PART ONE : THE ECONOMY: REVIEW AND PROSPECTS |
I. |
ASSESSMENT AND PROSPECTS |
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Assessment of 2009-10 |
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Prospects for 2010-11 |
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Near to Medium-term Challenges for the Reserve Bank |
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II. ECONOMIC REVIEW |
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The Real Economy |
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Aggregate Supply |
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Aggregate Demand |
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Price Situation |
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Money and Credit |
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Reserve Money |
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Money Supply |
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Financial Markets |
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International Financial Markets |
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Domestic Financial Markets |
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Market Activities |
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Financial Derivatives |
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Monetary Policy Transmission through Financial Markets |
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Equity and Housing Prices |
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Exchange Rate |
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Government Finances |
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Fiscal Stance During 2009-10 |
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Fiscal Correction and Consolidation |
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State Finances |
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Combined Finances |
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Fiscal Dominance and Macroeconomic Conditions |
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External Sector |
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Balance of Payments |
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Current Account Balance |
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Capital Account |
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Foreign Exchange Reserves |
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External Debt |
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Overall Assessment |
PART TWO: THE WORKING AND OPERATIONS OF THE RESERVE BANK OF INDIA |
III. |
MONETARY POLICY OPERATIONS |
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The Monetary Policy Process |
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Monetary Policy Operations: Context and Rationale |
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Liquidity Management |
IV. |
CREDIT DELIVERY AND FINANCIAL INCLUSION |
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Priority Sector Lending |
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Financial Inclusion |
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Export Credit |
V. |
DEVELOPMENT AND REGULATION OF FINANCIAL MARKETS |
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Money Market |
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Government Securities Market |
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Foreign Exchange Market |
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Corporate Bond Market |
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Derivatives market |
VI. |
REGULATION AND SUPERVISION OF FINANCIAL INSTITUTIONS |
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Systemic Stability Assessment |
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Major Decisions Taken by Board for Financial Supervision |
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Commercial Banks |
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Urban Co-operative Banks |
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Rural Co-operatives |
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Deposit Insurance and Credit Guarantee Corporation of India |
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Non-Banking Financial Companies |
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VII. PUBLIC DEBT MANAGEMENT |
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Debt Management of Central Government |
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Debt Management of State Governments |
VIII. |
CURRENCY MANAGEMENT |
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Currency Operations |
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Notes and Coins in Circulation |
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Clean Note Policy |
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Counterfeit Banknotes |
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Customer Service |
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Indigenisation of Paper, Ink and other Raw Materials for Production of Banknotes |
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Expenditure on Currency Printing and Distribution |
IX. |
PAYMENT AND SETTLEMENT SYSTEMS AND INFORMATION TECHNOLOGY |
|
Payment and Settlement Systems |
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Information Technology |
X. |
HUMAN RESOURCES DEVELOPMENT AND ORGANISATIONAL MATTERS |
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Platinum Jubilee Celebrations |
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Human Resource Development Initiatives |
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Other Initiatives |
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The Central Board and its Committees |
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Foreign Dignitaries |
XI. |
THE RESERVE BANK’S ACCOUNTS FOR 2009-10 |
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Income |
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Expenditure |
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Balance Sheet |
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Significant Accounting Policies and notes to the Accounts for the year 2009-10 |
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Annex I : List of Speeches by the Governor and Deputy Governors: April 2009 to August 2010 |
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Annex II : RBI Platinum Jubilee: Major Events and Activities |
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Annex III : Visits of Foreign Delegations to the Reserve Bank during July 1, 2009 to June 30, 2010 |
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Annex IV : Macroeconomic and Financial Indicators |
BOXES |
II.1 |
Potential Output Path for India, after the Global Crisis |
II.2 |
Economic Growth and Inter-Sectoral Linkages |
II.3 |
India KLEMS: An RBI Initiative to Measure Industrial Productivity in India |
II.4 |
Impact of Trading in the Commodity Futures Market on Inflation |
II.5 |
Supply Shocks, Relative Price Changes and the Role of Monetary Policy |
II.6 |
Inflation Persistence in India |
II.7 |
The Credit Channel of Monetary Policy during the Recovery |
II.8 |
Financial Innovations in India: Balancing the Goals of Growth and Stability |
II.9 |
Recommendations of the Thirteenth Finance Commission |
II.10 |
Fiscal Dominance and Risks to Inflation in India |
II.11 |
Crowding-Out Concerns: What the Empirical Evidence Suggests? |
II.12 |
India’s Export Basket: An Assessment of Comparative Advantage |
II.13 |
Impact of Exchange Rate Movement on the Economy |
II.14 |
Global Initiatives to Supplement National Policies in Dealing with External Shocks |
III.1 |
Challenges to Central Banking in the Context of Financial Crisis: |
|
Major Findings of the First International Research Conference |
III.2 |
Neutral Policy Rate |
VI.1 |
Global Crisis and Regulatory Lessons: India’s Response so far |
VIII.1 |
Procedure for Dealing With Counterfeit Currency |
IX.1 |
New Cheque Standard “CTS 2010” |
IX.2 |
IT Governance |
X.1 |
Reserve Bank’s Platinum Jubilee Year - Outreach Programme |
CHARTS |
II.1 |
Real GDP Growth |
II.2 |
Performance of Agriculture during Drought Years |
II.3 |
Comparative Yield Levels |
II.4 |
Total Procurement, Offtake and Food Stocks |
II.5 |
Growth in IIP (y-o-y) |
II.6 |
IIP – Sectoral Growth |
II.7 |
Current IIP Level as Compared to the Extrapolated 2005-07 Trend |
II.8 |
Trends in Consumer Goods Production and Private Final Consumption Expenditure |
II.9 |
Growth Trends in Industries Supporting Capital Formation |
II.10 |
Growth in Infrastructure Industries |
II.11 |
Growth in Services Sector GDP |
II.12 |
Growth Trend in Cargo Movements |
II.13 |
Weighted Contribution to GDP Growth from Demand Side |
II.14 |
Growth in Consumption and Investment Demand |
II.15 |
Rate of Saving and Investment |
II.16 |
Household Financial Saving |
II.17 |
Trends in Wholesale Price Inflation |
II.18 |
Sources of WPI Inflation |
II.19 |
Inflation in Major Sub-groups (WPI, y-o-y) March 2010 |
II.20 |
Weighted Contribution (WC) of Food and Fuel to WPI Inflation (y-o-y) in Relation to Their Combined Weight in WPI |
II.21 |
Global and Domestic Inflation |
II.22 |
Expectations for Cost of Raw Material and Selling Price: Reserve Bank’s Industrial Outlook Survey |
II.23 |
CPI and WPI Inflation |
II.24 |
State-wise CPI-Agricultural Labourers Inflation |
II.25 |
Growth in Reserve Money (per cent) |
II.26 |
Important Sources of Variation in Reserve Money |
II.27 |
Sources of Variation in Net Reserve Bank Credit to the Centre |
II.28 |
Liquidity Management Operations |
II.29 |
Money (M3), Time Deposits and Interest Rate |
II.30 |
Variations in M3 in ` crore and per cent share of Major Components of M3 in the Variation |
II.31 |
Share of Credit to the Government from the Banking System in the Variation in M3 (per cent) |
II.32 |
Variations in M3 in ` crore and per cent share of the Sources of M3 in the Variation |
II.33 |
Non-food Credit Growth (y-o-y, per cent) |
II.34 |
Scheduled Commercial Bank’s Credit (Quarterly Variation) |
II.35 |
Total Flow of Financial Resources to the Commercial Sector (` crore) |
II.36 |
Sectoral Deployment of Bank Credit (y-o-y growth in per cent) |
II.37 |
Indicators of Global Financial Market Developments |
II.38 |
Indicators of Risk in Domestic Financial Markets |
II.39 |
Activities in Domestic Financial Markets |
II.40 |
Activity in Financial Derivative Markets |
II.41 |
Movement in the Government Securities Yield Curve |
II.42 |
Transmission of Policy Rates to Financial Markets |
II.43 |
Movement in Equity and Housing Prices |
II.44 |
Exchange Rates and Forward Premia |
II.45 |
Key Deficit Indicators of the Central Government |
II.46 |
Ratio of Revenue Receipts and Expenditure to GDP |
II.47 |
Budgeted and Revised Expenditure of the Central Government in 2009-10 |
II.48 |
Rolling Targets under the Medium Term Fiscal Policy Statement |
II.49 |
Extent of Moderation in Deficit Parameters Adjusting for One-off Items During 2010-11 |
II.50 |
Major Deficit Indicators of State Governments |
II.51 |
Combined Deficit Indicators as Ratio of GDP |
II.52 |
Growth in Combined Expenditure and Revenue Receipts |
II.53 |
Combined Revenue Deficit, Savings and Investment Rate |
II.54 |
Trade Deficit and Combined Fiscal Deficit |
II.55 |
Key Global Indicators |
II.56 |
India’s Merchandise Trade |
II.57 |
Export Growth of India vis-a-vis Advanced Economies and EMEs in 2009 |
II.58 |
Country-wise and Commodity-wise India’s Trade Performance |
II.59 |
Performance of India’s Invisibles |
II.60 |
Trends in the Major Components of Balance of Payments |
II.61 |
Trends in Major Components of Capital Flows (Net) |
II.62 |
Country-wise FDI Flows |
II.63 |
Industry-wise FDI Flows |
II.64 |
Exchange Rate Flexibility in India |
II.65 |
External Debt Indicators |
III.1 |
Outstandings under LAF, MSS and GOI Balance |
III.2 |
Repo (+)/Reverse Repo(-) under LAF |
VI.1 |
Soundness Indicators of SCBs |
VII.1 |
Cash Balances of the Central Government |
VIII.1 |
Cost of Security Printing |
IX.1 |
Share of Paper Based versus Electronic Transactions |
IX.2 |
Real Time Gross Settlement System (RTGS) |
X.1 |
Total Staff Strength of the Reserve Bank |
XI.1 |
Assets and Income |
XI.2 |
Major Items of Expenditure |
TEXT TABLES |
III.1 |
Movements in Key Policy Rates in India |
IV.1 |
Priority Sector Advances |
IV.2 |
Recovery of Direct Agriculture Advances |
IV.3 |
Credit to MSE Sector by SCBs |
VI.1 |
Select Financial Indicators |
VI.2 |
Timeframe for Implementation of Advanced Approaches in India |
VI.3 |
Frauds in Banking Sector |
VII.1 |
Gross and Net Market Borrowings of the Central Government |
VII.2 |
Central Government’s Market Loans - A Profile |
VII.3 |
Maturity Profile of Central Government Dated Securities |
VII.4 |
Treasury Bills in the Primary Market |
VII.5 |
Market Borrowings of State Governments |
VII.6 |
Yield on State Government Securities |
VII.7 |
Residual Maturity Profile of Outstanding State Development Loans and Power Bonds |
VII.8 |
WMA/Overdrafts of State Governments |
VII.9 |
Number of days States availed of Special & Normal WMA and Overdraft |
VII.10 |
Investments of the State Governments / UT |
VIII.1 |
Banknotes in Circulation |
VIII.2 |
Coins in Circulation |
VIII.3 |
Banknotes Indented and Supplied |
VIII.4 |
Indent and Supply of Coins |
VIII.5 |
Disposal of Soiled Notes and Supply of Fresh Banknotes |
VIII.6 |
Counterfeit Notes Detected |
IX.1 |
Payment System Indicators - Annual Turnover |
X.1 |
Reserve Bank Training Establishments - Programmes Conducted |
X.2 |
Number of Officers Trained in External Training Institutions in India and Abroad |
X.3 |
Recruitment by the Reserve Bank – 2009 |
X.4 |
Staff Strength of the Reserve Bank |
X.5 |
Category-wise Actual Staff Strength |
X.6 |
Reserve Bank’s Office-wise Staff Strength |
XI.1 |
Gross Income |
XI.2 |
Earnings from Foreign Sources |
XI.3 |
Earnings from Domestic Sources |
XI.4 |
Expenditure |
XI.5 |
Trends in Gross Income, Expenditure and Net Disposable Income |
XI.6 |
Contingency and Asset Development Reserves and Surplus Transfer to the Government |
XI.7 |
Balances in CGRA, EEA and IRA |
XI.8 |
Balances in Contingency Reserve and Asset Development Reserve |
XI.9 |
Outstanding Foreign Currency and Domestic Assets |
XI.10 |
Foreign Exchange Reserves |
XI.11 |
Investments in Shares of Subsidiaries/Associate Institutions |