March remains the dominant seasonal peak for a majority of banking variables, reflecting intensified financial operations as institutions close their books.

Bank credit, non-food credit and demand deposits see some of the sharpest year-end surges while the reserve money and narrow money (M1) also spike in March, highlighting elevated liquidity needs.

While most indicators peak in March, aggregate deposits, driven by time deposits, reach their seasonal high in Ap...