It is not recursive though. A directory is a special kind of inode that enumerates file inode numbers and when that list changes then the contents of that "directory inode" change. But if /home/user/.bashrc is deleted then the timestamp for /home will not be affected because the timestamps are associated with inodes rather than directory entries (assuming no symbolic links are involved).
https://www.redhat.com/en/blog/inodes-linux-filesystem https://en.wikipedia.org/wiki/inode