Rbi Bulletin Mar 2015

MARCH 2015VOLUME LXIX NUMBER 3 EDITORIAL COMMITTEE Brajamohan Misra B. K. Bhoi Gautam Chatterjee Amitava Sardar EDITOR Sanjay Kumar Hansda The Reserve Bank of India Bulletin is issued monthly by the Department of Economic and Policy Research, Reserve Bank of India, under the direction of the Editorial Committee. The Central Board of the Bank is not responsible for interpretation and opinions expressed. In the case of signed articles, the responsibility is that of the author. © Reserve Bank of India 2015 All rights reserved. Reproduction is permitted provided an acknowledgment of the source is made. For subscription to Bulletin, please refer to Section ‘Recent Publications’ The Reserve Bank of India Bulletin can be accessed at http://www.bulletin.rbi.org.in CONTENTS Monetary Policy Statement 2014-15 Statement by Dr. Raghuram G. Rajan, Governor on Monetary Policy, March 4, 2015 1 Speeches Democracy, Inclusion, and Prosperity Raghuram G. Rajan 3 Taking on Risk – The Sensible Way Harun R. Khan 9 Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities Harun R. Khan 15 Problem Loan Management and MSME Financing R. Gandhi 27 A New Banking Landscape for New India S. S. Mundra 33 Articles Developments in India's Balance of Payments during the Second Quarter (July–September) of 2014-15 39 Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 45 Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 53 Current Statistics 59 Recent Publications 96 MONETARY POLICY STATEMENT 2014-15 Statement by Dr. Raghuram G. Rajan, Governor on Monetary Policy, March 4, 2015 disinflation is evolving along the path set out by the Reserve Bank in January 2014 and. The government has emphasised its desire to clean up legacy issues which gave a misleading picture of the true extent of fiscal rectitude. The uncertainties surrounding any inflation projection are. with growth having picked up significantly over the last three years. To this extent. Prices of vegetables declined and. Governor on Monetary Policy Statement by Dr. steps the government takes on food management will be critical in determining the inflation outlook. the Reserve Bank indicated that it will keenly monitor the revision in the consumer price index (CPI) with regard to the path of inflation in 2015-16 as well as the Union Budget for 2015-16. Governor on Monetary Policy* It may be recalled that in its statement on monetary policy of January 15. which will help improve supply over the medium term. a source for concern from the standpoint of aggregate demand management. Also critical would be sustained high quality fiscal consolidation…”. Rajan. and has also moderated the optimism in its projections. Perhaps the most significant influences on near-term inflation will be the strength of aggregate demand relative to available capacity. not insignificant. this is. The fiscal impulses in the Union Budget then assume importance. given still-sluggish global demand conditions. Inflation in January 2015 at 5. prima facie. Other international commodity prices are expected to remain benign. credit. the postponement of fiscal consolidation to the 3 per cent target by one year will add to aggregate demand. therefore. the general fiscal deficit will be lower. In the short run. Two recent developments pertaining to the demand-supply balance are the recently-released GDP estimates and the Union Budget for 2015-16. Yet the picture it presents of a robust economy. supported by lower 1 . Also. 2015 the Reserve Bank reduced the policy repo rate by 25 basis points and indicated that ““Key to further easing are data that confirm continuing disinflationary pressures. Rajan. Nevertheless. Food prices will be affected by the seasonal upturn that typically occurs ahead of the south-west monsoon and. The Central Statistical Organisation is to be commended on the changes it has made to the methodology of estimating GDP. At a time of accelerating economic recovery. hearteningly. the true quantum of fiscal consolidation may be higher than in the headline numbers. Data Developments The new CPI rebased to 2012 was released on February 12. Thus. To the extent that state budget deficits narrow. without entirely devolving responsibility for funding central programmes. perhaps as a result of unanticipated geo-political events. inflation excluding food and fuel moderated in a broad-based manner to a new low. the possible spill over of * Released on March 4. however. will alter the inflation outlook. however.1 per cent as measured by the new index was well within the target of 8 per cent for January 2015. and significant further strengthening. Raghuram G. the picture of a steadily recovering economy appears right. Oil prices have firmed up in recent weeks. imports and capacity utilisation as well as with anecdotal evidence on the state of the economic cycle. at a faster pace than earlier envisaged. RBI Bulletin March 2015 MONETARY POLICY STATEMENT 2014-15 volatility from international financial markets through exchange rate and asset prices channels is also still a significant risk. Some factors mitigate the concern. 2015. is at odds with still-low direct measures of growth of production. 2015. bringing India up to international best practice. especially with large borrowings intended for public sector enterprises. Furthermore.Statement by Dr. the government is transferring a significantly larger amount to the states. Finally. There are many important and valuable structural reforms embedded in this Budget.While maintaining the interest rate stance in its sixth bi-monthly monetary policy statement of February 3 in the absence of new developments on inflation or on the fiscal outlook till then. Raghuram G. in fact. the government intends to compensate for the delay in fiscal consolidation with a commitment to an improvement in the quality of adjustment. Further monetary actions will be conditioned by incoming data. and to better target and further reduce subsidies through direct transfers.   continue to provide liquidity under overnight repos at 0. Consequently. it is appropriate for the Reserve Bank to offer guidance on how it will implement the mandate. the RBI will seek to bring the inflation rate to the mid-point of the band of 4 +/. Governor on Monetary Policy MONETARY POLICY STATEMENT 2014-15 international energy prices. Any reserve build-up is a residual consequence of such actions rather than a direct objective. Of course. In sum. Rajan. It does intervene on occasion. land.75 per cent of NDTL of the banking system through auctions.5 per cent with immediate effect. Second. and the marginal standing facility (MSF) rate and the Bank Rate to 8. Going forward. while delayed. especially on the easing of supply constraints. Given low capacity utilisation and still-weak indicators of production and credit off-take. improved availability of key inputs such as power.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0. the monsoon outturn and developments in the international environment. there is a welcome intent to shift from spending on subsidies to spending on infrastructure. The realised net fiscal impulse will depend on both central and state government actions going forward. with the release of the agreement on the monetary policy framework.2 per cent provided for in the agreement.e. Policy Stance To summarise. minerals and infrastructure. While an excessively strong rupee is undesirable. Finally. it has been decided to:  2  reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7. and   continue with daily variable rate repos and reverse repos to smooth liquidity. i. it is appropriate for the Reserve Bank to be pre-emptive in its policy action to utilise available space for monetary accommodation.5 per cent. the central government has signed a memorandum with the Reserve Bank setting out clear inflation objectives for the latter. nor does it have an overall target for foreign exchange reserves. while the next bi-monthly policy statement will be issued on April 7. it too creates disinflationary impulses. It bears repeating here that the Reserve Bank does not target a level for the exchange rate. 2015 the still weak state of certain sectors of the economy as well as the global trend towards easing suggests that any policy action should be anticipatory once sufficient data support the policy stance. the pass through of past rate cuts into lending rates. may compensate in quality.. The fiscal consolidation programme.Statement by Dr. Raghuram G. all these mitigating factors have a fair component of intent.0 per cent of net demand and time liabilities (NDTL). continuing progress on high-quality fiscal consolidation. in both directions. RBI Bulletin March 2015 . especially if state governments are cooperative. Consequently. Finally.   keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.75 per cent to 7. The guidance on policy action given in the fifthbi-monthly monetary policy statement of December 2014 is largely unchanged.5 per cent with immediate effect. to 4 per cent by the end of a two year period starting fiscal year 2016-17. the rupee has remained strong relative to peer countries. the reverse repo rate under the LAF stands adjusted to 6. The need to act outside the policy review cycle is prompted by two factors: First. then. This makes explicit what was implicit before – that the government and the Reserve Bank have common objectives and that fiscal and monetary policy will work in a complementary way. to reduce avoidable volatility in the exchange rate. softer readings on inflation are expected to come in through the first half of 2015-16 before firming up to below 6 per cent in the second half. Khan Problem Loan Management and MSME Financing R. Inclusion. Mundra .SPEECHES Democracy. Rajan Taking on Risk – The Sensible Way Harun R. and Prosperity Raghuram G. S. Gandhi A New Banking Landscape for New India S. Khan Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities Harun R. . and end with lessons for India. In doing this. therefore. Samuel Huntington. by now. as I expect many of you did. as a contribution to the debate. 2015 in Goa. at the D. tend to have three important pillars: a strong government. and * Speech by Dr. Kosambi Ideas Festival held on February 20. or the radical Marxist view that the need for the government disappears as class conflict ends. Inclusion. Consider Fukuyama’s three pillars in greater detail. or judicial authority. I will warn that these pillars are weakening in industrial countries because of rising inequality of opportunity. Governor. Strong government does not mean one that is only militarily powerful or uses its intelligence apparatus to sniff out enemies of the state. and Prosperity Democracy. Reserve Bank of India. the development of a liberal market democracy. 2014. Instead. 3 . or incompetent rulers out. My starting point is the truism that people want to live in a safe prosperous country where they enjoy freedom of thought and action. Farrar Straus and Giroux. and Political Order in Changing Societies by Samuel Huntington. Inclusion. Rajan Thank you for inviting me to this Festival of Ideas. Fukuyama. 1968. enforced by religious. well known. political scientist Francis Fukuyama builds on the work of his mentor. and competent administrators who can deliver good governance. Fukuyama makes a more insightful point than simply that all three traditional aspects of the state – executive. with the people having the right to throw unpopular. I will then go on to argue that he leaves out a fourth pillar. free markets. they will not be settled in one speech. which are. Political Order and Political Decay: From the Industrial Revolution to the Globalisation of Democracy by Francis Fukuyama. D. Fukuyama’s three pillars of a liberal democratic state In his magisterial two-volume analysis of the emergence of political systems around the world. Since this festival is about ideas. I want to talk about something I have been studying for many years. But how do countries ensure political freedom and economic prosperity? Why do the two seem to go together? And what more. motivated. In sharp contrast to the radical libertarian view that the best government is the minimal “night watchman”. and Prosperity* Raghuram G. New York. which are essential to make the liberal democracy prosperous.1 I propose in this talk to start by summarising my (necessarily imprecise) reading of Fukuyama’s ideas to you. cultural. judiciary. and legislature – are needed to balance one another. which seem to be best at fostering political freedoms and economic success. I am not going to tax you with the Reserve Bank’s views on monetary policy. Rajan.Democracy. Rule of law means that government’s actions are constrained by what we Indians would term dharma – by a historical and widely understood code of moral and righteous behaviour. let me apologise for disappointing you. and where they can exercise their democratic rights to choose their government. I will wear my hat as a professor in the field known as political economy. corrupt. 1 The Origins of Political Order: From Pre-Human Times to the French Revolution by Francis Fukuyama. If you came here expecting more insights on the path of interest rates. RBI Bulletin March 2015 SPEECH democratic accountability. rule of law. but given their nature. And democratic accountability means that government has to be popularly accepted. and discard my RBI hat for the time being. a strong government is also one that provides an effective and fair administration through clean. Yale University Press. Think of my talk today. which primarily protects life and property rights while enforcing contracts. I would urge you to read the books to get their full richness. does India have to do to ensure it has these necessary underpinnings for prosperity and continued political freedom? These are enormously important questions. if anything. Farrar Straus and Giroux. Instead. Raghuram G. 2011. New Haven. to argue that liberal democracies. chosen by exam based on their learning. may not be sufficient to accommodate the aspirations of new emerging groups or the consequences of new technologies or ideas. they have to go in the right direction at the desired time. The physical rail network guiding the trains could be thought of as analogous to rule of law. Their military or police can terrorise the unarmed citizenry but cannot provide decent law and order or stand up to a determined armed opposition. Such unbridled military competition meant groups had to organise themselves as hierarchical military units. move in the right direction. China needed a well-developed elite bureaucracy – hence the mandarins. developing countries constantly request multilateral institutions for help in enhancing their governance capacity. It is not sufficient that the trains run on time. the rule of law ensures that businesses can invest securely today for the future. And by maintaining a predictable economic environment against populist democratic instincts. Even if groups cannot see their programs translated into policy. To rule over the large geographic area of the country. Hitler provided Germany with extremely effective administration – the trains ran on time. By ensuring that all citizens have inalienable 4 Democracy. by itself. Strong governments need to be peopled by those who can provide needed public goods – it requires expertise. the rule of law constrains the majority’s behaviour towards the minorities. while the process by which consensus is built around the train schedule could be thought of as democratic accountability. allowing emerging groups to gain influence through political negotiation and competition with others. overriding the rule of law and dispensing with elections. however. China had long periods of chaos. groups engaged in total war against one another. it was natural for it to impose centralised autocratic rule to ensure that chaos did not remerge. with rulers having unlimited powers. Where do these three pillars come from? Much of Fukuyama’s work is focused on tracing the development of each pillar in different societies. not strong ones. enjoyed the support of the majority of the people. But why do we need both rule of law and democratic accountability to keep strong government on the right path? Would democratic accountability not be enough to constrain a dictatorial government? Perhaps not! Hitler was elected to power. When eventually a group was victorious over the others. His was a strong government. and integrity. no matter which government comes to power. No matter how thuggish or arbitrar y the government in a tin-pot dictatorship. emphasises the importance of a strong government in even a developed country. good schools or clean drinking water. Inclusion. and until Germany started suffering shortages and reversals in World War II. For instance. So both rule of law and democratic accountability check and balance strong government in complementary ways. Their administration cannot provide sensible economic policy. and Prosperity rights and protections. these are weak governments. motivation. Strong governments may not. Realising the importance of strong government. Democratic accountability ensures the government responds to the wishes of the mass of the citizenry. most recently before the Communists came to power. especially in a vibrant developing society! Rule of law provides a basic slow-changing code of conduct that cannot be violated by either government or the citizenry.SPEECH as did Huntington. But that. as well as to ensure that basic “rules of the game” are preserved over time so that the environment is predictable. He suggests that what the nature of states we see today is largely explained by history. as did the trains during our own Emergency in 1975-77. What about asking the question the other way? Would rule of law not be enough? Probably not. democracy allows them to blow off steam nonviolently. but Hitler took Germany efficiently and determinedly on a path to ruin. The rule of law is needed to prevent the tyranny of the majority that can arise in a democracy. So China had strong unconstrained effective government whenever it was RBI Bulletin March 2015 . constrained further by rule of law. Free Enterprise and Political Freedom Why are political freedoms in a country. had weaker government. This fundamental tension between democracy and free 5 . based on the quality of the product he sells. unlike Western Europe or India. and should. one key similarity: Both a vibrant democracy and a vibrant free enterprise system seek to create a level playing field which enhances competition. But there is also at least one key difference. the bedrock on which all four pillars stand is a broadly equitable distribution of economic capabilities among the citizenry. A vibrant accountable democracy does not only imply that people cast their vote freely every five years. Any of these grand generalisations can. of which representative democracy is a central component. and free enterprise mutually supportive? There is. these differing histories explain why government in China today is seen as effective but unrestrained. And. the codes of just behaviour for rulers emanating from ancient Indian scriptures served to constrain any arbitrary exercise of power by Indian rulers. What then prevents the median voter in a democracy from voting to dispossess the rich and successful? And why do the latter not erode the political rights of the ordinary voter. So through much of history. by contrast. or military competition between states as fierce. which ensured that entire populations could never be devoted totally to the war effort. I will not dwell on this. of course. while some of its neighbours with similar historical and cultural pasts have not. In Western Europe. did not have strong alternative sources of power founded in religion or culture to impose rule of law. the promoter competes with other entrepreneurs for the consumer’s rupee. I turn to a different question that Fukuyama does not address. he argues. be debated. Instead. as in China. Of course. strong governments are needed for countries to have the governance to prosper. The free enterprise system. empowers consumers based on how much income they get and property they own. the Christian church imposed constraints on what the ruler could do. therefore. the historical pressure for Indian states to develop strong governments that intruded into every facet of society was muted. public debate uninhibited by political correctness. with every adult getting one vote. In the democratic arena. and Fukuyama argues. the long influence of history and culture is less perceptible when it comes to democracy where some countries like India have taken to it like a duck to water. In the economic sphere. Democracy treats individuals equally. It requires the full mix of a raucous investigative press. Second. the political entrepreneur competes with other politicians for the citizen’s vote. war was never as harsh. many political parties representing varied constituencies. Inclusion. by contrast. free markets underpin prosperity. That bedrock is fissuring in industrial countries. based on his past record and future policy agenda. coupled with constraints on the ruler imposed by canon law. But why is it that ever y rich country is also a liberal democracy subject to rule of law? I will make two points in what follows: First. free enterprise and the political freedom emanating from democratic accountability and rule of law can be mutually reinforcing so a free enterprise system should be thought of as the fourth pillar underpinning liberal market democracies. however. and a variety of non-governmental organisations organising and representing interests. As a result. and Prosperity united. the caste system led to division of labour. while government capacity in India is seen as weak. Fukuyama does not claim history is destiny. Equally. At the same time. but does suggest a very strong influence. Clearly. led to the emergence of both strong government and rule of law. India. according to Fukuyama. In India. It will continue to be a source of academic debate why a country like India has RBI Bulletin March 2015 SPEECH taken to democracy. but Indian governments are rarely autocratic.Democracy. So military competition. while it has to be strengthened in emerging markets like India. The free enterprise system works well when participants enter the competitive arena with fundamentally equal chances of success. Democracy is unlikely to support it. When such universal aspirations seem plausible. as the rich kowtow to the authorities to protect their wealth. not because they managed their businesses well. the winner’s road to riches depends on greater effort. and protect democratic rights. Great inequality. the process of creative destruction tends to pull down badly managed inherited wealth. will become a Bill Gates or a Nandan Nilekani. some group’s economic capabilities are sufficiently differentiated by preparation. worse. the free enterprise system will be seen as disproportionately favouring the better prepared. innovation. everyone can dream that they. There are. But success is not pre-determined because no class of participants has had a fundamentally different and superior preparation for the competition. The rich. and therefore as creators of jobs and prosperity that everyone will benefit from. a strong check on official arbitrariness disappears. If. Such a system generally tends to permit the most efficient to acquire wealth. and have come out winners in a competitive. Free enterprise and democracy sustain each other. So. few voices are raised in protest. to the extent that the rich are selfmade. The cynics can only be right for a while. for example. Given the subsequent level playing field. such a system loses any vestige of either democracy or free enterprise. Inclusion. They grew rich because they managed the system. however. confidant of popular legitimacy. support rule of law. a competitive free-enterprise system with a level playing field for all. and transparent market. When the government goes after rich tycoons. the system gains added democratic support. And. Without popular support. Ultimately. 6 Democracy. however. the level playing field is no longer sufficient to equalise a priori chances of success. Consider. In some emerging markets today. too. therefore. that the rich are seen as idle or crooked – as having simply inherited or. One reason that the median voter rationally agrees to protect the property of the rich and to tax them moderately may be that she sees the rich as more efficient managers of that property. and Prosperity replacing it with new and dynamic wealth. nor are the rich and successful as likely to support democracy. and occasionally luck. settling in return for a reasonable share of their produce as taxes. property rights of the rich do not enjoy widespread popular support because so many of a country’s fabulously wealthy oligarchs are seen as having acquired their wealth through dubious means. The Bedrock: Equitable Distribution of Economic Capabilities There is. fair. The fairness of the competition improves perceptions of legitimacy. On the contrary. in contrast. wealth is protected only by increasingly coercive measures. and the capitalists have the money. disgruntled about higher taxes and expanding healthcare subsidies. a growing concern across the industrial world. gained their wealth nefariously – the more the median voter should be willing to vote for tough regulations and punitive taxes on them. Such a scenario is no longer unthinkable in a number of Western democracies. Moreover. can then use the independence that accompanies wealth to limit arbitrary government. while former Massachusetts governor Mitt Romney appealed to business people. under conditions of fair competition. Prosperity seems RBI Bulletin March 2015 . built up over generations. The more. Government is free to become more autocratic. society may be better off allowing them to own and manage their wealth. does not become a source of great popular resentment.SPEECH enterprise appeared to be accentuated in the recent US Presidential elections as President Barack Obama appealed to middle-class anger about its stagnant economic prospects. however. Instead. deeper reasons for why democratic systems support property rights and free enterprise than the cynical argument that votes and legislators can be bought. it ensures there will be no movement forward. Where arguably we may have a long way to go. Quality higher educational institutions are dominated by the children of the rich. because a good education. to my mind. opposition parties. governments can either continue choosing the most capable applicants for positions but risk becoming unrepresentative of the classes. We must choose a happy medium between giving the administration unchecked power and creating complete paralysis. However. In India. finance. The mutual support between free enterprise and democracy is giving way to antagonism. and NGOs. and risk eroding effectiveness. India inherited a kind of democracy during British rule and has made it thoroughly and vibrantly her own. Similarly. the free press. Of the three pillars that Fukuyama emphasises. and trade is increasing. they do not see the system as fair. but because they simply have been taught and supported better by expensive schools and private tutors. in many areas of government and regulation. all four pillars supporting the liberal free market democracy have also started swaying. which seems to be today’s passport to riches. For instance.Democracy. and there are far too few Indian Economic Service officers to go around. India also adheres broadly to the rule of law. well-trained economists are at a premium throughout the government. is in the capacity of the government (and For instance. Support for the free enterprise system is eroding. as the economy develops. as class differences create differentiated capabilities among the public. and Prosperity increasingly unreachable for many. Inclusion. or even the task faced by other Asian economies. with the domain knowledge and experience. Moreover. We will have to strengthen government (and regulatory) capability resisting the temptation to implant layers and layers of checks and balances even before capacity has taken root. If it does not provide for that capacity. the strongest in India is therefore democratic accountability. as the bedrock of equitable distribution of capabilities has started developing cracks in industrial countries. a business approval process that mandates numerous government surveys in remote areas should also consider our administrative capacity to do those surveys well and on time. SPEECH by this I mean regulators like the RBI also) to deliver governance and public services. So government capacity may also be threatened. an enormously important concern that will occupy states across the world in the years to come. Neither biased nor ineffective government can administer well. Because middle class parents do not have the ability to give their children similar capabilities. with strong institutions like the judiciary. This is. as Fukuyama has emphasised. not because they have unfairly bought their way in. or the speed of the roll-out of the Pradhan Mantri Jan Dhan Yojana – but that such capabilities have to permeate every tehsil in every state. or they can choose representativeness over ability. we need more specialists. Let me conclude with lessons for India. recognising that our task is different from the one that confronted the West when it developed. as witnessed by the popularity of books like Thomas Pikkety’s Capital in the 21st Century while the influence of illiberal parties on both the Left and Right who promise to suppress competition. we contain Moreover. if we create a multiple appellate process against government or regulatory action that is slow and undiscriminating. and it is then restrained by rule of law and democratic accountability. the reach of the public distribution system in Tamil Nadu. This is not to say that we do not have areas of excellence strewn throughout central and state governments – whether it is the building of the New Delhi Metro. we have the opposite situation today. is unaffordable for many in the middle class. RBI Bulletin March 2015 7 . whose aim is to check government excess. Thus. necessary government function is sometimes hard to distinguish from excess. Lessons for India An important difference from the historical experience of other countries is that elsewhere typically strong government has emerged there first. As. the political dialogue has also moved. and markets to all our citizens. This also means that if we are to embed the four pillars supporting prosperity and political freedom firmly in our society. healthcare.SPEECH government excess but also risk halting necessary government actions. we ensure that the appellate process largely biases justice towards those who have the resources to use it. RBI Bulletin March 2015 . So in thinking through reforms. finance. If the government or regulator is less effective in preparing its case than private parties. Let me emphasise. but we should ensure a balance of checks. and Prosperity of our Class IV employees. Inclusion. a heartening recent development is that more people across the country are becoming welleducated and equipped to compete. obviously. across the country. nutrition. is therefore a necessity for sustainable growth. by which I mean easing access to quality education. we may want to move from the theoretical ideal of how a system might work in a country with enormous administrative capacity. many of whom hold jobs as business executives in private sector firms. public support for free enterprise has expanded. education makes our youth economically mobile. from giving hand outs to creating jobs. It is also. it is likely that the public will be supportive of reform. we have to continue to nurture the broadly equitable distribution of economic capabilities among our people. Increasingly. rather than rectifying a miscarriage of justice. We cannot have escaped from the License Permit Raj only to end up in the Appellate Raj! Finally. we need “checks and balance”. a moral imperative. therefore. Economic inclusion. One of the most enjoyable experiences at the RBI is meeting the children 8 Democracy. to how it would work in the actual Indian situation. So long as we modulate the pace of liberalisation to the pace at which we broaden economic capabilities. This relationship is. but are now wary of low volatilities.Requital – in the risk-return conundrum. 9 . Part of the military vocabulary. we may want to take a pledge to de-risk the future. wondering why CII is thinking of de-risking the future of India Inc. appetite. more often than * Keynote address delivered by Shri Harun R. Khan Shri Suresh Senapaty. complexity and ambiguity. and the nature of risk is shaped by the time horizon: the future is the playing field’1. And there is this ambiguity in all these. In the present context. Gurumurthy of the Reserve Bank of India. however. Reserve Bank of India at the CII National Risk Summit 2015 on De-risking the Future of India Inc. according to him. making it VUCAP. financial markets and the army interventions across the globe!! We used to scorn high volatility in the past. Peter Bernstein. the American financial historian. that. The risks posing a threat to the financial and economic balance of the world today are far from being properly managed and controlled. We do worry about uncertainties. ‘Risk and time are opposite sides of the same coin. in a way is perversity. had an interesting perspective. now widely used to explain the vagaries of global economy and the financial markets. RBI Bulletin March 2015 SPEECH not. Shri Deepak Parekh. Are we all really uncomfortable with complexity? Not sure. of course. Smt. Greeta Varughese other distinguished guests & invitees on and across the dais.I am. I would like to add a P to this. This invitation to give an address at this important CII event gives me a great pleasure. I understand that the prevailing evidence of continuing. Khan. Shri Richard Rekhy. The tremendously forceful human fascination for reward and the almost irresistible tendency to take or overlook risks in that pursuit has.Taking on Risk – The Sensible Way Taking on Risk – The Sensible Way* Harun R. 2015. Deputy Governor. That wouldn’t be a misfit given the nature of the contemporary global economy. but certainty brings complacency and makes us vulnerable. While developing my thoughts on the much used idea of the risk-return trade-off. if not increasing. in a bid to earn the ‘reward’ or ‘return’ according to the risk-return tradeoff. 1 Against the Gods. Hence. In fact. our approach should be to ensure risk compatibility over time rather than trying to de-risk the future. which stands for perversity. in the long term. resulted in inevitable retribution or requital. Risk-Return-Retribution in a VUCAP World All human enterprise. at Mumbai on February 10. far from simple as the reckless chasing of returns may result in unimaginable levels of risks not only for the individual enterprise but also for the whole system. CII seems to have chosen a very interesting theme for this national risk summit – ‘De-risking the future of India Inc. The latest financial stability report released by the Reserve Bank of India (December 2014) talked about ‘an ambience wherein weak growth prospects are still considered benign for financial markets’ for that would lend strength to the expectations that ultra-easy monetary policies would continue. May be that we need to strategise to meet the challenges of a VUCA world. Having seen the massive impact of the global financial crisis. uncertainty. a fanatic commitment to risk aversion could itself be a risk that businesses might face in any post-crisis period. it is an acronym for volatility. For some. But then. Time transforms risk. for if there were no tomorrow there would be no risk. though the participants here would appreciate the fact that de-risking would also mean that they have no business to be in ‘business’. more so business activities essentially involve risk taking. probably it is the zeitgeist that drives us crazy. I was led to think of a missing ‘R’.’. that’s the world that we have to deal with. for fast returns is one of the major motivations behind the broad theme for this seminar. The speaker deeply acknowledges the contributions of Shri R. complexity pays. these were brought upon due to the corporate scandals and breakdowns in the past few years. order. is in terms of raising resources – not because of non-availability of resources. besides shareholders. rather than precede. we all understand and appreciate the concerns here – both of the law enforcers and of those who are subjected to these laws and regulations. going ahead. there is a slot to discuss this and a brief is given thereunder. ‘That’s why we prefer to entrust the navigation of a plane to a skilled pilot instead of using the average of the opinions of the passengers’. thus. it may make immense sense to seriously look at the ‘Make in India’ pitch with the government trying to do what it can. often says. chaos and renewal – appear repeatedly. The global financial crisis. that. replied: ‘when you start from France. we get to hear how difficult it is to do business in India. This is also because organisations have been doing more business across boundaries than ever. the co-founder of BlaBlaCar. In the current 10 context. but then it renewed the fertility of the soil and helped a highly productive farming industry that sustained the Egyptian civilisation. it also pointed out. It is very likely that the days ahead will experience enhanced scrutiny of credit decisions of banks by depositors and tax payers. presentation at International Banking Conference Federal Reserve Bank of Chicago. As I could see from your flyer. What guides the actions of regulators is the need to ensure smooth functioning and stability of the markets that they regulate and not populism. In what is called as ‘regulatory dialectics’. where the themes – viz.. at various points of time. has provided us new lessons as also opportunities. rightly. avoidance and reregulation2. Their actions in fact emanate from the very nature of the wider mandate that the regulators carry on their shoulders. I am sure Indian companies that ventured overseas in the last one decade or so may now vouch for these sentiments. One challenge that some corporates might face. RBI Bulletin March 2015 . Use and Misuse of Credit That brings me to a widespread concern of the regulators like the Reserve Bank of India over corporate leverage and the prevailing credit culture. So. 2 Edward Kane – ‘Loose Ends in Capital Regulation: Facing Up to the Regulatory Dialectic’.Taking on Risk – The Sensible Way SPEECH I think it might be in Nature. nor for lack of creditworthy business opportunities but because of how the debtors respect their commitments as also an evolving thinking on ‘efficiency imperative’ in credit dispensation. have had similar concerns over doing business elsewhere too. November 11. Is it all because of the deteriorating credit culture? We need to examine. crowd-pleasing is no substitute for wise judgement. But multinationals. the Financial Times columnist. Every year the Nile flooded. This must be true of other markets. Oftentimes. when questioned about the rationale in starting his venture out of France with its 28 sets of laws and regulations. At the DLD technology conference in Munich recently. like every other crisis. the excesses committed by the regulated entities or the overreach of the so called self-regulatory mechanism. too. let me now turn to some specifics. Nicolas Brusson. Having added a P here and an R there to put the broad theme of this seminar in perspective. the French ride-sharing startup. adding global regulatory concerns to their local regulatory risks. Chicago. 2011. financial market regulation is an endless process with both the regulator and the regulated making alternative moves in terms of regulation. We must understand that most of the times regulatory stance follows. Let’s for instance take a look at the ancient Egyptian religious thought. In other words. were his words of wisdom. everything looks simple’. While it talked about increasing risks faced by companies arising from complex regulatory enforcement and new legislation. Business Risk and Regulatory Dialectics Being a regulator. I will start with the business community’s concerns over legal and regulatory risks. as John Kay. Verghese Kurien Memorial Lecture at IRMA. That too here we are talking about nations. credit is the other end of this intermediation process and we all must understand the etymology of the word ‘credit’ and respect the semantics. similar to the approach adopted by financial sector industry. While we do have comfortable foreign exchange reserves. 3 4 Risks of Unhedged Forex Exposures Saving Credit – Talk by Dr. 2014. The only way we address the situation is responsible use of credit. which came from domestic and overseas financial markets though the ensued GFC. and expanding their wings beyond national borders. Raghuram G. SPEECH concern to the economic and financial system stability. there is a strong view that no amount of such reserves can cushion extreme external shocks. Leverage per se is a necessary evil for businesses to grow. against all contractual norms established the world over – where promoters have a class of ‘super’ equity which retains all the upside in good times and very little of the downside in bad times. On the other hand. 11 . Anand on November 25. mere cost advantage in terms of pure interest rate differential (without the hedge costs) should not be the guiding factor for overseas borrowing. Let us now look at the way ‘leverage’ is assuming negative connotations. Why then corporate leverage is being quoted of late as a concern for financial stability? Indian companies. Raghuram G. Rajan at the Brookings Institution. On the other hand. While regulators certainly will not like to micro manage what otherwise is a commercial decision. have come of age in terms of building world class infrastructure projects. April 10. reaching financial savings to those in need of it. there is an ‘uneven sharing of risk and returns in enterprise. Rajan at the Third Dr. hold ‘junior’ debt and get none of the fat returns in good times while absorbing much of the losses in bad times’. while creditors. You all might be aware of the recent decision of the Swiss National Bank that claimed a few scalps while the victims cried foul. typically public sector banks in our context. borrowers get into a trap at times of exchange rate appreciation which gives them a false sense of complacency in terms of having higher equity due to rising asset prices. RBI Bulletin March 2015 Competitive Monetary Easing: Is it yesterday once more? – Remarks by Dr. Large scale unhedged foreign currency exposures are not only a threat for individual entities but also a For those business entities that do not have a natural hedge. in the aftermath of the financial crisis of 2008. 2004. While some have succeeded. as Governor Rajan had indicated some time back4.Taking on Risk – The Sensible Way Banks form the backbone of our financial system and carry out an important function. when many Indian exporters who had entered into complex derivative structures with banks suffering severe losses arising out of marking to market of their derivative positions. People in business should therefore realise that adoption of risk management strategies is not meant for generating additional earnings but is needed for protection of the projected income flows. withstanding tough competition from global players. Their actions needed enormous resources. demand slump and currency volatility exposed them to unexpected risks. the ambitions of others have proved to be hubris. viz. Hence corporates need to understand not only the risks they are assuming but also the risks arising out of faulty ‘risk mitigation’ processes. we also had this unpleasant experience. Thus. As Governor Rajan has warned 3. You can imagine how vulnerable corporates can become if they have too much of foreign currency exposures. Could they have seen all this ex-ante? Probably going ahead nonfinancial companies may think of some kind of stress tests to assess their resilience to emerging risks. no doubt. corporates need to take care of the potential risks embedded in their unhedged currency exposures since they might incur significant costs due to unexpected and sudden exchange rate movements.. This is why I said earlier that complexity benefits some and hurts others. subsequent to the GFC. This relates to the threats posed by disruptive ideas and technologies and the risks in not being able to swiftly appreciate the emerging challenges posed by the digital world.Taking on Risk – The Sensible Way SPEECH Last year when the US Fed indicated its intentions of tapering of quantitative easing (QE). just to illustrate. restrictions with respect to remittances under ODIs were largely withdrawn on July 01. 7 The Cyber Threat to Banking – A Global Industry Challenge. the curbs imposed on gold imports and opening of concessional swap windows for mopping up longer term foreign currency resources through foreign currency deposits and borrowings by the banks. Coping with Cyber Threats For the financial sector specifically. what is more important. Oliver Wyman. there is a need to look into the extant IT environment. reduction in limit for overseas direct investment (ODI) under automatic route from 400 per cent to 100 per cent of the networth of an Indian entity as a macro-prudential measure though in genuine cases requirements above the revised limits were considered under the approval route besides many administrative measures aimed at curbing the opportunities for excessive financial market activities. 60 per cent of the firms surveyed indicated ‘the speed of technological change’ as a threat to their growth prospects. is that they are inevitable. On the other hand. With return of stability in the Rupee-Dollar exchange rate. RBI Bulletin March 2015 . Several measures were taken to address volatility in the foreign exchange market that included. The attitude of de-risking doesn’t go well with disruptive ideas and this gets clearer by looking at the start-up culture that the US is known for and why that country stands apart and enjoys leadership position amidst fast changing economic cycles and consumer preferences. 12 As per a PwC survey5. and increasing cybercrime is threatening this basic premise. 6 Managing complexity – the state of the financial services industry 2015. among others. the job of de-risking the corporate world sometimes is upon macro prudential regulators like the RBI for the larger concerns that I had explained to you earlier. but let’s not for a while forget the fact that these disruptive initiatives do face their own set of risks and challenges. 2014 and the limits under automatic route for overseas investment were restored to 400 per cent of the net worth of the Indian entity. The Reserve Bank and the Government had to take a number of measures to de-risk the national balance sheet. The financial sector industry rests on trust and credibility. For countries like ours we need to reassure that technologies would ultimately improve job opportunities by augmenting inclusive growth – both quantitatively and qualitatively – rather than taking them away and that they enhance the standard of living rather than destroy it. ‘defending and countering cyber-attacks whilst keeping up-to-date with evolving regulations and policy is a complex challenge’. I must also tell you that the dividing line between prudential regulation and micro management is often thin. Dealing with Disruptive Ideas and Technologies Let me now turn to another theme of discussion in this summit. the manufacturing industry may be particularly worried about the fact that more and more talent and resources are shifting their preferences to virtual platforms than to brick and mortar manufacturing. since there is a feeling that the IT infrastructure at most financial firms is fragmented and inconsistent6. particularly those with current account deficit (CAD) came under severe pressure due to capital outflows. Yet. like many emerging market economies. There is a perceptible discomfort amongst a section of the business community with the rapidity with which the world is changing as a result of disruptive ideas and technologies. The valuations seem skewed towards such initiatives. India. According to a report7 released by the British Bankers’ Association (BBA) in association with PwC. 5 PwC 2014 Annual Global CEO Survey. however. The recipe for success lies in transforming the businesses to be relevant in a post-industrial digital world. In other words. Such behavioural patterns may lead to functional paralysis and at times. ‘What are my key competencies?’ and ‘What are my weaknesses?’ Is it the cost control centric rather than value addition centric approach of Indian industry that 13 . the primar y weapon is e xploiting vulnerabilities. In all these. given its relatively strong position amongst emerging market economies. the mostly ignored aspect of the ‘inclusiveness’ discussions.Taking on Risk – The Sensible Way As you know. In other words. with a political set up so attuned to the concerns of the industry. Yet. fall in inflation. Macroeconomic vulnerabilities facing our economy have significantly receded. In the case of a data theft last year at one of the global investment bank. and a strong commitment from the Government to contain fiscal deficit. sharp reduction in oil prices. According to some research in behavioural finance. She said 8 PwC 2014 Global Economic Crime Survey. if we look at it seriously. Optimism with Caution India is on the cusp of a great upsurge and business entities must ride the wave but they should be mindful of the risks that they are assuming for themselves and for the system as a whole. Having said that. India cannot afford to lose the greatest opportunity that it possibly got over the last so many years. in the absence of appropriate incentive compatibility structures. RBI Bulletin March 2015 SPEECH ‘had Lehman Brothers been Lehman Sisters today’s economic crisis would look quite different’. excessive risk taking in men has to do with their body chemistry. A survey8 indicates that 41 per cent of economic crime was committed by employees within an organisation. we may encounter behavioural patterns leading to decision making processes that de-risk the individual rather than taking the optimal decisions that would benefit the organisation. While they cannot be easily wished away. cybercrimes are getting sophisticated and nuanced. to explosive business disruptions within the organisation. On the other hand. thanks to improvement in growth outlook. We can even think of gender balance in decision making. recovery in the external sector coupled with a bigger war chest of forex reserves. This implies we are much better positioned among our peer countries to cope with future uncertainties and vulnerabilities. No corporate can afford to brush these off as trivial nonoperating activities since the potential risks involve not only monetary loss but also reputation and legal risk which can simply demolish established businesses. infact we now hold highest ever foreign exchange reserves of about US$ 330 billion. Motives could be anything ranging from corporate espionage to intellectual property rights to siphoning off funds. what was disturbing was not the security breach per se but the fact that the hackers were inside their systems for close to two months before being noticed! Corporates need to put in place a robust business continuity management (BCM) plan (which is the broad theme of the last session of this summit) and perform business impact analysis. the ‘Make in India’ perspective offers a paradigm shift in terms of Government-industry interaction. How do we address this? Can we seriously think of examining the incentive-compatibility structures at our companies? Since risk is inherent in every business. a successful implementation of this paradigm requires asking some basic but fundamental questions for each industry in terms of ‘What do I offer?’. Their perpetrators could be broadly categorised as ‘organised cyber criminals’ and ‘enemy state agents’. at this juncture. the only way corporates can tackle this is to be ‘proactive’ about their ‘cyber resilience’. I am reminded of the famous response of Christine Lagarde to a journalist’s question. we cannot afford to be complacent and that is why we want to be cautious in our approach and want to be more certain than everyone else that our economy and financial system do not have to repeatedly face many of these vulnerabilities. That might be a quip. but we have seen the success of Mohammed Younus who turned to women to make ‘micro finance’ what it is today. Thank you all. Conclusion Let me conclude with a few thoughts. I wish you all the very best and hope you will have fruitful discussions on a broad range of themes starting from ‘risk analytics’ to ‘regulatory risks’ to ‘digital forensics’ to ‘risks from work place of the future’ and finally to ‘climate change and sustainability risks’. And such leaps will have to be enabled at our educational institutions. I am sure that at the end of the summit you will all arrive at a few workable strategies to manage your business risks more efficiently. It rather means that such leadership will entail that for every loser in such an enterprise. More and more institutions of excellence must be encouraged to serve as incubators for legions of technology breakthroughs.. the sustainable USPs.e. RBI Bulletin March 2015 . i. The sustainable solution for risk mitigation lies. to a great extent. Knowledge leadership doesn’t imply that Indian industry as a whole will be insulated from churning. in knowledge leadership. After all there is only one company common between the Dow Jones index of the early twentieth century and twenty first century. vocational or otherwise.Taking on Risk – The Sensible Way SPEECH is to be addressed first? The term ‘de-risking’ should mean finding one’s own moorings. A manufacturing industry driven by cost minimisation philosophy compromising on quality can only be fleeting source of comfort. To progress from ‘me too’ business models which are all too vulnerable to disruptive onslaught from ever nimbler start-ups to ‘knowledge leadership’ is a significant leap. 14 The question we require to pose is what stops us from replicating such innovation centric knowledge hubs. But India as a country has to make that leap in order to develop sustainable source of leadership. there are multiple winners. In short. Y. Pune on February 23. which has been characterised as ‘secular stagnation’ by Larry Summers2. Canadian Dollar. Ukraine and the Middle East are sources of geopolitical risks.. Mr. members of faculty.3 per cent lower than what was projected in its World Economic Outlook in October 2014. Hysteresis. M. Japan and some oil exporting countries.0 per cent.4 per cent to 3. The IMF has projected1 global growth in 2015 and 2016 at 3. Global growth. Russia. L&T Finance Holdings Ltd. delivered at the Third International Conference on Emerging Trends in The Global Financial Landscape organised by the Symbiosis Centre for Management Studies. The World Bank. Against this background. Director. Dr. Japan has come out of a technical recession but is still quite some distance away from the Bank of Japan’s target of 2. Rajani Gupte. in its Global Economic Prospects Report. January 2015. The speaker acknowledges the contributions of Shri R. I would briefly highlight the impact of major crises in the past vicennium and then touch upon the various dimensions of India’s increasing linkages with the global financial landscape besides current state of external sector vulnerability. however remote. the Eurozone. Economic Prospects: Secular Stagnation. Finally.S. The possibility of a Grexit. Deputy Governor.5 and 3. January 2015. has reduced global growth projection for 2015 from 3. Khan. continues to be in a sluggish phase. Given the prospects in the US economy. Financial Counsellor & Representative of the Deutsche Bundesbank. against the Euro. Deosthalee. Mr. Sattler. and the Zero Lower Bound: Larry Summers 15 . may induce a chain of events which markets may not be prepared for. Dr. Global Outlook Developed Economies 2.7 per cent. forced reorientation of many policies and led to adoption of unconventional policies. RBI Bulletin March 2015 SPEECH when faced with external sector vulnerabilities and volatilities. The US offers the best prospects in the developed world but Eurozone continues to be a matter of concern even as the European Central Bank embarks on quantitative easing (QE) programme to fight deflation. in particular. Symbiosis Centre for Management Studies. The projections are 0. the intensity of global financial crisis of the recent past has been such that the financial landscapes have undergone tectonic shifts. It is a pleasure to be in your midst and inaugurate the Third International Conference on Emerging Trends in The Global Financial Landscape. Reserve Bank of India. A.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities* Harun R. 2 U. The Bank of Canada and the Reserve Bank of Australia have announced rate cuts in view of weak growth. students.0 per cent inflation. Chairman & MD. therefore. before summing up. Last seven years have been quite eventful and interesting for all and especially for the policy makers across economies. Alexander K. Greece continues to trigger fears of a renewed Eurozone crisis though the European Finance Ministers appear to have reached an agreement to extend Greece’s financial rescue plan for another four months. the US dollar has strengthened against most currencies and. I would briefly cover the issues related to foreign exchange reserves which act as the first line of defence * Based on the inaugural address of Shri Harun R. I would begin with a brief review of the key developments that shape our global outlook at this point of time and the impact of such changes on India. World trade volume and consumer prices in advanced economies are also projected to decline. Subramanian and Shri Surajit Bose of the Reserve Bank of India. Australian Dollar 1 IMF World Economic Outlook Update. Vice Chancellor. Bhama Venkataramani. distinguished invitees and friends from media. Crisis after crisis have tested existing policies. 2015. Khan Good morning Symbiosis. The revisions reflect a reassessment of growth prospects in China. Symbiosis International University. 6. Throughout the past year. The recent update on the IMF World Economic Outlook projects that growth in Emerging Markets & Developing Economies (EMDEs) to remain broadly stable at 4.3 per cent. oil market uncertainty and political risks. The World Bank. and benefit from lower oil prices. will continue to remain a key theme for 2015. What needs to be seen is whether China makes a soft landing and what are the implications for the rest of Asia. To an extent. Deceleration in growth in China has been well known. what is of interest is the policy course the US Federal Reserve is likely to pursue – when it will take the first step in a cycle of rate rise and. the VIX3 has been averaging about 14.8 per cent for the year 2015. as markets are affected by shifting expectations of the Federal Reserve’s policy trajectory. however. RBI Bulletin March 2015 . As regards capital flows to the EMDEs.5 per cent rise in rates. The disparity between what the Federal Reserve predicts about the path of rate rise and what the market expects it to do has been well known.2 per cent to 4. Dan Galai in 1986. in its Global Economic Prospects Report (January 2015) has also cut down the growth projection of EMDEs from 5. analysis of past Federal Reserve tightening cycles suggests risks of heightened incidence of EMDE crises during the year ahead.7 per cent in 2016 – a weaker pace than forecast in October 2014. Flows during the year are again likely to be volatile. The idea of a volatility index. Emerging Market & Developing Economies 3. at what pace will it tighten monetary conditions. The long term average has been 19. all other things being equal. While the EMDE capital flows could be affected. slower growth is policy induced by the Chinese authorities as they aim to reduce vulnerabilities from rapid credit growth and make a transition from an investment-led economic model. a popular measure of the implied volatility of S&P 500 index options. will sap flows in EMDE by about 10 per cent or US$ 30 billion. 4. While the drop in 3 VIX is a ticker symbol for the Chicago Board Options Exchange Market Volatility Index. It represents one measure of the market’s expectation of stock market volatility over the next 30 day period. This should soften the blow of a US rate rise. A quicker and steeper than expected rate rise cycle in the US would have an impact on EMDE capital flows.2. the Institute of International Finance (IIF) expects 2015 could be another stressful year for capital flows to emerging markets. after a substantial drop last year. subsequently. Any policy move by China to ease monetary policy will have ripple effect across the Asian region. Country differentiation.3 per cent in 2015 and to increase to 4. Any rise in the VIX could trigger a capital outflow from the EMDE. With a stronger US dollar and low oil prices. its lowest since 2006. This year could. Projection for growth of Indian economy was marginally revised downward from 6.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities SPEECH and the Japanese Yen. Outlook on Oil Prices 5. a much weaker outlook in Russia and downward revisions to potential growth in commodity exporting countries. This is mainly attributed to lower growth in China. Total EMDE inflows are projected to decline further. What is of concern is the market’s discounting of the Federal Reserve’s own predictions for future rate rises. be different as the European Central Bank and the Bank of Japan are both following ultra-accommodative monetary policies. as the Federal Reserve starts to raise the policy rates and the EMDE growth remains lackluster. The sharp decline in global oil prices has been well documented in the financial press. Menachem Brenner and Prof. sovereign or banking crisis as years in which the Federal Reserve has tightened monetary policy usually have seen more market turmoil. There are fears that EMDE markets may be catapulted into currency. While many large EMDEs with well-known vulnerabilities have sought to strengthen their macro policy frameworks.4 per cent to 6. was first developed and described by Prof. the key question is how sensitive are these to US rate rise. and financial instruments based on such an index. According to IIF’s estimates a 0. a subject eloquently brought out in Ruchir Sharma’s book 16 ‘Breakout Nations: In Pursuit of the Next Economic Miracles’. The up move of about 20 per cent has also been somewhat unexpected at a time when many analysts were expecting oil prices to fall further. The impact across countries has been asymmetric – most Gulf nations and Norway have built sufficient reserves in their sovereign wealth funds (SWFs). as the BIS study shows. The Bank for International Settlement (BIS). Political stability combined with strong commitment to fiscal and monetary discipline and economic reforms promise rapid growth. as you are aware. But. The journey so far 9. Further. Changes in production and consumption seem to fall short of a fully satisfactory explanation of the abrupt collapse in oil prices. climate change and adoption of energy efficient technology. While oil production has been close to expectations. an unanticipated fall in oil price weakens the balance sheet of oil producers who are impelled to sell forward more of their production. Oil producing countries. ironically. facing an oil shock of a different kind. India and the Global Financial Landscape 8. One important factor could be the substantial increase in debt borne by the oil sector in recent years. in expectation of high future oil prices. From the late 1980s. reflect not only basic economic forces of demand and supply but also geo-political developments. 4 Note available at https://www. Given our advantages of demographic dividend and a large entrepreneurial class. are also beginning to review their national budgets which depend on oil revenue.5 million barrels. The Organisation of the Petroleum Exporting Countries (OPEC) decision not to cut production. Russia reeling under recession and South Africa facing declining growth. 7. Oil prices. Till the early 1980s. Given high debt issued by oil producers. In recent weeks. India’s trade regime was autarkic with very high nominal import tariffs and also non-tariff barriers.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities prices was over 50 per cent since mid-2014. no doubt. has been a key factor in the fall in international crude price. consumption has been only a little less than earlier forecast. technological advances in renewal energy. India is emerging as the leading light of the EMDEs. the government began dismantling the import licensing system and simplifying the tariff structure moving towards a more open trade regime. The crisis year 1990-91 was a watershed year in Indian economic history: India faced 17 . With that background. recent weeks have seen an uptick in prices. But some other high cost producers could be at risk if price continues to fall. let me turn to the Indian context: Where is India placed in the global financial landscape? India is perhaps the only major economy where growth prospects have not been revised downwards. It has also been noticed that swap dealers may have become less inclined to sell protection to oil producers during times of heightened volatility and balance sheet stress. When its peers in the BRICS group seem to be following with China on a slowdown trajectory.htm RBI Bulletin March 2015 SPEECH More study is of course needed to understand the oil price dynamics and its interactions with financial markets and macro-economic factors. 6.org/statistics/gli/glibox_feb15. The international oil price movement has been the subject of market speculation as well as academic research.bis. in a recent note4 has said that the steepness of the price decline and very large day-to-day price changes are reminiscent of a financial asset. Brazil staring at stagflation. Most analysts seem to agree that daily demand for oil is short of average daily production of a little over 94 million barrels per day by just about 1. debt service commitments may induce producers to maintain production levels and delay production cuts. market analysts seem to welcome the move as the oil price equilibrium appears to be somewhat restored. B. thereby keeping supply at a level higher than what demand may justify. India should be the destination for global capital if we take steps to address structural bottlenecks and enhance productivity of the economy. the trend seems to have reversed and. other factors could have exacerbated the fall in oil prices. on the other hand.8 per cent of the GDP respectively. With the steep fall in international oil prices. From second quarter of 2013-14. Being a developing and energy deficient country. In the current fiscal year so far. In April-November 2014. Export of services has also seen phenomenal growth increasing from US$ 4.1 billion (2.6 billion in 1990-91 to US$ 151. merchandise trade persistently remained in deficit. capital flows would be more than adequate to finance CAD.SPEECH an external payment crisis.3 per cent of total import. particularly. gold also increased in the recent years. import of precious metals. India remains the largest recipient of officially recorded remittances in the world and received about US$ 70 billion in 2013. CAD has steadily declined and has been well within the sustainable range.. Crude oil import in 2013-14 was US$ 165 billion. debt flows have declined from 80 per cent in 1990-91 to about 30 per cent in 2011-12. merchandise imports also rose as India’s economy grew and progressively got integrated with the global economy. textiles) to capital intensive goods (e.2 billion in 2008-09 indicating volatile nature of such capital flows. Foreign Direct Inflows (FDI) and portfolio investments constitute a major share of the flows. trade. is expected to be less than last year’s figure of 1. as a share of total capital flows. Debt flows.g.1 per cent of GDP) in Q2 of 2014-15 from US$ 7. External Commercial Borrowings. Notably. CAD increased to US$ 10. Invisibles. it was US$ 90. The increase in CAD was primarily on account of higher trade deficit contributed by both a deceleration in export growth and increase in imports. It acts like a fiscal stimulus and world consumption is expected to get a boost as consumers spend less on energy. Overall. apart from the rise in domestic consumption.7 per cent of GDP.g. in particular. Capital Account 11.2 per cent and 4. oil and coal. hence. The oil price fall has definitely been a boon to EMDE. have gone up substantially but. The oil price decline is beneficial to India. India’s current account position has always been in deficit barring for a brief period in the beginning of the last decade.7 per cent of GDP) in the 18 Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities preceding quarter and US$ 5. While there has been rise in energy related imports. the CAD by US$ 10 billion or 0. banking and exchange rate policies.5 billion in 2013-14. current account deficit (CAD) generally remained range bound barring 2011-12 and 2012-13 when it shot up to 4. about 36 per cent of the total import bill. As a result. have been a support with private transfers/ remittances being steady and consistent. India depends upon capital flows to bridge the CAD. Imports rose to US$ 450 billion in 2013-14 from US$ 24 billion in 1990-91. however. According to some estimates. a US$ 10 a barrel fall in oil prices will reduce the country’s import bill and. about 28.8 billion (1. Impact of falling oil prices 12. During 2014-15.3 billion. such as. India has witnessed a net inflow of about US$ 25 billion in the form of FDI and about US$ 36 billion as portfolio flows as against about US$ 21 billion and (-) US$ one billion respectively in the corresponding period of the last year. Current Account 10. Total capital flows reached a peak of US$ 107 billion in 2007-08 but collapsed to about US$ 7.48 per cent RBI Bulletin March 2015 . sharp increase in oil imports was partly due to rising POL exports as well. India’s export performance has progressed commendably: exports have gone up from US$18. Looking at the recent trends. as it results in lower inflation and gives comfort in budget and fiscal management. Fundamental changes were carried out in industrial. Concomitantly. engineering). especially countries like India which are energy import dependent. The composition of exports has shifted from labour intensive products (e. India’s trading partners have also changed with greater share of emerging markets.1 billion in 1990-91 to US$ 314 billion in 2013-2014..2 per cent of GDP) in Q2 of 2013-14.2 billion (1. covering about 15 per cent of imports. CAD during the current year as a whole. not because it is an inherent trait of history. as against depreciation of 6. the negative could be in terms of lower remittances and capital flows from the affected countries. however.04 per cent of Russian Rouble. history repeats itself.. monetary policies of developed countries tend to impact macro-economic parameters of the country. Another estimate indicates that 10 per cent reduction in crude oil prices will reduce Consumer Price Index-based inflation by around 20 basis points (bps) and bring about a 30 bps rise in GDP growth. Third.88 per cent of South African Rand and 14. Subprime Crisis in 2007. These crises impact India in various ways. D. C. The oil price decline beyond the US$ 70-75 level has.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities of GDP. domestic concerns pertaining to high CAD. For example.062 19 . weakness in the economy. Reserve Bank of India5 had said ‘… in matters of economics and finance. high inflation and policy uncertainty were some of the major concerns for foreign investors. This and subsequent statements collectively known as ‘tapering talk’. Manmohan Singh in New Delhi on August 17. former Governor. moderation in growth.5 per cent against the US Dollar. Equity markets declined with Sensex declining from closing of 20. The major crisis faced by India in the past are Asian Financial Crisis in 1997. the Indian Rupee depreciated 15. Firstly. Around the period. Is the fall in oil prices unambiguously good for the world economy? Oil producers have been cutting back on future investments. European Sovereign Debt Crisis in 2011 and Fed Reserve announcement of tapering in 2013.g. Balance of Payment (BoP) parameters come under stress due to moderation in growth of major trading partners and commodity price volatility impacts macro-economic parameters. Major Crises in the Past Vicennium 14.08 per cent of Brazilian Real. Talking of the crises. given rise to unexpected consequences. high fiscal deficit. Duvvuri Subbarao at the release of Reserve Bank of India’s History Volume IV by the then Prime Minister Dr. inflation and fiscal deficit. This provides an ideal setting to bring the current account back to health on a sustained basis and as also work on fiscal consolidation. Chairman Ben Bernanke first spoke of the possibility of the tapering of Fed’s purchases of securities.’ Hence. Fourth. during the period May 22. diminishing investor confidence and volatility in capital flows. corporates are unable to raise foreign capital which imports financial problems from off-shore to on-shore and unhedged foreign currency exposures translate into on-balance sheet concerns impacting the credit worthiness of the corporates. This is too valuable an opportunity for us to miss. Energy stocks have suffered losses. it is imperative for EMDEs like India to internalise past crises and take effective steps to safeguard against future shocks. Second. 2013 & August 30. e. Dr. 6. The impact of announcement of tapering and domestic concerns was evident in the form of tightening of liquidity and higher volatility in all market segments along with sharp decline in stock prices. On May 22. This implies cutting back on jobs in the oil and gas industry as well as support services. Dotcom Crisis in 2000. such as. increased volatility in the exchange rate and equity markets could lead to depletion of foreign exchange reserves. LTCM & Russian default in 1998. 2013. The fear of deflation grips central banks as consumption could decline and real burden of debt will go up if inflation were to turn negative or remain low for a long period of time. 16. RBI Bulletin March 2015 SPEECH Impact of crises on India 15. recent experience of announcement of tapering of asset purchase of the Federal Reserve. 2013. financial institutions experience difficulties in accessing international financial markets. 5 Remarks by Dr. Fifth. The fall in oil price seems to be the single most factor important behind falling inflation in most economies. For India. but because we don’t learn from history and let the repeat occur. 2013. increasing threat of rating downgrades. 13. had a sharp negative impact on the emerging markets. Subbarao. Commerce Channel 19. On the other hand. imports have grown by 2. 21.SPEECH on May 22. Gold imports also moderated. with its persistent CAD problem lower and sustainable level of CAD is very important having far reaching implications on the policy making 20 Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities processes and also on the way international institutions and investors view us.41 billion. Whether our newly found export destination countries would remain insulated from the global financial crisis? India’s trade performance had improved significantly in 2013-14 led by a modest growth in exports and compression in imports. coming off the seasonal cum pent-up demand spurt in September-November. It is relevant to note that the Indian economy is now more interlinked with the world economy than before.620 on August 30. global developments have considerable influence on different segments of domestic economy through various channels. and non-oil export growth also decelerating sharply. Export performance has been hamstrung by weak global demand conditions and the persisting fall in unit value realisations. Exports have grown by 2. Policy measures taken to curb volatilities 17. With the slump in international crude prices taking its toll on exports of petroleum products. quantitative and other restrictions were placed on gold imports in consultation with the Government of India. Confidence. Special swap window was opened for public sector oil marketing companies for meeting crude oil related dollar demand. the spillover impacts can be felt through the following seven channels (or the 7Cs) .17 per cent from US$ 375.03 billion from US$ 258.44 per cent for the period April-January 2014-15 to US$ 265. The earnings from export do provide cushion in the balance of payments. the external commercial borrowing mechanism was rationalised & liberalised and limits for foreign investment in G-Sec were streamlined and increased coupled with relaxation in FDI caps in some sectors. aids in flexibility to import goods that are critical for our development besides positive spillover effects on the domestic economy in terms of improvements in quality and productivity. Banks mobilised about US$ 34 billion under FCNR (B) scheme and Offshore Foreign Currency Borrowings for augmenting the foreign exchange reserves of the country. The real appreciation of the Rupee may also have had some effect. despite a pick-up in import volumes in Q3. merchandise exports shrank in Q3 of 2014-15 after two consecutive quarters of growth. Contamination and Central Banks’ action & communication channels. notable amongst them. non-oil non-gold import growth remained firm and in positive territory. Capital Flows. To further encourage longer term foreign currency inflows. 20. 2013 to 18. The Reserve Bank had stepped in to curb excessive volatility in the foreign exchange market and responded by increasing the short term interest rates and by tightening the Rupee liquidity in the system. The challenge is to search for new markets and new products for existing markets. extending a run that began in RBI Bulletin March 2015 . With growing globalisation and integration with global economies. Export sector faces a number of challenges. While exports grew on the back of stronger global demand and a more competitive Rupee in 201314. contraction in imports was driven by decline in gold and non-oil non-gold imports. For India. The trade deficit is marginally higher during April-January 2014-15 over the previous year.25 billion to US$ 383. The Seven Coupling Channels 18. To ease pressures on rising CAD and discourage import of gold. are uncertain global demand. Over the same period. 2013. D.72 billion last year. The fall in international crude prices translated into a sizable saving on account of POL imports. Carr y Trades. Portfolio capital inflows which were buoyant till the third week of May 2013 began retreating as US yield hardened and yield spread narrowed significantly. Commodity prices.Commerce. real exchange rate had appreciated. There is always a tendency to retrace quickly when the risk-reward equation changes. As far as financing of CAD is concerned. Capital Flow Channel Confidence Channel 22. Equity and debt market correction is compounded by capital outflows through demand for foreign currency. threatening overall financial stability. In the Indian context. net capital inflows are expected to be more than adequate in 2014-15. The impact of uncertainties of global financial conditions is evident through confidence channel. Of all markets in India. end-use restriction with focus on capex except a small window for general corporate purposes. thus. Foreign direct investments are permitted with an exception of a few sectoral caps in most of the sectors. Despite a high domestic savings rate. Despite limits on investments FPIs have also shown keen interest in taking exposure in debt securities for higher returns. as of December 2014. by huge volatilities. In debt flows. spillover impact of price volatility of commodity like oil has huge impact on EMDEs like India. The CAD has been comfortably financed by net capital inflows. Many EMDEs are dependent on import of commodities critical for their economic development. as per one estimate. they recorded an expansion for Q3 as a whole on the back of the earlier rise in gold and non-oil non-gold items. reliance on petroleum products has increased significantly and the increased demand has to be met by higher imports. cost ceilings. the trade deficit widened in Q3 relative to the preceding quarter. Transmission of impact of global crisis is accentuated with domestic vulnerabilities. The prices of these commodities are often characterised RBI Bulletin March 2015 25. Economies in emerging markets have been integrating with the global economy at a rapid pace. The estimate of the CAD for 2014-15 is currently placed at lower than previous year’s figure. mainly in the form of buoyant portfolio flows but also supported by foreign direct investment inflows and external commercial borrowings. Integration is driven by current and capital account flows. The impact of May 2013 announcement of the Fed Reserve was more pronounced due to domestic vulnerabilities. This could prove to be a major source of vulnerability. India imported about US$ 150 billion worth of crude which constitutes about 75 per cent of the total annual crude consumption. Thus. The current account has been opened though gradually over the last two and half decades. foreign portfolio investors (FPIs) held 23 per cent of the market capitalisation and 47 per cent of the floating stock in the equity segment. The CAD had increased from about one per cent of GDP in 2006 to nearly five per cent in 2013. As a consequence. fiscal deficit and inflation had gone 21 . 24. Commodity Price Channel 23. A downward spiral can ensue. Investors of capital are loyal only to assets and markets that promise the highest risk adjusted return. the exchange rate markets are the next market to be impacted. India needs to import capital from abroad to support the second highest growth rate in the world. the largest contributor to CAD is oil imports and price of petroleum products is an important factor to reckon with as also its inflationary impact. The first market segment in India to be affected is the equity market. Although overall imports declined in December. A more calibrated approach has been adopted towards fuller capital account convertibility and for promoting capital inflows. and more recently debt markets as was evident in the aftermath of taper talk in 2013. As our economy grows.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities SPEECH May. Portfolio investments in G-sec and corporate bonds are subjected to macro ceilings which are subjected to modulation with evolving scenario. For example. equity is most accessible to foreign capital. Last fiscal. Global risk aversion triggered by the European debt crisis caused a large correction and rapid outflows from Indian equity. When international investors seek safe havens. certain restrictions remain including the overall quantum of external commercial borrowings. The Reserve Bank has have been cautioning participants from taking too many bets in one direction. In the recent past. of volatility primarily due to the external factors and Carry Trade Channel as on August 28. In 2013. The not-so-happy experience of redemption of foreign currency convertible bonds (FCCBs) highlights the risk for the corporates in issuing such foreign currency bonds on the uncertain premise of ever increasing equity prices. Large scale reliance on borrowings abroad in foreign currency by Indian corporates entails huge interest rate and exchange rate risks. In the last few years. giving the impression of unidirectional bias and complicating policy for the country as the overvalued exchange rate dents the country’s export competitiveness. exchange rate depreciated sharply by about 15 per cent to Rs 63. Prior to the global financial crisis. with accommodative monetary policies and near zero interest environments in developed economies. It is essential for the banks to rigorously evaluate unhedged exposures of the clients by adequately pricing in the risk premia. Indian corporates have gone for establishment/ acquisition of overseas companies. The objective was two-fold (a) containing the interest rate and exchange rate volatility and (b) developing the debt market by attracting longterm stable investments.75 in September 2013 over March 2013. Reserve Bank had noticed trends of volatile FPI flows in the short-term debt market which were impacting the foreign exchange markets as well. In view of volatile FPI flows in the short term government securities market.SPEECH Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities up. Subsequent policy actions 27. The ‘carry trade’ is the most popular trading strategy in currency markets. 29. Any resultant reversal in capital flows would lead to fall in asset prices and volatility. translation and economic exposures with serious implications for their bottom line and future business capabilities. often at the cost of RBI Bulletin March 2015 . Large unhedged forex exposure of corporate is not only a potential threat to the balance sheets of the corporates but also to financial stability. however. the Rupee had experienced huge quantum fall in the risk appetite of the external investors. the Reserve Bank restricted FPI investments in dated government securities earlier and corporate bonds recently to securities having residual maturity of three year or above. carry trades in Yen and commodity currencies were common. 2013. touching an all-time low of Rs. undertaken both by the Reserve Bank and the 22 28. Any adverse move by international credit rating agencies affects the borrowing costs of the corporates. 2013 and growing concerns about high CAD. During periods of higher volatility. which is generally sudden and vicious as. For Q2 2014-15 as a whole the Rupee depreciated against the US dollar albeit with some appreciating bias during the second week of August to first week of September 2014. In the event of unwinding of carry trades. Contamination Channel 26.10 by end-March 2014. The economy had slowed down although the level of foreign reserves was considered comfortable. The confidence channel is also influenced by the credit rating action and outlook. It also affects capital flows and the exchange rate. Indian firms get affected by such sharp currency movements by way of transaction. the leveraged positions head for the exit at the same time causing reversal of flows and depreciation of domestic currency.85 against dollar Government. The problem with currency carry trades is that they are inherently unstable. In the recent past. Traders borrow in currencies with low interest rates and invest in currencies with high interest rates profiting from the margin. The Reserve Bank has been highlighting the need for sound risk management culture of our corporates. 68. Following indications of QE tapering by the Federal Reserve on May 22. augured well for Rupee stabilisation as it gradually appreciated to Rs 60. The initial buying of the high yielding currency has the perverse effect of pushing the currency higher. currencies of EMEs have emerged as avenues of carry trade. The challenge in central bank communication lies in how best they communicate in a language that provides clarity and not further confusion to the public discourse. more capital flows into EMDEs in search of yield. however. There has been a sea change in the way central banks view the role of communications in monetary policy (Paul Jenkins. forward guidance is emerging as a challenge for the central banks vis-à-vis the markets as has been experienced by the Bank of England and now possibly. True. 20016). As a result. QE announcements by the Bank of Japan and the European Central Bank may also have similar consequences though the magnitude could be different. which Governor Rajan has been highlighting in different international fora. Monetary policy actions pass through interest rate. The Federal Reserve. The Swedish Riksbank’s announcement of a negative repo rate and its decision to purchase SEK 10 billion of government bonds and the sudden move of the Swiss National Bank to abandon the EUR-CHF floor had sent the financial markets into a tizzy. The President of the European Central Bank. Fortunately. Let me now briefly touch upon India’s external sector vulnerabilities now vis-à-vis the 1990-91 when the BoP crisis led to paradigm shift in our macroeconomic policy framework. Between 1990-91 and now. emerging markets face a ‘sudden stop’ or even a reversal in capital flows as witnessed in the summer of 2013. the communication of policy stance by the Central Banks of the advanced economies can be a cause of market volatilities and may have spillover impact on EMDEs like India. Central Banks’ Actions & Communication Channel 30. Post 2008 global financial crisis. trade deficit has deteriorated peaking at 4. As the interest rate differential between the developed economies and the emerging markets widens. India’s External Sector Vulnerabilities 32. in its last couple of meetings of 2014.8 at end6 Communicating Canadian monetary policy: towards greater transparency: Paul Jenkins. Bank of Canada. central banks have sought to enhance transparency in their policy thinking and action through communication. by the Federal Reser ve. ‘Forward Guidance’ is now a part of monetary policy tools of many central banks. May 2001. acknowledged this when he said that the European Central Bank was keeping an eye on risks stemming from volatility in emerging markets. the Federal Reserve has stated that their assessment of economic conditions will take into account a wide range of information. Deputy Governor. This was seen as a way of preparing the markets for gradual reversal of low-interest rate and accommodative cycle and prevent sudden-shocks in the markets. 23 . the viability of these overseas entities impact domestic balance sheets. every central bank is bound by its own mandate for domestic policy imperatives but there are unintended spillovers that impact other economies. had indicated that it would be ‘patient’ before raising the interest rates. The large scale asset purchase programme of the Federal Reserve depressed the yields on US fixed income securities and the value of the US dollar until recently. too. The markets are. RBI Bulletin March 2015 SPEECH including international developments. the spillover effect is beginning to be recognised now. E. divided in their interpretation of the term ‘patient’ and its qualification or elimination in the minutes of the next meeting. capital flow and the asset price channels. 31. These spillovers have been the subject of debates in academic and policy forums. But when easy monetary policy is sought to be reversed.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities their capability to meet the domestic business needs and without proper assessment of the risk-return tradeoff. Thus. there have been disinvestments at large losses. Central bank actions in the developed economies have an impact on emerging markets. When global situation turned stressful. In its latest monetary policy statement. In other words. exchange rate. EMDEs need to be prepared for a rapid rise or fall in asset prices and exchange rate volatility arising from policy action of dominant economies. 6 NA 4. Ratio of Short-term Debt (residual maturity) to Reserves (%) 227 24.3 27. we are much better placed now than in 1990-91 (Table).2 -207. Commercial debt is a dominant share of external debt as Official Development Assistance (ODA) has declined in recent years.7 95. External Debt to GDP ratio (%) 28.9 10.8 13. thus.4 NA 8.5 10.8 101.3 40. Most of India’s foreign exchange reserves are held by the Reserve Bank of India principally foreign currency assets and gold. up from (-) US$ 313 billion last year. and the country better cushioned against external shocks. the level of foreign exchange reserves has steadily increased from US$ 5. India’s foreign exchange reserves are the end consequence of current account and capital account dynamics. Table: India’s external vulnerability indicators (as at end March) Indicators 1991 2001 2011 2014 2014* 1. Capital flows have not only financed CAD but have also added to our reserves. One response to the global financial crisis was signing of bilateral swap agreements by the Federal Reserve with select central banks.3 16. revolves around decisions involving trade-off between risk and return. 34.5 8.8 5. has substantially affected the return on reserves. The debt service ratio (repayments and interest as a proportion to current receipts) has also gone up from 5. External Debt (US$ billion) 83.9 442.5 per cent in September 2014. Ratio of Short-term to Total Debt (original maturity) (%) 10.1 9.6 39. Since 1991.8 68.2 2. Availability and adequacies of such bilateral/multilateral backstop arrangements is not an easy option during crisis times. Ratio of Short-term to Total Debt (residual maturity) (%) 15.8 billion to about US$ 333 billion. Net International Investment Position (IIP) (US$ billion) (* end September 2014) 24 F.7 12. Ratio of Reserves to Total Debt (%) 7 41.3 57. therefore.5 Reserves (%) 8.9 - -76.7 as at endMarch 2014. when required.8 8.9 per cent in March 2013 to 7.4 5.9 6. which in 2013-14 was 1. Foreign Exchange Reserves: the First Line of Defence 33.2 23.5 23.4 20. The external sector is.2 18.2 3.3 317.6 4. Reserves are held essentially to instill confidence in the markets and investors.6 21.0 11. IIP/GDP ratio*(%) - -16.5 9.5 18. Debt Service Ratio (%) 35.4 14. act as an insurance during periods of crisis and provide pool of resources for meeting the intervention needs during periods of extreme volatility and manage BoP mismatches. expectation is that for the year ending March 2015 similar range of lower CAD.6 20. CAD/GDP ratio 3 0. post the global financial crisis.7 22.7 -353. ensuring safety of capital and generating reasonable returns under what is popularly known as the Safety.9 35.9 68.7 2. The prolonged low interest environment. Ratio of Short-term Debt to 146.1 -17.5 7. Major aspects of reserve management 35.3 29.5 -12.7 -17. Though some vulnerability parameters show some deterioration.21 per cent. India’s net IIP is (-) US$ 346 billion.5 7. an all-time high. in much better shape. Invisibles have been very steady and have lent support to the current account.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities SPEECH March 2013 but has recovered sharply to 1.6 2.8 1. Ratio of Concessional Debt to Total Debt (%) 45. SDR allocation and Reserve Tranche Position in the IMF are held by the Government.2 455.0 -332. This has led to suggestions on the need to enhance RBI Bulletin March 2015 . Reserve management is essentially the art of maintaining adequate liquidity.8 9. Bilateral and multilateral safety nets are also helpful.9 3. The Asian crisis triggered a realisation that large reserves are needed to face a crisis as a selfinsurance policy.9 7.8 10.6 42. It. than what it was in 1990-91. Reserves Cover of Imports (in months) 2. Foreign exchange reserve forms the first line of defence to calm volatility in the forex markets and provide adequate liquidity for ‘sudden stop’ or reversals in the capital flows. Liquidity & Return (SLR) framework. 1 months as at end September 2014 from 6. when some reversal of global liquidity.1 during 2012-13 to 10.5 per cent as at end September 2014. the re-emergence of geopolitical risks. G. The ratio stood at 166. been negative for a long time and has deteriorated from US$ 326 billion in March 2013 to US$ 353 billion in September 2014. India’s net IIP has. Therefore.6 months at end September 2013. may keep oil prices relatively firm and thus may have implications for India’s oil import bill. 25 .2 per cent as at end September 2013 to 27.7 per cent as at end September 2014. 36. Further. safe haven flows may result in losses in investments made in EMDE’s currencies and assets. The most common approach is to measure it as the opportunity cost of investment in domestic securities. particularly. A stable exchange rate regime benefits market participants as it reduces uncertainty and hedging costs. through the action of the Federal Reserve is likely. notwithstanding a modest recovery in exports and adjustment of the Rupee exchange rate in 2013-14.6 in 2013-14. however. particularly in Middle-East and Ukraine. should be weighed against the benefits. Ratio of CAD to foreign exchange reserves has improved from 30.2 per cent as at end September 2013 to 94. China’s exchange rate policy in the context of ongoing slowdown also presents an external risk to Asian currencies including the Rupee. This may pose upward risks to India’s CAD. Adequacy of reserves 37. while some metrics indicate improvement in some aspects of our external sector vulnerabilities. providing a stable exchange rate regime by smoothening extreme volatility. As economic slack diminishes with recovery in the domestic economy. such as. during phases of market turmoil. however. import cover increased to 8.Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities returns by either diversification into non-traditional asset classes and currencies. For example. In the Indian context. being the difference between the cost of capital borrowed from outside minus the return on reserves. declined from RBI Bulletin March 2015 SPEECH 34. Even though international crude oil prices are projected to stay low as price war intensifies. Therefore. The cost of reserves. This cost has a quasi-fiscal implication as the cost of sterilisation is either borne by the Government or by the central bank itself. Ratio of short-term debt to the foreign exchange reserves. The Challenges Ahead 38. Easing of norms for gold imports could lead to a widening of CAD in 2014-15. There are different approaches to measure the cost of maintaining reserves. Such strategies. Traditional metrics of adequacy are import cover. any cost-benefit approach to reserve adequacy involves a judicious assessment of the risks of an economy that is on a path towards a more open capital account. It can also be looked at as cost-of-carry. have their own share of risks. there is no room for complacency as India is basically a current account deficit economy with large dependence on foreign capital flows which are susceptible to periodic phases of sudden stops and/ or reversals. ratio of short term debt/volatile capital flows to reserves and ratio of reserves to broad money.0 in 1990-91. Ratio of volatile capital flows (defined to include cumulative portfolio inflows and short-term debt) to the reserves declined from 97. Reversal of monetary policy stance by the Federal Reserve is likely to be cushioned by continuance of easy policy of other major central banks. there are downside risks to exports due to uncertainty about the global growth outlook. But the benefits of adequate reserves are not easily quantifiable whereas the costs are more explicit. We should also remember that holding reserves has a cost. however. The existing benign global economic environment could see some volatility in 2015. The higher expected returns on nontraditional assets could be wiped out during periods of market turmoil. the upturn in the investment cycle will require higher non-oil non-gold imports. 2015) calls ‘ a rare opportunity to become world’s most dynamic big economy’. External sector strength is a function of global developments. RBI Bulletin March 2015 . 26 Emerging Trends in the Global Financial Landscape: India’s Challenges and Opportunities H. While reserves provide us cushion to meet unforeseen market developments in the short run it is sound macro-economic management that is the best insurance in the long run. in many ways. fiscal deficit and overall competitiveness of the economy. For India. Given our limited role in influencing the global developments. Financial crisis. it is necessary to remain focused on the structural and cyclical challenges arising through the 7C channels in the context of our increasing inter-linkages with the global financial landscape. the policy focus has to be on improving domestic macroeconomic fundamentals so as to minimise the impact of such spillovers. Hence. do not warrant any policy complacency. What gives confidence to India watchers within & outside the country is that significant steps are being taken in the policy and execution space of the country. surge in foreign exchange reserves and exchange rate stability are signs of a more resilient external sector. policy attention is required for redressal of sector-specific structural issues that affect growth. fiscal & monetary actions of advanced economies as well as domestic economy and policies. CAD. Foreign exchange reserves act as a first line of defence but acquisition and holding of reserves has its own costs and challenges. Thank you all for a patient hearing. Improvements in external sector indicators. Spillovers from renewed external pressures through the seven channels mentioned earlier may resurface and thus pose a challenge for India’s external sector. Lower CAD. In particular. external sector vulnerabilities are relatively lower than in the past but adverse spillovers of global macro-economic and geo-political developments on the domestic sector cannot be ruled out. however. as a phenomenon. Summing up 40. inflation. has been recurring at frequent intervals – every crisis is new but the impact is. One takes heart from the fact that inspite of uncertain global environment. India is much better positioned now than before to seize what The Economist in its latest issue (February 21. a conducive business environment to ensure a better mix of capital flows will focus on stable non-debt creating flows and improved governance. similar.SPEECH 39. 67 per cent for the banking system as at the end of September 2014.11 per cent at the end of March 2014.35 per cent at end * Valedictory Speech delivered by Shri R. NPAs expressed in terms of Gross NPA Ratio increased to 4. suggest that under the baseline scenario. asset quality of the banking system has suffered significant deterioration in the recent years. Credit Scoring as a technique for credit appraisal.578 billion at the end of September 2014. procedure. Both the Government of India and the Reserve Bank have long been convinced of the contribution. Let me dwell a bit more on the problem loan management. As such. the Gross Non-Performing Asset Ratio as well Net NonPerforming Asset Ratio of Indian banks have been showing a declining trend due to many factors. Based on the levels of stress in different subsectors. The gross non-performing assets (NPAs). I appreciate the efforts of CRISIL and others in this regard. the ‘restructured but standard loans’ (restructured in terms of regulatory dispensation provided to banks for supporting viable accounts facing temporary difficulties and in line with public policy imperatives) as a per cent of gross advances increased considerably from 1. In terms of value. detailed discussions and debate on the ways. the GNPA ratio is expected to be around 4.13 per cent respectively at the end of September 2014. and very significantly due to the sustained improvements in the credit risk management practices adopted by the banks. The results of this analysis presented in the Financial Stability Report-December 2014. I understand that in this workshop you all had discussed about SME Loan Life Cycle Management. Gandhi. Stressed Sectors 3. and of the enormous potential. Asset quality is an important parameter to measure the health of the banks. Recent Government pronouncements about “Make in India” are fundamentally based on these convictions.780 billion. Macro-Stress tests 4. However. precautions and follow-up on SME financing are very apt and timely.798 billion and Restructured standard advances at `3. Asset Quality 2. Reserve Bank of India on January 30. the total stressed advances amounted to `6. employment and income generation for vast masses of the country. have declined steadily from 15. if the macroeconomic conditions deteriorate. of the SME sector to the economic growth. Therefore. Gandhi I am very glad to be talking to you on a subject which is very contemporary and very critical for the economy. as currently it is a serious issue for the banking sector. is gratefully acknowledged. Macro-stress tests are conducted by the Reserve Bank of India to ascertain the resilience of banks against macroeconomic shocks. it was observed that (i) ‘infrastructure’ (ii) ‘Iron and Steel’ (iii) Textiles (iv) Mining (including Coal) and (v) Aviation services had significantly higher level of stress and thus these sub-sectors/segments could be taken as ‘stressed’ sectors in the current scenario. 2015 at a Workshop organised by CRISIL on “Credit Risk and Problem Loan Management” at Goa. K. etc. During the period. RBI Bulletin March 2015 SPEECH March 2011. Choudhary and Shri Nethaji B. in percentage terms. with Gross NPAs at `2. However. strategies and tools to monitor SME loans and handle problem SME loans. In the last twenty years or so.3 per cent under severe stress scenario by March 2016. Assistance provided by Shri A. including building early warning systems.Problem Loan Management & MSME Financing Problem Loan Management & MSME Financing* R.54 per cent and 6.87 per cent in March 2014. Deputy Governor.14 per cent in March 2008 to 5. the overall stressed advances (NPAs + Restructured advances) remained high with considerable increase in the recent period working out to 10. I am sure all of you have been benefited by these discussions.70 per cent at end March 1997 to 2. 27 . the GNPA ratio may increase to 6.0 per cent of total advances as at the end of March 2016. There has been further deterioration in asset quality during March to September 2014 and the GNPA ratio and restructured advances ratio increased to 4. up gradation. Banks may restructure/ reschedule the accounts of viable entities and assist the entity to tide over the temporary difficulties faced by them. etc. A multi-pronged strategy of preventing slippage of standard assets into NPA category and reducing NPAs through cash recovery. Once a weak account is identified. Quick and effective remedial measures to prevent slippage iv. stress in borrowal accounts is more likely to be resolved in terms of recovery if the company is in operation. for helping/ promoting associate concerns. especially for projects under implementation.Problem Loan Management & MSME Financing SPEECH Drivers for deterioration in Asset Quality 5. relatively aggressive lending practices during upturn (2003-08). is called for. Faster resolution of post slippage 9. Managing NPAs has a lot to do with managing productive assets and ensuring effective corporate governance. lax risk management systems of banks. RBI Bulletin March 2015 . legal means etc. Restructuring 10. the available resources. non-payment in other countries. etc. the bank needs to consider various corrective actions. strained labour relations. 6. risk concentration. marketing. etc. and product obsolescence. 11. etc. The Board of Directors has to decide a strategy on NPA management keeping in view the regulatory norms. inappropriate technology/ technical problems. the asset profile. timely support through restructuring in genuine cases is called for. Effective early alert system iii. separately for Corporate Debt Restructuring mechanism for consortium advances and standalone restructuring by individual banks. as evidenced from high corporate leverage. Banks should put in place an ‘Early Alert’ system that captures early warning signals in respect of accounts showing first signs of weakness. In spite of their best efforts and intentions. 8. Generally. This would help the banks to take remedial measures and prevent the account from becoming NPA. One of the corrective options is restructuring.. business (product. Prevention of NPAs through prudent underwriting ii. The current deterioration in the asset quality of Indian banks could mainly be attributed to domestic and global economic slowdown. price escalation. Theoretically speaking. For this to be effective there must be a system of identifying the weakness in accounts at an early stage. NPA Management 7. The essential components of sound NPA management are: 28 i. ) failure. and of course. the business environment. delay in disbursal of loans by lenders. accidents/ natural calamities. especially to large greenfield projects. and changes in government policies in excise/import duties. For the revival of the viable entities as well as for the safety of the money lent by the banks. sometimes borrowers find themselves in financial difficulty because of factors beyond their control and also due to certain internal reasons. delays in statutory and other approvals. The strategy should be reflected in Board approved policies and procedures to monitor implementation. Internal reasons for loan accounts becoming problem loans could be diversion of funds for expansion/diversification/ modernisation/for taking up new projects. time/cost overrun during the project implementation stage. Management of NPAs begins with the realisation of benefits that accrue in running a quality advances portfolio and warrants a better understanding of risks in lending. compromise. The objective of restructuring is to preserve the value of viable entities that are affected by certain internal and external factors and minimise the losses to the creditors and other stakeholders. inefficient management. We already have a detailed regulatory prescription. inputs/power shortage. there could be various factors which may cause a good loan to turn into a problem loan. etc. pollution control norms. Some of the external reasons could be economic recession. At this juncture. The main features of the Framework are: i) Central Repository of Information on Large Credits (CRILC) has been set up by the RBI to collect. The objective of the Corporate Debt Restructuring (CDR) framework is to ensure timely and transparent mechanism for restructuring the corporate debts of viable entities facing problems.000 million and above. for the benefit of all concerned. while considering their support to accounts under stress. and. mandatory beyond the exposure of `1. borrowers defaulting on their debt obligations due to circumstances beyond their control. The framework outlines a corrective action plan that will incentivise early identification of problem cases. However. ii) Early formation of a lenders’ committee (Joint Lenders Forum) with timelines to agree to a plan for resolution. The Reserve Bank of India has released in early 2014 a Framework for Revitalising Distressed Assets in the economy. DRT and other legal proceedings. The CDR Mechanism has been designed to facilitate restructuring of advances of borrowers enjoying credit facilities from more than one bank/Financial Institution (FI) in a coordinated manner. On the contrary. outside the purview of BIFR. 13. the framework aims at preserving viable corporates that are affected by certain internal and external factors and minimise the losses to the creditors and other stakeholders through an orderly and coordinated restructuring programme. banks should make proper distinction between wilful-defaulters/non-cooperative/ unscrupulous borrowers on the one hand. Rectification iv) Incentives for lenders to agree collectively and quickly to a plan: better regulatory treatment of stressed assets if a resolution plan is underway. and taking prompt steps by banks for recovery or sale of unviable accounts. v) Improvement in current restructuring process: Independent evaluation of large value restructurings mandated. Mere classification of an account as NPA need not result in withdrawal of support to viable borrowal accounts. on the other hand. accelerated provisioning if no agreement can be reached. then the focus should shift to upgradation. Support to viable but stressed Accounts 14. iii) Incentive and disincentive structure for lenders to take corrective actions in a timely manner Framework for Revitalising Distressed Assets vi) More expensive future borrowing for borrowers who do not co-operate with lenders in resolution. In the event of failure of the above mentioned measures. store and disseminate credit information with the reporting entities in respect of borrowers enjoying aggregate exposure (funded + non funded) of `50 million and above. with a focus on viable plans and a fair sharing of losses (and future possible upside) between promoters and creditors. Sale of NPAs c. Once an account slips into NPA category. slippages do occur. the Reserve Bank’s extant guidelines envisage a situation where banks may need to sanction additional finance to borrowers under stress to revive/rehabilitate the borrower and to preserve the economic value of the asset. In particular.Problem Loan Management & MSME Financing SPEECH 12. it is important to understand that the Reserve Bank has not barred banks from sanctioning need based additional finance to borrowers whose accounts are classified as NPAs. timely restructuring of accounts which are considered to be viable. The Corrective Action Plan may include any one of the following: a. Recovery 15. Restructuring . Despite the best efforts by banks. banks could resort to filing suits with Debt Recovery Tribunals or invoke the provisions of the RBI Bulletin March 2015 29 b. DRTs: Debt Recovery Tribunals. Micro. the bank should take steps to recover the loans through any of the recovery options available to them. lack of access to finance is a major obstacle to their growth. banks may also explore selling the NPAs to other banks.Problem Loan Management & MSME Financing SPEECH Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. 21. let me share a few thoughts on this matter. * Refers to amount recovered during the given year. Banks may also sell their NPAs to asset reconstruction companies. the present legal system is unable to cope with the mammoth task. Recovery Channel Total Lok Adalats DRTs SARFAESI Act 8. Recovery Channels 16.2 9. RBI Bulletin March 2015 . Among the various channels.8 18 1. In addition to asset reconstruction companies.258 1 No.40. higher risks. Sizeable transaction costs and a lack of adequate collateral.707 18. 18. of cases referred 2 Amount involved 232 553 946 1. 22. There is heightened attention by the international community on MSME sector.59. Finally.5 25. there are a number of “demand side” considerations that deserve more attention.36. The RBI has granted Certificate of Registration (CoR) to 14 ARCs so far.537 10. 2002 formed almost 80 per cent of the total amount of NPAs recovered in 2013-14. The SARFAESI Act has.408 66 310 681 1. who have the requisite skills to resolve the NPAs efficiently. 20. 2. the inability of MSMEs to make the best possible use of available resources of funding and the negative attitude displayed by MSMEs towards equity financing. Despite various corrective measures.9 16.691 13.922 Notes : 1. 30 17. and the MSME’s potentials in that respect. NPAs of SCBs Recovered through Various Channels (Amount in ` Billion) Particulars 2013 -14 2012 -13 Year No.957 28. In February 2014. They are being examined at various levels. particularly in emerging countries. Further. MSME Financing 19. thus. These factors can be exacerbated by institutional factors within a country.1 21. This is primarily because of the critical importance of job creation in the recovery cycle following the recent financial crisis. if upgradation is not proving to be possible due to unviable nature of the borrowers’ business. However. These include Information asymmetries. Yet. non-banking finance companies or other financial institutions. The following three factors play a considerable role in perpetuating the MSME financing gap – The poor quality of projects seeking funding. the amount of NPAs recovered under the SARFAESI Act. which needs to be strengthened to make these channels more efficient and effective.058 4 44 185 232 6. which could be with reference to cases referred during the given year as well as during the earlier years. 2002. considering the ever increasing number of suits and the limited infrastructure available at DRTs/courts. As I mentioned in the beginning. been the most important means of recovery of NPAs. Small and Medium Enterprises (MSMEs) play a major role in economic development.94.636 2 Amount involved 3 Amount recovered* 4 3 as per cent of 2 1 No. of cases referred 1. regulations on sale of stressed accounts have been amended to facilitate emergence of a market for distressed assets. the financing gap for SMEs in the developing country has a few wellaccepted causes.90.1 14.44. there are various issues relating to DRT and SARFAESI.1 27.731 3 Amount recovered* 14 53 244 311 4 3 as per cent of 2 6. As this workshop was meant to specifically discuss SME financing. Although the situation can differ among countries and individual businesses. Banks also explore entering into a compromise settlement/one time settlement with the borrower to optimise its recovery in present value term. It will be a greater challenge to reach informal SMEs. including: (i) legal and regulatory framework. the key challenge is to support banks in extending credit facilities to SMEs. 24. these models share common characteristics: they reduce cost to serve through intensive use of technology and/or the adoption of cost-effective clientrelationship models. This is due to SME intrinsic weaknesses. by definition. with a view to increase generated income. lingering deficiencies in the enabling environment for financial services: i. Let me give you a flavour of ideas beyond this: i. no authentic information about them is available.Problem Loan Management & MSME Financing 23. whether in formal and in informal segments. and.. 25. The informal segment within the SME sector is so vast and. 65-72 per cent of all MSMEs (240-315 million) in emerging markets lack access to credit. The stocktaking exercise confirms the rise in various parts of the world of specific business models aimed at providing financial services to SMEs in a cost-effective manner. RBI Bulletin March 2015 SPEECH transactional. According to the same study. 26. and collateral and insolvency regimes. credit reporting systems. Banks will also need to develop ingenious and innovative products suitable for the MSMEs. most importantly. you all had detailed deliberations on how to assess credit needs of an SME. including community banks. (iii) public support schemes. they combine offering of savings. and credit products. small. flaws in delivery models and. Hence. the actual packaging of the products and services will have to happen closer to the field. From microfinance up-scaling to bank down-scaling. A study by the IFC and McKinsey and Company (McKinsey) suggests that there are close to 365-445 million micro. This exercise entailed the collection of 164 SME finance models spanning across a broad spectrum of interventions. and (iv) private sector initiatives. 31 . The finance gap is far bigger when considering the micro and informal enterprises. while the rest (285-345 million) are informal enterprises. there is no authentic data available about the SME financing gaps. Unfortunately. However. Some studies about SMEs in India have reported that as high as 93 per cent of their financing needs are met by internal and informal sources. Key elements of such packaging will have to include Risk-sharing facilities. the financial infra-structure covering accounting and auditing standards. Some other ideas 27. (ii) financial information infrastructure. the G-20 SME Finance Sub-Group executed a global SME Finance stocktaking exercise with various SME finance models. In order to scale up the best practices in SME Finance. Reaching informal businesses will have to be built on microfinance approaches. Banks should leverage these data and information feeds to identify potential MSMEs for suitable financing opportunities. how to monitor the relationship and what new techniques you can adopt for this. ii. The size of the finance gap varies widely across regions and is particularly daunting in Asia and Africa. In this workshop. It all has to start with account relationship. they use advanced risk management technology to maximise the risk/reward balance. Based on broad parameters given by their central/ head offices. close to 45 to 55 per cent of the formal SMEs (11-17 million) in the emerging markets do not have access to formal institutional loans or overdrafts despite a need for one. and medium enterprises in emerging markets of which 25-30 million are formal SMEs and 55-70 million are formal micro enterprises. I strongly believe that this aspect needs to be grounded more at the grass root level. The financial inclusion programmes like PMJDY will facilitate key information inputs to banks about the existence of the MSMEs. various data sources and studies indicate that most of the small firms rely on internal financing and informal sources.e. they achieve strong focus on the small and/or medium enterprise segment. to help implement excellent execution capabilities in the above areas. MSMEs often lack management skills. 31. Asset Reconstruction and Security Interest of India (CERSAI) has come on the scene for registering security interests over property. Some innovative solutions using cloud computing have been tried successfully in some countries like Ghana. especially for small firms. financial information and the ability to enforce collateral are seen as critical necessities. a Committee is working out an insolvency framework. steps have been initiated in this direction. and collateral and insolvency regimes. CGTSME. Although MSME financing and microfinance models have started yielding desired results. this often results in poor credit ratings and a perception of risky business. tools. 29. Banks will also have to play a much larger role than being the financiers. As regards insolvency. These interventions need to be accompanied by enhancements to the enabling environment for MSME lending. Public support schemes (funded facilities. such as improved credit bureaus. Conclusion 32. Perhaps this can be studied and adapted for Indian environment. RBI Bulletin March 2015 . especially for MSMEs. it is imperative that suitable supporting environment for the financial sector is in place. and state banks) represent the large majority of the collected models. For the success of effective SME financing models. governance and financial planning expertise. Banks will have to help these entrepreneurs leverage the Rural Self Employment Training Institutes (RSETI) like institutions to fill the gaps. in order to avoid the potential pitfalls stemming from excessive credit. It should also be noted that although financial access is critical for MSME growth. Other types of registry and inter-linking registries are also being debated. equity financing remains a challenge. let me emphasise that increasing access to finance can only be successful if qualitative aspects are taken into account. Appropriate prudential measures need to be exercised while offering finance to MSMEs. The Central Registry of Securitisations. Given that banking and lending services represent the bulk of SME financing in the developing world. To conclude. India has also adopted these strategies.Problem Loan Management & MSME Financing SPEECH iii. We are very aware of these requirements and have taken several measures in that direction. Our recent guidelines. Another major weakness that inhibits the growth of this sector is the lack of good records management by the MSMEs. MSME lending as a priority sector lending for banks etc. 30. 28. expansion of financial access should not be achieved at the cost of financial stability. iv. In particular. As regards 32 collateral registry. as announced in the last Budget. Weaknesses in these areas appear to impede more aggressive financial services growth in developing markets. Adhering to principles of responsible finance and the G-20 principles on innovative financial inclusion can serve this purpose. guarantee schemes. equity financing presents an opportunity for the development of a complementary financial product. measures have been in line with this thought. envisage that credit information now will flow to all credit bureaus simultaneously and therefore the financial entities can have a holistic view about any prospective borrower at one go. based on Aditya Puri Committee recommendations. India is also witnessing a growing trend of urbanisation. When I sat down to think about the theme of the Conclave.1 per cent in the overall population. Chairman. RBI Bulletin March 2015 Let me elaborate on a few of these in greater detail and delve upon the impact they could have on the banking system going forward. I last attended this event as a panelist in January 2014 when the topic for panel discussion was “Indian Banking: A New Banking Landscape” and this time it is enlarged to “A New Banking Landscape for New India. Standard Chartered Bank as also other senior members of the banking and financial sector. ICICI Bank Limited. MD and CEO. I think it is a bit of all and beyond. Shri Aditya Puri. urban population is estimated to rise to 631 million recording an annual increase of 2. At its current pace of growth. Further. Much has been talked about the demographic dividend that India possesses. b) Urbanisation 6. These challenges are in the form of diverse behavior patterns that customers in different age groups display. These are: S. 2015. members of the print and electronic media. MD & CEO. Mundra  demography  urbanisation Smt. let me thank Tamal and the Mint Management for inviting me to deliver the keynote address at the Mint Annual Banking Conclave.” a) Demography 3. Defining Contours of New India 4. By 2030.A New Banking Landscape for New India SPEECH A New Banking Landscape for New India* decade or two? To my mind. ladies and gentlemen!  digitisation  industrialisation  education  inclusion and  global integration 2. S. Axis Bank Limited. MD. At the outset. Chanda Kochhar. Is it the new political regime and consequential policy changes? Is it the tag of being the new growth leader in the world economy? Is it a more financially included India that is being thought about or is it a ‘digital’ or ‘connected’ India that is new. HDFC Bank Limited. What are the defining contours of the new India? What are the themes that would play out over the next * Keynote address by Shri S. 68 per cent of India population would be within the working age range (1564) until 2030. Life expectancy of the Indian population is also slated to increase to about 70 years by 2030. Arundhati Bhattacharya. 2015 on “A New Banking Landscape for New India” on January 29. State Bank of India. Smt. Regional Chief Executive. Mundra. Shikha Sharma. Shri Sunil Kaushal.8 per cent of the population would be living in urban 33 . Smt.6 per cent as against an annual rise of 1. Reserve Bank of India at the Mint’s Annual Banking Conclave. the Indian population is predicted to exceed China by 2025. 5. Deputy Governor. S. The banks would need to continuously foretell the customers’ preferences and focus their strategies on meeting them proactively. India & South Asia. While on the one hand the numbers present sustained opportunity for the banks in terms of new stream of customers. We all know that political stability is a necessary precursor to a sustained economic development anywhere in the world and a democratically elected government with decisive mandate is capable of launching significant pro-growth reforms. while China’s working-age population may peak around 2015 and shrink for a decade and a half thereafter. This would mean that 41. I wondered what is new about India. This event has become one of the most awaited events on the calendar of bankers. there are seven key themes which would define the Indian economy and Indian banking sector in the days to come. it also presents challenges. Ostensibly. the extent of internet penetration at 20 per cent pales in comparison to other developing countries like China (46 per cent). g) Global Integration 11. d) Industrialisation 8. 34 A New Banking Landscape for New India f) Financial Inclusion 10. but simultaneously be ready to latch on to the opportunities that present themselves. housing. RBI Bulletin March 2015 .. Likewise. There is massive focus on enhancing internet penetration in the country through accelerated broadband connectivity.e. there is tremendous scope of improving the level of education in the country by strategic focus on the four Es i. At last count.SPEECH agglomerations as against 31 per cent today. I don’t need to emphasise the avenues that this scheme has opened for the bankers. though having their origin in specific jurisdictions. it would be important for the banks to keep track of emerging trends and be prepared not only to negotiate through the imminent challenges. the number of accounts opened under the scheme had reached 12. the potential exclusion of Russia from the SWIFT payment system and the other about withdrawal from correspondent banking relationships in 30 jurisdictions by three of the world’s biggest banks. it would mean addition of 90 million domestic jobs and attendant corporate and retail business opportunities. If that materialises. Expansion. The launch of the PMJDY scheme with a focus on linking each household with a bank account has received extremely positive response. convertibility of currency. however. It would entail significant changes in consumer awareness. e) Education 9. the UK and Japan where the number is in excess of 85 per cent. As the number of internet users in the country grows. Moreover. needs. this would open up huge business opportunities for the banks for creation of public infrastructure. The internet penetration has seen a sharp growth over the last year. Excellence & Employability. Events such as these. There could be other hitherto unforeseen developments too affecting the global structure of finance. Brazil (53 per cent) and Russia (59 per cent). education needs of customers and so on. it is just a stepping stone. consumption. 12. the banks would be able to better utilise this medium as a delivery channel. have the potential to significantly impact the business and finance elsewhere in the globe. c) Digitisation 7. Major part of the work has to commence now. the urban population would be far lower than the global average at 50 per cent presently. Let me highlight two recent headlines reported in Financial Times: One. On the other hand. the mobile penetration in the country is significantly high at around 930. Let us see what would be the impact of these themes/developments on the key actors/acts in the new banking landscape. Equity and Inclusion. Key actors/acts in the New Banking Landscape 13. which I believe is already having significant repercussions on the financial sector.20 mn and beckons as an opportunity to be tapped. demands and expectations. let alone the developed nations like the US. In these low numbers lie the inherent opportunities for the banking sector. Digitisation is another area which is being pursued relentlessly by the new Government. That brings me to the last theme of growing global integration. money laundering and terrorist finance. Be it the quantitative easing by the advanced economies and the subsequent withdrawal of it. The new Government’s ‘Make in India’ pitch also touches the right cords and efforts are afoot to increase the presently stagnant share of manufacturing in GDP to around 25-30 per cent by 2025 from 15 per cent at present. While even at that percentage. the motivation for these banks to sever their ties with the lenders in developing nations has been to limit the risk of being hit by regulatory sanctions on account of breaches.14 crore. Under the circumstances. making or breaking of regional alliance of economies and currencies etc. If all traditional businesses have been impacted by technology. Some of you who have overseas operations are well aware of the tough stance that the host regulators adopt. As the complexity of the products/services demanded by the customers increases. We have also seen some enforcement actions in our jurisdiction but these are pretty benign in comparison. They would. the banks would have to contend with a set of customers who are more educated. New banks would start small and scale up over a period of time. Also the new competition would potentially pull down the ROEs that the owners currently enjoy rendering it difficult to persuade future investors to put in more capital in the banks. This regulatory activism is evident in the frequency and quantum of penalties levied on banks worldwide. I have already talked about a paradigm shift being brought about by technology in the way the social interactions are taking place. It has happened in the aviation sector. Let me highlight some of these in greater detail. thus. And believe me. Competition and consolidation in the sector is an impending development that the banks would have to contend with sooner rather than later.2064163. there is a healthy appetite from the foreign banks to enter this country. the pie is big enough to accommodate new players and there is plenty of opportunity for the well-organised and mainstream regulated players to wean away the customers from unregulated shadow banking entities. Banking is a business of scale which the new players cannot build overnight.A New Banking Landscape for New India 14. Also. banking could not have remained unaffected. These are staggering numbers. RBI Bulletin March 2015 SPEECH Competition and Consolidation 17. Further. The RBI has been indicating about the possibilities of the bank licensing process being put on tap or introducing more varieties of differentiated banks. the banks in the US and Europe alone have been forced to cough up approximately $230 bn in penalties and legal cost so far1. Believe me. The new banking landscape would impact the processes currently in vogue in the sector. Technology 19. better informed and well-networked. But. may be. later in the year or by early next year and so. 1 http://www. No doubt. Growing mobile and internet penetration has opened new avenues for the entrepreneurs. The processes would be forced to be more efficient. In case of public sector banks. the existing players can afford to stay in denial at their own peril. also join the race to seek private capital. this is not the end of new competition for you. The entry of new competitors alone would not mean dramatic changes soon. Indian regulators have been relatively more tolerant thus far. As a flip-side to 35 . Two new private sector banks should start operating within this calendar year. This is reflected in the way the new age customer transacts his/her business. 18.com/business/financial-services/us-europeanbanks-have-paid-230bn-in-legal-costs-since-2009-1. In the emerging landscape. 16. the regulators across the globe have been particularly very severe on failings of the regulated entities on the consumer protection. the small finance banks and payments banks might mark their presence. the ownership structure itself may change with the Government bringing down its stake in these banks. money laundering and fair market conduct front.irishtimes. The banks may probably be forced to hard sell their products and services using a variety of media across the physical and the virtual world. the banks would have to not only focus on upgradation of skillsets of their employees but also on their retention. 15. Post crisis. As we have witnessed. There could be consolidation and mergers between the existing market players. Next two years are likely to see another $70 bn being forked out by the banks for the same reasons. Banks would need to gear up to face stricter regulatory regime. the telecom sector and there is no reason why it would not happen in the banking sector. e m p l o y e e s . C u s t o m e r s . We have seen competition giving a tough run to the monopoly players. o w n e r s a n d regulators comprise the key stakeholders in the banking system. Not only would there be a competition for business but also for talent. I would begin by quoting Brett King. The banks are in the business of taking risks and hence they need to have a risk management framework in place. there are technical issues like type of handsets. Everyday customers would interact with banks in various ways.first in the form of ATMs and then in the form of internet and mobile banking. fill out a personal loan application online. 36 A New Banking Landscape for New India “Customers don’t use channel or products in isolation of one another. pay an utility bill . It must. visit ATM to withdraw cash. I am talking here about the delivery of financial and payment services by using the mobile device rather than its use as an access channel for internet banking etc. technology is ever evolving and adoption of new technology for staying contemporaneous is a costly proposition. ring up the call center to see what their credit card balance is or report a lost card. which is widely perceived as the ‘be all and end all’ of the new in banking. They might wire money to a third party. 21. an objective analysis would reveal various reasons for slow adoption. It’s been more than a decade and a half since the RBI first released the risk management guidelines for banks in India. Indian banks have invested heavily in web-based and mobile-based delivery solutions. however. be remembered that technology is just an enabler and not a panacea for all ills. we could be looking at unproductive investments. 23. Further. As I said before. 24. the model has been relatively less successful barring a few countries where the right environmental factors existed. In the Indian context. use their credit card to purchase some goods from a retailer . Hence. This transition calls for a change in the way the banks interact with and retain their customers. Each of these channels is supported by a different vendor and each one uses different technology which increases complexity and involves cost.. they may also trade some stocks. absence of standardised communication structures. the defining elements of the new India would have far-reaching impact on each of the actors and the acts in the new banking landscape. But. While there is a lot of euphoria around the adoption of mobile banking and mobile payments. there is a need of a single channel solution to multiple product offerings. variety of operating systems. my own sense is that risk management has been pursued in our banking system more under compliance compulsions and has not been dovetailed in the banks’ businesses processes as much as they ought to have been. 4 actors and 3 acts and interplay them to build probable business scenarios. inter-operable platforms or the lack of it. These elements would interplay and provide shape to the new banking order. encryption requirements. Let me now return to the subject of technology. go online to check salary credit. Risk Management 20. transfer some cash from their Euro a/c to USD a/c put up a lump sum in a Mutual Fund or sign up a home insurance policy online”. I will shortly return to the expectations built around the integration of technology in the banking services and its impact on the banks. the author of famous book ‘Bank 3. You may be amazed to see the range of possibilities and challenges. the banks would need to carefully consider and set their risk appetite after duly evaluating their capital level as also the skillsets of the officials entrusted with the management of risks.SPEECH its well-documented advantages in terms of efficiency and effectiveness of service delivery. More sophisticated they are. technology has also fast tracked the process of customer alienation.A Great Enabler 22.0’. Risk Management in banks is of the same vintage as the banks themselves. As the complexity in the financial world grows. Most. In this sense. unless we are able to optimally exploit all the capabilities of the technology enabled delivery solutions. Technology. if not all. banks have become faceless entities. It would be interesting for you to pick up these 7 contours. On the other hand. In fact. The above statement denotes the diverse set of banking applications which technology can support. difficulty in RBI Bulletin March 2015 . These get accentuated by the operational difficulties in on-boarding merchants and customers and customer ownership issues. stock and barrel to another bank. he can possibly opt for shifting his banking relationship. First. The question is how prudential regulation would exist alongside 37 . Of course.5 billion in 2011 to $ 2. 25. There is justifiably a growing need for reducing the reliance placed on cash by the system and hence. if more and more people moved to mobile/internet based payments. Let me also highlight some opportunities that technology throws up. There are more ATM transactions than searches on the Google webpage at present. Few Qs seeking As 26. there could be issues around loan contracts etc. (iii) How is crowd funding going to impact lending business of the banks in future? The amount of funds raised by crowd funding platforms worldwide has increased progressively from $ 1. The interplay of these factors has stymied the deployment and adoption of mobile banking as an effective and widely accepted delivery channel.1 billion in 2013. However. is quite fast and combined with the peer-to-peer lending business this could create disruptions. time lag in activation etc. (ii) How long can the banks continue increasing their retail loan portfolio? Unless some means to pool and distribute these loans to other investors in the market is created.7 billion in 2012 and further to $ 5. (iv) If Mobile Banking were to succeed. Issues of coordination and cooperation between banks and telcos. would be rendered useless unless put to more imaginative uses. Each time an individual runs a search at Google. would plastic money still be needed? Basically there are two questions rolled in one. but there is no reason to believe that such challenges cannot be RBI Bulletin March 2015 SPEECH surmounted and pave the way for a massive disruption in the way banking is conducted today. (v) What International Financial Reporting Standards (IFRS) implementation would mean for the banking system? IFRS accounting could potentially overstate assets or overstate capital position. I hear some of you say it is negligible in volume. if an individual is not happy with the service received at one bank. Let me leave you with some questions that the banking profession and the bankers would need to find answers to ensure their relevance in the emerging landscape. The pace of growth however. is another aspect which acts as either a driver or a barrier to the adoption of mobile banking. whether mobile banking can succeed and if that is the case what implications would it have for the future of ATMs and the debit cards that have been issued by banks. the plastic cards and the investments made thus far. at least for some of the players who operate in the same segment. the website collates details of the sites visited/ links clicked by that individual and loads more of those websites his/her future searches. This could be an area for the banks and their software vendors to work on in future so as to generate further sales leads. (i) Can there be a possibility of account number portability on similar lines as mobile number portability? So.. These issues need to be quickly resolved if the mobile has to serve as an influential delivery channel for distributing banking products and services in India. the retail lending pipeline can get chocked quite quickly. Take for example the results displayed on the Google search page which is personalised. lock. the kind of personalisation Google has achieved in its searches has not been attempted in the area of advertisement on ATMs.A New Banking Landscape for New India downloading application. 2015. Thank you! RBI Bulletin March 2015 . have been flush with funds flowing in on account of variants of QEs launched by the Central Banks in the Advanced Economies. Timely decisions. more and more large corporates could start bypassing banks for their funding requirements. I believe the elite panel gathered here today would deliberate on the issues raised and also reflect on them later. as Indian economy and the financial markets mature. including for recall/recovery of the loan. Negotiations are also on at the Financial Stability Board level for implementation of a TLAC (Total Loss Absorbency Capital) framework for the banks identified as G-SIBs. The question is where do you find such capital? 28. The sustained deflationary trends in the Euro Area and Japan portend further bouts of QEs which can adversely impact the lending business of banks in the emerging markets.. Besides. particularly the emerging market economies. the banks would need to take a hard look at the techno-commercial viability of these projects and take the losses wherever the viability seems in jeopardy. I have covered much broader landscape than I had originally intended to. I once again thank the Mint for inviting me and wish you all a fruitful deliberation. Conclusion 27.leverage. The D-SIBs guidelines have also been announced and the list of banks considered systemically important in the domestic context would be unveiled in August 2015. for acquiring proficiency in IFRS accounting. would be critical. even while this time-specific event of QEs might fade away. So you are well-versed with the new regulatory phrases. Banks would also need to overcome challenges around converging policies for financial accounting and tax accounting for preparation of financial statements. the large corporates in developed countries normally access financial m a r ke t s d i r e c t l y f o r t h e i r f u n d i n g requirements rather than commercial banks. Basel III norms have been announced and set to be implemented as per the indicated timeline. As the moratorium period comes to a close. let me also give a perspective on the global regulatory reforms and how it might impact the Indian banks. Further. Hence. The banks would need to train their staff in various departments like credit. Before I conclude. (vii) W o u l d t h e p a i n f r o m t h e l o a n s restructured earlier return to haunt the banks? My understanding is that the prolonged global economic slowdown might 38 have thrown off the projections made earlier at the time of restructuring the advances in the immediate aftermath of the crisis. and treasury. the global markets. with the liquidity regime already kicking in from January 1. Many large corporate houses have been able to access funds at very cheap rates without needing to reach out to banks.A New Banking Landscape for New India SPEECH IFRS? Proposed impairment calculations under IFRS. being subjected to stricter capital and liquidity buffers. wherever the financial prospects are unviable. accounting for interest income on Effective Interest Rate basis and presence of multiple systems for operations and accounting of different portfolios would mean that IT systems would have to be upgraded/realigned for IFRS migration. etc. (vi) Would the large corporates continue to borrow from the banks? Of late. capital conser vation buffers. counter-cyclical capital buffers etc. The essence of all the above discussion is that the banks would need to substantially augment their capital bases to stay in the business. these banks may also be nudged to prepare detailed‘recovery and resolution plans’. ARTICLES Developments in India’s Balance of Payments during the Second Quarter (July–September) of 2014-15 Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 . .  The amount of loans (net) of other sectors (i.in. net funds held abroad. continued in Q2 of 2014-15.  On the other hand.2 billion was much lower in Q2 of 2014-15 than the outflow of US$ 1.  Net capital inflows were driven by robust FDI inflows and a sharp turnaround in FII flows (Table 4).  Loans (net) availed by deposit taking corporations (commercial banks) recorded an outflow in Q2 of 2014-15 owing to higher repayments of overseas borrowings and a build-up of banks’ overseas foreign currency assets. In addition. Time series data on BoP are available on the RBI website at dbie. Mumbai. net receipts under secondary income.rbi. Department of Economic and Policy Research. Japan and Netherlands (Table 6).3 billion in Q2 of 2013-14.  The increase in FDI inflows (y-o-y basis) occurred across all major sectors barring construction (Table 5) during H1 of 2014-15 and was primarily sourced from Mauritius. external commercial borrowings) at US$ 1.0 per cent of GDP in Q2 of 2014-15 from 1. FDI by India witnessed moderation across all sectors during H1 of 2014-15 (Table 5) and Singapore remained the major destination of India’s outward FDI (Table 6 and 7).  Net outflow under trade credits and advances at US$ 0.  Other receivables/payables which include lead and lags in exports.  Net inflows of NRI deposits were lower in Q2 of 2014-15 as compared with the level recorded in the corresponding period of the previous year.Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2014-15 Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2014-15* The data on India’s balance of payments (BoP) are released by the Reserve Bank on a quarterly basis with a lag of one quarter. comprising mainly remittances.  Net outflow on account of primary income. Singapore. while imports recorded a significant increase. ARTICLE constituted 37.  With global demand conditions remaining subdued. the USA.  During Q2 of 2014-15. merchandise exports growth slowed. largely on account of pick-up in telecommunication. advances received pending issue of shares under FDI and Highlights  India’s current account deficit (CAD) in Q2 of 2014-15 was relatively higher than in the preceding quarter primarily on account of a higher trade deficit (Table 1).e. RBI Bulletin March 2015 39 . the UK. showed an improvement in relation to their level a year ago (local withdrawals from NRI deposits * Prepared in the Division of International Trade and Finance.  Net services receipts improved in Q2 of 2014-15 from their level a year ago.7 per cent of GDP in Q2 of 2013-14. This article highlights the major developments in India’s BoP during the second quarter (July-September) of 2014-15.. comprising investment income and compensation of employees. mainly due to a sharp increase in payments towards dividend on portfolio investment in India and interest on NRI deposits (Table 2). computer and information services (Table 2).  The current account deficit (CAD) increased to 2.4 billion was a tad higher than US$ 1. the disaggregated quarterly data on invisibles are being released separately on the RBI website.9 billion in Q2 of 2013-14.5 per cent of total private transfers in H1 of 2014-15) (Tables 2 and 3).org. Reserve Bank of India. 4 billion during H1 of 2014-15 as compared to an outflow of US$ 5.4 billion during the same period of the preceding year (Table 1).  1 40 On a BoP basis1. RBI Bulletin March 2015 .Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2014-15 ARTICLE other capital not included elsewhere recorded a net outflow of US$ 3.9 billion to India’s foreign exchange reserves during Q2 of 2014-15 as against a drawdown of US$ 10. there was a net accretion of US$ 6.2 billion in the corresponding period of the previous year (Table 8). Excluding valuation changes in reserves due to cross-currency movements. computer and information services 2.b Investment Income 3.6 0.2 2.4 7.a Compensation of Employees 3. Goods Imports 240.3 0.3 -6.5 -0.1 -0. Net (Excl. cultural and recreational services 2.a Transportation 2.6 0.2 4.9 -6.1 35.2 -11.7 5.4 14. Trade Balance (1-2) -73.1 -7.Change in Reserves (-) increase/(+) decrease -18.6 -33.8 114.5 -1.1 1.2 P: Preliminary.6 0.3 81.3 -0.7 -0.5 3.k Others n.8 33.i Government goods and services 2.8 32. Net Income(8+9) 19.5 9. Current Account Balance (7+10) -17. Capital and Financial Account Balance. PR: Partially Revised. Primary Income.f Charges for the use of intellectual property 2. Table 2: Disaggregated Items of Current Account (Net) (US$ Billion) Apr.8 16. Primary Income 3.2 38.3 -14.1 -0. Secondary Income.-Sep.1 15. Goods -73.6 35.6 3.28 0. Secondary Income 4.2 16.1 -6.3 0.3 6.h Personal.0 -0.5 18.2 1.5 0.3 0.6 -33.0 1.9 19. change in reserves) 38.9 0.j Other Business services 2. Current Account (1+2+3+4) -17.2 0.2 0.4 -2.00 0.3 16.5 16.9 -26.c Construction 2. Net Services (4-5) 36. Net ( Private Transfers) 32.4 -0. 2014-15 (P) Jul.8 -38.0 0.7 -4. Other Transfers 32.7 0.2 -6.9 37. Net (Compensation of employees and Investment Income) -13.2 -83.3 -11.1 -0.2 0.9 10.6 -11.c Other Primary Income -13.8 17.7 -0.4 0.3 9.3 16.9 73.1 0.5 15.0 34.9 -10.1 -48.0 0.8 -38.-Sep.8 13.1 -5.1 -0.7 -6. Jul.2 -6.i.9 -10.b.2 -0.3 4.5 -0.2 12.9 123.0 18.2 19.6 0. Services 2.7 -2.0 155.9 -26.e.6 9.e Financial Services 2.1 -5. Goods Exports 167.4 32.5 32.9 0.7 0. 2013-14 (PR) 2014-15 (P) 2013-14 (PR) 1.2 -83.a Personal Transfers 4.4 36.8 11.9 8.6 -19.2 5.3 0.6 -14.1 -0. Errors & Omissions (-)(11+12+13) P: Preliminary.1 10.2 -1. Goods & Services Balances (3+6) -37.1 1.b Travel 2.8 33.1 -0.4 0.3 16.7 0.3 2.0 -0.2 21.-Sep.2 1.7 -0.06 0.5 0. Services Exports 75. 2014-15 (P) 2013-14 (PR) 2014-15 (P) 2013-14 (PR) 1.3 0.9 0.g Telecommunications.d Insurance and pension services 2.9 0. PR: Partially Revised RBI Bulletin March 2015 41 .-Sep.2 0.8 18.3 1.2 85.1 10.4 18. 36.2 238.Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2014-15 ARTICLE Table 1: Major items of India’s Balance of Payments (US$ Billion) Apr. Services Imports 39.5 19. e Other accounts receivable/payable—other 0.7 0.0 13. 2014-15 (P) Apr.a Other equity (ADRs/GDRs) 3. Other investment 3.0 4.6 0. 2013-14 (PR) 69.-Sep.3 0.5 18.6 2.2 22.2 37.6 0.6 5.8 -7.2 -0.7 0. PR: Partially Revised.4 0.3 -0.0 8. Financial Derivatives 0.2 0.4 48.-Sep.8 -0.7 0.6 -7.1 0.2 P: Preliminary.20 9.8 0.0 6.1 15.0 8.5 8.0 -1.6 0.-Sep.0 Percentage Share in Total 29.a Portfolio Investment in India 2.2 -0.2 -0.8 -7.6 P: Preliminary.6 8.4 0.1 10.0 -2.b Currency and deposits Deposit-taking corporations.0 20.9 -5.2 1.1 8.6 -0.1 -6. 42 RBI Bulletin March 2015 .9 47.2 32.6 -5.7 -0.4 4.c.5 -4.b Portfolio Investment by India 22.6 14.-Sep. 2013-14 (PR) 2014-15 (P) 2013-14 (PR) 1.2 0.9 10.8 3. PR: Partially Revised.9 -0.8 2.0 0.3 -0.8 5.1 0.4 0.ii Loans by India General government (External Assistance) Other sectors (External Commercial Borrowings) 3.2 -3.6 67.1 1. except the central bank General government (External Assistance) Other sectors (External Commercial Borrowings) 3.9 58. Table 4: Disaggregated Items of Financial Account (Net) (US$ Billion) Apr.9 33. Reserve assets -18.2 0.4 -2. 2014-15 (P) Jul.0 0. Direct Investment 1.Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2014-15 ARTICLE Table 3: Details of Personal Transfers to India (US$ Billion) Year Total Private Transfers Of Which: Inward remittances for family maintenance Amount 2013-14 2012-13 Apr.6 34.6 -5.0 -0.7 52.0 0.2 -5.2 16.2 37.2 0.5 25.a Direct Investment to India 1.d Trade credit and advances 3.5 -0.4 -0.2 -4.2 -3.2 -1.7 9. except the central bank (NRI Deposits) 3.0 13.9 35.6 -6.2 1.2 -2.i Loans to India Deposit-taking corporations.14 -6.b Direct Investment by India 16.1 -3.8 11.c Loans 3.3 Local withdrawals/ redemptions from NRI Deposits Percentage Share in Total Amount 54.6 15.5 44.7 -6.0 3.8 1.8 9.2 -2.1 -2.c.6 41.5 0.4 Financial Account (1+2+3+4+5) 20. Portfolio Investment 2. 4 Financial.3 Total 13.0 Others 3.4 0. 2014 2013 Manufacture 6. Apr.3 0.3 0.4 0. Cyprus 0.-Sep.2 0.1 0.2 Electricity.5 3.3 0. Figures contained in this Table may not agree with the data given in Table 7 due to updation subsequent to the release of BoP Data. Others 3.5 4.8 1.3 Miscellaneous 0.1 Restaurants and Hotels 0.0 0.1 0.1 1. 2014 Apr.5 5.1 8.3 3.5 0.1 3.2 0.0 Transport.0 9.3 0.Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2014-15 ARTICLE Table 5: Sector-wise FDI: Inflows and Outflows (US$ Billion) Gross FDI inflows to India# Industry Gross FDI outflows from India* 2013-14 Apr.-Sep.3 Total 13.1 0.-Sep.1 Community.3 3.3 7. 2014 2013 Industry 2013-14 Apr.1 9.1 10.3 1.1 5. Social and Personal Services 0.0 0.1 8.0 0.1 1. Cyprus 0. Spain 0.3 0.6 16.9 Manufacturing 2.8 0.8 0.2 0.4 0. Malaysia 0.0 0.1 0.1 0. Retail Trade.8 0. Real Estate and Business Services 1.2 0.8 6. 2014 Apr. USA 0.7 Construction 0.2 0.3 1.5 0.1 Computer Services 0.4 0.0 0.6 0. Mauritius 1. Netherlands 1. Netherlands 1.1 7.7 0.3 0. *: Includes equity (except that of individuals and banks).6 0.3 Communication Services 1.1 9. 2013 1.8 0.5 0.5 0. Others 6.5 0.3 Total #: Includes equity FDI through SIA/FIPB and RBI routes only and hence are not comparable with data in other tables. loans and guarantee invoked.8 6.5 0.4 2.4 0.1 9. Storage and Communication Services 0.-Sep. USA 1.7 6.5 0.4 0.9 2. Insurance.8 Financial Services 1.5 1.7 1.-Sep.3 Total #: Includes equity FDI through SIA/FIPB and RBI routes only and hence are not comparable with data in other tables. 2013 1. Table 6: Country-wise FDI: Inflows and Outflows (US$ Billion) Gross FDI inflows to India# Country Gross FDI outflows from India* 2013-14 Apr.4 0.0 4.1 0. UAE 0. UK 0.3 0.2 Business Services 0.4 6.6 2.2 0. Switzerland 0. RBI Bulletin March 2015 43 .1 0.5 0.3 0.0 0.3 0. *: Includes equity (except that of individuals and banks).2 0. Mauritius 3.3 0.4 0. Hunting. Gas and Water 0.6 Wholesale.7 0.4 1.-Sep. and hence are not comparable with data in other tables.4 10. Apr. Singapore 1.3 0.0 1.2 0.3 Country 2013-14 Apr.2 0.3 3.-Sep. Jersey 0. Forestry and Fishing 6. Restaurants and Hotels 1.1 Agriculture.3 0.6 1.2 0.5 Electricity and others 1.1 3. Japan 1.9 0.-Sep. UK 0.4 4.3 Construction 1.0 16.6 1.9 0.6 1. and hence are not comparable with data in other tables.7 1. Singapore 4. loans and guarantee invoked. 9 -6.2 -3. P: Preliminary.2 9.4) 1.4 1.5 -8.7 3.52 (56.2 4. PR: Partially Revised.7 -13.0 (0.-Mar.-Sep.55 (41.3) 0.3) 0.18 (43.1 -16. 2012-13 2013-14 2013-14 (PR) 2014-15 (P) -10.-Sep.3 12. 2013-14 (PR) 2013-14 2012-13 Equity* Loan 1.8 -5.2 -3.1) 1.0 (0.1 (0.5) 2.5) 0.6) 1.8) 3.47 (58.28 (25. Note: Figures in brackets relate to percentage share in total outward FDI for the period. migrant transfers and other capital transfers.1) Guarantee Invoked Total 0.4 #: Inclusive of derivatives and hedging.0) 9. 44 RBI Bulletin March 2015 .0) 6.5) 4.-Sep.8 11.1 *: The equity data do not include equity of individuals and banks. Table 8: Details of ‘Other Receivables / Payables’ (Net) (US $ Billion) Item Lead and lags in exports Net funds held abroad Advances received pending issue of shares under FDI Other capital not included elsewhere# Total Apr.85 (55.4 -5.5 -3.5 -2.5 2.Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2014-15 ARTICLE Table 7: India’s Outward FDI (US$ Billion) Period Apr.46 (44. Apr.5 7.6 0.1 (0.6 1.50 (74.1 4. 2014-15 (P) Apr.9 -2. The data collected under this survey were published on the Bank’s website under ‘data release’ (http://rbi. 5. bank-group wise analysis on preference of various institutional depositors is discussed.org. As on March 31. including Regional Rural Banks (RRBs) as on March 31. 2014 is also presented in the last section. Government. Financial and Foreign). RBI Bulletin March 2015 45 . ARTICLE groups (public sector banks.in/scripts/BS_PressReleaseDisplay. current. The data provides branch-wise outstanding deposits as on March 31. population groups and major bank * Prepared in the Bank Branch Statistics Division of the Department of Statistics and Information Management. 1 More detailed data for March 2014 is available in the Reserve Bank website ‘URL:http://www. The discussion on ownership pattern of deposits by broad institutional sectors is followed by the section on the pattern of deposits according to population groups. Household. 2014. Private Corporate (Non-Financial. The data on ownership pattern of deposits as estimated from annual sample survey for the period from 2007-10 is used along with the annual census survey data as collected from-March 2012 to 20141. The analysis brings out broad trends across type of deposit accounts. private sector banks and foreign banks). the latest was published in the April 2014 issue. This article is based on 2014 survey data and presents a brief review of the trends and pattern in type of deposit accounts (current.rbi. The term deposits remained the largest constituent followed by savings deposits. Mumbai. Subsequently. Previous findings from BSR-4 survey on Composition and Ownership Pattern of Deposits with scheduled commercial bank were published in various issues of Reserve Bank of India Bulletin. savings and term deposits). Reserve Bank of India.in/’.. Introduction The annual survey on ‘Composition and Ownership Pattern of Bank Deposits with Scheduled Commercial Banks (SCBs)’. These data help to analyse the trends across states. institutional sectors. A brief information on statewise pattern in bank deposits as on March 31.org. Composition of Bank Deposits by Type of Deposits 4. savings and term deposits). 2014. The share of term and savings deposits in total deposits showed increasing trends during 2010-2014. population groups and bank groups over the period. . aspx?prid=33283) in February 2015.Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014* This article presents an analysis of composition and ownership pattern of outstanding deposits with scheduled commercial banks (including regional rural banks) during 2007-2014. 3.e. 2. was conducted by the Reserve Bank of India through Basic Statistical Returns (BSR)-4 system. according to type of deposits ( viz. whereas share of current deposits showed declining trend during the same period. term deposits constituted around two-thirds share and savings deposits at around one-fourth share in total deposits (Chart 1). and institutional categories of depositors (i. 3) 9.865 (8.0) 30. not considered in the present study.50-9. 2.310 (13.492 (33.788 (19.9) 4.00 7.3 2.7) 5.0 8.757 (14.231 (2.00 8.5) 81.999 (24.6) 16.858 (17.0 per cent).9 15.7 11.397 (21.7) 6.25 7.5) 16. exhibited some improvement in March 2014 (Table 1). household sector contributed 59.950 (9.709 (17.5 5.50 8. had also increased.312 (31.8) 48. During 2013-14.1) 20. Household sector2 continued to lead deposits generation by SCBs over the entire period under review (Chart 2).0 22.75-8. 5.2 12. 6.2 33.2 -26.466 (11.0) 12. Prices of gold are in INR in Mumbai.3 Growth in Gold Prices 33.4) 21.063 (12.396 (19.9) 4.Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 ARTICLE Table 1: Trends in Deposits According to Type of Account (Amount outstanding in ` Billion.2 **: Deposits include inter-bank deposits.186 (22.0 -26. which was decelerating till March 2013.8) 26.) Deposit Rate 7.136 (25.3 16.2 -7. mainly on account of substantial increase in non-residents’ deposits.1 15. The y-o-y growth in total deposits. RBI).836 (23.9) 71. A part of this increase might be attributed to policy changes on Ownership pattern of deposits by broad institutional sectors 7.75 6. 46 RBI Bulletin March 2015 .7 per cent share in total deposits followed by the government sector (14. 3.e.00-9.50-9. savings and term).9 8.4) 40.5 2.9 15.8) Memo items (in %): Term (>1 Yr. Figures in brackets represent the annual growth rates. the share of foreign sector’s deposits 2 The household sector include individuals as well as unincorporated bodies.2) 52.263 (15.5) 7.110 (15. Note: 1. Lower growth in current deposits in the last two years is consistent with the slowdown in economic environment as reflected by lower/ negative growths in index of industrial production.3 Growth in IIP 12. As on March 2014. The growth rates for 2012 for all the items are therefore calculated as compounded annual growth rates over 2010.1 12.25 Growth in Nominal GDP 16.933 (29.803 (16.1) 7.357 (17.356 (15.2) 46.6) 26.5 5.1 Growth in BSE 100 42.364 (19.1 -0.3) 40. March 2011 estimates based on stratified sampling method were not in alignment with the previous year estimates as also the census data from March 2012 and hence. mainly on account of acceleration in interest bearing deposits (i.0) 33..8 17. 4.00-7.8) 6. GDP as measured at current market prices.2 29.1) 64. The term deposit rates are as collected from major banks (Source: Weekly Statistical Supplement.060 (1.50-9.9 1.5 39.00 8.323 (16.6) 18.8) 7.3 -3.344 (12. Growth in per cent) Account Type/As on March 31 Current deposits Savings deposits Term deposits Total deposits(**) 2007 2008 2009 2010 2012 2013 2014 3.25-9. 0) 6.7) 1.954 18.0) 3.364 (19. (For detailed level in 2014 (Table 2).4) 1.8) (25.085 -(16.314 40.017 (26.019 (11.7) 2.580 (4.811 (44.1) 7150 (18.2) 1.5) 2.9) 5.2) 28. comprised the largest share of around 834 per cent in total households’ deposits.6 per cent in 2013 and remained at that deposits during the period 2008-2014.3) 1.348 (80.0) 3.249 (15.977 (48.429 (21.732 21.907 (25.1) 1.4) 1.6 per cent) were other constituents of households’ Growth in deposits by various institutional sectors the second consecutive year.4) 1.879 (43.5) 1.4) 1. Non-Resident Total Deposits Note: Figures in brackets represent the annual growth rates.468 Of which.8) (16.0) 1.1) 37.0 per cent during 2008-2012.879 (0.660 33.9) 33.280 (24.361 (19.137 (21.862 (47.1) 1.2) 2.662 (7.5) 81.018 14.7) 1.035 (39.397 (21. during 2012-14.935 -(4.578 (32.2) 2.2) 1.747 (4.2) 2.912 (5. The households’ share in total deposits.736 (27.6) 1.8) (21.1) 5. Non-financial private corporate investment (i.5) 1.735 (37.772 (2. Growth in Per cent) Mar-07 Mar-08 Mar-09 Mar-10 Mar-12 Mar-13 Mar-14 3.7) 4.6) 19.7-6. data.820 (34.348 (48.0) 9. Non-Financial Companies III.478 (14.5) 4.7) 1.210 (9.0) 3.951 (10.9) 916 -(1. Foreign Sector Of which.758 -(0.049 (19.4) 8.6) 5.4) 23.1) 521 (30.e.7) 4. Household Sector V. which was hovering around 58.2) 5.2) (24.0) 3.8) 2.8) Major Institutional Sectors I.724 (13.652 (26.118 (20. Proprietary and partnership 8.2) 42.5) 2.7) 2. Farmers (18.494 (7.4) 6.4) 8. The growth rates for 2012 are the compounded annual growth rates (CAGR) over 2010.0) 1.9) 3.306 (10.5) 3.384 (14.466 (11.181 (28.8) 1.3) 1.4) 2.6) 4. Banks Other Financial Institutions Other Financial Companies IV. RBI Bulletin March 2015 47 .3 per cent) and trusts and associations (3. The estimates for March 2011 could not be used as they were not in alignment with the census data for March 2012.7) 48.999 (24.825 (34.056 -(19.Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 ARTICLE foreign deposit accounts.238 (19.875 -(5.565 (22.807 (3.346 (24. 3 Individuals including Hindu undivided families (HUF).736 (10.1) Of which.558 (11. refer RBI website (http://www.960 (41.301 (26. Central & State Governments Public Sector Corporations II. announced by the Reserve Bank during 2013-14.567 (14.402 (15.5- increased to 59.1) 5. Within households.8) 1.9) 5.1) 7.rbi.322 (42. are now classified under ‘salary and wage earners’ and ‘other individuals’. Government Sector Of which.677 -(3.329 (16.6) 932 (79.310 (13.3) 15.123 (44.1) 2.478 (35.549 (40. firms (4.652 (6.8) (16.786 (37.068 (30.7) 2.819 (27.7) 64. quite competitive as compared to other sources of is given in Table 2.928 (10.939 (10. banks term deposits rates had remained 9.7) 5.6) 11.237 (0.013 (78.843 28.596 (5.2) 2.395 -(6.4) 3.1) 71.2) 3.314 (6.9) 1.8) 2.0) 6.6) 1.726 -(9. 4 With improvements in classification some household deposits which were not classified elsewhere.0) 5.097 (7. Individuals (including Hindu undivided Families) 12.0) 2.354 (31.7) 9. individuals 3 4.2) 1. Table 2: Total Deposits by Major Institutional Sectors (Amounts in ` Billion.6) 1.3) 1.9) 3.8) 9.0) 4.110 (15.3) 26. Private Corporate Sector (Non-Financial) Of which.in/).127 (23.136 (28.568 (14.6) 2.1) 2.4) 1.191 (6.9) 40.3) 48.497 (22.8) 1.548 (7.5) (14.000 -(2. stock market and gold/ silver) available sectors’ deposits with banks continued to decline for to households.552 (22.7) 7.org.551 (15.7) 6.191 (6.867 (35. Financial Sector Of which.3) 1. As noted earlier in Table 1.605 (3.186 (22.008 (1.065 -(9.293 (32.7) 1. 2008-2014 (Table 4).5 34.4 86. Private Corporate Sector (Non-Financial) III.1 16.5 7.0 25.5 20.8 73.0 10.9 88.5 71.0 2012 Current Savings Term Total 12.7 100.9 2.0 22.6 13.0 100..7 62.6 0.8 36.8 40.0 89.0 2010 Current Savings Term Total 14.3 83.0 9.8 100.0 9.0 60.8 36.0 48 RBI Bulletin March 2015 .8 59.4 10.8 0.5 64.4 70.9 9. the non-financial private corporate deposits were second most important with savings sector was the second largest contributor followed by deposits having a negligible share.6 15.0 21.5 36.0 10.0 8.2 100.9 26. Government Sector II.2 100.2 75.7 69.4 100.0 59. declined in 2014 mainly in favour of foreign sector.0 71.9 25. wherein current In current deposits.7 1.6 100.0 100.6 11.0 10.2 100.4 100.0 2013 Current Savings Term Total 12.7 100.8 25.0 100. Savings deposits were the second more than 50 per cent of term deposits and more than major constituent in all sectors except non-financial 40 per cent of current deposits are held by households.2 100.0 28. which is the financial private corporate sector in total deposits largest holder of total deposits outstanding with SCBs. Term deposits constituted major part of total deposits. The institutional ownership of different types of the Government sector in 2014. also held the largest shares across all three types of 11.8 1.0 100.0 2014 Current Savings Term Total 9.8 0.9 100.0 12.0 75. Around 84 per cent of savings deposits.0 9. Table 4: Composition of Deposits by Various Institutional Sectors (Per cent) Year (As on March 31) Deposit Type/ Sector Government Sector Private Corporate Sector (Non-Financial) Financial Sector Household Sector Foreign Sector Total 2008 Current Savings Term Total 14.5 52.8 14.9 12.0 13.6 19.4 0.3 100.3 1.0 100. savings and term deposits in deposits for all institutional sectors over the period 2014 (Table 3).1 87.0 3.2 26. viz.0 9.1 14.5 62.1 18.0 6.7 64.3 36.2 57.7 1.2 64.5 100.0 0. The share of non- deposits indicates that the households.6 1.9 100.0 100.0 8.6 100.0 9.9 100.5 37.7 100.0 10.0 25.8 11.0 24.8 100.0 14.0 6.0 26.6 5. private corporate and financial sectors.8 1.0 6.4 1.1 69.1 15.2 100.0 7.3 100.5 63.3 55.2 100.7 57.9 100.1 69.0 100.4 54.4 100.0 11.7 6.2 77.6 4.1 33.8 100.8 4.6 73.4 13. Household Sector V.8 1.3 9.0 4.3 13.0 3. current.1 18.3 100.8 100.4 4.4 84.0 12.8 55.0 72.2 27.3 52.Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 ARTICLE Table 3: Institutional Ownership of Various Types of Deposits (Per cent) Type of Deposits Sectors/Year (as on March 31) Current I.0 22.5 56. Financial Sector IV.5 23.3 11.8 42.2 74.0 100.7 100.6 100.1 3.8 24.6 15.5 100.0 100.0 6. Foreign Sector Total Deposits Savings Term Total 2013 2014 2013 2014 2013 2014 2013 2014 17. 2) {21.664 (17.270 (35.5} 4.307 (14.5) {100.417 (14.7) {100.1 per cent) 5 The population group classification of banked centres is based on Census 2001.4 per cent).8) {20.2) {13.999 (24.2) {20.6} 3.148 (12.5} 10.0) {56.8} 5.0} Note: The growth rates for 2012 are the compounded annual growth rates (CAGR) over 2010.0} 64.8} 44. The share of these branches. RBI Bulletin March 2015 49 . In metropolitan area.6) {21.9) {14. refer RBI website (http://www.0} 33.604 (14.4) {57.010 (16.5) {8. 14.Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 ARTICLE Table 5: Distribution of Deposits Across Population Groups (Amounts in ` Billion. The distribution of deposits across population groups indicated that metropolitan branches contributed the highest share in total deposits.7) {100.926 (30.832 (20.0} 6.7) {22.248 (16.5} 7.7) {54.397 (21.6) {54.6) {20.020 (24.189 (7.186 (22.9) {13. which declined successively in 2012 and 2013.5} 6.0) {56.585 (10.3 per cent in 2014.4) {9. metropolitan branches’ share in term deposits 13. Households’ share in total deposits was also high in semi-urban (77.917 (17. Household sector constituted 90 per cent of total deposits of rural branches.466 (11. urban and semi-urban population groups followed by savings deposits in 2014 (Chart 3).8} 36.3) {9. Total deposits classified by population groups is presented in Table 5.1) {100.3} 13.5) {13.1} 3.5) {14.org.7} Metropolitan Amount (Growth Rate) {Share} 15.9) {100.364 (19.7} 15.0} 71.8} 39.151 (4.8 per cent in 2013.9) {9.526 (20.6 per cent) and metropolitan (46.8) {13.5} 27.0} 81. The growth in deposits of metropolitan branches.110 (15.954 (22.8) {9.6} 6.2} 11. on account of higher deposit growth in other population groups.132 (16.2) {9.488 (26. urban (67.9) {100.8} 4. partly recovered in 2014.780 (16.1) {20.0} 8.3} All India Amount (Growth Rate) {Share} 26. financial sector (15.640 (14. other notable contributors were government sector (15. and non-financial private corporate sector (14.8) {57.829 (23. Ownership Pattern of Deposits across Population Groups5 12.3} Urban Amount (Growth Rate) {Share} 5.1} 9.5} 17. which hovered around 56-58 per cent during 2007-2012 dipped to 54.6} 8.310 (13.757 (16.8) {100.653 (18.1) {56.328 (18.7) {7.235 (31.3} 22.4} 19. Households sector was the major owner of bank deposits in all population groups. rbi. In 2014. Term deposits remained dominant type of deposits across metropolitan.0} 48.8 per cent).0} 5.8) {13.in/).7} Semi-urban Amount (Growth Rate) {Share} 3.7 per cent) (For detailed data.0} 40.833 (10.5 per cent) areas. Growth Rate and Share in Per cent) Population Group/Year (as on March 31) 2007 2008 2009 2010 2012 2013 2014 Rural Amount (Growth Rate) {Share} 2.388 (16. and showed only a marginal decline to reach at 54. 0) {4.2} 13.4} Nationalised Banks Amount Growth Rate Share 12.9) {52.9 associates.5) {2.233 (16.4) {24.3) {18.999 (24.7) {4.417 (11.6) {21.6} 15.0} 33.0} 40. sector banks (consisting of SBI & its Associates and 17.543 (32.9) {100. per cent as against a decline by 9.Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 ARTICLE Table 6: Bank Group wise Distribution of Total Deposits (Amounts in ` Billion.4) {21.513 (23.562 (14.9} 1.466 (11. according to type was business strategies of banks.8) {22.0) {47.1) {53.3} All Scheduled Commercial Banks Amount Growth Rate Share 26.836 (2.845 (23.110 (15.9) {21.0} 2.8} 10.0) {3.4 percentage points and stood at 73.8} Foreign Banks Amount Growth Rate Share 1.7} Regional Rural Banks Amount Growth Rate Share 817 (7.598 (13.9} Private Sector Banks Amount Growth Rate Share 5.5} 34. 50 RBI Bulletin March 2015 .0} 961 (17.1) {21.7) {5. Selection of bank groups by various institutional Rural Banks contributed at around 3 per cent of total players appeared to be based on flexibilities required deposits.064 (12.0} 71.397 (21.3} 2.186 (22.9} 2. which hovered in the the highest share in total deposits in all bank groups range of 70.8} 15.0} 48.7) {18. followed by term deposits. of the total deposits followed by current deposits (more Ownership Pattern of Deposits According to Bank than one-fifth).2) {3.7} 1.531 (5. Institutional ownership of deposits as on March Nationalised Banks including IDBI Bank) comprised the 31.5) {2.9} 2.6) {18.780 (7.7) {5.252 (13. Bank group-wise analysis indicates that.907 (0.818 (14. in respect of deposits by by savings deposits (Chart 4).364 (19.8} 17. for their business as well as the customer oriented 16.7} 19.403 (26.0} 81. The Regional 18.7) {52.3) {22.7} 1.3) {20.0} 1.2) {2. term deposits constituted more than 60 per cent share. remained at 4-5 per cent in various years.1) {52.406 (32.5) {100.186 (23.7} 11.310 (13.116 (20.6 percentage points where the term deposits had the largest share followed in saving deposits.6) {4.725 (33.550 (4.650 (16.540 (9.4) {47. However.0} 8.843 (24.839 (11.6} 10.6 per cent between 2007 and 2014 excluding the foreign banks group. In the case of foreign rural branches.0} Note: Private sector banks include old as well as new private sector banks.8) {100. 2014 indicated that the households accounted for largest share in total deposits. Domestic private sector banks held 18-20 per sector held the largest share of deposits followed by cent of deposits and the share of foreign banks non-financial private corporate sector (Table 7).3} 25.480 (22.9) {100.0) {5.5} 7.071 (20.4} 37.908 (23.2} 15.6) {21. In the case of RRBs.2} 8.1 -74. Distribution of deposits.6) {2.6) {47. Around 90 per cent of the quite similar to earlier years among SBI and its Government deposits were with public sector banks.465 (15. increased by 9.0} 3.2} 6. Growth and Share in Per cent) Bank Group/Year (as on March 31) 2007 2008 2009 2010 2012 2013 2014 State Bank of India and its Associates Amount Growth Rate Share 6.474 (24. savings deposits Groups accounted for more than half of the total deposits 15.The growth rates for 2012 are compounded annual growth rates (CAGR) over 2010.0} 64.960 (21.1) {100.5} 42.020 (33.7) {100. savings deposits constituted the largest banks.9} 1.167 (17.7) {2.7) {17.7) {100.343 (13.8} 13.6) {21. public followed by term deposits (more than two-fifth). nationalised banks and private sector banks. where the foreign (Table 6).7} 2.0) {4. 192 (34.4) 2.2) 11.5) 1.3) 153 (6.910 (11.0 per cent). private sector banks (28. Share in Per cent) Sector/Bank Group SBI & Its Associates Nationalised Banks RRBs Private Sector Banks Foreign Banks Total I.9) 6 (0.402 (14.5) 21 (0.7) 1.8) 2.092 (63.154 (91.4) 4.8) 664 (19.9) 410 (2.965 (16.336 (7.255 (7.910 (62.2) 2.5) 372 (10.3) 5. The composition of deposits as at end March 2014 More than three-fourth of household deposits. Private Corporate Sector (Non-Financial) 1.348 (6. 19.5) 847 (5.0 per cent Institutional Ownership of Deposits According to States / Union Territories6 deposits were held by foreign and private sector banks.480 (100.324 (19.064 (13.310 (100.0) II. Government Sector 3.rbi.0) III.0) 15.567 (59.5) 10 (0.252 (100.065 (9.0) 3.2) 831 (1.216 (14.140 (32.203 (7. Financial Sector IV. Foreign Sector Total Deposits Note: Figures in parentheses represents share.6) 113 (3. More than 56 per cent deposits by non-financial private corporate sector were held by public sector banks while 43. RBI Bulletin March 2015 51 . might be on deposits were with nationalised banks followed by account of bigger branch network of these banks.1) 6.6) 1. 6 More detailed data for March 2013 is available in the Reserve Bank website ‘URL:http://www.0) 2. These Table 7: Bank Group Wise Pattern of Ownership of Deposits – March 31.376 (15.928 (9.7) 26.7) 7.8) 11.6) 17.0) 42.7) 8.in/’. 2014 (Amounts in ` Billion.417 (100. across different States/Union Territories (UTs) showed especially individuals (largest constituent of household higher concentration in seven states/UTs.1) 48. Household Sector V.7) 3.748 (50.9) 2.Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 ARTICLE About 62 per cent of financial sector (including banks) sector) were with public sector banks.0) 81.343 (100.9) 7.org.818 (100. Delhi (8. Of the total deposits by non-financial private savings in bank deposits was of different degrees in corporates. namely. 52 RBI Bulletin March 2015 . 68. followed by SCBs. 20.4 per cent). Maharashtra (34.2 per cent (share Karnataka.4 per of total deposits.1 per cent). According to ownership.1 per cent by the Eastern Region at 72. Maharashtra contributed to 39.ARTICLE Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks: March 2014 states/UTs (Maharashtra. Tamil Nadu (10. Delhi. and North-Eastern Region at 71. and Karnataka per cent (with the corresponding States/UT’s share (9. Delhi (14.1 per cent). cent) and in Western Region (45.9 per cent) and Gujarat (5.1 deposits in the Central Region was the highest at 75. households in total deposits was lower in the Northern Maharashtra alone contributed more than one-fourth Region (63. Uttar Pradesh.8 per cent). The overall households share in total states. In the total foreign sector deposits raised varying in the range from 66 to 81 per cent). West Bengal and Gujarat) varying between 65 to 77 per cent).9 per cent). The share of comprised around 68 per cent of total deposits.2 per cent (with the followed by Kerala (17.9 per cent).3 per cent). dominance of households’ 21.1 per cent). Tamil Nadu.4 per cent was concentrated in four different regions.4 per cent). constituents’ share ranging between 62 to 75 per cent) Karnataka (6. the southern Region (60. the software services exports (other than on-site exports). The detailed methodology for estimation of software exports of the non-responding companies is given in the Annex. After growing at remarkable pace during the period 2001-02 to 2007-08 (30.7 per cent of the total software services exports during the year. India’s software service exports reflected some moderation following global financial crisis in 2008-09 but recovered in the subsequent period.4 per cent in US $ term). The Reserve Bank started to conduct the annual survey on ‘ Computer Software and Information Technology Enabled Services Exports’ in 2002-03 as per the recommendations of the National Statistical Commission (2001) and subsequent guidance from the Technical Group on Computer Services Exports (TGCSE) (2008). 1 Detailed data related to ITES 2013-14 survey are released on the RBI website (www. It also analyses the trend in major aggregates based on current and earlier round of survey results1. stood at `4. software services exports have been divided into two major categories: (i) Computer Services exports which include IT services as well as Software Product Development and (ii) ITES/ BPO services which includes BPO services and engineering services. The responding companies together accounted for 74. The survey also collects exports data as per the four modes of supply (viz.7 per cent of GDP. which was eighth in the series. cross-border supply. Introduction The annual survey on Software and Information Technology Enabled Services Exports is conducted by the Reserve Bank for estimation of various aspects of Computer Services Exports as well as exports of ITES/ BPO. As per the balance of payments (BoP) Statistics. The survey collects details of exports of computer services following the Balance of Payments and International Investment Position Manual (BPM6) of the International Monetary Fund (IMF) and the Manual on Statistics of International Trade in Services * Prepared in the External Liabilities and Assets Statistics Division. as well as other select information on ITES/ BPO services exports. including for their role as net exports from the country. This article presents the aggregate results of 2013-14 round of the survey and examines any changes in the characteristics of software services exports. As per 53 .org.206 billion in 2013-14 and constituted around 46 per cent of total services exports of India as well as 3. of which 128 cases were for Nil-return or for closed companies. 2015.Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14* The Reserve Bank’s annual survey on Computer Software and Information Technology Enabled Services Exports (ITES) collects information on various dimensions of exports of computer services and ITES exports. The previous round of this survey was conducted for the reference year 2012-13. In this survey. RBI Bulletin March 2015 ARTICLE (MSITS). the schedule was canvassed among 6. which is joint work of seven international agencies.rbi. I. Details on export of software services are collected as per the type of activity/ services (on-site/off-site) and country of destination along with the modes of supply. II. The previous article in the series with reference period 2012-13 was published in March 2014 issue of the Reserve Bank of India Bulletin. consumption abroad. Responses were received from 873 companies.in) on February 16. Software Services Exports from India – Recent Trends Software and IT-enabled services are considered important activity in the Indian economy. The remaining 745 companies included most of the large IT companies as well as other companies. Reserve Bank of India. including Business Process Outsourcing (BPO). For the 2013-14 survey round.700 companies. commercial presence and presence of natural persons) as defined in MSITS. Mumbai.. Department of Statistics & Information Management. 6 1.2 71.3 51.8 2.8 1.7 2.8 8.5 7.256.0 60.1 per cent annual growth ITES/BPO services exports increased.0 100. India’s total export of Table 1). The share of computer commercial presence) is estimated at `4.8 205.8 8. Table 1: Software Services Exports from India with Components (` billion) Activity A) Computer Services Of which: i) IT services ii) Software Product Development B) ITES/BPO Services Of which: i) BPO Services ii) Engineering Services Software Services Exports Share in Total (%) 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2012-13 2013-14 (1) (2) (3) (4) (5) (6) (7) (8) 1.8 billion services exports.4 21.405.181.6 per cent share) in India’s total (US$ 52.266.3 2.661.0 23.7 103.2 1.3 431.4 14.0 Total Export of Software Services (A+B) in ` billion (A+B) in US $ billion * Annual Growth (in US $ terms) * Using Average Exchange Rate for the year (applicable for all tables). during 2013-14. software services exports during 2013-14 (Chart 1 and respectively.1 934. the in US $ terms.2 957.9 31.7 billion component (around 73.9 billion).8 71.3 5.484.9 26.322.6 4.Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 ARTICLE the survey results. showing 14.1 3.322.6 67.9 38.1 1.9 5.7 570.141.9 2.6 73.7 245.0 617.181.7 2.3 139.0 69.1 billion (US$ 18. 54 RBI Bulletin March 2015 .2 106.6 20. whereas.2 4. ‘IT services’ was the major component in the computer services and ITES/BPO services (excluding ‘Computer Services’ category.115.141.4 billion).0 94.867.936. export of computer software services Computer services remained the dominant and ITES/BPO services are estimated at `3.4 789.836.9 3.2 523.7 4.6 167.4 1.7 468. share of ITES/BPO services exports declined.6 22.6 billion) and `1.2 62.5 28.1 100.1 206.7 191.8 150.1 23.8 1.0 100. in the total Computer software and (US$ 71.1 47.9 66.447.8 1.170.492.0 571.598. 0 2.3 1.0 100.6 billion increases in the previous year.7 0.3 1. book keeping and tax consulting services’ and ‘Customer interaction services’ were the major components.4 84. Industry-wise Distribution of ITES/BPO Services Exports The classification given by the Department of Information Technology (DIT-2003).0 42. Gaming.7 0.4 0.1 billion.4 0.2 41.3 0.4 11.0 81.2 58. etc.0 100.5 0.0 100.6 6. electronics excluding software) Industrial automation and enterprise asset management Other Engineering service 24.Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 ARTICLE Table 2: Industry-wise Share of ITES/BPO Services Exports (per cent) Activity 2009-10 2010-11 2011-12 2012-13 2013-14 (1) (2) (3) (4) (5) BPO Services Customer interaction services Finance and Accounting. auditing. book keeping and tax consulting services HR Administration Procurements and logistics Medical transcription Document Management Content development and management and publishing Other BPO service 75.5 18. respectively.2 0.9 2.3 5.7 0.1 Engineering Services Embedded Solutions Product Design Engineering (mechanical.1 7.3 0.6 per cent in 2013-14 as the share of Private limited companies increased (Table 3). ‘other BPO services’ (i. exports in BPO services and Engineering services increased by `144.6 38.3 82.1 5.4 58. the Engineering services recorded higher growth than BPO services.4 0.3 58.0 63.5 4.0 100. Legal services.2 17. and recorded an increase of `107. Table 3: Organisation-wise Share of Software Services Exports (per cent) Organisation Private Limited Companies Public Limited Companies Others Total 2009-10 2010-11 2011-12 2012-13 2013-14 (1) (2) (3) (4) (5) 39.0 0.3 0.0 12.6 13.0 100.3 2.4 23.4 5. Among BPO services .5 1.4 82.1 36.2 0.2 0.6 0. Animation.6 18.2 7.6 0.1 18.3 64.8 7. book keeping and tax consulting services’ increased whereas the share of ‘Customer interaction services’ declined (Table 2).4 billion in 2013-14.9 58.7 14.6 0. IV.0 0.6 0. Among the BPO services exports.9 8.0 Total BPO Services III. Government of India.5 0. However.9 9. Organisation-wise Distribution of Software Services Exports Public limited companies continued to have the highest share of the total software services exports though their share declined marginally from 64.0 11.5 0.2 13.5 billion and `39.1 35.7 0. whereas the share of ‘Product Design Engineering’ (mechanical. was used for compilation of data on exports of ITES/BPO services.0 100.0 100.4 8. as compared with `266. electronics excluding software) and ‘Industrial automation and enterprise asset management’ declined in 2013-14 (Table 2).0 6.1 100.4 100.5 10.0 100..e.7 45.9 0.6 0.5 0. the share of ‘ Finance and Accounting. auditing.9 1.6 billion and `73.1 2. In the total ITES/BPO services exports.0 55 .3 0.9 0.6 per cent in 2012-13 to 63.) as well as combination of services constituted more than half of the ITES/BPO services. Pharmaceuticals and biotechnology services.4 15.5 61. ‘Finance and Accounting. During 2013-14.8 53. RBI Bulletin March 2015 Among Engineering services.4 0. the contribution of ‘Embedded Solutions’ increased.4 0.1 5. auditing.5 2. whereas the share of Europe. Asia and Australia & New Zealand increased as compared to 2012-13.ARTICLE Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 V. Euro and Indian rupee have increased and the same of US dollar and Australian dollar have decreased since 2012-13 (Chart 3). The shares of United States & Canada in total software exports decreased. The shares of GBP. Currency Composition of Software Services Exports United States & Canada remained the top destination (62. US Dollar continued to remain the major currency of invoicing software export accounting for nearly three-fourth of total invoicing during 2013-14.7 per cent) for software services exports from India followed by Europe. Country-wise Distribution of Software Services Exports VI. which had nearly onefourth share in 2013-14 (Chart 2). 56 RBI Bulletin March 2015 . Software Business of Subsidiaries/Associates The survey also collects information on the software business of foreign subsidiaries/ associates of Indian companies (foreign affiliates). to India and to other countries.1 14.011.. Table 4: Share of On-site and Off-site Exports Type of Services ARTICLE 2009-10 2010-11 2011-12 2012-13 2013-14 Under ‘Other Services’ category.e. foreign affiliates were the major source for generating the software business (1) (2) (3) (4) (5) outside India.0 100.8 84.4 9.4 13.0 100..7 15.8 per cent in 2012-13.Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 VII. IT services.7 17.8 15. To this extent.3 17. locally.5 billion (US$ 2.6 0.3 17. and ‘Software product development’.2 19.3 billion) in the previous year (Table 6).0 whereas it declined for ‘BPO services’ ‘Engineering services’. reversing the trend followed since 2009-10 (Table 5).2 billion (US$ 3. Software product development. data on services exports in BoP differs from those in the Foreign Affiliates Trade in Services (FATS) statistics.8 80. viz. Indian companies providing the combination of four broad group of services (viz.0 74.. The total software business of the Indian-owned foreign affiliates (excluding the services provided to India) observed slowdown following global crisis in 2008. 100.7 69.1 billion) as against a decline of `122. The share of export of software service through on-site mode.4 20.0 100.3 billion (US$ 7.6 14.5 1. foreign affiliates established abroad are treated as the domestic units in the host economy and hence the services delivered by them are not considered as the exports of the home country. as per the BoP manual.8 billion (US$ 82. international trade in services can be conducted through four different modes. it increased significantly by `427. Software services provided by foreign 21.6 67.. which recorded declining trend since 2008-09.1 billion (US$ 1.8 billion) in 2013-14.1 VIII. (per cent) On-site (Mode 4) Off-site (Mode 1 & Mode 2) Total RBI Bulletin March 2015 (per cent) Type of Mode Mode 1 (cross-border supply) Mode 2 (consumption abroad) Mode 3 (commercial presence) Mode 4 (presence of natural person) 2009-10 2010-11 2011-12 2012-13 2013-14 (1) (2) (3) (4) (5) 64. increased to 19.4 69. whereas the share of software services through Mode-3 and Mode-4 increased in 2013-14. (iii) presence of natural person (Mode-4) and (iv) services provided locally by the affiliates established abroad. i.6 78.8 17. However. Modes of Software Services Exports Table 5: Software Services Exports by Different Modes Software services are exported through both onsite and off-site routes. commercial presence (Mode-3). under the heads of software business done in the host country.8 82. The business of these subsidiaries to India increased by `87. The total international trade in computer services by India by all four modes of supply stood at `5.0 0.0 100.0 0.8 per cent in 2013-14 from 15. in 2013-14. As per the MSITS. However.7 79.1 0. i.e. for the purpose of Foreign Affiliates Trade in Services (FATS). BPO services and Engineering services) were classified under ‘Other services’ category.1 17. The share of software services exports by India through Mode-1 and Mode-2 declined.2 affiliates in all countries increased for ‘IT services’.4 billion) in 2013-14 on top of increase of `173. (ii) consumption abroad (Mode-2). The survey collected the software services trade data on all four modes of supply.2 15. (i) transactions between resident and non-resident covering cross-border supply (Mode-1).2 billion) in 2012-13. 57 . 8 11.4 United Kingdom 6.0 274.5 100.1 453.1 0.9 8.3 Netherlands 3.6 7.4 23.9 Total (` billion) 392.7 3.4 12.1 2.2 0.4 17.3 Total (US$ billion) USA had the maximum share of total software business by foreign affiliates though its share declined in 2013-14.1 0.5 0.5 0.6 0.0 IT services Software Product Development BPO Services Engineering Services Other services 0. whereas.0 3.5 2.7 31. The share of on-site exports increased in 2013-14.5 10.2 12. The share of software services exports through Mode-1 and Mode-2 declined.3 7.2 0. the share of software services through Mode3 and Mode-4 has increased in 2013-14.0 276.0 71.2 8.8 billion (US$ 82. The share of Germany and Singapore in the total software business of foreign affiliates also increased during the year (Table 7).9 1.0 26.7 44.0 2.1 689.6 307.2 0.6 1.4 37.9 0.0 3.0 118. Total international trade in software services by India.7 338.3 11. USA continued to remain the major destination for software exports and US dollar remained the major invoice currency for software exports during 2013-14.3 0. stood at `5.3 0.5 391.Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 ARTICLE Table 6: Software Business by Foreign Affiliates of Indian Companies (` billion) Other Countries To India Locally 2013-14 Other Countries To India Locally 2012-13 Other Countries To India Locally 2011-12 Other Countries To India Locally 2010-11 Other Countries To India 2009-10 Locally Activity (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) 6.4 6.2 1.3 4.3 1.0 100.7 8.4 0.1 644.4 4.4 0.9 1.6 2.5 184.8 15.3 0.6 44.4 0.0 14.5 10.9 7.1 3.2 26.9 Canada 4.0 353.0 100.4 9.011.4 4.8 billion) in 2013-14.0 3.4 0.3 15.1 0.4 38.1 Germany 3.9 4.6 3.4 16.0 100.0 2.8 0.0 13.5 65.0 4.5 3.3 6.0 0.0 0.3 65.8 5. Software exports by foreign affiliates of Indian companies increased substantially in 2013-14.4 2.4 0.0 22.0 100.0 Other Countries Total 58 IX.8 189.2 0.6 0.1 17.1 0.0 28.1 7.2 0.9 377.7 5.4 2.1 4.6 0.6 4.0 1.2 1.2 0.7 5.3 20.6 20.9 3. including the services delivered by foreign affiliates established abroad.5 Singapore 3. It was followed by UK which recorded a higher share.7 0 0.1 0. RBI Bulletin March 2015 .6 4.3 0. Table 7: Software Business by Foreign Affiliates of Indian Companies – Country-wise Distribution (per cent) Country USA 2009-10 2010-11 2011-12 2012-13 2013-14 (1) (2) (3) (4) (5) 54.1 6.8 9.5 14. for the first time after 2008-09 even as Mode-1 (crossborder supply) continued to be the major mode of software services exports.6 0.4 67.8 4.1 15.6 370.7 136.3 2.7 3. Conclusion During 2013-14.6 27.0 5.7 67.1 0. India’s export of computer software services continued to have robust growth even as the growth of ITES/BPO services moderated.1 3. 322.206. STPI and also the software exports data released by the NASSCOM. the total software services exports in 2013-14 worked out to `5. NASSCOM publishes exports of IT-BPO industry which is based on the global software business of the Indian software companies.4 billion).8 billion (US$ 71.3 billion(US$ 14.2 billion). Adding the on-site software exports of `857.9 billion (US$ 86.0 billion (US$ 11.4 billion) and the software business done by the Indian subsidiaries abroad in 2013-14 was estimated at `689. in order to make the data generated through the RBI’s survey on Software & ITES/BPO Services Exports comparable with NASSCOM data.7 per cent of the global software business. the software business of overseas subsidiaries of Indian companies have been added to the estimated software services exports of India.7 billion).063. The software business done by the overseas subsidiaries of Indian companies accounted for 13.206.Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 ARTICLE Box: Comparison of survey results with NASSCOM and BoP data The Reserve Bank publishes the software exports data in BoP using data reporting by Authorised Dealers (ADs).4 billion) published by the NASSCOM. as reported in the survey.8 billion (US$ 82.228. Accordingly.063. software exports of Indian companies together with the software business of their overseas subsidiaries. The survey results are quite comparable with the software exports data released by NASSCOM and also with the software service exports data of BoP.3 billion (US$ 83. Based on the survey.011.322. based on the survey.0 billion in 2013-14 which does not include on-site software exports. As per the BoP data released by the RBI.. non-physical (offsite) software exports stood at `4. export of software services from India in 2013-14 was estimated at `4. i.228.0 857.e. Mode 2 & Mode 4) Subsidiaries abroad (Mode 3 & export of Subsidiaries other than India) Global Business Software Exports based on BoP data On-site software exports based on survey (Mode 4) Total Software Exports of India (1) (2) (3) (4)=(2)+(3) (5) (6) (7)=(5)+(6) 5.0 5.8 4.011.8 689. the global software export of India based on the survey was `5. Thus.3 5.3 RBI Bulletin March 2015 59 .9 4. Reconciliation of Software Services Exports of India during 2013-14 (` billion) Software exports as per NASSCOM (Global business) Software Exports based on annual Survey Software Exports based on Balance of Payment Statistics Indian companies (Mode 1. This accounts for only non-physical offsite software exports. estimated through the survey.8 billion) as against `5. reported proportions of their exports done in IT. Based on the reported data. IV.700 Software and ITES/BPO companies. II. Engineering and Software Product Development services have been used. Estimated software exports for ith group of nonresponding companies i th group = median of i th group * # reported companies in total no. IT Services. III. BPO. Of these. the software services exports of non-respondent companies was estimated to the tune of `1. using the following method: I.ARTICLE Survey on Computer Software & Information Technology Enabled Services Exports: 2013-14 Annex: Methodology for estimation of Software Services Exports of Non-responding companies Annual survey on Software and IT enabled Services Exports for the period 2013-14 was launched among nearly 6..3 per cent of total software services exports).973 nonresponded companies. viz. RBI Bulletin March 2015 . 873 companies responded to the survey which included 128 NIL and closed companies. of reported companies * [ # non-responding companies ] The total software export of India has been compiled as the sum of reported software exports and the estimated software export for non-responded companies in each of the four groups. it was observed that ‘On-site’ software export was primarily reported by the major companies. ITES/BPO Services. 60 Based on the ITES/BPO reported activity.827 non-respondent companies and software exports have been estimated for the remaining 4. Engineering Services and Software Product Development Services (having 100 per cent business under respective group). as the 745 active companies that supplied data included all major companies in the sector. companies have been classified in four groups.4 billion (around 25. number of companies with NIL exports was estimated from 5. Using the methodology given above. The nonrespondent companies were generally the smaller companies. median was used for estimating software exports in each group.093. Therefore. As the observed distribution of exports was highly positively skewed in each of these groups. Using the observed proportion. For classifying the other companies having combination of these as their business activity. only offshore software exports component was used for estimating software export of nonresponded companies. CURRENT STATISTICS Select Economic Indicators Reserve Bank of India Money and Banking Prices and Production Government Accounts and Treasury Bills Financial Markets External Sector Payment and Settlement Systems Occasional Series . . Dollar by the RBI 65 5 RBI's Standing Facilities 66 Money and Banking 6 Money Stock Measures 66 7 Sources of Money Stock (M3) 67 8 Monetary Survey 68 9 Liquidity Aggregates 68 10 Reserve Bank of India Survey 69 11 Reserve Money – Components and Sources 69 12 Commercial Bank Survey 70 13 Scheduled Commercial Banks' Investments 70 14 Business in India – All Scheduled Banks and All Scheduled Commercial Banks 71 15 Deployment of Gross Bank Credit by Major Sectors 72 16 Industry-wise Deployment of Gross Bank Credit 73 17 State Co-operative Banks Maintaining Accounts with the Reserve Bank of India 74 Prices and Production 18 Consumer Price Index (Base: 2010=100) 75 19 Other Consumer Price Indices 75 20 Monthly Average Price of Gold and Silver in Mumbai 75 21 Wholesale Price Index 76 22 Index of Industrial Production (Base: 2004-05=100) 78 Government Accounts and Treasury Bills 23 Union Government Accounts at a Glance 78 24 Treasury Bills – Ownership Pattern 79 25 Auctions of Treasury Bills 79 Financial Markets 26 Daily Call Money Rates 80 27 Certificates of Deposit 81 28 Commercial Paper 81 29 Average Daily Turnover in Select Financial Markets 81 30 New Capital Issues by Non-Government Public Limited Companies 82 RBI Bulletin March 2015 61 . 1 Title Select Economic Indicators Page 63 Reserve Bank of India 2 RBI – Liabilities and Assets 64 3 Liquidity Operations by RBI 65 4 Sale/ Purchase of U.CURRENT STATISTICS Contents No.S. RBI Bulletin March 2015 .CURRENT STATISTICS No. = Not available. Title Page External Sector 31 Foreign Trade 83 32 Foreign Exchange Reserves 83 33 NRI Deposits 83 34 Foreign Investment Inflows 84 35 Outward Remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals 84 36 Indices of Real Effective Exchange Rate (REER) and Nominal Effective Exchange Rate (NEER) of the Indian Rupee 85 37 External Commercial Borrowings (ECBs) 85 38 India’s Overall Balance of Payments (US $ Million) 86 39 India's Overall Balance of Payments (` Billion) 87 40 Standard Presentation of BoP in India as per BPM6 (US $ Million) 88 41 Standard Presentation of BoP in India as per BPM6 (` Billion) 89 42 International Investment Position 90 Payment and Settlement Systems 43 Payment System Indicators 91 Occasional Series 44 Small Savings 92 45 Ownership Pattern of Government of India Dated Securities (Face Value) 93 46 Combined Receipts and Disbursements of the Central and State Governments Notes: . P = Preliminary/Provisional.. 62 PR = Partially Revised. – = Nil/Negligible. 5 8.00/9.0 -5.64 8.75 6.3 7.75 8.1 11.25 8.5 Incremental Credit-Deposit Ratio 3.09 7.22 7.1.7 77.76 70.25 8.3.1 6.00 10.00 23.1 2.95 61.00 9.2 Broad Money (M3) 3 Ratios (%) 3.9 14.00/10.4 8.8 10.3 5.1.8 1.3 Cash-Deposit Ratio 3.2 4.7 9.3 36.8 10.1a Final Consumption Expenditure 1.4 5.00/10.23 7.36 9.00/8.9 4.7 21.8 8.6 2013-14 1.1 3.6 11.5 -14.8 3.95 8..1.3.7 5.2 Exports RBI Bulletin March 2015 2014-15 Q2 2013 6. 5 .79 8.3 Wholesale Price Index 6.4 11.26 63. 14.91 7.2 8.1 Primary Articles 6.10 182-Day Treasury Bill (Primary) Yield 4.75 10.1 GDP 1.72 8.25 8.00 9.6 5.12 10-Year Government Securities Yield 5 RBI Reference Rate and Forward Premia 5.00 4.84 8.3 Services 1.00/10. 4 1.07 8.CURRENT STATISTICS No.4 -11.9 15.00/9.59 8.69 8.4 -11.84 8.00/9.2 INR-Euro Spot Rate (` Per Foreign Currency) 5.1 10.9 91-Day Treasury Bill (Primary) Yield 4. 2 0.3 56.4 13.1 -8.8 28.2 Fuel and Power 6.3 8.6 4.0 4.4 Credit-Deposit Ratio 3.4 29.10 4.1 1.6 9.3 Marginal Standing Facility (MSF) Rate 4.8 9.2 Consumer Price Index for Industrial Workers 6.7 14.2 63 .67 8.8 2.25 4.1 13.1 Agriculture 1.10 8.96 8.7 Savings Deposit Rate 4.58 7.1 10.4 4.00/9.90 7.2.36 8.00 23.8 9.1 6.7 14.00/10.1 6.1 Scheduled Commercial Banks 2.9 3.23 8.6 39.1 Dec.75 4.84 7.2 Money Stock Measures 2.3 2014 2015 1 -0.2 -7.6 3.13 61.8 76.92 7.00 7.25 8.3 9.1b Gross Fixed Capital Formation Q3 Q2 Q3 1 2 3 4 5 6.0 76.3 5.8 Call Money Rate (Weighted Average) 4.8 9.7 7.1.7 -18.8 4.00 4.1 Jan.6 7.2 Statutory Liquidity Ratio 3.0 10.2 10.3 15.72 60.2 5.2 Industry 1.9 4.9 14.0 8.84 7.00 23.1 Dec.9 10.00 8.90 85.00 7.8 3.9 76.3 Investment in Govt.5 9.81 8.00 22.4 3.00 9.58 8.1 Imports 7.4 26.3 Forward Premia of US$ 1-month (%) 3-month (%) 6-month (%) 6 Inflation (%) 6.11 8. 1: Select Economic Indicators Item 2013-14 2013-14 1 Real Sector (% Change) 1.1 Reserve Money (M0) 2.00 7.31 8.10 82.8 7.2 -0.3 Manufactured Products 7 Foreign Trade (% Change) 7.48 84.25 8. Securities 2.8 66.1 7.2 29.6 Investment-Deposit Ratio 3.6 3.7 5.5 13.0 7.1 Non-food Credit 2.4 Bank Rate 4.7 6.14 7.11 364-Day Treasury Bill (Primary) Yield 4.8 5.1.1.0 -8.2 Credit 2. 9.1 Deposits 2.2 10.4 29..00 10.35 .60 8.7 Incremental Investment-Deposit Ratio 4 Interest Rates (%) 4.00 9.6 4.2 2.5 3.0 5. 3 1.00 7.2 11.1.8 10.9 0.00 5.00 8.9 12.2.2 Index of Industrial Production 2 Money and Banking (% Change) 2.28 8.4 10.7 75.4 14.90 8.00 8.60 62.00 4.1 Cash Reserve Ratio 3.79 8.5 3.33 98.3.2.84 8.3 -10.2 14.0 9.78 8.00 9.75 6.8 10.5 Base Rate 4.75 8.75 8.1 All India Consumer Price Index 6.00 4.1 Policy Repo Rate 4.7 Jan.75 10.03 7.7 66.9 76.5 29.6 Term Deposit Rate >1 Year 4.7 1.2 9.2 Reverse Repo Rate 4.58 9.05 4.2 4.00/10.00 8.3 9.00 10.5 27.86 8.00 9.6 6.00 4.9 53.1 -1.00 22.5 -0.75 8.86 8.4 4.1 INR-US$ Spot Rate (` Per Foreign Currency) 5. 7 Other 159.15 653.2 Other Liabilities 2.43 8.00 109 1.34 33.95 9.31 5.68 124 1.2.00 1.33 180.01 2.1 Internal – Internal – 130 2.1.2.712.74 Commercial 770.2.7 EXIM Bank – EXIM –Bank 128 2.2 Government Treasury Bills – Government – Treasury– Bills 131 2.206.3 State Governments 2.1 Gold Coin and Bullion 1.668.1.2.33 1.50 14.26 181.81 925.3.62 108 2.03 9.15 2.42 1110.835.3 Rupee Coin 1.11 1.07 104 653.1.819.2.3.24 1 Issue Department 1 Liabilities 2 Assets 682.Banks – Scheduled – State Co-op.2.46 10.1.136.1 – – – – 2.3.99 2.136.42 0.289.04 2.604.65 776.2 Total Liabilities (Total Notes Issued) or Assets 1.14 132 2.48 14.01 14.2.38 120 2.53 619.1 12.7 Other Banks 174.19 14.64 117 2.Banks – 125 2.13 held in Banking 0.5 Scheduled State Co-operative Banks 39.22 179.21 113 33.1.4 Government 10.31 8.141.6.5 Scheduled 33.835.3.2.1 Gold 619.056.2 State 3.42 0.45 2.1 Notes and Coins 2.34 4.96 5.03 882.4 – – – – 2.32 Banks 3.71 Scheduled Commercial 3.6 NABARD – NABARD – 127 2.3.1 Deposits 1.2.6 Non-Scheduled State Co-operative Banks 2.1.1.421.1.1.38 13.302.3 Rupee1.4 Scheduled Commercial Banks 3.1 Central Government – Central– Government – 122 2.6 Other Assets 799.34 4.1.2 Balances 5.2.5 Industrial Dev.10 1.024.64 118 2.22 101 1.2.398.2.52 2.4 Scheduled State Co-op.1 Liabilities 1.2.36 3.36 123 12.59 State 36.2.28 112 2.4.35 13.2.709.1.1.00 46.808.259.10Department0.33 Coin and Bullion 643.3.733.58 48.014.1 Central Government 534.4 Bills Purchased and Discounted 2.2.2.54 3.46 2 Banking Department 2.2.064.42 2.3 Scheduled Commercial Banks 421.862.50 Banks 1145.2.59 Liabilities7.2.96 2.03 Co-operative Banks 33.12 12.46 10.981.46 107 10.885.26 or Assets12.73 4.2.474.2.53 1.947.11 Notes in Circulation 13.3.57 2.86 1.799.15 12.2 Market Stabilisation Scheme – Market– Stabilisation Scheme – 110 2.488.19 5.915.2.1.09 3.2. 2: RBI .3.633.07 Foreign Securities 13.31 2.2.3.3.233.32 (Total Notes 14.71 5.1.8 Others 67.2.15 5.50 33.31 593.5 Investments 7.350.1.2.1. 13 Feb.712.94 – – – – – – – – 5.2 – – – – 2. 6 Feb.61 2.01 Government 1.127.1.4.259.676.15 653.14 Governments7.588.2 State Governments 14.2.1/1.1.25 2.60 706.09 0.6.02 2.140.1 Liabilities 2.2.5 – – – – 2.264.1. 20 Feb.65 12.58 2 Assets 2.88 2.01 1.43 7.8 Others 77.721.43.38 13.13 and Coins 1190.13 0.17 0.3.10 0.140.018.2 Assets 1.90held Abroad 5.567.09 1.04 State 10.13 0.2 Other 7.32 14.41 0.1.1/2.01 1.1 Deposits 179.38 2.1.41 1.64 1.13 2.51 129 2.09 1020.95 5.387.1.3 State 0.82 2.433.99 5.1/1.1.1.3 Loans and Advances 121 2.36 2.43 Governments0.4.2 14.034.46 Rupee Securities 10.92 2.519.1.68 24.06 13.42 0.43 47.50 11.1.56 702.1 Central 1.3.1. 30 2 RBI Bulletin March 2015 .1.32 12.024.1.2.1 Gold 682.63 Assets 103 1.67 43.359.15 Total Liabilities 13.54 5.267.00 Coin 1061.2.3.826.1.2.653.42 13.53 116 2.2.2 Assets 4.92 8.16 593.20 3.596.48 Banks 115 2.Liabilities and Assets (` Billion) Item As on the Last Friday/ Friday Last Friday/ Friday 2013-14 2014 2015 Feb.257.3.93 105 1.13 0.6 – – – – 2.00 11.25 2.62 4.3 Loans and Advances 2.088.14 719.13 0.78 2.737.518.46 1.95 2.632.4.1.75 6.8 Others 152.28 12.3.2 – 2.2.2.2 Total Liabilities or Assets 2.6 Non-Scheduled 4.805.2 Foreign Securities Feb.2.42 0.12 2.12 1.4 Government of India Rupee Securities 10.1.1 Notes in Circulation 1.1.8 Others 161.6 Other 834.172.CURRENT STATISTICS Reserve Bank of India No.2. 1 1 Issue Department 1.2 Notes held in Banking Department 1. 27 3 4 5 6 7 12.46 of India 10.65 Banks819.884.12 6.52 179.3.86Co-operative 10.1.099.1/2.1 2.21 Total Liabilities 12.1 Notes0.060.2 12.862.5 Investments 2.3 Scheduled 358.41 Issued) or14.61 14.1. Bank –of India 126 2.17 0.2.472.2.1.64 Assets 133 692.4 Bills Purchased and Discounted – – – – – – 46.1.1.7 2.31 593.74 705.079.14 13.064.2 Notes0.2.1.86 2 Banking Department 1 Liabilities 4.2.15 653.2.1 Gold 64 Jan.82 134 584.1.2 Balances held Abroad 4.31 593.2 12. Bank of India – Industrial – Dev. 84 – 3.14 8.50 –25.S.19 13.05 –26.86 143.00 3.33 21.91 26. 2015 Jan.89 70.200. 2015 Jan.304.00 6.00 12.1–1.00 375.10 – – – – 460.00 21.65 13.53 – – – 58.80 143. 2015 Dec.52 50.15 – 0.42 Jan. 12.20 18.94 21. 9.2 Sale (–) 43.00 2.56 2. 29.43 163.71 2 144.00 29.94 338.85 245.02 – – 13. 20.57 355.05 15.02 4 – 177.337. 2015 Jan.30 – – – – – – – – 415.57 – 47.62 89.50 5.95 5.19 113. 2015 Jan.00 6.71 32. 15. 27.80 137.85 358.27 Jan.97 – – – 0.00 586. 2015 39.992.1 Purchase (+) 52.00 118.92 34.55 –26.33 –6. 2015 Jan. 6. 2015 1 216.45 5.16 5. 7.00 6.51 42.00 –31. 3: Liquidity Operations by RBI (` Billion) Date Liquidity Adjustment Facility Repo Term Repo/ Overnight Variable Rate Repo Reverse Repo OMO (Outright) Term Reverse Repo/ Overnight Variable Rate Reverse Repo Standing Liquidity Facilities MSF Sale Net Injection (+)/ Absorption (-) (1+3+5+6+8-2-4-7) Purchase Jan.85 48.00 15259.23 193.45 –29.96 –18.34 176.20 – 1.00 586.36 187.80 0.50 322. 2015 Jan.169.20 1.36 Jan.45 150.122.00 1.00 –28.38 207.52 3 – 155.42 No.701.05 7.38 174.16 150.929.00 5.455.27 –31.19 –116. 5.64 155.03 16.84 3.45 69. 2015 Jan.60 176.55 169.576.20 0.00 41.23 0.64 208. 2015 Jan.992. 2015 Jan.740.93 7 – – 8 – – 9 40. Dollar by the RBI Item 2014 2013-14 Jan.394.20 15. 2015 Jan. 2015 Jan.01 128.02 230.00 2.08 19.17 250.91 38. 1. 2015 214.88 194.55 5 – 8.23 19.848. 2015 Jan.54 224.91 159. 21.56 394.46 248. 4: Sale/ Purchase of U.20 0.00 1.98 – 155.51 21. 1 2 3 4 8.26 168.00 1 Net Purchase/ Sale of Foreign Currency (US$ Million) (1.13 2. 8.09 17.70 14.96 100.91 380.60 13. 2015 Jan.05 – – – – – – – – 345.23 208.93 1.30 –3.93 183.41 –30.64 3.75 10.00 –1. 13. 19.80 – – – – 0.95 754.60 211. 22. 2015 208. 2015 Jan.10 210.36 100. 2.75 5.00 17908.137.76 413.853.82 Jan. 2015 206.88 29.83 32.60 0.CURRENT STATISTICS No.030. 30. 16. 28. 23.03 – – – – – 0.75 –22.36 201.402.05 – – – – – – 116.57 293.46 23.76 73. 2015 Jan.58 344.01 1.739.00 72. 2015 Jan.2) 2 ` equivalent at contract rate ( ` Billion) 3 Cumulative (over end-March) (US $ Million) ( ` Billion) 4 Outstanding Net Forward Sales (–)/ Purchase (+) at the end of month (US$ Million) RBI Bulletin March 2015 65 .65 11. Jan.45 0.00 6 –31.00 1.06 350.50 – – – 77.58 209.46 466.00 11.16 –38. 14. 2 2.1 118.6 129.4 85.4 7.456. 22 Sep.3 92.958.4 297.912.3 – 1.6 0.5 580.1 18.043.0 180. 19 Oct. 9 Jan.0 28. 24 Dec.0 28.7 307.3 14.2 + 1.3 105.0 28.8 17.973.501.0 454.3 72.8 8. 24 Aug.7 24.2 7.415.7 103.970.6 3 M 1 (1 + 2) 4 Post Office Saving Bank Deposits 20.851.2 13.0 3.4 12.207.4 22.8 102.462.547.2 25.572.4 Cash on Hand with Banks 2 Deposit Money of the Public 2. 5: RBI's Standing Facilities (` Billion) Item As on the Last Reporting Friday 2013-14 2014 2015 Jan.7 13.0 162.1 + 1.275.783.0 7.9 172.5 64.837.4) 1.083.2 Outstanding 22.4 3.5 1.705.5 7.2 Circulation of Rupee Coin 1. 23 1 2 3 4 5 12.4 22.8 8.7 320.664.621.4 7.494.2 105.5 8.8 103.406.6 12.6 411.111.0 0.6 82.1 Limit 568.6 20.545.6 43.9 1.417.705.4 1 MSF 2 Export Credit Refinance for Scheduled Banks 3 Liquidity Facility for PDs 4 Others 5 Total Outstanding (1+2.0 533.2 137.875.3 102.5 23.4 8.5 23.0 180.2 454.4 527.8 68.4 8.498.0 129.3 94.0 28.063.4 128.2+3.1 22.2 Outstanding 410.1 12.1 595.1 81.467.433.1 1.616.9 13. 28 Dec.3 20.4 12.5 166.002.9 13.3 22. 23 1 2 3 4 5 6 7 8 176. 6: Money Stock Measures (` Billion) Item Outstanding as on March 31/last reporting Fridays of the month/reporting Fridays 2013-14 1 Currency with the Public (1.2 ‘Other’ Deposits with Reserve Bank 2014 2015 Jan.3 81.0 1.7 22.1 105.4 7.4 423.2+4.9 8.3 81.4 634.9 7.539.6 8 Total Post Office Deposits 9 M 4 (7 + 8) 66 RBI Bulletin March 2015 .7 7 M 3 (3 + 6) 94. 26 Jan.2 86.807.9 152.1 11.1 Limit 28.504.5 1.710.810.1 Demand Deposits with Banks 2.745.9 66.426.5 6 Time Deposits with Banks 74.3 Circulation of Small Coins 1.0 2.2) Money and Banking No.0 454.2 Outstanding – – – – – – – – 608.0 28.173.705.0 28.8 19.8 8.8 180.9 428.498.403.3 516. 31 Nov.2 80.4 69.4 7.0 20.5 33.493.0 28.8 4.347. 26 Jan.008.483.305.5 8.0 5 M 2 (3 + 4) 20.9 137.5 13.CURRENT STATISTICS No.1 Limit – – – – – – – – 4.5 96.0 13.1 131.1 Notes in Circulation 1.2 104.7 21.262. 507.1.1.830.1 6.5 4.398.9 8.7 25.099.2.301.605.5 5.4 68.2 6.9 20.399.2 Other Banks’ Credit to Government 2.4 23.5 60.6 5.0 46.2) 3.736.424.444.3 1.2 Net non-monetary liabilities of other banks (residual) M 3 (1+2+3+4–5) RBI Bulletin March 2015 0.3 868.2 19.2 Other banks’ net foreign exchange assets 4 Government’s Currency Liabilities to the Public 5 Banking Sector’s Net Non-monetary Liabilities 5.7 5.6 0.4 0.941.676.6 31.731.795. 9 Jan.958.3 Investments by commercial and co-operative banks in other securities 3 Net Foreign Exchange Assets of Banking Sector (3.1.1 6.0 26.7 4.601.1 RBI’s net foreign exchange assets (3.9 5.4 5.4 18.7 29.0 2.987.357.300.1.0 17.2 31.3 0.6 26.568.3 63.757.3 57.1 2.6 68.001.386.0 7.822.063.938.1 701.844.9 68.238.312.5 19.9 47.2 State Governments 1.2.4 0.2 Foreign liabilities 3.0 30.3 7.2 5.528.2 5.131.8 4.2 18.4 170.7 173.4 81.2) 1.2) 3.7 103.1 218.1.7 17.767.5 702.1 30.1 RBI’s credit to commercial sector 88.3 9.4 18.7 971.9 20.256.758.594.9 19.2 17.1 Net non-monetary liabilities of RBI 5.6 17.471.767.1 Claims on Government 1.8 19.1.560.1.214.819.7 50.025.296.4 187.2 Bank credit by co-operative banks 4.1 37.1 6.738.501.5 228.2 68.5 18.3 17.466.1 Bank credit by commercial banks 59.3 0.3 8.1 + 3.215.8 68.757.0 21.3 20.267.1–1.8 62.042.5 18.1–3.538.5 4.8 2.CURRENT STATISTICS No.180.6 58.1.2 Government deposits with RBI 1.1.2.1.1.1 67 .481.809.817.4 0.5 20.088.4 19.467.4 62.2 8.8 2 Bank Credit to Commercial Sector 64.0 11.433.3 7.2 2.0 57.336.0 9.9 23.855.1 Central Government 1.1.406.060.708.1 971.1 Gross foreign assets 3.9 63. 26 Jan.089.250. 23 1 2 3 4 5 30.5 8. 7: Sources of Money Stock (M3 ) (` Billion) Outstanding as on March 31/last reporting Fridays of the month/reporting Fridays Sources 2013-14 1 Net Bank Credit to Government 1.2 10.3 92.736.7 971.3 94. 24 Dec.2 9.2 973.546.2.4 9.0 227.8 1.1.2 187.8 103.1 RBI’s net credit to Government (1.1 Central Government 1.072.239.7 218.7 9.144.4 0.7 46.291.1 68.2 Other banks’ credit to commercial sector 64.4 0.821.2.550.1 10.910.3 102.270.2 State Governments 2014 2015 Jan.0 5.1.3 168.281.8 168.025.3 0.1 19.613.0 867.262.373.4 187.973.549.6 4.3 63. 443.5 1.9 173.688.4 NM 2 (NM 1 + 1.4 30.1 Short-term Time Deposits 32.008.146.447.544.2 15.584.549.7 2.7 21.1 102.3 .5 2.779.4 = 2.3 58.4 Call/Term Funding from Financial Institutions 3.934.2.558. 26 3 Jan.642.6 2.9 60.025.725..3 2.2.510.895.4 16.2.459.3 87.4 – 2.7 86.5 102.4 Capital Account 2.1 RBI Credit to the Commercial Sector 2.043.5 70.2 31.295.2.1 6.5 72.2 29.5 20.1.9 13.2 13.4 68.1.083.946.1+1.386.608.6 3.CURRENT STATISTICS No.8 1 Components 1.4 12.9 102.047.653.763.2 Credit to the Government by the Banking System 98.2 Time Deposits of Residents 8.275.3 4. 2 1 2015 Nov.2 103.3 4.7 35.107.5 4.726.9 101.4 18.3 4.763.3 Term Deposits 2.4 15.593.629.2. 4 Jan.3 ‘Other’ Deposits with RBI 1.5 73.8 .2 94.9 1.3 2.347.2 Net Foreign Currency Assets of the Banking System 2.2.5 94.581.1 Demand Deposits 1.1.099.303. .2.7 57.4 2.6 16.7 103.6 2.547. 24 2 1 Monetary Aggregates NM11 (1.3 26.588.3.5 96.039.950.1 Net RBI credit to the Government 2.303.3 66.1 38.4 4.1 8.1 + 1.0 104.0 4..687.0 20.3 29.6 26.210.2 81.6 104.1.379.682.4 77.3 39.131.312.766.5 17.3 0.3 29.4 104.3 4 Liabilities of Financial Institutions 4.144.830.824.7 85.8 78.198.0 1.8 102.454.2 Credit to the Commercial Sector by the Banking System 2.150.1.6 43.4 57.8 .1.8 –2.1 Domestic Credit 2.539.2.0 1.5 19.4 4.088.0 43.1 Currency with the Public 12.1 94.5 Other items (net) 68.4 170.977.705.640.2 + 2.5 2.333.102.5 81.6 87.565.9 13.6 72.6 5. 9: Liquidity Aggregates (` Billion) Aggregates 2013-14 2014 Jan.001.159.538.736.2 5.3 0.6 26.983.783.928.6 187.1. 228.7 25.339.2 73.6 101.987.7 187.7 78.5) 52.6 26.072.803.951.243.767.821.2. 96.6 2.3 16.1 8.447. 8: Monetary Survey (` Billion) Outstanding as on March 31/last reporting Fridays of the month/reporting Fridays Item 2013-14 2014 Jan.4 2.3 Net Foreign Exchange Assets of the Banking Sector 2.9 3.444. 5 L2 (3 + 4) 6 Public Deposits with Non-Banking Financial Companies 7 L3 (5 + 6) 68 RBI Bulletin March 2015 .2 92.5 203.3 101.7 88.298.3) 2015 Jan.422.330.000.1 1.2 16.6 4.3 0.642.066.4 30.1.477.6 24.782.8 2. 5 1 NM3 2 Postal Deposits 94.5 3 L1 ( 1 + 2) 96.1 + 2.1 23.8 73.399.7 19.2 Long-term Time Deposits 1.8 42.262.822.6 26.310.100.3 31.7 30.3 –1.2 Certificates of Deposit 0.417.1.1 2.2 + 1.986..803.022.3 – 2.016.4 23.536.851.2.415.927.9 57.2 Bank Credit to the Commercial Sector 2.501.9 –2.504.2.2.028.2 82.452.1 Certificates of Deposit (CDs) 1.675.9 96..736.1 4. 103.009.4 22.1) NM (NM + 1.3 19.2.7 2.778.158.4 8.2.1 Term Money Borrowings 26.3 3 2 1.5 –2.4 17.758.3 29.159.6 103.594.1 2 Sources 2.669. 23 5 20.1 Other Investments (Non-SLR Securities) 2.124.6 35.9 1.9 No.2 Government’s Currency Liabilities to the Public 2.8 78.8 1.1 22.0 1.4 17.9 71.1 Net Bank Credit to the Government 2.3 66.120.6 73.509.2.2 –2.601..0 6.572.591.5 35.1 Net Foreign Exchange Assets of the RBI 2.2 Aggregate Deposits of Residents 79.9 103.3 0. .2.5 2.348.741.999.9 57.5 2.390.2 51.3.884.460.9 15.664.278.4 17.934.3 29.214.0 4.1. 3 Dec.002.2.527.1 187.705.8 7.398.6 26.0 .378.483..1 31.6 92.341. 9 4 Dec.7 104. 725.1 + 2.2 Loans and Advances to NABARD 2.767.808.2 4.567.CURRENT STATISTICS No.1.983.176.6 3.4 Net Foreign Exchange Assets of RBI 2.442.2 + 2.2 187.4 3.4 48.5 – 2.071.4 20.2 + 1.892.1 Loans and Advances to Primary Dealers 2.0 17.166.781.072.099.1.658.0 4.565.7 388.4 8.220.2 Reserve Bank Credit to Banks 2.254.3 Net Foreign Exchange Assets of the RBI 2.767.3 865.1. 9 4 Dec.9 7.1.Monetary Liabilities of RBI RBI Bulletin March 2015 2014 Jan.5) 2 Sources 2.613.427.6) 1 Components 1.088.5 484.417.0 10.1 8.736.2 Investments in Treasury Bills 2.2 Bankers’ Deposits with the RBI 1.716.0 19.6 28.0 3.4 1.6 14.297.2 57.0 4.0 3.1 Currency in Circulation 1.842.3 25.5 58.594.1 486.131.8 18.5 – – 6.639.6 18.1. 9 4 2015 Jan.215.9 59.7 85.1 + 1.3 1.5 84.3 1. 10: Reserve Bank of India Survey (` Billion) Outstanding as on March 31/last reporting Fridays of the month/reporting Fridays Item 2013-14 1 1 Components 1.2 187.1 790.757.4 13.0 13.166.3 = 2.025.1.995.1.647.4 3.5 Government's Currency Liabilities to the Public 2.1.2 + 1.3 2.9 14.2 18.7 865.2 16.5 20.7 17. 30 7 17.2 18.2 85.842.2 No.1.509.4 3.847.998.3 173.709.9 – – 5.070.268.8 187.025.1.264.4 8.3 867.297.1. 16 Jan.8 0.7 4.8 3.3 + 2.7 88.1.892.4 19.2 857.5 – 170.3 ‘Other’ Deposits with the RBI Reserve Money (1.0 6.072.4 4.976.729.2.9 1.1 18.315.4 8.0 3.4 12.2 1.1 Net Reserve Bank Credit to Government 2.4 17.562.7 12.1.1 RBI’s Domestic Credit 2.1 60.591.0 17.4 6.540.3 300.4 8.4 69 .4 16.1 Net RBI credit to the Government 2.049.958.227.3 4.4 25.9 218.9 1.3 Investments in dated Government Securities 2.1 Currency in Circulation 1.1. 23 5 6 Jan.099.1. 11: Reserve Money .6 19.679.7 12.7 117.722.1 + 2.9 16.0 3.2 – 173.4 Rupee Coins 2.3 ‘Other’ Deposits with RBI 2 Sources 2. 24 2 2015 Jan.4 -409.1 – 187.233.1.0 13.2 1.3 Reserve Bank Credit to Commercial Sector 2.113.088.3 6.5 658.444.8 1.1 298.6 81.2 Foreign Currency Assets 2.2 5. 26 2 3 Jan.1. 23 5 13.594.Components and Sources (` Billion) Item Outstanding as on March 31/ last Fridays of the month/ Fridays 2013-14 1 Reserve Money (1.6 5.601.3.167.658.6 20.063.3 RBI’s Credit to Commercial Sector 2.3 24.8 5.1.601.797.2 – 187.6 17.2 58.010.1.2 6.010.1.821.3 791.4 19.131.8 – 187.8 19.8 3.1.7 58.5 1.4 – 2.0 81.6 60.043.1 Loans and Advances to Scheduled Commercial Banks 2.0 6.1.385.1 6.3 5.122.3 17.0 5.1 Net RBI credit to the Central Government (2.3 + 2.3 16.3 = 2.987.722.4 7.7 5.1.1.4 8.4 + 2.859.8 8.897. 26 3 Jan.7 82.1.1 Loans and Advances to the Central Government 2.1.1 17.1 – – 5.5) 2.2.166.998. 31 Dec.6 486.5 88.3 6.4 – 2.072.709.7 10.4 5.1 Gold 2.6 82.327.1.2 Government’s Currency Liabilities to the Public 2.9 17.6 – – 5.6 Net Non.791.4 18.8 287.296.4 446.2 + 2.1.5 Other Items (net) 2014 Jan.4 7.1 + 2.1 + 1.6 17.9 865.4 5.6 14.2 3.4 – – 7.3.1.1.8 5.458.9 4.1.8 5.3 5.1.1.912.5 187.3 8.3.897.736.6 3.4 8.6 20.6 82.660.1 Central Government Securities 2.6 3.1.1.4 19.1.1.987.3.5 17.2 + 2.2 RBI’s Claims on Banks 2.2 17.865.8 227.5 187.0 7.279.3.486.1 13.327.982.433.8 6.1 168.4 18.7 4.5 81.3 – 2.114.6 3.4 17.5 5.1.3 1.1 Scheduled Commercial Banks 1.1.278.1.1.2 Net RBI credit to State Governments 2.8 19.1.3 57.4 Capital Account 2.639.243.679.1 14.7 170.2 701.1.832.4 13.7 89.819.227.2 8.072.289.2 8.6 3.2 Bankers' Deposits with RBI 1.5 Deposits of the Central Government 2.6 791. 146.936.5.4 84.4 458.271.6 –484.1 Balances with the RBI 2.975.7 8.938.1 69.1.2 298.8 655.022.458.1.7 1.4 756. 24 Dec.5 1.910.123.3 62.9 158.2 20.941.8 40.335.7 416.383.2 9.1 Demand Deposits 1.1 PSUs 3.281.2 33.3 17.2.6 4.2 Credit to the Commercial Sector 2.7 54.713.512.3 2.5 534.4 –441.2 Net Inter-Bank Liabilities (other than to PDs) Outstanding as on last reporting Fridays of the month/ reporting Fridays of the month 2013-14 2014 2015 Jan.0 3.491.1. 2014 2014 2015 Jan.711.5 560.1 459.8 2.1–2.210.2–2.1.CURRENT STATISTICS No.153.8 737.5 2.1 86.938.3 1.5 –2. 23 1 2 3 4 5 74.098.3 Others 5 Instruments issued by 5.204.5 466.339.205.6 3.9 30.111.7 3.2 Call/Term Funding from Financial Institutions 2 Sources 2. 9 Jan.541.1 831.9 1.4 32.6 494.8 790.1 Certificates of Deposits (CDs) 1.3 448.152.1 Foreign Currency Assets 2.711.1.150.6 1.7 561.647.2 Financial institutions 70 As on March 21.6 8.9 63.6 81.3.822.166.908.6 3.426.1 81.3 2.618.0 2.2.5 7.0 6.031. 09 Jan.819.4 1.183.486.128.1.2.5 931.297.9 669.2 347.9 3.1 Bank Credit 2. 23 1 22.2.757.107.4 3.1 Other Demand and Time Liabilities (net of 2.071.6 3.818.1 593.1 7.7 507.5 Other items (net) (2.1 947.6 40.1+2.7 3.3.2 Private Corporate Sector 4.3.864.4 2.173.3 56.421.5 32.1 36.9 706.5 393.2 46.4–1.8 7.6 577.956.4 72.9 1.6 391.7 RBI Bulletin March 2015 .5 3.6 5 25.1.0 4.4 4 24.1 83.2) 2.2.2 Long-term Time Deposits 1.2 21.936.0 33.206.6 69.1 Credit to the Government 2.3 Investments in Other Approved Securities 2.0 93.1 716.821.2 2.2 401.657.1 Mutual funds 5.108.3 –461.2.385.4 3.3) 2.200.6 –666.115.4 Capital Account 2.0 2.3 4.134.1 PSUs 4.466.3.0 22.383.3 82.463.417.1 2.2 Cash in Hand 2.3 Overseas Foreign Currency Borrowings 2.183.2 2.665.2 8.9 62.9 351.0 29.3 4.374.4 73.9 64.1 Domestic Credit 2.534.6 1.754.2 Non-resident Foreign Currency Repatriable Fixed Deposits 2.0 65.2 25.2.741.9 57.4 34.3 74.451.0 33.1.3.257.747.1 62.9 1.1 Non-food Credit 2.0 40.725.7 2.1.2–2.6 70.593.6 865.922.9 3. 24 Dec. 26 Jan.726.180.377.1 492.7 397.344.495.411.233.339.706. 26 Jan.6 67.102.2.1 4.3 37.2.9 20.1.125.2.977.555.069.956.9 3.159.2 Net Foreign Currency Assets of Commercial Banks (2.2 159.3 30.639. 12: Commercial Bank Survey (` Billion) Item 1 Components 1.016.8 2.0 7.090.4 Other Investments (in non-SLR Securities) 2.5 16.9 93.4 22.4 72.884.621.9 2.1.1.2.6 68.2 2.1+2.3 2.3–2.3.1 59.3 605.7 No.163.3 Loans and Advances from the RBI 2.514.8 –2.5 24.1 Aggregate Deposits of Residents 1.056.2.1 2.7 80.2.610.143.5 68.0 1.2 331.238.0 2.1 –2.2.393.6 798.9 –2.4 468.3 92.1 7.1.1.388.1 Short-term Time Deposits 1.7 3.2 22.7 24.2+2. 13: Scheduled Commercial Banks' Investments (` Billion) Item 1 SLR Securities 2 Commercial Paper 3 Shares issued by 3.5 2 22.4 7.1 –561.3 Net Bank Reserves (2.1 2.3 Others 4 Bonds/Debentures issued by 4.2 67.158.1 63.3) 2.318.311.2 Time Deposits of Residents 1.682.5 631.4 4.213.2 Private Corporate Sector 3.375.011.7 3.2 8.9 334.0 3 24.1 3.892.4 352.155.3) 2.1–1.7 63.8 537.107.3 3.7 523.264.0 58.2 1.723.5 61.8 384.2 Net Credit to Primary Dealers 2.6 40.5.2.139.3 778.3 –1. 5 409.157.7 143.All Scheduled Banks and All Scheduled Commercial Banks (` Billion) As on the Last Reporting Friday (in case of March)/ Last Friday Item All Scheduled Banks 2013-14 2014 All Scheduled Commercial Banks 2015 Jan.559.449.2 Balances with Reserve Bank 3.055.1 In Current Account 5.433.0 851.032.4 3.587.139.555.7 258.562.1 553.5 Foreign Bills-Discounted 501.121.5 2.323.5 1.963.9 1.0 984.6 22.493.586.577.381.941.033.2 1.7 25.4 389.012.0 3.9 2.163.6 22.2 Other Approved Securities 7 Bank Credit 7a Food Credit 7.4 1.4 131.158.193.6 85.068.175.4 2.649.7 2.9 388.185.7 408.7 417. Dec.3 25.9 82.0 473.477.4 22.1.8 1.2 In Other Accounts 6 Investment 6.2 16.2 22.9 4.5 19.193.0 4.1 386.259.3 956.6 943.232.7 2.421.4 86.345.8 349.9 1.833.4 Foreign Bills-Purchased 266.078.0 361.8 65.240.8 90.0 472.068.9 387.7 22.1 85.7 770.076.1 Government Securities 6.517.2 24.194. Dec.0 24.4 70.961.015.2 135.2 Inland Bills-Purchased RBI Bulletin March 2015 71 .802.297.3 63.0 2.3 Other Demand and Time Liabilities 4.1 77.8 454.9 253.9 19.617.1 Balances with Other Banks 1.095.415.9 2.0 24.003.1 Demand 2.3 60.5 777.1 418. 14: Business in India .7 920.2 3.7 557.0 3.3 297.3 4.392.8 770.3 1.778.878.3 2.7 361.3 458.8 2.2 1.7 2.9 260.7 7.343.9 388.166. 2013-14 Jan.0 7.3 Inland Bills-Discounted 1.7 416.7 462.139.1 67.758.8 83.8 278.284.0 58.2 1.6 1.6 497.3 4.227.6 243.8 1.117.7 1.431.103.2 4.6 23.8 59.5 58.3 105.6 354.7 – – – – – – – – 417.8 22.1 386.051.8 61.8 5.189.6 1.8 56.083.7 3.8 1.8 77.129.122.0 92.965.6 63.3 1.9 1.0 215.200.210.0 4.237.1.1 Against Usance Bills /Promissory Notes 3.7 1.062.8 160.4 89.4 325.712.6 24.3 204.3 1.6 1.6 115.9 1.9 60.3 16.5 1.105.4 5.6 7.9 384.4 Other Assets 509.0 1.7 1.2 Time 3 Borrowings from Reserve Bank 3.1 Loans.8 770.027.5 251.843.5 484.611.9 79.346.2 62.2 69.033.191.6 75.502.0 1.6 97.4 3.192.096.2 Borrowings from Banks 351. 1 2 3 4 5 6 7 8 213 213 213 213 146 146 146 146 1. 2014 2015 Jan.8 1.130.4 1.7 22.8 4.8 1.7 424.731.238.6 4.1 4.794.233.261.8 2.1 442.4 68.4 351.729.2 71.2 2.2 708.3 Advances to Banks 170.6 61.123.690.558.6 470.9 249.111.031.8 78.2 75.1 7.1 Demand and Time Deposits from Banks 821.4 1.7 1.934.3 5 Assets with the Banking System 2.0 3.5 170.592.0 67.2 1.280.816.2 420.3 Other Demand and Time Liabilities 135.962.797.7 770.7 62.3 163.558.454.6 1.325.6 108.1.2 542.3 7.524.2 60.3 57.553.622.8 137.0 281.383.711.5 920.8 5.6 20.013.423.1 91.771.8 2.6 5.3 77.163.2 7.7 262.9 244.888.1 18.2 Borrowings 2.6 570.6 1.1 7.7 748.277.9 347.7 1.7 920.421.7 1.2 59.127.7 3.8 965.408.1. Cash-credits and Overdrafts 7.076.2 415.937.1 Aggregate Deposits 2.2 Number of Reporting Banks 1 Liabilities to the Banking System 2 Liabilities to Others 2.0 7.312.5 920.507.2 63.9 167.5 4.215.950.1 Cash in Hand 5.5 1.6 381.0 90.5 1.0 7.2 Money at Call and Short Notice 453. Jan.6 155.7 1.2 379.840.2 Others 4 Cash in Hand and Balances with Reserve Bank 4.507.5 24.9 22.308.3 1.5 76.940.697.0 236.741.3 82.458.6 3.5 3.7 17.837.1 61.109.8 392.1 468.0 65.319.3 140.3 124.512.3 235.4 83.916.5 7.956.270.7 1.257.7 416.1 3.2 85.306.2 62.1 3.8 458.2 4.2 1.9 1.040.7 369.9 7.081.5 1.5 24.1 329.CURRENT STATISTICS No.652.056.128. 8 1.2.2 1.2.649 1.7 1.7 1.1 1.7 12.4 1.4.1 –1.2.8 –8.475 7.5 3 1 3 4 6.705 –0.2A.4.8 12.4 Personal Loans 1.3 483 419 406 391 –19. for SC/ST 1.8 16.862 3.137 13.8 Other Personal Loans 2.544 1.201 3.024 3.330 59.572 54.271 1.2.7 639 584 600 629 –1.CURRENT STATISTICS No.1 Food Credit 1.5 3.3 Services 1. 23 2014-15 2015 1 2 3 4 5 6 56.2.1 5.2A.2.4.643 1. 26 2015 Financial year so far Y-o-Y Jan.109 11.972 4.3 1.4.2 16.2.512 7.3 Tourism.0 1.7 Weaker Sections 1.1 22.302 3.390 4.6 9.528 1.705 12.2.2.302 3.3 8.2.439 58.2.1 Transport Operators 894 870 883 872 –2.4 Advances to Individuals against share & bonds 1.307 2.2.4 1.7 Vehicle Loans 1.320 3.3 Housing 3.1 1.1 Agriculture & Allied Activities Dec.570 13.517 3.2.2.466 1.2 Computer Software 176 177 171 169 –4.274 1.8 12.3 Large 1. Hotels & Restaurants 392 391 360 357 –8.709 1.2A.4.301 1.258 6.2.721 5.812 3.2.460 1.229 24.285 25.2A Priority Sector 18.8 39 35 41 45 13.5 7.2A.877 2.4.5 5.6 25.065 1.2 Retail Trade 1. 2014 2014 Jan.0 6.5 Professional Services 705 685 717 723 2.7 1.549 12.1 Manufacturing 3.2.1 Wholesale Trade 1.511 1.142 6.4 9.946 2.5 Education Loans 579 570 591 596 2.3 15.6 1.2.7 Commercial Real Estate 1.8 128 110 147 149 16.752 25.8 Non-Banking Financial Companies (NBFCs) 2.4 5.7 99 91 96 92 –6.3.2A.2.5 1.2 Industry 1.423 5.759 7.956 3.457 1.593 1.0 35.499 11.6 Education 600 599 630 636 6.4 1.719 7.054 3.660 53.3.263 1.3 11.2A.313 3.0 –6.1 –4.3.226 6.1 Agriculture & Allied Activities 6.9 26.034 2.872 2.6 912 1.3.3.4 1.319 15.3 3.070 17.9 4.5 5.2.625 3.2.4 Micro-Credit 174 175 173 172 –1.1 1.800 9.6 State-Sponsored Orgs.3.1 Consumer Durables 3.6.475 7.7 15.3.1 Micro & Small 3.975 3.351 12.8 1.643 5.530 3.5 0.2.719 20.268 1.032 1.2A.0 1.502 13.2.479 13.7 1.962 0.0 1.9 13.4 Shipping 1.9 1.694 6.517 3.6 Trade 1.3 8.2A.4.684 3.2 Housing 1.8 16.4 148.000 2.079 12.2 16.2A.6.664 1.2.6 1. 15: Deployment of Gross Bank Credit by Major Sectors (` Billion) Item Outstanding as on Mar.552 19.3.2 Micro & Small Enterprises 7.8 Export Credit 72 Growth (%) RBI Bulletin March 2015 .549 12.3.2.666 19.694 6.265 58.285 0.3 Advances against Fixed Deposits 1.412 17.800 20.5 10.2.3 7.721 5. 21.7 1.998 2.5 1.657 7.2.7 16.015 6.712 5.8 13.2 Non-food Credit 1.5 19.5 Credit Card Outstanding 249 253 303 311 25.512 7.237 3.7 55.8 1.2.684 3.006 1.2.6 6.438 19.3.2.7 11.686 10.2A.0 3.9 Other Services 1.7 6.6 16.7 20.6 1.965 2.3.4.386 10.358 3.2 7.416 3.2. 24 1 Gross Bank Credit 1.2 Medium 1.280 –2.2 Services 3.665 7.471 59. 0 934 881 959 996 6.285 25.13.15 Vehicles.14.1 –0.4 4.598 2.8 –4.4.2 16.574 1.9 2.8 1.162 8.9.3 1.5 5.458 11.2 Jute Textiles 20 20 24 23 12.4.5 1.4 Other Textiles 793 771 802 795 0.8 1.007 1.480 1.526 –9.1 Fertiliser 306 265 243 251 –18.0 3.700 3.053 1.1 Power 1.4 Others 1.542 1.2 Food Processing 1.051 1.1 1.725 2.662 1.1 –4.9 7.19 Other Industries RBI Bulletin March 2015 73 .5 1.2.0 11.9 1 Industry 1.7 904 876 875 865 –4.6 6.4 2.1 1.9 1.785 –3.479 3.742 2.3 Man-Made Textiles 216 210 199 200 –7.758 5.4 4.14.9 13.2 1.036 996 1.6 14.964 2.397 1.850 1.777 1.9 1.1 Electronics 87 87 88 88 1.18 Infrastructure 1.3 –1.994 –2.3 Roads 1.5 Leather & Leather Products 103 99 105 104 1.6 5.5 –0.7 8.9 5. 21.011 963 981 976 –3.3 10.6 7.10 Rubber.229 24.088 1.5 1.1 1.677 1.3 3.4.477 1.4 6.098 1.3 Petro Chemicals 435 352 344 353 –19.685 2.18. 16: Industry-wise Deployment of Gross Bank Credit (` Billion) Industry Outstanding as on Mar.2 1.2.0 1.6 887 844 959 987 11.729 1.3 Tea 1.9.8 14.2 0.398 1.5 1.4 1.0 4. 23 Financial year so far Y-o-Y 2014-15 2015 1 2 3 4 5 6 25.2 1.1 Cotton Textiles 1.1 –5.6 Wood & Wood Products 94 92 96 95 2.2 –0.14 All Engineering 1.9. 26 Jan.6 1.CURRENT STATISTICS No.5 12.1 1.747 1.4 Textiles 2.5 0.2 1.877 2.18. Vehicle Parts & Transport Equipment 677 667 692 680 0.398 8.478 1.5 8. 24 2015 Dec.8 Petroleum.3 Beverage & Tobacco 186 168 192 191 2.0 1.7 32 30 32 32 –0.4 Others 443 438 435 437 –1.4 3.1 Sugar 348 316 339 351 1.16 Gems & Jewellery 720 693 726 697 –3.11 Glass & Glassware 1.752 25.1 1.2 Others 1.037 0. Coal Products & Nuclear Fuels 1.576 6.7 1.0 19.7 Paper & Paper Products 331 326 348 346 4.883 4.1 Mining & Quarrying (incl.104 1.2 Other Metal & Metal Product 1.4 Other Infrastructure 1.3 368 364 375 371 0.013 7.040 1.2.1 1. Coal) 1.9 Chemicals & Chemical Products 635 580 533 554 –12.2 Telecommunications 1.13.0 7.12 Cement & Cement Products 1.6 353 359 367 362 2.4.620 3.456 1.653 5.6 0.969 9.6 1.5 541 522 557 561 3.0 0.7 367 343 380 373 1.13 Basic Metal & Metal Product 1.4 1.2 Drugs & Pharmaceuticals 492 487 487 486 –1.9.18.1 4.9 1.5 1.6 13. Plastic & their Products 1.18.2.2 Edible Oils & Vanaspati 213 207 205 206 –3.509 1.1 Iron & Steel 1.381 5.531 1.6 1.1 2.0 –1.1 1. 2014 Growth (%) 2014 Jan.536 1.17 Construction 614 611 729 731 19. 3 Other Time Liabilities 3 Borrowing from Reserve3 Bank Borrowing from Reserve Bank 4.2Bank Balance with Reserve Bank 6 Balances with Other Banks in Current with Account 6 Balances Other Banks in Current Account 35.1.9 422.6 493.3 25.9 378.5 486.4 34.0 291.4 37.4 – – 4 Borrowings from a notified bank / State Government 4 Borrowings from a notified bank / State Government 337.7 834.5 346.1.4 180.1.0 11.1 655.5 4.9 0.0 30.1.7 256.8 33.2 Balance with Reserve 5.1 10.1.9 2.6 37.2 2.2.0 851.5 680.1.6 380.3 Other Time Liabilities 2.1 Cash in Hand 5.5 27.3 77.9 76.1 421.1.5 37.2 Due from Banks 10.5 692.2 Others2.1 9 Bank Credit (10.4 254.1 410.8 7.5 – 0.1 Number of Reporting Banks Number of Reporting Banks 1 Aggregate Deposits (2.3 8.1 5.0 2.9 362.1 – – – – 10 Advances 10 Advances 11 Bills Purchased and Discounted 11 Bills Purchased and Discounted 74 RBI Bulletin March 2015 .6 7.1.1+11) 388.2 Borrowings from Banks 2.2 73. Cash-Credits andLoans.6 75.5 826.2.1 424.1 Demand Liabilities 2.6 8 Money at Call and Short8Notice Money at Call and Short Notice 213.3 184.0 5.3 147.1 Inter-Bank 541. 31 1 2 3 4 5 6 31 31 31 31 31 31 417.8 426.4 528.3 Other Demand2.7 286.7 288.1.4 2.1 Deposits 2.3 859.2+2.1 Cash-Credits and Overdrafts 388.0 350.5 25.6 899.7 167.1.2 Time Liabilities 2.2 380.6 247.1 Inter-Bank 2.2 Borrowings from Banks 2.7 129.6 23.2 8.2 Borrowings from Banks 7.2.2 Time 175.0 31.5 10.2) 1 Aggregate Deposits (2.2 152.7 44.1.2.7 190.2) 2 Demand and Time Liabilities 2 Demand and Time Liabilities 2.7 5 Cash in Hand and Balances with Reserve 5 Cash in HandBank and Balances with Reserve Bank 43.2.8 2.5 10.6 31.1 Demand Liabilities 2.1.2 2.4 383.4 17.1 410.1.1.6 247.9 476.2.4 0.7 10.2.1 Demand 4.3 9.9 14.7 140.3 380.2 Others 341.1 Deposits 2.4 10.1.1 0.3 – – 0.6 148.2 368.1+11) 9 Bank Credit (10.2 35.3 7.6 22.1.1 Loans.3 Liabilities Other Demand Liabilities 2.9 159.5 494.2.7 178.1 Inter-Bank 25.1 26.7 688.1 Deposits 2.9 7 Investments in Government Securities in Government Securities 7 Investments 289.2 139.3 2.5 7.4 35.7 27.7 169.5 411.2 Others2.1.2.9 25.2 Time Liabilities 2.2 Due from Banks 650.4 35.1 160.9 350.2 – 1.1 856. 3 Oct.1. 17: State Co-operative Banks Maintaining Accounts with the Reserve Bank of India (` Billion) Last Reporting Friday (in case of March)/Last Friday/ Reporting Friday Item 2013-14 Last Reporting Friday (in case of March)/Last Friday/ Reporting Friday 2013 2014 Oct. 26 Oct.1.1.1 293.1 40.1 Demand 162.4 424.7 408.2.5 2.1.2 Time 4.1 Inter-Bank 2.1.5 14. 17 Oct.1.5 143.0 2.4 383.2 368. 25 Sep.2 76.7 346.2 2.2 13.2 Borrowings from Banks 2.1 Deposits 2.9 164.1.2 0.2.6 15.1 296.3 428.2.9 686.6 380.2 Others 76.1 Cash in Hand 5.2+2. Overdrafts 10.4 285.CURRENT STATISTICS No.7 14.3 229.9 8. 8 111.0 114.5 6.3 106.4 127.0 109.2 112.4 122.1 1.1 Cereals and products 115.7 116.8 1.6 114.8 123.2 114.6 102.8 108.5 124.8 123.8 110.7 118.0 112.0 109.5 121.1 115.3 113.9 3 Clothing and footwear 112.6 109.9 118.3 115.2 123.6 109.1 6.3 110.8 1.5 133.6 128.7 122.2 108.9 108.6 114.4 Recreation and amusement 107.1 122.6 114.5 120.4 110.5 123.8 122.6 111. 15 1 2 3 4 5 6 7 8 9 10 11 12 115.9 6.7 1 Food and beverages 2 Pan.9 122. 14 Jan.3 124.7 126.6 115.3 120.4 6. sweets etc.9 122.8 107.1 116.4 108.7 109.3 Egg 113.3 116.3 116.455 38.4 110.3 120.6 119.8 107.6 118.2 116. Mumbai for Gold and Silver prices in Mumbai.7 126.2 118.5 109. Business Standard/Business Line/The Economic Times.5 120.4 114.9 1.7 113.3 110.0 123.8 116.3 6.1 122.1 122.2 107.9 126.3 126.3 115.4 Milk and products 111.9 125.2 115. RBI Bulletin March 2015 75 .0 120.6 116.1 3.0 124.6 109.0 122.6 124.6 116.5 120.8 122.3 111.6 116.8 117.5 113.678 27.1 Household goods and services 110.3 121.9 114.8 111. 14 Dec.2 112.0 118.121 37.6 108.2 137.5 124.8 1.8 96.1 106.1 107.2 116.9 119.6 116.9 97. 14 Urban Combined Dec.7 125.1 116.7 110.3 109.6 112.0 134.8 117.3 5 Fuel and light 110.0 112.1 120.2 108.6 Fruits 112.5 113.3 Transport and communication 108. snacks.11 Non-alcoholic beverages 110.1 Clothing 113.9 110.8 120.0 123.9 115.1 124.9 114.6 119.582 26.1 109.0 114.2 110.4 118.63 236 237 253 254 2 Consumer Price Index for Agricultural Labourers 1986-87 5.1 113.190 29.89 750 757 807 804 3 Consumer Price Index for Rural Labourers 1986-87 – 751 759 810 808 1 Consumer Price Index for Industrial Workers Source: Labour Bureau.4 110. 15 Jan.8 113. 1 2 3 4 1 Standard Gold ( ` per 10 grams) 29.8 109.6 124.0 127.3 1.5 117.6 122.0 123.1 108.9 106.0 117.9 115.2 113.6 111.9 1.0 104.5 Oils and fats 107. 1 2 3 4 5 6 2001 4.4 118.6 108.403 2 Silver ( ` per kilogram) 46.2 124.6 121.7 125.7 113.6 115.6 Personal care and effects 105.9 140.6 119.2 112.0 108.4 119.5 117.8 112.3 99. 14 Jan.5 112.8 117.6 108.0 119.5 123.6 112.7 121.4 124.4 110.3 - 108.6 113.5 3.3 110.2 124.7 6.637 45.0 113.9 116.1 146.3 122. Government of India. No.4 117.5 118.4 4 Housing Source: Central Statistics Office.6 118.6 118.8 116.4 126.4 118.CURRENT STATISTICS Prices and Production No.8 116.4 122.3 115.0 110.2 114.5 111.2 106.3 122. Ministry of Labour and Employment.2 109.1 115.2 111.8 Pulses and products 108.2 1.3 108.2 Meat and fish 114.0 110.2 120. 14 Jan.7 110.6 96.8 117.0 115.9 103.6 122.10 Spices 107.3 113.6 99.6 116. 20: Monthly Average Price of Gold and Silver in Mumbai 2013-14 Item 2014 2015 Jan.8 125.4 110.7 111.6 - - - 111.4 111. 15 Jan.0 110.3 132.1 1.7 Vegetables 133. 18: Consumer Price Index (Base: 2012=100) 2013-14 Group/Sub group Rural Rural Urban Combined Jan.6 123.5 123.4 123.6 109.5 121.0 122.8 109.9 110. tobacco and intoxicants 111. Government of India.0 120.6 116.9 125.3 108.12 Prepared meals.7 116.7 107.0 110.2 105.8 112.7 120.3 113. 19: Other Consumer Price Indices Item Base Year Linking Factor 2013-14 2014 Jan. No.1 111.9 112.1 117.0 121.7 General Index (All Groups) 112.4 114.8 102.5 Education 109.2 Footwear 111.5 111.1 112.5 113.4 113.1 126. Dec.1 111. 14 Dec.5 108.4 111.5 115.7 111.1 123.1 126.4 111.5 108.5 102.9 111.1 101. Dec.1 102.8 124.9 141. Ministry of Statistics and Programme Implementation. 114.5 111.3 124.4 6 Miscellaneous 108.6 118.0 1.6 119.6 115.3 110.5 119.0 100.6 1.5 109.4 112.3 1.6 130.2 Health 108. 2015 Jan.3 114.3 117.8 114.9 117.1 129.6 113.3 111.0 116.8 109.1 100.5 123.2 114.2 118.4 110.0 123.2 100.3 117.526 Source: Jan.9 Sugar and confectionery 103.3 117.2 123.5 107.0 117.2 140.5 119.5 128.7 118.0 113.6 113. 1 168.5 301.8 202.8 233.2 196.2.3 174.6 RBI Bulletin March 2015 .4 114. Tobacco & Tobacco Products 1.373 0.3.8 196.1.1.0 137.9 250. Dec.0 223.0 240.8 216.6 229.2.3 157.5 196.1.107 3.8 250.3 164.3 213.1 154.0 175.2 179.2 Other Minerals 1.494 0.4 164.6 275.8 175.4 237.0 5 179.2.9 113.4.444 2.8 205.4 225.8 183.1 Metallic Minerals 1.0 186.3.7 151.8 167.2 287.9 187.4 209.0 349.1 Fibres 1.3 Soft Drinks & Carbonated Water 1.2 160.7 152.3.5 133.3 132.2.7 131.3 205.6 155.2 239.7 189.3.7 170.2 260.181 0.8 162.3 141.3 189.CURRENT STATISTICS No.2 Canning.2 Fruits & Vegetables 1.1.1 214.2 144.1.1 PRIMARY ARTICLES 1.4 157.2 250.2 194.5 175.9 239.0 216.9 139.340 0.3.377 1.3 208.1. Preserving & Processing of Food 1.7 284.6 197.8 217. Khandsari & Gur 1.3 191.711 0.2 Non-Food Articles 1.8 191.3 240.3.3 Woollen Textiles 1.1.4 Others 76 Weight 1 100.9 226.1.8 229.9 223.7 2015 Jan.4 Wood & Wood Products 1.1.5 134.3.5 168.1 Coal 1.2 183.1 387.3.1 227.717 3.6 Other Food Articles 1.043 0.9 226.1 213.569 0.5 186.8 175.1 163.8 161.9 201.1 250.2 281.0 244.3 161.4 Eggs.9 Manufacture of Salt 1.0 128.3.5 6 178.414 0.1.0 252.3.1 408.4 167.3.5 180.2 Man-Made Textiles 1. Hemp & Mesta Textiles 1.6 146.3.4 229.2 246.3 213.1.7 216.2 Fruits 1.8 196.5 250.8 233.8 137.5 Condiments & Spices 1.4 216.6 147.3.900 14.241 0.6 217.3 294.8 255.2 Oil Seeds 1.489 0.1.8 240.1 190.4 Jute.736 2.587 0.6 207.9 168.605 1.337 4.3.048 0.452 64.261 1.7 183.3 Crude Petroleum 1.9 189.5 138.3.1 134.3.6 310.1. (P) 3 179.5 182.7 234.090 3.1.6 237.7 163.9 246.1 Food Grains 1.000 20.3.1.9 193.1.4 204. 21: Wholesale Price Index (Base: 2004-05 = 100) Commodities 1 ALL COMMODITIES 1.5 179.2 Cotton Fabric 1.3 135.1 Cereals 1.974 0.1 194.5 265.6 207.9 170.533 0.7 305.2 239.5 268.0 174.8 139.5 185.5 247.9 134.0 142.3.2 Mineral Oils 1.2 173.7 217.1.3.4 189.1. Meat & Fish 1.3 Grain Mill Products 1.4 171.9 172.3.6 236.1 Wine Industries 1.5 179.5 387.3.9 220.4 143.2.2 Pulses 1.5 146.3.2 154.4.1.7 202.5 202.8 159.9 4 181.7 254.2 Processed Wood 1.8 183.3.7 207.2.3 280.8 257.2.5 202.1 189.5 190.228 2.3.9 177.3 174.5 191.0 158.0 242.8 226.6 167.3 Textiles 1.7 216.5 228.3.10 Other Food Products 1.1.1.524 0.7 176.183 4.4.5 153.9 185.877 1.1 Man-Made Fibre 1.3.2 160.2.0 235.0 178.0 238.1.8 180.6 154.1.1.4 166.6 145.5 170.1.1 212.3 205.5 216.3 201.1.1 Cotton Textiles 1.3.2 132.6 238.3.8 140.0 140.9 137.4 233.1.2 193.364 3.9 189.3. Cigarettes.762 0.7 235.2.4 Bakery Products 1.1.4 245.7 139.238 2.3 MANUFACTURED PRODUCTS 1.8 196.9 325.8 114.1.213 1.8 346.2 191.0 225.206 1.3 181.3.960 0.089 3.4 213.4 Flowers 1.6 140.258 0.6 213.0 217.568 0. Textiles 1.781 1. Nov.1.1 242.3.3 Electricity 1.2.1 202.1 144.5 171.3.3.118 14.3 246.3 131.972 9.6 209.294 0.7 305.3.3.5 157.4 153.6 205.7 135.3 140.7 Oil Cakes 1.7 136.3 Other Non-Food Articles 1.2 217.094 9.2.1 Vegetables 1.2 FUEL & POWER 1.135 0.6 203. Tobacco & Zarda 1.1 186.1.8 194.386 0.3 Minerals 1.1 307.6 252.0 158.3 142.3.7 426.9 413.9 200.6 189.1.3.3.1 Cotton Yarn 1.5 179.6 241.2 Beverages.6 143.1.1 131.879 1.5 210.7 162.0 160.7 179.9 167.1.4 163.1 157.0 144.8 197.3 147.2 217.9 285.8 249.9 185.7 175.2 Malt Liquor 1.6 Edible Oils 1.2.1 Dairy Products 1.6 154.5 Sugar.153 0.3.1.2 Man-Made Fabric 1.1 Food Products 1.5 202.843 1.3.3 Plywood & Fibre Board 1.4 217.9 142.1.7 214.6 196.326 2.1 157.4.7 245.2 344.8 214.0 202.2.9 134.5 Other Misc.672 0.5 190.3 115.128 0.910 2.1.241 0.7 229.0 147.3 Milk 1.1 215.1 Timber/Wooden Planks 1.1 Food articles 1.9 209.9 217.1.4 Manufacture of Bidi.3.385 0.7 147.4 190.9 154.1 114.3 180.358 1.8 152.038 2014 2013-14 2 177.3.1.9 265.1.983 7.2.0 292.2 160.2.8 349.8 235.8 Tea & Coffee Proccessing 1. (P) Jan.1 203.3 259.1.1.3.1.1.9 247.2 144. 429 1.611 0.367 0.10.1 144.9 159.3 147.9.9 150.5 138.0 157.1 154.4 208.5 120.0 152.12.465 0.1 Iron & Semis 1.3 91.2 166.5 164.7 151.6 Castings & Forgings 1.5 169.034 1.3.8 166.1.0 167.4 151.4 144. Earthenware.256 1.063 0.4 165.9 155.2 156.8 141.2 155.8.8 113.8 161.9 177.4 Cement.3.213 4.3.004 0.6 134.3 Steel: Flat 1.5 155.3.3 Other Leather Products 1.4 150.2 137.3.8.6 150.3.3.3.6 155.178 2014 2013-14 2 143.7 148.7 5 151.6 164.1 131.3 Rubber Products 1.2 173.3.7 4 151.3.10.7 124.2 152.1 152.3 146.748 8.4 Paints.10 Electronics Items 1.4 173.9 177.9 166.3 Cement & Lime 1.3.9 132. Toiletries etc.952 3.3.5 Dyestuffs & Indigo 1.7 149.7 89.9 171.1 174.2 177.7.11.9 193.8.2 159.3 Metal Products 1.6 162.8 127.9 191.8 160.1.9 88.8.0 174.3.8 159.7 Electrical Machinery.5 146.4 150.2 180.3 159.3 117.2 163.1 Agricultural Machinery & Implements 1.3 156.804 0.3.3.7 174.0 153.5 95.11.2 Steel: Long 1.3.0 154. Ministry of Commerce and Industry.6 151.4 171.2 137. Cables etc.9 144.961 0.3.4 Steel: Pipes & Tubes 1.6 117.1 Basic Inorganic Chemicals 1.6 162.2 134.7 157.7 164. 1.7 170.6 131.2 176.9 176.1 114.9.3.5 149.5 Air Conditioner & Refrigerators 1.3.3. 21: Wholesale Price Index (Concld.2 156.8.11.8.7.4 138.6 150.343 1.7 136.223 0.5.9 159.7 99.7 6 151.7 177.8 154.1 149.6 164.9 151.3.3.1.8 159.515 1.203 2.8 89.4 134.064 1.563 0.6 153.1 Structural Clay Products 1.2.2 Leather Footwear 1.5 149.4 Machine Tools 1.11 IT Hardware 1.661 0.9 160.5 Stainless Steel & alloys 1.3.1 162.6 150.8 136.1 164.3.9 211.8 214.4 144.2 88.3.4 153.1 Fertilisers 1.0 127.8.1 158.7 135.2 148. (P) Jan.3.10.3.4 95.2 Manufacture of boards 1.1 Tyres & Tubes 1.3 164.3.1 129.3.7 167.12.4 151.7 176.187 1.3 154.026 2.2 144.9 134.1 156.5 153.1 139.2 Plastic Products 1.6 150.1 135.3 150.869 0.871 0.11.5 189.6 127.8 150.4 165.10. Equipment & Parts 1.7 143.0 153.6 169.6 162.CURRENT STATISTICS No.139 1.3 177.10 Basic Metals.9 165.2 172.1 Paper & Pulp 1.838 0.9 Non-Metallic Mineral Products 1.10.4 144.9 138.3.7 149.2 120.2 Non-Ferrous Metals 1.9 Office of the Economic Adviser.11.10.5 154.0 171.8 151.3 159.9 149.9 188.584 12.4 177.8 127.6 Leather & Leather Products 1.7 98.8 144.0 141.6 129.3.7 148.1 153.5 145.5 155.3.3.4 135.2 137.3.053 1.6.2 149.3.4 149.1 Leathers 1.0 171.4 136.1 155.3 143.8 155.6 139.3 152. 1.7 Ferro alloys 1.7.3.8 Turpentine.9 153.3.931 0. Plastic Chemicals 1.6 134.2 150.4 119.2 164.2 89.3 138.018 1.6.3 176.7.5 190.488 0.5.3.1 165.12.7 155.6 143.8 91.3 159.4 150.3.3.1 Aluminium 1.5 175.529 0.1 141.11.1 132.7 99.2 Other Non-Ferrous Metals 1.2 Tubes 1.9 177.3.2 158.10.11.3.3.7 129.0 170.8.9 115.2 142.1.3 133.130 0.1 148. RBI Bulletin March 2015 77 .5 157.3 Other Transport Equipments Source: Weight 1 2.6 Drugs & Medicines 1.8 166.2 211.3 143.6 87.11 Matches.6 151.630 2.4 139.1.12 Communication Equipments 1.7 137.9 140.045 0.6 132.1 Ferrous Metals 1.3.7.1 117.3.256 10. (P) 3 145.6 123.11 Machinery & Machine Tools 1.267 0.3 149.1 165.0 167.3 156.337 0. Government of India.5 149.9 152.8.556 0.9 176.2.938 0.3. Nov.4 134.7 156.) (Base: 2004-05 = 100) Commodities 1.8 141.3.1 120.2 Basic Organic Chemicals 1.3 150.11.1 157. Varnishes & Lacquers 1.4 142.4 120.3.11.8 143.3.137 1.0 146.7 139.4 166.10.8 177.3.9.118 5.861 0.4 136.563 1.9 153. Dec.7 Rubber & Plastic Products 1.8.3 Printing & Publishing 1.3 151.3.8 Electrical Accessories.0 144.4 135.6.8 170.1.4 170.3.3 137.2 91.1.9 133.1 150.1 148.9 145.489 0.6 142.3.9 129.5 138.9 138.0 159.8 Chemicals & Chemical Products 1.7 146.1 137.3.9.8 142.6 167.3 Construction Machinery 1.9 Electrical Apparatus & Appliances 1.483 0.11.3.0 160.7 152.8. Slate & Graphite Products 1.145 2.9 134.9 150.9 134.019 0.541 0.1.7 176.0 133.8 132.3.12 Transport.6 150.3.3 121.3 147.10.3.8 155.970 0.10.2 Glass.4 115.658 0.1 Automotives 1.2 Pesticides 1.5 120.5 160.586 0.2 198.3.3.7 149.5 Paper & Paper Products 1.314 0.9 Polymers including Synthetic Rubber 1.3 134.5.6 160.8.1 Tyres 1.5 154.4 115.11.0 177.1 135.6 Non-Electrical Machinery 1.10 Petrochemical Intermediates 1.8 177.629 2.10.987 0.1 172.3.9 136.8 156.1 148.3 125.5 135.5 134.8.3.2 Auto Parts 1.8 135.9 147.9 160.6 126.231 0.4 165.9 162. Explosives & other Chemicals 1.2 Industrial Machinery 1.680 8.456 1.0 137.3.2 132.8 209.3 Fertilisers & Pesticides 1.5 148.7 127. Cosmetics.6 150.550 0.8 157.835 0.386 0. Alloys & Metal Products 1.3.9 190. Equipment & Batteries 1.8 153. Wires.9 154.9 89.10.3.7 154.0 141.7 135.1.7 147.7 Perfumes.3 139.2 131.409 0.3 190.1 2015 Jan.6 147.11.6 141. Chinaware & their Products 1. 8 3.6 4.35 153.5 5.3 5.328.7 5.2 124.6 192.5 1.2) 9 Revenue Deficit (7-1) 10 Fiscal Deficit {6-(1+2.474.6 176. RBI Bulletin March 2015 . Basic Classification Goods 242.084.9 5.480.3 Consumer Consumer Non-durables Non-durables 248.5 186.1 1.012.1 99. Ministry of Statistics and Programme Implementation.008.0 168.1 164.2 11.0 70.0 13.9 9.4 2.1+5.5 183.2 On Capital Account 6 Total Expenditure (4+5) 7 Revenue Expenditure (4.7 Electricity Electricity 164.0 2.851.548.4 12.2 254.7 21.9 Sectoral 1.3 149.6 762.2+5.7 88.4 8.1 Interest Payments 4.1 146.4 191.9 73.9 177.1] Source: 78 Controller General of Accounts.6 146.7 2.3 155. Intermediate Goods 171.9 3.7 75.4 Consumer Goods 2.948. Consumer Non-durables 168.68 8.8General 179.219.7 89.5 General Index Index Sectoral Classification 182.3 4(b).69 29.8 12.2 74.1 Mining and Quarrying 1.9 Use-Based 1.1 On Revenue Account 5.436.4 11.328.6 5.1 4(a).624.126.1 80.887.531.CURRENT STATISTICS No.2)} 11 Gross Primary Deficit [10-4.1 5.6 Intermediate Intermediate Goods Goods 185.8 79.9 79.2 75.6 Sectoral Classification Use-Based Classification 131.6 12.3 4.811.5 7.1 Consumer Durables 2.7 9.16 75.1 Recovery of Loans 2.691.583.8 79.46 21.262.8 80.8 78.1 9.53 10.2 Other Receipts 2.7 229.863.122. 22: Index of Industrial Production (Base:2004-05=100) Industry Weight 2012-13 April-December 2013-14 2013-14 4 1 2 100.699.32 125.9 153.811.0 147.3 101.1 5.3 180. Government Accounts and Treasury Bills No.1+2.5 97.9 156. Ministry of Finance.1 Basic Goods 2.6 Use-Based Classification 164.4 9.9 313.2 On Capital Account 5 Plan Expenditure 5.2 Non-Tax Revenue 2 Capital Receipts 2.9 177.683.126.679.6 171.3 192.4 3.1 68.8 79.1 5.382.4 Source : Central Statistics Office.2 Capital Goods 2.7 208.3 Intermediate Goods 2.3 Consumer Consumer Goods Goods 264.1 77.382.681.0 4.3 72.4 2 Use-Based Classification 2.2 3.681.6 1.5 16.5 91.3 2.2 Consumer Non-Durables 45.0 179.3 Electricity 14.4 135.4 79. Government of India.1 On Revenue Account 4.8 Manufacturing Manufacturing 164.1 3.415.3 16.008.8 157.6 3.3 3.6 251.6 7.759.3 75.668.699.6 236.132.7 11.8 252.6 108. Capital Goods 152.6 301.1 157.9 55.9 66.3 827.3 Sectoral Mining Mining Classification & Quarrying & Quarrying 122.1 75.1. Government of India.007.4.9 264.923.3 Borrowings and Other Liabilities 3 Total Receipts (1+2) 4 Non-Plan Expenditure 4.3 General General General IndexIndex Index 1 Sectoral Classification 1.7 105.00 172.4 13. Manufacturing 180.7 121.219. 23: Union Government Accounts at a Glance (Amount in ` Billion) Budget Account Item Code Financial Year Item 2014-15 (Revised Estimates) 2013-14 (Actuals) April–January 2014-15 (Actuals) Percentage to Revised Estimates 2013-14 2014-15 1 2 3 4 5 1 Revenue Receipts 1.5 913.2 172.9 65.8 1.144.3 4.9 189.010.6 99.1) 8 Capital Expenditure (4.81 8.2 263. Mining Classification & Quarrying 181.8 80.691.4 2.558.6 674.6 79.8 Capital Capital Goods Goods 151.788. Electricity 169.113. Consumer Durables 150.6 80.3 110.937.6 14.6 77.4 96.4.699.3 1.5 1. Consumer Goods 223.8 110.83 15.1 1.0 79.1 Tax Revenue (Net) 11.8 864.7 190.946.459.6 5.4 22.6 102.853.5 Use-Based Basic Basic Goods Classification Goods General Index General Index 3 December 2013 6 2014-15 5 General Index 2014 7 General Index 171.7 120.2 Manufacturing 1.5 5.5 70.8 101.6 2.178.7 Consumer Consumer Durables Durables 154.1 5.1.6 79.5 3.3 2.0 2.8 1. 5 141.4 469.539.4 282.46 92.649.02 60.03 66 69 33 64 80.654.10 110.2 Primary Dealers 1.6 513.03 7.0 264.8 281.7 255.42 92.8 12.6 126.2 395.5 8.8 12.7 330.8 12.20 205.6 4.9082 – 100. 7 Jan. 28 60 60 75 54 194.0 570. 14 Jan.0 616.00 – 0.02 96.9 300.64 – 48 100.7 405.1 Banks 270.02 24 37 60.9 330.42 – 0. 10 Dec.8 498.8 1.3 4.1 278.8 4.8 – 809.97 8.1 4.03 97.2 275.4 15. 21 Jan.3 State Governments 4.00 79 .05 96.1 4.1 10.5 7.0 – 771.8 122.3 State Governments 3 182-day 3.707.1 512.8 – 546. 21 50 50 70 60 87 75 77 85 197.4 296.6 12.9 103.2242 8. 10 100 RBI Bulletin March 2015 74 537.8 660.2 352.00 70.2475 8.7 324.2 Primary Dealers 286.3 State Governments 2.3562 Jan.10 51.8 514.8 431. 7 Jan.498.00 97.1 1.00 80. 9 5 2015 Jan.14 182.00 30.7 4.02 96.1 670.3 257.4 122.02 92.0 4.0 242.02 27 80.2 430.4 Others 2 91-day 6.28 215.02 97.4 15.8 2.1 297.3 4 364-day 4.CURRENT STATISTICS No.5 3.00 50.9 650.4 4.1 Banks – – – – – – – – – 1.2 269.0 342.3 State Governments 74.1857 8.10 30.00 0.02 7 19 29 31 50.03 38.00 70.6 7.99 8.9 12.42 92.07 50.9 157.9 276.7 12.4 3. 25: Auctions of Treasury Bills (Amount in ` Billion) Date of Auction Notified Amount Number Bids Received Total Face Value Competitive Number NonCompetitive Bids Accepted Total Face Value Competitive 4 5 91-day Treasury Bills 6 NonCompetitive 7 Total Issue (6+7) Cut-off Price Implicit Yield at Cut-off Price (per cent) 8 9 10 1 2 3 2014-15 Dec.494.5 7.3 357.1 237.4 384.00 Cash Management Bills 2014-15 Nov.95 97. 16 6 Jan.69 2.00 60.2242 8. 14 Jan.00 60.00 8.0 670.32 133.63 80.69 53.8 352.2 Primary Dealers 255.10 8.63 202.6 317.00 51.1 8.9 225. 31 2 Dec.9 259.1 Banks 356.00 60. 24: Treasury Bills – Ownership Pattern (` Billion) Item 2013-14 1 2014 Jan.7 403.0 600.0 622. 23 7 Jan.03 7.6 – 688.03 131.7 12.3 6.2 Primary Dealers 4.6 126.6 294.07 – – 0.7 439.00 99.0 348.00 60.9 289.69 53.0 558. 30 8 1 14-day 1.07 – – 0.91 128.9 2.3 – 550.46 199. 31 50 57 134.4 Others 164.4 Others 381.1 480.243.3 665.5 12.1 Banks 286.10 30. 2 4 Jan. 28 80 80 80 80 76 83 86 87 166.3 693.0 436.4 Others 5 Total No.26 213.9 365.1773 7.1388 0.53 0.3946 8.5 4.06 8.0 618.0 609.8 – 595.2275 182-day Treasury Bills 2014-15 Dec.3110 Jan.02 50.4 428.8 374.0 431.16 0.8 280.7 – 857.9 603.4 3.02 31 50.1 511.6 15.3 299.101.69 8.02 82.8 318.95 98.799.6 2.8 433.7 6.2466 364-day Treasury Bills 2014-15 Dec.02 50.0 523.7 4.8 419. 26 3 Jan.00 2.6 12.3946 8.2 3. 31 80 62 298. 24 Jan. 95 7.93 January 5. 2015 6.25-8.60 6.75 7. 2015 4.05 7.49 80 RBI Bulletin March 2015 .87 January 20.35 8. 2015 6.50-8. 2015 4. 2015 6. 2015 5.40 8.72 January 30.CURRENT STATISTICS Financial Markets No. 2015 2. 2015 4.10 February 9.62 February 7.00-8.05 7.00-8.50-8.32 January 27.57 February 3.91 February 12.00-8. 2015 6.50-8.40 7. 2015 6.75 7.00-7.00-8.40-8.20 7.65 8.39 January 12.05 7.00-8. 2015 5. 2015 3.20 7. 2015 6.25-8.95 January 10.93 January 28.25-8.00-8. 2015 6. 2015 1. 2015 3.25 7.00-8.25 7.85 January 24.10 7.88 January 21.00-7.15 7. 2015 6.40-8.51 February 14. 2015 6.08 January 15.40-8.00-8.50-8.00-8. 26: Daily Call Money Rates (Per cent per annum) As on Range of Rates 1 Borrowings/ Lendings Weighted Average Rates Borrowings/ Lendings 1 2 January 1.00 11.05 7. 2015 6. 2015 2.00 7.50-8. 2015 2.40 6. 2015 6.29 January 6.50-9.20 7.00-25.25 7. 2015 4.00-7.25 7.01 January 13. 2015 1.30 5.00-7.75 February 10.25 7. 2015 6.50-8.95 January 8. 2015 6.85 January 23.00-7. 2015 6. 2015 6.00-8.71 January 29. 2015 6.40 7.00-8.02 January 9.23 January 19.87 January 16.58 February 2. 2015 6.40-8.30 7.35 7.40-8. 2015 6.99 January 7.81 January 31. 2015 4. 2015 6. 2015 4.60 February 11.05 7.87 January 22.59 February 5.50 7.50-8.05 7.40-8.00-7.21 4.80 January 3.25-8.80 January 17.00-8.07 January 14. 2015 6.80 February 4. 2015 6.65 8. 2015 6.85 February 6.90 January 2.75 February 13.40-8.10 8.50 5.07 5. 2015 6.20 7. 7 258.1 810.005.4 7.4 565. 30 1 2 3 4 5 6 7 8 230.CURRENT STATISTICS No.9 79.2 3.8 12. 27: Certificates of Deposit 2014 Item Jan.8 263. 26 Jan.8 210.2 4.9 738.8 2 Notice Money 71.0 – 3.3 5.9 323.2 4.5 5. 2 Jan.109.7 7.8 2.5 1 Call Money 4 CBLO 5 Market Repo 6 Repo in Corporate Bond 7 Forex (US $ million) 8 Govt.6 64.641.2 26.7 218.178.196.633.568 56.7 562.5 1. Securities 10 Treasury Bills 10.270.3 364-Day 25.4 944.3 373.3 – – – – – – – 50. 28: Commercial Paper 2014 Item Jan.9 2.1 290.090.7 1.1 Reported during the fortnight ( ` Billion) 2 Rate of Interest (per cent) 2015 Dec.7 10.3 32.8 2. 24 1 Amount Outstanding ( ` Billion) Rate of Interest (per cent) Dec.1 167.3 – – – – – – – 747. 12 No.5 1.4 10.460 44.40-9.1 111.3 8.6 0.6 611.1 12.4 1.117.5 526.9 1.452 59.6 1. 23 1 2 3 4 5 3.7 2.8 2.8 745.8 10.4 Cash Management Bills 11 Total Govt. 29: Average Daily Turnover in Select Financial Markets (` Billion) Item 2014 2013-14 Jan. 15 Jan.5 64.5 83.1 91-Day 26.5 1.155 662.2 1. 15 Dec.6 1.7 1.9 92.7 1.02-11.7 5.2 36.202.82 8.6 176.7 1.06-11.0 20.3 2.0 1.200.236.7 1.328.0 21.6 209.5 2. Securities (8+9+10) 11.2 182-Day 12.7 13.4 53.2 2. 16 Jan.109.65 1.1 436.7 986.618.67 8. 9 Jan.06-8.125.342.8 3 Term Money 5.3 2.3 23.3 1.3 1.50 8.6 24.1 59.7 224.5 10.1 RBI RBI Bulletin March 2015 7.7 35.4 4.72 8.9 81 . 31 Jan.9 18.272. 26 Jan.21-8.0 32.7 2.616 55.5 15. of India Dated Securities 9 State Govt.242.086.58 7.9 1.402.8 949.5 0.30-8.3 9.787.8 7.5 31.21 No.5 3. 31 1 Amount Outstanding ( ` Billion) 1.4 764.9 18.1 776.082.4 17. 31 1 2 3 4 5 1.8 2.3 878.73 7.1 116. 31 2015 Dec.805 56.134.0 18.2 867.8 253.99-12.0 47. 23 Jan.376.24-8.9 1.8 338.98-12.372.95-13.61 8.311 68.252 44.2 30.5 9.3 2.7 25.74 8.1 Issued during the fortnight ( ` Billion) 2 2015 Dec.528.6 10. 9 Jan.8 13.013. 1 48 58.8 18 61.2 Non-Convertible 13 50.1 Convertible – – – – 3.1 5.0 – – 3.9 * : Data is Provisional Source: Based on prospectus/advertisements issued by companies.1 Premium 1.0 – – – –3.1.2 Rights11 22.81. 30: New Capital Issues By Non-Government Public Limited Companies (Amount in ` Billion) Security & Type of Issue 2013-14 No.41.-Jan.35 Total (1+2+3+4) 5 5 Total (1+2+3+4) 70 5.2 Rights – – – –2.1 Prospectus – – – – 3.03 Debentures 1 5.8 4 16.1 Premium 9 20.05.1 2 0.1 Prospectus 2 0.2 Rights – – – – 3.1 Prospectus 1 5. of Issues 2 3 Amount 2014-15 (Apr. 82 RBI Bulletin March 2015 .73 Debentures 13 50.2 Rights 15 45.1 Convertible – – – –3.73.0 1A Premium 43 53.1 Convertible 3.2 Non-Convertible 17 58.2 Non-Convertible 1 5.1 Premium 2 – 1 – 15 45.1 10 31.3 14 44.2 Rights – –3.2. of Issues * Amount 4 5 8 9 10 1 Equity Shares 53 58.1 Premium 2 Preference Shares – –2 Preference – Shares – – –2 Preference – Shares – – – 2.05.) * No.6 2 15.11 Equity Shares 38 34.2.01.5 30 12.1 Premium 2 0.2.1 2 0.51. 2014 Amount No.2 Rights – – – – – –4 Bonds – – –4 Bonds – – – 4. 2015 Amount No.1.1.6 2 15. of Issues Jan.85 Total (1+2+3+4) 51 – 119.1 Prospectus 3 5.71.2.1 Prospectus – –4.1 Prospectus – –3.2 Rights 2 0.8 18 61.2.1.1 Prospectus 1.1 Prospectus – – – –2.2 Rights – – – –3.31.8 66 5.1 Prospectus 55 71.21A Premium 33 30.1 Prospectus – – – –4.6 38 12.81A Premium 4 0.1.2.1 Prospectus – – – –3.1 Prospectus 27 11.03.85.3 2 15.2 Rights – – – – 3 Debentures 17 58.1 Prospectus 40 62.0 4 Bonds – 116.2.2 Rights – –2.-Jan.2 Rights – – – –3.2 Rights – –3.1 Premium 24 10. of Issues 1 2013-14 (Apr.2 Rights – – – – 84. etc.1 Prospectus – –2.2 Rights 2 0.1 30 10.21. press reports. replies to Reserve Bank’s questionnaire and information received from SEBI.2 Rights11 22.6 1.) Amount No.8 34 14. stock exchanges.1.5 40 43.1 Prospectus 17 58. of Issues 6 7 Jan.0 – – 3.2.3 14 44.9 13 42.1.5 52 75.1.03.51.8 18 61.35.2 Rights – – – –4.31 Equity Shares 4 0.CURRENT STATISTICS No.8 4 16.2.1.1 Prospectus – – – – 2.1 Prospectus – – – – 4.73.4 3 15.2 Rights – –4.2 Rights 1.1 Prospectus 13 50. 487.2 NR(E)RA 52. 30 Feb.8 1.5 63.077 4.323.070 35.903 US $ Million 294.883.9 14.875 8.3 818.6 –7.422 25.425.5 4 1.1 4.2 25.443. 2015 Jan. 6 Feb.7 1.7 –9. 32: Foreign Exchange Reserves Item 2014 Unit 2015 Feb.179.9 –34.114 8.6 251.101 1.1 Oil 1.461.4 –101.097 19.175.7 –900.262 42.908 49.1 1.6 –16.066 125 68 68 60 102 102 101 2.957.073 4. 27 1 2 3 4 5 6 7 ` Billion 18.889 2.5 1. 23 ` Billion US $ Million ` Billion 1.1 Foreign Currency Assets ` Billion 1. Apr.830.978 19.2 Non-oil 2 Imports 2.8 1. Dec.1 21.747 18.6 2013-14 1 19.147 10.0 721.094 4.227 1.131.5 –543.545.8 –8. 33: NRI Deposits (US$ Million) Outstanding Scheme Flows 2013 2013-14 2014 Dec.5 2.887 2.8 –7.0 –436.373.7 28.1 314.6 –586.2 Non-oil 3 Trade Balance 3.079 1 Total Reseves ` Billion 16.8 1.360 322.730.-Dec.6 –344.9 –3.2 –2.763.282.158. 20 Feb.958 307. Nov.725.3 17.8 625.387.7 5 1.281 41 695 1 NRI Deposits 1.823 40.9 11.089 4.231 599 1.4 Reserve Tranche Position in IMF US $ Million No.236.566.977 110.6 22. Nov.256.378 19.8 26.1 25.2 36.816.3 26.5 285.7 3.050.056 1.770.868.378 20.799.6 23.352.3 –410. 2013-14 2014-15 Apr.104.048 4.038 327.1 Oil 3. 2 1.617.227 1.012 1.187.2 23.762 9.496.207.9 –201.238.179.298 312.8 1.958.247.419 42.183 20.8 4.931.193 338. Dec.2 1.4 2.337.6 21.844 98.386 58.6 9.247 1.0 21.294 20.3 5.9 3 1.716.630 1.884 330.8 23.8 257.645.517.891.234.632.258 308.961.5 –153.8 12.1 6 1.9 30.639 109.699.815.591.5 1.486.2 –1.889 277 249 252 253 254 254 251 4.318 18.6 513.580.019.454.4 767.6 39.490.380.4 –5.531.325 304.146.4 331.0 –364.117.9 164.9 –6.567 9.367 9.183 SDRs Million 2.0 32.473.567.166.860.7 1.443.1 Oil 2.9 –9.2 –464.9 –6.5 22.1 34.305 US $ Million 266.2 Gold 1.567 18.9 ` Billion US $ Million ` Billion US $ Million ` Billion US $ Million ` Billion US $ Million ` Billion US $ Million ` Billion US $ Million ` Billion US $ Million ` Billion US $ Million ` Billion US $ Million DGCI & S and Ministry of Commerce & Industry.037.705.3 –8.328 9.669.247 US $ Million 20.3 –8.862 20.183 20.2 5.3 450.842 19.8 42.247 1.889 2.640.653 58.0 –1.7 2.4 15. 1 2 3 4 5 6 103.617. Sep.6 43.9 –57.217.4 2.7 2.3 NRO RBI Bulletin March 2015 83 .7 4.1 FCNR(B) 41. 31: Foreign Trade Item Unit 1 Exports 1.1 –572.302 1.399.902 297.7 –5.1 9.640 1.7 –529.346.205. 13 Feb.CURRENT STATISTICS External Sector No.8 26. 28 Jan.635 1.9 20.402 20.322.9 28.797.195 19.8 –8.6 288.247 1.206.3 –847.435.213 333.533.5 –13.1 –919.183 20.2 –135.1 –357.699 20.895.534.652.200 1.347.007.154.437.170 334.217.2 280.609.9 1.213.889 2.511 303.3 SDRs Jan.724.1 2.004.7 7 1.698.6 –8.571.2 –5.8 1.-Dec. No.0 24.108 978 1.889 2.7 343.889 2.272 19.415.554.6 13.8 –14.2 8.2 886.832.413.0 –517. 2014 Oct.1 –546.2 2.6 148.797 20.469 4.2 Non-oil Source: Jan.3 27.978. 2) 20.2.1. 3 4 5 6 30.9 2.1.634 1.9 0.046 Inflows/Gross28.3 Other Capital 1.474 4.786Equity 4.516 1.2 Reinvested Earnings 1.1.2 15.1.1.1.165 1.609 361 601 601 1.2.1–1.593 12.1 1 Outward Remittances under the LRS 1.1.2.096 1.3–1.1 Gross 36.1.121 Government (SIA/FIPB) 1. Direct1.2 8.3–1.1.1.3 Other 3.869 1.2 Foreign Direct Investment 1.1–1.1.1 30.1.1.7 4.2 Reinvested 1.1.1.4 1.794Other capital 1.2.1.0 20.2)30.2.3 Acquisition of shares 1.1.1.1.428 –147 –230 2.2 by India Foreign Direct Investment by India 9.1.2.1.4 Gift 267. 35: Outward Remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals (US$ Million) Item 2013 2013-14 2014 Dec.2.016 607 296 255 89 86 89 1.502 1.1.1.1. Oct.3 0.5 3.1.2.9 3.167Earnings 1.1.1.1.1 Equity 12.575 5.2 RBI 14.1.1–1.1.1.935 2.1.1.1.1. Nov.2 RBI 1.2 Net Portfolio Investment 4.1.1.1 Equity 1.3 Other capital 1.1.9 Studies Abroad 159.2 Repatriation/Disinvestment 1.905 2.1.1.2.2.1.2 Reinvested earnings 1.2.4 Portfolio investment by India1.1.1+1.4) –1.2 0.7 13.1.1 Deposit 31.821 5.1.2.7 30.1.2 95.1.1.2 Other capital 1.2. 2 Jan.2+1.3–1.2) Investment to India1.1 Government (SIA/FIPB) 1.2.009 –1.2.570 1.564 Investment (1.8 173.485 5.8 1.1.1.1 Gross Inflows/Gross Investments 1.284 4.663 1.2.3 0.853 388 663 663 1.1.1.1.2 FIIs 20 20 – – – – 5.1 GDRs/ADRs 1.1.1.7 0.1.3 Other capital 1.1.2 Reinvested earnings 1.1.2 13. Jan. 1 2 3 4 5 1.1.1.516 1.4) (1.647 shares 1.385 No.1.616 –404 6.063 6.4 Portfolio investment by India 1.1.2.1+1.1.2 FIIs 1.3 Investment in equity/debt 165.2.185 1.1 4.1 15.3 Offshore funds and others 1.2.3 Other Capital 1.9 22.9 75.2 90.1+1.1.1.093 160 1.1(1.1.7 0.4 Equity capital of 1.1.2+1.822 (1.1.1.1.1 Equity 1.2.1.0 1.1.2) Net Foreign Direct Investment 1.5 11.8 Medical Treatment 4.2 by India Foreign Direct Investment1.9 0.1.869 3.2.626 4.969 3.1.2+1.274Equity 19.CURRENT STATISTICS No.1.1.4 Equity capital of 1.969 1.1+1.1.272 1.-Jan.2.8 0.340 earnings 7.2.1.1.1.2.0 9.1 Direct Investment to India 1.4) 1.2.1 1.2 498Other capital 445 244 27 63 63 532 3.3–1.2.2. 34: Foreign Investment Inflows (US$ Million) 2013-14 Item 2013-14 2014-15 Apr.720 480 823 823 1.1–1.1.-Jan.9 11.2+1.1.2.2.446 546 6.325 1.535 6.1.1.373 –559 3.2 Repatriation/Disinvestment 5.245 1.1.188 65.420 capital 6.1.1.2 Repatriation/Disinvestment 1.1.1.2+1.1 25.1 (1.1.2 0.1 Gross Inflows/Gross Investments 1.1 Equity 1.1.199 3.2.3–1.1.3 Offshore funds and others 1.4)(1.1.3 1.4 84 RBI Bulletin March 2015 .4 12.785 1.1.1.1.37.3 18.1.546 26.360 Investments 37.1+1.2 Other capital 1.1 GDRs/ADRs 1.2)30.2.1–1.6 0.2 1.909 3.2.2 Net Portfolio Investment (1.1 Net Foreign Direct Investment 1.1+1.278 2.2. 23.386 132 220 221 1.9 9.093.1 19.1.897 35. Direct Investment 1.1.1.1.5 9.1.2.978Reinvested 7.1.2 3.4 Portfolio investment 207 by India 1 Foreign Investment Inflows 1 Foreign Investment Inflows 1 Foreign Investment Inflows 26.1.4 Repatriation/Disinvestment1.8 1.908 35.340 819 791 819 1.1.1.1.2.7 Maintenance of close relatives 1.1.3 15.2.1.2 Reinvested Earnings 1.6 Travel 1.1.2.2.1.2) Foreign Direct21.7 0.4) 1.3 13.1 2.1 Equity capital 1.2.1.1.1 Government (SIA/FIPB) 1.1.1.2.1.2.1.5 Donations 1.4) 1.1.121 2.1.4 Equity capital of unincorporated bodies 975 unincorporated 797 bodies 797 unincorporated bodies 66 239 209 1.1.1.1 Equity 1.1.528 –375 6.1.1.1.2.3 Offshore funds and– others – – – – – 31 –22 88 –29 –29 18.2 Net Portfolio Investment (1.6 33.5 119.1 Net (1.1.2.2 Purchase of immovable property 58.1.0 0. 1 2014 Apr.3 Acquisition of shares 8.1 Equity capital 1.10 Others 215.143 2.257 4.2.4 Repatriation/Disinvestment 1.2.1.2 1.2.2.4 Repatriation/Disinvestment 7. 2015 Dec.1.2.2+1.1.5 32.0 11.1 (1.1.1–1.1.2 FIIs 1.852 1.1.677 358 285 1.1.1.2.912 1.1.755 (1.2.2.1.11.1.7 0.1.245 RBI 17.1.1.577 2.762to India (1.148 Capital 969 957 99 99 87 2.968 5.3–1. Dec.508 1.6 1.1.2 10.1 GDRs/ADRs 1.1.2.1.2.758 3.1.383 Acquisition of 5.247 4.2. 79 0.57 100.47 108.12 1.57 103.1 NEER 2.71 2012-13 105.2 REER 103.27 101.1 Weighted Average Margin over 6-month LIBOR or reference rate for Floating Rate Loans 5.2 Amount 12.75 65. 1 2 3 4 1.2 REER 105. 2015 Dec.2 REER 6-Currency Trade Based Weights 1 Base: 2004-05 (April-March) =100 2 Base: 2013-14 (April-March) =100 No.82 74.340 1.2 Amount 33.00-10.50 0.32 72.70 80.00 97.15 112.2 Amount 20.496 2.276 491 1.35 5.1 NEER 78.76 70.50 1 Automatic Route 2 Approval Route 3 Total (1+2) 4 Weighted Average Maturity (in years) 5 Interest Rate (per cent) 5.00 96.89 75.12 69.25 2.2 REER 117. 37: External Commercial Borrowings (ECBs) (Amount in US$ Million) Item 2013-14 2014 Jan.05 73.34 2.56 71.88 100.892 517 146 1.63 1.10 110.54 76.77 109.00-10.40 115.1 Number 573 44 59 71 1.96 104. 36: Indices of Real Effective Exchange Rate (REER) and Nominal Effective Exchange Rate (NEER) of the Indian Rupee 2012-13 2014 2013-14 February 1 Item 2015 January 2 February 3 4 5 36-Currency Export and Trade Based Weights (Base: 2004-05=100) 1 Trade-Based Weights 1.09 0.095 3.06 7.82 3.1 Number 140 11 4 3 2.232 1.50 0.2 Interest rate range for Fixed Rate Loans RBI Bulletin March 2015 85 .49 2013-14 103.23 2.1 NEER 111.99 112.17 109.793 637 2.11 102.05 112.32 70.58 123.1 Number 713 55 63 74 3.591 4.00-12.1 NEER 75.03 124.CURRENT STATISTICS No.97 110.26 2 Export-Based Weights 2.64 77.32 1. Jan.88 6.98 2.34 1.00-9.59 67. 424 2.015 8.461 285 274 11.463 2.1. 1.420 8.2.647 53.548 28.731 6.785 7.1.612 728 6.2.2 INVISIBLES (1.2.1.088 68 –627 512 –297 –843 –6.912 41.1.925 23.1 Equity 2.355 270.024 – 23.161 267 894 9.099 85.1.1.992 131 18.024 27.e.2 Abroad 2.348 49.5.3.1 Suppliers' Credit > 180 days & Buyers' Credit 2.413 2.738 346 1.2.158 28 –2 –6.392 –153 –819 666 –428 –562 –1.170 –33.084 143.1.135 18.1 Foreign Direct Investment 2.521 114.3) 1.1.035 204 1.5.729 138.592 – 19.293 3.2 Others 2.897 – –6.2.123 4.285 154.1.155 549 100 27.681 1.1+2.1 Commercial Banks 2.033 21.1+ 1.1.3.566 28.1 Assets 2.922 1.1 External Assistance 2.2.2.2.1 FIIs 2.358 4.487 – 116 32.1 Investment Income 1.088 971 –457 640 –297 –801 9.1.1.355 – 10.1.2 Business Services 1.034 472 4.2 Private 1.500 11.2 Loans (2.080 17.421 41.237 – – 49.378 60.162 1.1 Foreign Investment (2.866 366 8.3.2) 1.2.2.1.388 65 –4.1 Non-Resident Deposits 2.058 11.180 123.1.542 – 130 33.1.1.283 –6.582 7.2+2.1.n.561 12.363 – – – – 269.773 666 19.088 1.472 5.564 –6.3.407 2.1.029 9.355 276.109 261 252 10.086 –196 16.357 4.5) 2.2 Abroad 2.CURRENT STATISTICS No.1.709 17.5.440 720 131 589 7.3+2.552 233 1.2.1.058 852 – 205 1.3 Financial Services 1.3.2.1 Equity 2.3.665 3.938 –434 10.5.2.2.2.865 19.2) 4.371 887 693 265 –174 16.297 408 741 371 16.872 –850 10.1.355 –5.522 345 5.683 203 22.1 Services 1.883 134 – 4.992 4.355 – 10.2.169 691 7.2.1./ Decrease +) 86 Debit Jul-Sep 2014 (P) Net Credit Debit Net 1 2 3 4 5 6 259.1 I.806 22.2 Portfolio Investment 2.2 Suppliers' Credit up to 180 days 2.906 19.296 801 121.2) 2.3 Other Capital 2.858 28.564 –850 –5.344 –169 16.988 7.2 Liabilities 2.5 Miscellaneous 1.2.870 16.1.1+2.1.700 16.2.1.351 81.3.500 22.4 Communication Services 1.1.177 27.084 75.i.2 Transfers 1. 38: India's Overall Balance of Payments (US $ Million) Jul-Sep 2013 (PR) Credit Item Overall Balance of Payments(1+2+3) 1 CURRENT ACCOUNT (1.2.672 6. 4.346 34 17.750 1.114 16.960 28 – 3.376 16 1.3.897 –10.476 16.765 – 226 30.2.2.714 – –38 –472 –162 –50 –112 1.791 12.M.1 Travel 1.311 3.2.499 8.087 17.128 59.2.137 2.3.777 8.860 –6.2.1 By India 2.722 – –110 2.898 2.3.1.1.108 22.505 98 17.912 55.079 55.540 601 138 28.864 725 297 843 56.374 57.572 2.2.4+2.828 30.762 9.991 4.4 G.135 –5.293 63.081 –38.256 – 168 33.2.478 19.478 49.241 656 –115 771 1.1.263 16.050 – 60 2.1+2.553 434 – – – –10.2.659 –203 1.728 6.776 575 17.348 40.2 Transportation 1.973 18.3 Banking Capital (2.2 ADR/GDRs 2.897 – 6.344 2.2 Reinvested Earnings 2.1.784 4.022 9.897 RBI Bulletin March 2015 .3 Other Capital 2.2.064 134 –2 –879 –1.834 9.409 63.360 8.570 1.363 492 17.096 738 113.259 230 1.906 3.F.001 869 430 340 –115 17.3 Insurance 1.108 36.5 Other Capital 3 Errors & Omissions 4 Monetary Movements (4.1 Official 1.031 1.2.1+1.809 953 61 893 3.319 –1.780 852 355 1.101 8.1.110 2.763 22.2 To India 2.1.2+2.731 –6.1 In India 2.4 Rupee Debt Service 2.2.1.1+2.615 – 10.353 19.105 869 132.237 1.242 1.305 28.2.763 7.2.097 2.3 Short Term to India 2.807 8.262 58.819 – 2 5.862 –1.182 144.1+ 4.1.1.2.152 10.2 Reinvested Earnings 2.461 1.1 Software Services 1.705 15.513 –6.897 6.2.2 Compensation of Employees 2 CAPITAL ACCOUNT (2.1 Equity 2.970 112 3.1 By India 2.2 To India 2.3) 2.1.2 Commercial Borrowings 2.421 53.293 40.1.2.2+1.645 7.1.028 930 297 801 53.684 736 126.1.2.128 20 7.602 –6.2.1.2) 2.052 1.2.2.803 – 2 10.917 297 512 138 16.484 19.2.1 MERCHANDISE 1.2.1.2 Debt 2.077 1.439 21.2.1.088 273 1.1.570 – – 63.837 38.001 2.3 Income 1.1.872 9.974 2.1.592 22.886 28.3.1.2 Foreign Exchange Reserves (Increase .806 8.1.337 791 11 780 5.656 11.1.323 –6.656 14.2.104 3.2.243 57.1 In India 2. 726 1.4+2.1.2.2 Debt 2.F.1.2.173 250 249 16 15 643 44 411 52 21 70 16 54 596 551 45 6.843 3.525 713 – 14 1.2) 4.1.075 49 1 49 344 21 322 1.238 2.3 Income 1.014 –394 –398 4 –296 93 504 543 409 130 4 –39 32 –18 –52 –411 –409 –409 –53 –356 – –2 –29 –10 –3 –7 97 15 82 –116 –103 –13 72 71 –353 424 508 2 – –432 –27 645 – 645 16.836 3.320 9.1.1+1.733 5.555 3.078 193 143 50 7.785 13 1.798 1.320 40 1.555 2.059 1.2.1 Services 1.2.1.473 1.1+ 4.2.2 To India 2.2 To India 2.1.3+2.2 Abroad 2.673 182 66 53 – 13 116 45 18 52 3.144 55 43 16 –11 1.593 887 – 10 2.3 Other Capital 2.057 464 111 36 1.2 Suppliers' Credit up to 180 days 2.5.566 2.1 Software Services 1.2.1 By India 2.1 Non-Resident Deposits 2.360 1.3.735 1.1 Travel 1.845 44 8 36 432 1 431 1.361 1.3 Insurance 1.5 Other Capital 3 Errors & Omissions 4 Monetary Movements (4.325 303 275 36 8 1.080 2 1.2 ADR/GDRs 2.1.3.417 480 937 735 – – 657 27 – – – –645 –322 –2.1.2.055 180 128 53 8.2.2.1.1.738 8.001 –12 1.057 3.2 Foreign Exchange Reserves (Increase .2.1.206 1.2 Loans (2.1.2.2.n.3.1.3.073 1.2 Portfolio Investment 2.2.363 – 7 1.2.1.2 Private 1.766 686 609 462 130 17 77 77 – – 3.2.1 I.1.014 25 46 23 1.480 2.2. 4.1 Foreign Direct Investment 2.1.1 Foreign Investment (2.1.2.3 Banking Capital (2.251 3.4 Communication Services 1.2.1 MERCHANDISE 1.344 7.4 Rupee Debt Service 2.104 59 4 56 247 7 240 1.1.139 193 215 18 17 695 43 439 64 13 78 14 64 586 541 46 7.2.1.2.1.2.612 5.3.1.1.2.3 Other Capital 2.1.1 By India 2.2.180 1.130 1.1+2.2.1 Equity 2.1.077 486 513 328 127 59 –28 39 –18 –49 592 598 598 –52 650 – –7 136 40 –7 47 105 21 84 –9 –50 40 –26 –34 –63 29 246 8 – –53 –105 –418 – –418 87 .1.489 1.2.2.1.e.803 1.2 Abroad 2.1.1.488 127 1.811 8.3) 1.579 737 641 452 127 62 95 95 – – 3.001 –416 –424 8 1.3.1.2.1 In India 2.1.1 Official 1.3.282 248 259 34 6 1.2 Commercial Borrowings 2.005 4.238 3.2.3 Financial Services 1.2.061 6 1.2 Reinvested Earnings 2.1.1.1 External Assistance 2.1.072 3.3.1 Investment Income 1.5) 2.981 83 1 82 537 22 515 1.1 FIIs 2.025 18 31 8 991 –10 1.2 Transportation 1.CURRENT STATISTICS No.682 1.2 Others 2.702 1.491 3. 39: India's Overall Balance of Payments (` Billion) Jul-Sep 2013 (PR) Credit Item Overall Balance of Payments(1+2+3) 1 CURRENT ACCOUNT (1.2.i.1.3 Short Term to India 2.1.2+2.3.1.167 3.2.2 Liabilities 2.851 3.2+2.018 777 – – 318 105 418 – 418 418 –611 –2.871 3.1 Commercial Banks 2.1.2.2.5. 1.1+2.2) 1.167 8.M.2.2 Transfers 1.502 251 128 124 – 4 123 56 18 49 3.5 Miscellaneous 1.2.040 1.1 Suppliers' Credit > 180 days & Buyers' Credit 2.540 532 – 8 2.1+2.2.1 Equity 2.2 INVISIBLES (1.2.3) 2.934 7.3.2.1.480 3.2.1.023 8 – 264 – – – – 16.1.080 3.3.2.172 126 1.369 1.2.046 1.5.836 2.1.206 189 1.2 Reinvested Earnings 2.2.505 1.1.1.2 Business Services 1.1.682 – 1.1+2.1.242 2 – 225 – 645 – 645 16.1 In India 2.2) 2.2) 2.1.751 1.4 G.2+1.2.134 1.069 429 83 30 1.1./ Decrease +) RBI Bulletin March 2015 Debit Jul-Sep 2014 (P) Net Credit Debit Net 1 2 3 4 5 6 16.1.1.072 2.369 – 1.337 1.417 1.5.2.840 1.2 Compensation of Employees 2 CAPITAL ACCOUNT (2.2.1+ 1.152 53 26 21 –7 1.1 Assets 2.1 Equity 2. 619 143.A.158 – – – – – – 10.756 4.478 56.e.B.556 797 3.088 – 1.2 Reinvestment of earnings 3.283 16.633 9.6 Other accounts receivable/payable .2 Capital transfers 3 Financial Account (3.784 382 150 71 67 22.1.884 –5.066 120.656 –850 8.1.1 Equity and investment fund shares 3.1 Equity and investment fund shares 3.12 Government goods and services n.322 16.1 Direct investor in direct investment enterprises 3.b.A.A.2.058 8.110 9.b.413 1.512 852 8.A.A+1.2 Special drawing rights n.A. households.570 930 – 297 – 801 – 801 63.B Portfolio Investment by India 3.051 154.862 3.841 46.038 3.365 – – – 10.2 Investment income 1.123 338 276 601 261 1.B.13) 1.1.103 17.407 894 16.780 322 421 138 252 662 163 2.785 1.7 Financial services 1.677 62. 3.A. and standardized guarantee schemes 3.A.C.001 17 –6 430 869 62 340 512 –845 17.2.457 1.834 869 738 1.971 2.CURRENT STATISTICS No.4 Insurance.413 2.1.656 22.C.411 1.1A+3.641 7.B.a+1. computer.005 – 294 71 17.424 852 6.476 108 3.223 – – – 6.714 130 168 –38 775 2.392 7.4 Other reserve assets (Foreign Currency Assets) 4 Total assets/liabilities 4.A.237 1.b.A.088 – 2.5 Construction 1.A.922 8.237 –2.1 Equity and investment fund shares 4. and information services 1.A.2. 3.185 85.e.934 81.035 741 107 650 –543 17.2 Currency and deposits 3.3 Nonmonetary gold 1.223 – – – 7.1 Manufacturing services on physical inputs owned by others 1.4 Other investment 3.420 –6.11 Personal.551 2.992 4.511 110.602 49.3.185 28 – 28 19.572 2.2.1 Direct investor in direct investment enterprises 3.b.860 131 –7.4.006 – 4. 1.765 116 226 1.4.703 14.039 297 –99 –115 498 –6.B Primary Income (1.803 8. 1.487 11.731 Net 6 –10.747 7.3 Other financial assets and liabilities 5 Net errors and omissions 88 Jul-Sep 2013 (PR) Credit Debit Net 1 2 3 138.4.3) 1.5) 3.4.A.other 3.463 2.358 19.A.B.819 – – – – 12.588 60.707 –1. ECBs and Banking Capital) 3.B Loans by India 3.120 – 1.940 573 –191 –14 –10 –5 11.934 12.895 15.8 Charges for the use of intellectual property n. NRG) 3.005 222 16.C.A Portfolio Investment in India 3.975 49.828 85.b.1 Equity other than reinvestment of earnings 3.1.a. 1.961 – –7.548 –33.077 6.501 5.b.2 Net exports of goods under merchanting 1.1 Personal transfers (Current transfers between resident and/ non-resident households) 1.461 7.842 –14.017 12.b) 1.293 53.5 Reserve assets 3.1.1 Financial corporations.A.B.2) 1.231 –2.897 132.251 15.883 12.421 40.499 –5.472 7.1 Direct investment 1.10 Other business services 1.665 18.A.355 – 10.145 7.311 1.b.2 Debt instruments 3.1.3 Financial derivatives (other than reserves) and employee stock options 3.155 3.9 Telecommunications.613 – – – 19.566 –30.2.2 Portfolio investment 1.2.863 –3.2) 2.101 9.3.4.960 11. nonfinancial corporations.908 132.031 60 1.025 649 3.1 Monetary gold 3.2.C) 1.666 126.152 4.C.217 53.a.650 –4.1 Equity and investment fund shares 3.A Goods and Services (1.372 14 7 7 71 67 5 4.031 60 1.565 –38.711 –5.345 143.564 40.7 Special drawing rights 3.A Direct Investment in India 3.i.323 801 736 65 2.B.675 –2.1.439 22.1.A.4 Travel 1.b.355 – 10.753 813 654 81 50 241 85 99 9 19 76 80 132.652 52.806 41.b Services (1.137 10.162 207 39 168 17.603 962 16.990 – 434 –434 Jul-Sep 2014 (P) Credit Debit 4 5 144.2.3 Other primary income 1.460 66.382 6.A.2.1 Direct Investment (3.217 12.050 2.a.a.974 9.811 9.666 126.175 732 – 732 – 3.900 54.849 12. 1.762 9.897 11.912 –6.3 Loans (External Assistance.722 –110 –2.776 1.3) 1.660 7.798 12.1 to 1.1+1.A.214 –2.1 Gross acquisitions (DR. 40: Standard Presentation of BoP in India as per BPM6 (US $ Million) Item 1 Current Account (1.i. pension.348 55.1.413 8.198 134 4.052 408 307 248 59 100 274 –174 253 863 –610 3.b.1 Central bank (Rupee Debt Movements.A.028 1.363 –1.A.138 49 2.605 38.B.b.) of non-produced nonfinancial assets 2.A.B.13 Others n.126 75.728 9.886 –1.540 4.190 – –6.3 General government 3.2 Debt instruments 3.897 – – – – – – – 6.)/disposals (CR.1.864 –627 1.1.014 5.C.1B) 3.803 8.C.i.064 – – –2. except the central bank (NRI Deposits) 3.024 28.b.647 43 2.b.1 to 1.262 116.B.A.2.097 9.b.4.582 2.088 273 205 68 273 205 68 1.756 –5.463 231 3 –153 1.135 17.1+2.3 Reserve position in the IMF n.489 –2.4.B Direct Investment by India 3.153 117.1 Compensation of employees 1.636 – – 17.876 –5.103 –19.340 1.5.305 80.461 693 3.A.B. and recreational services 1.732 –2.B.647 63.4 Other sectors 3.849 8.605 19.409 53.2 General government 2 Capital Account (2.089 8.632 1.1.2 Debt securities 3.050 7.237 725 512 – 297 –297 – 843 –843 – 843 –843 49.542 14.1.022 215 1.b.B.4 Reserve assets 1.1.104 887 278 286 –8 549 285 265 1.154 123.849 4.a.643 51.2 Other current transfers 1.i.357 24 7 40 46 4.897 – – – –6.109 4.2 Maintenance and repair services n.570 2.513 15.988 11.293 18.2.e.645 –6.1 to 3.3 Transport 1.2 Debt instruments 4.2 Reinvestment of earnings 3. cultural.3 Other investment 1.816 356 173 184 382 322 61 27.066 120.B.1 General merchandise on a BOP basis 1.256 –5.321 14.a.079 –6.A.e.1.5.872 –850 10.363 852 76 922 18.B+1.991 3.5.B.303 1.A.427 –3.a Goods (1.262 123.227 1.184 1.014 5.863 36.440 85 2.2.4.243 114.706 –5.237 16.078 71.731 RBI Bulletin March 2015 .088 971 971 –457 343 640 –297 –801 –801 9.355 131.592 2.1 Other equity (ADRs/GDRs) 3.355 – – – – – – – – – 10.680 655 53 602 28 208 –180 94 159 –65 10 22 –12 84 137 –53 131.A.A.A.1 to 1.652 11.570 1.4.a.A Loans to India 3.029 16.1 Equity other than reinvestment of earnings 3.237 1.5 Trade credit and advances 3.164 2 1.819 134 –0 16.015 8.5.4.C Secondary Income (1.806 41.037 64.656 976 15.4.4.4.b.2.1.2 Deposit-taking corporations.2 Portfolio Investment 3. and NPISHs 1.6 Insurance and pension services 1.2.862 2.A.685 –30.022 2.1. B.2 Capital transfers 3 Financial Account (3.6 Insurance and pension services 1.2) 2.5 Construction 1.031 777 8 –0 1.A.B.5 Trade credit and advances 3.B Primary Income (1.B.b.037 61 41 3 2 13 6 10 1 1 5 9 8.7 Special drawing rights 3.2.4.b.139 1 – 4 4 259 215 248 193 17 18 34 18 111 64 7 40 1.078 64 1.A.4. and information services 1.540 2.369 146 74 – – – 418 – – – – – – – 418 8.A.129 – – 1.1 Personal transfers (Current transfers between resident and/ non-resident households) 1.i.2.13 Others n.130 5.4.A.1.A.4. 1.730 9.289 2.023 777 – – – – 770 905 747 896 23 9 4 4 1.587 3.876 – –461 1.360 1.1. ECBs and Banking Capital) 3.e.1.242 735 – – – – 638 989 616 978 22 11 24 20 1.4 Other sectors 3.1 Equity other than reinvestment of earnings 3.1+1.2) 1.1 to 1.4.4.2.C Secondary Income (1.836 3.196 7.286 737 251 641 128 579 124 452 124 127 – 62 4 62 4 95 123 95 74 95 56 – 18 – 49 – 49 3.096 60 464 439 19 15 6 17 16 54 193 586 50 46 130 538 50 201 5 170 3 166 72 – 13 2 1.044 – – – 461 2.3.1.1 Equity and investment fund shares 3.024 – – 1.1.491 3.055 54 1.a.A.1.A+1.5.A Goods and Services (1.A.b.798 149 483 – – 645 – – – – – – – 645 – 8.2.A.887 4.816 146 492 – 105 Net 6 –612 –1.A.b.A.a.C.b.2 Debt securities 3. and standardized guarantee schemes 3.2 Deposit-taking corporations.312 3.2 Portfolio Investment 3.152 1 –0 26 53 4 21 31 –51 1.1 Equity and investment fund shares 3.B.A.011 6.014 976 37 –11 –4 –1 –3 352 504 543 539 409 130 4 4 –39 13 32 –18 –52 –52 –411 –409 –53 –356 –2 –99 –287 – 509 2 508 – – –351 –362 11 4 –116 –334 – 645 – – – 645 352 402 –361 311 –27 Jul-Sep 2014 (P) Credit Debit 4 5 8.4 Insurance.A Portfolio Investment in India 3.2 General government 2 Capital Account (2.B.057 7.b.a.251 3.1.844 686 182 609 66 592 53 462 53 130 – 17 13 17 13 77 116 77 64 77 45 – 18 – 52 – 52 3.)/disposals (CR.1 Equity and investment fund shares 3.B.1 Financial corporations.080 3. 1.B.b.1 Equity and investment fund shares 4.e.144 – – 43 55 –1 16 46 –34 1.1 to 3.3 Other primary income 1.932 7.015 49 40 5 3 15 5 6 1 1 5 5 8. except the central bank (NRI Deposits) 3.474 793 483 – 27 Net 3 –321 –930 –2.A.2.a Goods (1.525 1.890 46 – – 240 2.244 735 2 – 1.A.2 Portfolio investment 1.196 7.325 1.1.1 Direct Investment (3.4.3 General government 3.B Direct Investment by India 3.A.033 18 –6 –7 30 –416 8 –437 –151 –147 –200 61 13 989 1.238 2.1 Direct investor in direct investment enterprises 3.A. nonfinancial corporations.B.4.343 7.5.073 –1.339 8.b.1 Other equity (ADRs/GDRs) 3.3 Nonmonetary gold 1.5) 3.2 Debt instruments 3.1 to 1.1.1.A.A.10 Other business services 1.1 Manufacturing services on physical inputs owned by others 1.1 Central bank (Rupee Debt Movements.A.113 4.A.593 532 887 8 10 48 147 3.3) 1.036 25 4 –11 –38 –394 4 –408 –152 –165 –164 72 10 1.3 Other investment 1.282 1.977 4.2.4.1 Direct investment 1.1 to 1.2.480 2.4 Travel 1.B.2 Currency and deposits 3.1+2.4 Other reserve assets (Foreign Currency Assets) 4 Total assets/liabilities 4. 3.505 5.B Loans by India 3.844 3.b. pension.173 1 0 2 3 275 249 303 250 20 17 36 16 83 52 5 56 1.A Direct Investment in India 3.473 2.058 69 1.B Portfolio Investment by India 3.2.i.1.a+1.3 Other financial assets and liabilities 5 Net errors and omissions RBI Bulletin March 2015 Jul-Sep 2013 (PR) Credit Debit 1 2 8.CURRENT STATISTICS No.3 Reserve position in the IMF n. 3.2.2 Reinvestment of earnings 3.B. computer.2 Reinvestment of earnings 3.C.1B) 3.1 Compensation of employees 1.13) 1.B.A.a.611 8.102 69 429 411 20 26 8 15 40 10 180 596 53 45 110 547 39 190 3 150 7 207 61 – 18 4 1.678 5.11 Personal.1 General merchandise on a BOP basis 1.b.5 Reserve assets 3.5.001 966 35 –12 –1 –1 –0 718 486 513 455 328 127 59 59 –28 21 39 –18 –49 –49 592 598 –52 650 –7 –124 182 – 254 8 246 – – –135 –149 14 0 –9 72 – –418 – – – –418 718 294 770 –346 –105 89 .1.e.1A+3.167 7.1.B.4.1.i.682 1.1.6 Other accounts receivable/payable .C.2.A.1 Monetary gold 3.2.b.363 713 7 14 113 236 3.4.492 8.4 Reserve assets 1.12 Government goods and services n.A Loans to India 3.B. cultural.b.A.e.a.4 Other investment 3.004 7.1.079 77 1.b.C.1 Gross acquisitions (DR.B+1.2.2.1 Equity other than reinvestment of earnings 3.167 7.2 Special drawing rights n.other 3.002 1.7 Financial services 1.a.3 Transport 1.286 3.C) 1.2.A.5.186 –2.i.3) 1.) of non-produced nonfinancial assets 2.269 5.2 Debt instruments 3.1 Direct investor in direct investment enterprises 3. households.a.3.8 Charges for the use of intellectual property n.C.2 Maintenance and repair services n.2 Net exports of goods under merchanting 1. 1. and recreational services 1.A. and NPISHs 1.A.B.A.A.b) 1.b. 1.1.1.C.737 4.b Services (1.2 Debt instruments 4.878 46 –240 1.9 Telecommunications.337 –1.2 Other current transfers 1.A.2 Investment income 1.4.b.A.843 3.004 7.3 Financial derivatives (other than reserves) and employee stock options 3.072 3. NRG) 3.4. 41: Standard Presentation of BoP in India as per BPM6 (` Billion) Item 1 Current Account (1.3 Loans (External Assistance.271 2. 1 Equity Capital and Reinvested Earnings 90.2 Other Capital 37.468 Sep.858 –353.722 16.832 250.693 816.115 944 142.335 5.087 13.863 179.651 1.055 384.554 380.396 90.807 11.639 4 488.781 838.415 Jun.128 1.481 10.626 2.474 83.965 6.536 317 62.742 83.Liabilities) 90 –332.799 1.709 242.192 89.216 15.902 231.1 Trade Credit 3.233 – Assets 316.862 2013-14 103.447 842.586 317 57.664 2.695 739.311 239.841 – Assets 5 Total Assets/ Liabilities 483.061 16.009 36.744 38.618 5.929 1.140 128.338 Sep.972 16.724 83.421 129.244 3 491.078 17.241 8.290 252.747 –302.564 8. 42: International Investment Position (US$ Million) As on Financial Year /Quarter End Item 2013-14 2013 2014 Sep. 13.176 45.775 2013 75.467 136 49.CURRENT STATISTICS No.030 106.993 10.670 RBI Bulletin March 2015 .3 Currency and Deposits 3.579 38.021 347.643 Million) 14.549 383.179 124.661 1.1 Equity 946 139.452 1 Direct Investment Abroad/in India 2 Portfolio Investment 1.550 –346.938 8.2 Loan Item3.343 944 147.322 11.967 240.870 12.733 120.200 7.522 11.117 5 6 IIP (Assets .335 84.250 1.223 – Assets 277.406 5.126 218.301 89.962 49.716 179. Sep.2 Debt 261 53.763 4 Reserves 304. 108.142 (US$ 178.645 207.440 1 436. 13.120 39.261 204.315 173.541 3 Other Investment 3.566 44.261 205.206 193.4 Other Assets/Liabilities 169.138 – Assets 313.419 2014 13. Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities 1 2 3 4 5 6 7 8 128. Jun. CURRENT STATISTICS Payment and Settlement Systems No. 43: Payment System Indicators Volume  (Million ) (Million) System 2013-14 2014 Nov. 1 RTGS 1.1 Customer Transactions 1.2 Interbank Transactions Value  (` Billion) Billion) 2015 Dec. 2013-14 2014 Jan. Nov. 2015 Dec. Jan. 1 2 3 4 5 6 7 8 81.11 7.36 8.19 7.89 904,968.04 67,141.64 84,449.60 76,635.09 76.35 7.02 7.81 7.52 573,614.03 46,662.00 57,669.28 51,356.36 4.75 0.33 0.38 0.37 160,638.37 8,101.47 11,074.73 10,291.66 1.3 Interbank Clearing 0.011 0.001 0.001 0.001 170,715.64 12,378.17 15,705.79 14,987.07 2 CCIL Operated Systems 2.56 0.24 0.30 0.24 621,569.63 57,250.38 70,943.42 53,080.79 2.1 CBLO 0.18 0.02 0.02 0.02 175,261.92 12,712.01 16,171.39 15,850.21 2.2 Govt. Securities Clearing 0.87 0.10 0.13 0.12 161,848.24 20,961.81 26,061.00 26,151.48 0.82 0.09 0.12 0.11 89,566.99 9,407.38 12,301.47 11,079.10 2.2.2 Repo 0.046 0.008 0.010 0.010 72,281.26 11,554.43 13,759.53 15,072.38 2.3 Forex Clearing 1.51 0.12 0.15 0.17 284,459.46 23,576.56 28,711.03 28,066.06 1,257.31 94.65 109.57 97.41 93,316.04 6,696.45 7,488.29 7,135.01 3.1 Cheque Truncation System (CTS) 591.38 77.96 84.40 80.51 44,691.39 5,374.52 5,997.74 5,741.14 3.2 MICR Clearing 440.07 - - - 30,942.81 – – – 3.2.1 RBI Centres 215.50 - - - 15,246.84 – – – 3.2.2 Other Centres 224.57 - - - 15,695.97 – – – 3.3 Non-MICR Clearing 225.86 16.69 25.17 16.90 17,681.84 1,321.93 1,490.55 1,393.87 1,108.32 103.38 135.67 118.68 47,856.29 4,964.85 6,044.41 5,468.79 4.1 ECS DR 192.91 18.62 19.35 19.49 1,267.96 140.99 147.44 148.83 4.2 ECS CR (includes NECS) 152.54 8.54 10.10 9.65 2,492.19 154.53 183.51 165.50 4.3 EFT/NEFT 661.01 69.12 83.49 80.22 43,785.52 4,616.75 5,573.36 5,084.73 4.4 Immediate Payment Service (IMPS) 15.36 7.09 8.38 9.33 95.81 52.59 60.36 69.73 4.5 National Automated Clearing House (NACH) 86.50 7.82 14.35 73.87 214.81 141.87 79.74 63.84 7,219.13 684.38 721.21 733.20 22,159.58 2,086.79 2,285.17 2,212.72 512.03 48.66 56.53 56.58 1,556.72 151.82 174.38 175.67 2.96 0.39 0.44 0.41 16.87 2.32 2.51 2.14 2.2.1 Outright 3 Paper Clearing 4 Retail Electronic Clearing 5 Cards 5.1 Credit Cards 5.1.1 Usage at ATMs 5.1.2 Usage at POS 509.08 48.27 56.09 56.17 1,539.85 149.50 171.87 173.52 6,707.10 635.72 664.68 676.62 20,602.86 1,934.97 2,110.79 2,037.05 6,088.02 565.62 591.06 602.18 19,648.35 1,831.38 1,999.78 1,924.17 619.08 70.10 73.62 74.44 954.51 103.59 111.01 112.89 133.63 26.38 28.98 33.49 81.05 18.98 22.67 23.65 6.1 m-Wallet 107.51 21.38 23.19 27.62 29.05 6.97 8.28 8.92 6.2 PPI Cards 25.60 4.95 5.74 5.82 28.36 9.68 12.01 12.59 0.53 0.05 0.05 0.05 23.63 2.33 2.38 2.13 94.71 15.28 16.78 18.07 224.18 97.71 113.23 129.17 8 Cards Outstanding 413.60 486.12 520.44 544.84 – – – – 8.1 Credit Card 19.18 20.14 20.36 20.61 – – – – 8.2 Debit Card 394.42 465.98 500.08 524.23 – – – – – 5.2 Debit Cards 5.2.1 Usage at ATMs 5.2.2 Usage at POS 6 Prepaid Payment Instruments (PPIs) 6.3 Paper Vouchers 7 Mobile Banking 9 Number of ATMs (in actuals) 160055 174853 176408 177382 – – – 10 Number of POS (in actuals) 1065984 1124222 1058642 1085588 – – – – 11 Grand Total (1.1+1.2+2+3+4+5+6) 9,802.05 916.38 1,003.92 990.92 1,519,234.98 125,790.11 155,527.97 129,568.97 RBI Bulletin March 2015 91 CURRENT STATISTICS Occasional Series No. 44: Small Savings (` Billion) 2013-14 Scheme 1 Small Savings 1.1 Total Deposits 1.1.1 Post Office Saving Bank Deposits 1.1.2 MGNREG 1.1.3 National Saving Scheme, 1987 1.1.4 National Saving Scheme, 1992 1.1.5 Monthly Income Scheme 1.1.7 Post Office Time Deposits 2014 Aug. Jun. Jul. Aug. 1 2 3 4 5 Receipts 2,020.60 154.32 188.72 207.63 193.28 Outstanding 6,214.97 6,088.49 6,219.60 6,224.78 6,230.58 Receipts 1,780.40 139.03 170.31 188.54 174.51 Outstanding 3,866.31 3,749.23 3,900.33 3,912.77 3,923.71 Receipts 946.50 70.84 90.50 102.34 90.99 Outstanding 430.17 383.10 437.94 444.59 446.10 Receipts – – – – – Outstanding – – – – – Receipts 0.80 0.01 0.02 0.01 0.05 Outstanding 38.69 38.96 37.84 37.57 37.26 Receipts 0.05 – 0.02 –0.01 0.02 Outstanding 2.77 2.94 2.62 2.43 2.51 179.91 14.57 18.59 19.51 18.71 Receipts Outstanding 1.1.6 Senior Citizen Scheme 2013 2,020.85 2,022.80 2,015.94 2,015.72 2,016.36 Receipts 19.94 1.80 1.90 2.25 2.17 Outstanding 224.92 232.29 218.80 213.75 211.26 Receipts 246.74 20.04 26.88 29.28 28.28 Outstanding 407.14 356.40 436.08 446.69 456.93 1.1.7.1 1 year Time Deposits Outstanding 273.43 234.78 296.77 305.37 313.66 1.1.7.2 2 year Time Deposits Outstanding 17.67 15.83 18.47 18.71 18.93 1.1.7.3 3 year Time Deposits Outstanding 39.15 38.32 39.51 39.71 39.88 1.1.7.4 5 year Time Deposits Outstanding 76.89 67.47 81.33 82.90 84.46 1.1.8 Post Office Recurring Deposits Receipts 386.46 31.77 32.40 35.16 34.29 Outstanding 741.49 712.52 750.83 751.74 753.01 1.1.9 Post Office Cumulative Time Deposits Outstanding 0.06 – 0.06 0.06 0.06 1.1.10 Other Deposits Outstanding 0.22 0.22 0.22 0.22 0.22 1.2 Saving Certificates Receipts Outstanding 1.2.1 National Savings Certificate VIII issue 1.2.2 Indira Vikas Patras 1.2.3 Kisan Vikas Patras 169.46 12.13 13.99 14.87 14.26 1,882.58 1,923.62 1,855.76 1,846.96 1,839.66 Receipts 169.24 12.12 13.96 14.80 14.28 Outstanding 750.86 679.14 777.05 787.68 798.09 Receipts 0.04 – – 0.02 – Outstanding 8.96 9.03 8.94 8.94 8.91 Receipts 0.18 0.01 0.03 0.05 –0.02 Outstanding 1,067.54 1,203.71 1,003.12 979.69 958.06 1.2.4 National Saving Certificate VI issue Outstanding –0.77 –0.78 –0.79 –0.81 –0.81 1.2.5 National Saving Certificate VII issue Outstanding –0.50 –0.66 –0.51 –0.51 –0.53 1.2.6 Other Certificates Outstanding 56.49 33.18 67.95 71.97 75.94 1.3 Public Provident Fund Receipts 70.74 3.16 4.42 4.22 4.51 Outstanding 466.08 415.64 463.51 465.05 467.21 Source: Accountant General, Post and Telegraphs. 92 RBI Bulletin March 2015 CURRENT STATISTICS No. 45: Ownership Pattern of Government of India Dated Securities (Per cent) Category 2013 2014 Dec. Mar. Jun. Sep. Dec. 1 2 3 4 5 1 Commercial Banks 44.73 44.46 43.43 42.95 42.77 2 Non-Bank PDs 0.15 0.11 0.28 0.20 0.34 19.27 19.54 20.21 20.55 21.02 4 Mutual Funds 1.56 0.78 1.29 1.26 1.68 5 Co-operative Banks 2.69 2.76 2.76 2.71 2.57 6 Financial Institutions 0.67 0.72 1.51 1.44 0.73 7 Corporates 1.27 0.79 0.89 1.06 1.12 8 FIIs 1.38 1.68 2.45 3.37 3.62 9 Provident Funds 7.37 7.18 7.21 7.13 7.47 16.01 16.05 15.03 14.33 13.23 4.89 5.92 4.94 4.99 5.45 3 Insurance Companies 10 RBI 11 Others RBI Bulletin March 2015 93 17 2.2: Exclude borrowings from RBI. pension fund.4 in Table 11: Include foreign currency denominated bonds issued by IIFC (UK). issued by IIFC (UK).1: Exclude reserve fund maintained by co-operative societies with State Co-operative Banks 2.1 to 4.1 : Manufacturing include `335 billion and item 1. 4.5. 1 1. gratuity and superannuation fund. 94 RBI Bulletin March 2015 . March-end data pertain to the last reporting Friday. 2 2. e.2: Exclude balances held in IMF Account No. 24 Primary Dealers (PDs) include banks undertaking PD business.7: Relate to five major banks on the last Friday of the month/financial year. 2: Include cumulative convertible preference shares and equi-preference shares.2: Include cash. the last available data have been repeated. Table No.8.g.org.CURRENT STATISTICS Explanatory Notes to the Current Statistics Table No.12 & 5: Relate to the last day of the month/financial year..4.2 : Services includes `34 billion credit to medium enterprises for the month of March 2014 only.1. 2. 7 & 11 3.in under ‘‘Reserves Template’’. 6 For scheduled banks. 1: Exclude bonus shares. SBI. L1 and L2 are compiled monthly and L3 quarterly.11: Relate to the last auction day of the month/financial year. 1. NABARD. 3.2: Include paid-up capital.4: Consist of paid-up capital and reserves. is closed since March 31.1. Table No. 2. Wherever data are not available. Table No. IDBI.5 & 3. 4: Include borrowings from IDBI and NABARD. 4. Table No.e. 8 NM2 and NM3 do not include FCNR (B) deposits. Table No. 4.1. 5 Special refinance facility to Others. reserve fund and Long-Term Operations Funds. RBI employees’ provident fund.9 to 4. Table Nos.2A.2. Table No. 4. notified banks and State Governments.7: Relate to ratios of increments over financial year so far. 4 Maturity-wise position of outstanding forward contracts is available at http://nsdp. 30 Exclude private placement and offer for sale.2. NABARD and NHB.6 & 4. 9 Financial institutions comprise EXIM Bank. i. SIDBI. Table No. Table No.1.2A. 2. fixed deposits and short-term securities/bonds.rbi. 4. Table No. 2.5: includes other demand and time liabilities of the banking system. to the EXIM Bank. Table No. 15 Data are provisional and relate to select banks which cover 95 per cent of total non-food credit extended by all scheduled commercial banks. 4.2 & 6: Annual data are averages of months.1 in Table 7 and 2.2. 2013. For 6-Currency index.1. student loan repayments and credit card payments. 34 1. 3. Foreign currency assets in US dollar take into account appreciation/depreciation of non-US currencies (such as Euro. Table No. 7: Include IMPS transactions. 35 1. SDRs transferred by Government of India to RBI and foreign currency received under SAARC SWAP arrangement.3: Pertain to multilateral net settlement batches.New Delhi and Chennai.2 & 1.1. 38. 1. 6: Available from December 2010. RBI Bulletin March 2015 95 .g. 36 Increase in indices indicates appreciation of rupee and vice versa. 2012. 1.4 to 1. Detailed explanatory notes are available in the relevant press releases issued by RBI and other publications/releases of the Bank such as Handbook of Statistics on the Indian Economy. base year 2012-13 is a moving one.3: Pertain to clearing houses managed by 21 banks.2. Table No. Data may not tally with the BoP data due to lag in reporting. Table 45 Includes securities issued under the Market Stabilisation Scheme and the special securities.1: Pertain to two centres .4: Estimates. Table No. ‘Other capital’ pertains to debt transactions between parent and subsidiaries/branches of FDI enterprises. 40 & 41 Explanatory notes on these tables are available in December issue of RBI Bulletin..1. Table No.6: Negative figures are due to rectification of misclassification. Exclude Public Provident Fund. 32 Exclude investment in foreign currency denominated bonds issued by IIFC (UK).2: Estimates for latest months. 44 1.3: Data relate to Post Office transactions.1.CURRENT STATISTICS Table No.1.1. e. which gets updated every year.1. Foreign exchange holdings are converted into rupees at rupee-US dollar RBI holding rates. maintenance of investment abroad. 1. REER figures are based on Consumer Price Index (combined). Table No.2. Table Nos.1. Table No.9: Relate to 5-year.1: Receipts include interest credited to depositors’ account from time to time. 39. 1. 37 Based on applications for ECB/Foreign Currency Convertible Bonds (FCCBs) which have been allotted loan registration number during the period.1. 10-year and 15-year cumulative time deposits. Methodological details are available in December 2005 and April 2014 issues of the Bulletin.1. Sterling. 3.10: Include items such as subscription to journals.1. 43 1. issued to the oil marketing companies. 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