RBI Bulletin - Feb 2022

FEBRUARY 2022
VOLUME LXXVI NUMBER 2

Chair
Michael Debabrata Patra
Editorial Committee
Ajit R. Joshi
Deba Prasad Rath
Rajiv Ranjan
Sitikantha Pattanaik
Pallavi Chavan
Snehal Herwadkar
Tushar Baran Das
Pulastya Bandyopadhyay
Editor
Shashidhar M. Lokare
The Reserve Bank of India Bulletin is issued

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CONTENTS
Governor’s Statement
Governor’s Statement 1
Monetary Policy Statement for 2021-22

Resolution of the Monetary Policy Committee (MPC)
February 8-10, 2022 7
Statement on Developmental and Regulatory Policies

Statement on Developmental and Regulatory Policies 11
Speech
RBI’s Pandemic Response: Stepping out of Oblivion
Michael Debabrata Patra 15
Articles
State of the Economy 23
Zombies and the Process of Creative Destruction 53
Bad Banks as Good Samaritans:
Lessons from Cross-Country Experience for India 67
Impact of COVID-19 on Sentiments of Indian Manufacturers 79
Current Statistics 95
Recent Publications 142

GOVERNOR’S STATEMENT
Governor’s Statement
Governor’s Statement GOVERNOR’S STATEMENT
Governor’s Statement* complemented by increased adoption of technology

in our workplaces and in our day-to-day lives. The
Shaktikanta Das effort is to limit the extent of disruptions to economic
activity.
As I make this statement, the pandemic holds Deliberations of the Monetary Policy Committee
the global economy hostage once again. Despite signs
of moderation, record numbers of daily infections The Monetary Policy Committee (MPC) met on
in several countries and consequent containment 8th, 9th and 10th February 2022 and based on an
measures are denting the pace of economic activity, assessment of the current macroeconomic situation
especially in contact-intensive sectors, even as and the outlook, it voted unanimously to keep the
supply disruptions persist and restrained workforce policy repo rate unchanged at 4 per cent. The MPC
participation tightens the labour markets. With decided by a majority of 5 to 1 to continue with the
inflation at multi-decadal highs in a number of accommodative stance as long as necessary to revive
countries, the evolving macroeconomic environment and sustain growth on a durable basis and continue
is being rendered highly uncertain by divergent to mitigate the impact of COVID-19 on the economy,
monetary policy intentions and actions. Financial while ensuring that inflation remains within the target
market volatility and geopolitical tensions are adding going forward. The marginal standing facility (MSF)
layers of ambivalence to the outlook. rate and the Bank Rate remain unchanged at 4.25 per
cent. The reverse repo rate also remains unchanged at
Notwithstanding a highly transmissible third
3.35 per cent.
wave driven by the Omicron variant of COVID-19,
India is charting a different course of recovery from The MPC flagged the potential downside risks to
the rest of the world. India is poised to grow at the economic activity from the highly contagious Omicron
fastest pace year-on-year among major economies, variant. Reassuringly, the symptoms have remained
according to projections made by the International relatively mild and the pace of infections is moderating
Monetary Fund (IMF). This recovery is supported as quickly as it surged. There is, however, some loss of
by large-scale vaccination and sustained fiscal and momentum in economic activity as reflected in high
monetary support. Once again, our frontline warriors frequency indicators such as purchasing managers’
have admirably risen to the call of duty. indices (PMI) for both manufacturing and services,
finished steel consumption and sales of tractors,
As we gain valuable experience from repeated
two wheelers and passenger vehicles. The demand
waves of the pandemic, our responses are also
for contact-intensive services is still muted. Going
becoming nuanced and calibrated. Protecting life is
paramount; and protecting livelihood is rising in the forward, positive impulses for quickening the pace
hierarchy of priorities. The focus is on securing the of recovery emanate from buoyant Rabi prospects,
economic and financial conditions of the vulnerable, robust export demand, accommodative monetary
the wage earners and all those who suffer the most. and liquidity conditions, improving credit offtake,
Accordingly, the emphasis is shifting to targeted and the continued push on capital expenditure and
containment strategies and a push towards universal infrastructure in the Union Budget 2022-23.
vaccination and booster doses. This approach is being The MPC also noted that consumer price inflation
(CPI) has edged higher since its last meeting, but largely
*
Governor’s Statement - February 10, 2022. along anticipated lines. The increase in inflation
RBI Bulletin February 2022 1

GOVERNOR’S STATEMENT Governor’s Statement
in December was entirely due to unfavourable base investment as well as consumption demand. The
effects despite month-on-month decline in prices. prospects for agriculture have brightened on good
Large buffer stocks of cereals and effective supply-side progress of winter crop sowing.
measures augur well for food inflation. Core inflation
Overall, there is some loss of the momentum
remains elevated, but demand-pull pressures are still
of near-term growth while global factors are turning
muted. The renewed surge in international crude oil
adverse. Looking ahead, domestic growth drivers are
prices, however, needs close monitoring.
gradually improving. Considering all these factors,
On balance, headline inflation is expected to peak real GDP growth is projected at 7.8 per cent for 2022-
in Q4:2021-22 within the tolerance band and then 23 with Q1:2022-23 at 17.2 per cent; Q2 at 7.0 per
moderate closer to target in H2:2022-23, providing cent; Q3 at 4.3 per cent; and Q4 at 4.5 per cent.
room for monetary policy to remain accommodative.
Inflation
At the same time, output is just barely above its pre-
pandemic level, while private consumption is still The CPI inflation trajectory has moved in close
lagging. Global headwinds are accentuating. Overall, alignment with our projections. In particular, the
taking into consideration the outlook for inflation softening of food prices is providing welcome relief.
and growth, in particular the comfort provided by the The improving prospects for foodgrains production
improving inflation outlook, the uncertainties related and the expected easing of vegetable prices on fresh
to Omicron and global spillovers, the MPC was of the winter crop arrivals are adding further optimism.
view that continued policy support is warranted for a Moreover, the softening of pulses and edible oil prices
durable and broad-based recovery. is likely to continue in response to strong supply-side
interventions by the Government and increase in
Domestic Growth
domestic production.
In India, real GDP growth at 9.2 per cent for 2021-
The hardening of crude oil prices, however,
22 takes it modestly above the level of GDP in 2019-
presents a major upside risk to the inflation outlook.
20. Private consumption, the mainstay of domestic
Core inflation remains elevated at tolerance testing
demand, continues to trail its pre-pandemic level.
levels, although the continuing pass through of tax
The persistent increase in international commodity
cuts relating to petrol and diesel last November would
prices, surge in volatility of global financial markets
help to moderate input cost pressures to some extent.
and global supply bottlenecks can exacerbate risks to
The transmission of input cost pressures to selling
the outlook.
prices remains muted in view of the continuing slack
Going forward, government’s thrust on in demand. Further, as risks from Omicron wane and
capital expenditure and exports are expected supply chain pressures moderate, there could be some
to enhance productive capacity and strengthen softening of core inflation. On balance, the inflation
aggregate demand. This would also crowd in private projection for 2021-22 is retained at 5.3 per cent, with
investment. The conducive financial conditions Q4 at 5.7 per cent on account of unfavourable base
engendered by the RBI’s policy actions will provide effects that ease subsequently. In particular, the CPI
impetus to investment activity. The surveys done by reading for January 2022 is expected to move closer to
the RBI reveal that capacity utilisation is rising, and the upper tolerance band, largely due to adverse base
the outlook on business and consumer confidence effects. Taking all these factors into consideration
remain in optimistic territory, which should support and on the assumption of a normal monsoon, CPI
2 RBI Bulletin February 2022

inflation for 2022-23 is projected at 4.5 per cent with entities would be well advised to further strengthen
Q1:2022-23 at 4.9 per cent; Q2 at 5.0 per cent; Q3 at their corporate governance and risk management
4.0 per cent; and Q4 at 4.2 per cent, with risks broadly strategies to build resilience in an increasingly dynamic
balanced. and uncertain economic environment. They also need
At the current juncture, the conduct of domestic to continue the process of capital augmentation and
monetary policy is primarily attuned to the evolving building up of appropriate buffers.
inflation and growth dynamics even as we remain Liquidity and Financial Market Conditions
watchful of spillovers from the uncertain global
The pandemic has delivered a once in a
developments and divergent monetary policy
century crisis, with a health shock morphing into
responses. Our monetary policy would continue to be
a macroeconomic and financial shock. The RBI
guided by its primary mandate of price stability over
undertook a slew of measures to deal with such an
the medium-term, while also ensuring a strong and
exceptional situation. As a consequence, borrowing
sustained economic recovery. As stated by me earlier,
costs fell to their lowest levels in decades and
our actions will be calibrated and well-telegraphed.
spreads narrowed across rating cohorts. Record
Financial Stability levels of government securities, corporate bonds
A strong and well-functioning financial sector and debentures were issued. Corporate entities have
fortifies the foundations of growth and development. been able to deleverage seamlessly and reduce high-
The Reserve Bank has accorded the highest priority cost debt while improving profitability and retained
to preserving financial stability by taking quick and earnings for future capex. Overall, the financial sector
decisive steps to ease liquidity constraints, restore has remained fully functional and has anchored the
market confidence and prevent contagion to other process of recovery. In our assessment, the policy
segments of the financial market. We have been actions of the RBI have yielded the desired results in a
also strengthening the regulatory and supervisory smooth and orderly manner.
framework for both banking and non-bank financial
With these objectives being achieved on an
sectors to proactively identify, assess and deal with
ongoing basis, the Reserve Bank has turned to
vulnerabilities.
rebalancing liquidity on a dynamic basis, while
Thus, despite the pandemic induced bouts of maintaining adequate liquidity in support of its
volatility, the Indian financial system has remained accommodative stance. This rebalancing has involved
resilient and is now in a better position to meet the two-sided operations: first, rebalancing liquidity
credit demands as recovery takes hold and investment from the overnight fixed rate reverse repo towards
activity picks up. The balance sheets of Scheduled the 14-day variable rate reverse repo (VRRR) auction
Commercial Banks (SCBs) are relatively stronger as the main operation, supported by fine-tuning
with higher capital adequacy, reduced NPA, higher auctions of varying tenors as envisaged in the Revised
provisioning cover and improved profitability than in Liquidity Management Framework of February 2020;
the previous years. and second, conducting repo auctions of 1-3 day
We have to be, however, watchful of the impact of maturities to meet transient liquidity mismatches
the pandemic on the banking and NBFC sectors when and shortages, as for instance in the recent case of
the effects of regulatory reliefs and resolutions fully more than expected GST outflows during the third
work their way through. Banks and other financial week of January 2022. The key to effective liquidity

management is the ‘timing’ and having a nuanced and the main liquidity management tool based on liquidity
nimble-footed approach that responds swiftly to the conditions and will be conducted to coincide with the
manner in which liquidity tilts. CRR maintenance cycle. Third, these main operations
will be supported by fine-tuning operations to tide over
As a result of RBI’s rebalancing operations, the
any unanticipated liquidity changes during the reserve
daily average absorption under the fixed rate reverse
maintenance period. Auctions of longer maturity will
repo has moderated sharply since August 2021 when
also be conducted as warranted. Fourth, with effect
rebalancing started. Overall system liquidity, however,
from March 1, 2022, the Fixed Rate Reverse Repo
remains in large surplus, though it has moderated over
and the MSF operations will be available only during
the same period. Reflecting the migration of surplus
17.30-23.59 hours on all days and not during 09.00-
liquidity from the overnight window to longer tenors,
23.59 hours, as instituted from March 30, 2020 to deal
the effective reverse repo rate - the weighted average
with the pandemic situation. Market participants are
rate of the fixed rate reverse repo and the VRRRs of
advised to shift balances out of the fixed rate reverse
longer maturity - increased from 3.37 per cent as at
repo into VRRR auctions and avail the automated
end-August 2021 to 3.87 percent as on February 4,
sweep-in and sweep-out (ASISO) facility in the e-Kuber
2022.
portal for operational convenience1.
It may be recalled that while instituting the
In the forex market, the Indian rupee (INR) has
revised liquidity management framework on February
shown resilience in the face of global spillovers,
6, 2020, the daily fixed rate repo and the four 14-
even relative to EME peers. India’s external sector
day term repos within a reporting fortnight were
sustainability is anchored by high foreign exchange
withdrawn. In view of the pandemic and related work
reserve buffers and a modest level of the current
from home and social distancing protocols, the MSF
account deficit (CAD). In H1:2021-22, the CAD was 0.2
and the fixed rate reverse repo windows were made
per cent of GDP, underpinned by robust exports of
operational throughout the day, instead of only at end
goods and services. The merchandise trade deficit has
of the day under normal circumstances. This passive
widened in recent months partly due to elevated crude
mode of liquidity management worked well through
oil prices and rise in non-oil imports in line with the
pandemic conditions in ensuring adequate provision/
domestic economic recovery. Buoyant services exports
absorption of liquidity as warranted by the evolving led by IT services with strong prospects going forward
market conditions. are, however, likely to keep the CAD contained well
With the progressive return of normalcy, including below 2.0 per cent of GDP during 2021-22. Moreover,
transient demand for liquidity from the RBI, it is foreign direct investment (FDI) inflows remain strong,
logical to restore the revised liquidity management which along with other forms of capital inflows, are
framework in order to make it more flexible and agile. expected to comfortably finance this modest level of
Accordingly, four decisions have been taken. First, the CAD.
variable rate repo operations of varying tenors will
1
henceforth be conducted as and when warranted by To provide greater flexibility to banks in managing their day-end CRR bal-
ances, the RBI has provided an optional automated sweep-in and sweep-
the evolving liquidity and financial conditions within out (ASISO) facility in August 2020 under which banks are able to pre-set a
the cash reserve ratio (CRR) maintenance cycle. specific (or range) amount that they wish to maintain at the end of the day.
Any shortfall or excess balances maintained by banks will automatically
Second, variable rate repos (VRRs) and variable rate trigger marginal standing facility (MSF) or reverse repo bids, as the case
reverse repos (VRRRs) of 14-day tenor will operate as may be, under the ASISO facility.

In a global environment rendered highly volatile investment by Foreign Portfolio Investors (FPIs) in
and uncertain by diverging monetary policy stances, debt securities issued by the government and the
geopolitical tensions, elevated crude oil prices and corporates. The response to the scheme has been very
persistent supply bottlenecks, emerging economies encouraging. It is, therefore, proposed to enhance the
are vulnerable to destabilising global spillovers on limit for investments under the scheme by `1.0 lakh
an ongoing basis. Thus, policymakers face daunting crore from `1.5 lakh crore at present to `2.5 lakh crore
challenges even as recovery from the pandemic with effect from April 1, 2022. This will provide access
remains incomplete. On its part, the Reserve Bank to additional sources of capital for the domestic debt
has been and will continue to insulate the domestic market including g-secs.
economy and financial markets from these spillovers.
Review of Credit Default Swaps (CDS) Guidelines
Further, while the RBI will continue to focus on
smooth completion of the government borrowing The guidelines for Credit Default Swaps (CDS)
programme, market participants also have a stake in initially issued in 2013 were reviewed and draft
the orderly evolution of financial conditions and the guidelines were issued in February 2021 for public
yield curve. It is expected that market participants comments. Taking into account the feedback received,
will engage responsibly and contribute to cooperative the final CDS Directions are being issued today. These
outcomes that benefit all. guidelines will facilitate the development of a credit
Additional Measures derivatives market and deepen the corporate bond
market in India.
Based on our continuing assessment, certain
additional measures are also being announced Permission for Banks to deal in Foreign Currency
today. The details of these measures are set out in Settled - Rupee Derivatives Market
the statement on developmental and regulatory Banks in India have already been permitted to
policies (Part-B) of the Monetary Policy Statement. The offer Rupee interest rate derivatives such as overnight
additional measures are as follows: indexed swaps (OIS) to non-residents. Now it has
Extension of On-tap Liquidity Facilities for been decided to allow banks in India to undertake
Emergency Health Services and Contact-intensive transactions in the offshore Foreign Currency Settled-
Sectors Overnight Indexed Swap (FCS-OIS) market with non-
On-tap liquidity facilities of `50,000 crore residents and other market makers. This will reduce
and `15,000 crore for emergency health services the segmentation between the onshore and offshore
and contact-intensive sectors, respectively, were markets, enable more efficient price discovery and
announced in May and June 2021 during the second further deepen the interest rate derivatives market in
wave of the Pandemic. Banks were given certain India.
incentives for lending under the two schemes. On Enhancement of the Cap under e-RUPI (Prepaid
account of the continued uncertainties brought on by Digital Vouchers using UPI)
the third wave, the two schemes are being extended
The e-RUPI pre-paid digital voucher developed
from March 31, 2022 to June 30, 2022.
by the NPCI was launched in August 2021. The single
Voluntary Retention Route (VRR) - Enhancement of use cashless payment voucher has a cap of `10,000.
Limits It is now proposed to increase the cap of e-RUPI
The Voluntary Retention Route (VRR) scheme vouchers issued by the Central government and State
was introduced in March 2019 to facilitate long-term governments from `10,000 to `1,00,000 per voucher

and permit such e-RUPI vouchers to be used more than members of the public: (i) Reserve Bank of India (IT
once (until the amount of the voucher is completely Outsourcing) Directions, 2022; and (ii) Reserve Bank
redeemed). This will further facilitate the delivery of India (Information Technology Governance, Risk,
of various government schemes to the beneficiaries Controls and Assurance Practices) Directions, 2022.
more efficiently.
Concluding Remarks
Enabling Better Infrastructure for MSME Receivables
We are living in a world of Knightian
Financing – Increasing NACH Mandate Limit for
uncertainty2 in the absence of determinate knowledge
TReDS Settlements
about the next mutation of COVID-19. The ability
The Trade Receivables Discounting System to forecast the future course of the economy is so
(TReDS) facilitates the financing of trade receivables contingent on the evolution of the virus that one
of Micro, Small and Medium Enterprises (MSMEs). prognosis is as good or as bad as the other and as
Transactions in TReDS are settled through the National ephemeral. If the last two years of living with the
Automated Clearing House (NACH) system. Keeping virus have taught us anything, it is to remain humble,
in view the requests received from stakeholders and but grounded in self-belief, never losing confidence
to further enhance the ease of financing the growing and optimism. As the great Lata Mangeshkar – whom
liquidity requirements of MSMEs, it is proposed to we lost recently – sang in her immortal voice: “aaj
increase the NACH mandate limit from `1 crore at phir jeene ki tamanna hai”. Together with the spirit
present to `3 crore for TReDS related settlements. behind the next line of this beautiful song, she has
conveyed an eternal message of optimism.
Master Direction (MD) on IT Outsourcing and
Master Direction (MD) on Information Technology We, in the Reserve Bank, have remained steadfast
Governance, Risk, Controls and Assurance Practices in our commitment to safeguard trust and confidence
in the domestic financial system as we rebuild the
Extensive outsourcing of critical IT services,
foundations of strong and sustainable growth with
leveraging of technology by the Regulated Entities
macroeconomic stability. This has been our anchor in
of RBI and increasing use of digital channels by
the ocean of uncertainty. We are inspired by Mahatma
customers expose the Regulated Entities to significant
Gandhi’s spirit of constant striving amidst challenges:
financial, operational and reputational risks. A need
“Satisfaction lies in the effort, …… Full effort is full
was, therefore, felt to review and consolidate the
victory.”3
extant guidelines. Accordingly, two draft directions
will be issued for comments of stakeholders and Thank you. Stay safe. Stay well. Namaskar.
2
In economics, Knightian uncertainty is a lack of any quantifiable knowl-
edge about some possible occurrence, as opposed to quantifiable risk. It is
an acknowledgement of imperfect knowledge that makes future events
essentially unpredictable. The phenomenon is named after Frank Knight
(1885-1972), an economist from the University of Chicago, whose seminal
work Risk, Uncertainty, and Profit was published in 1921.
3
The Collected Works of Mahatma Gandhi (CWMG), Vol. 26, p. 293.

MONETARY POLICY STATEMENT FOR 2021-22
Resolution of the Monetary Policy Committee (MPC)

February 8-10, 2022
Monetary Policy Statement, 2021-22 MONETARY POLICY STATEMENT FOR 2021-22
Monetary Policy Statement, global economic activity. The global composite

purchasing managers’ index (PMI) slipped to an 18
2021-22 Resolution of the month low of 51.4 in January 2022, with weakness in
Monetary Policy Committee both services and manufacturing. World merchandise
trade continues to grow. There are, however,
(MPC)* headwinds emanating from persistent container
and labour shortages, and elevated freight rates.
On the basis of an assessment of the current and
In its January 2022 update of the World Economic
evolving macroeconomic situation, the Monetary
Outlook, the International Monetary Fund (IMF)
Policy Committee (MPC) at its meeting today (February
revised global output and trade growth projections for
10, 2022) decided to:
2022 downward to 4.4 per cent and 6.0 per cent from
• keep the policy repo rate under the liquidity its earlier forecasts of 4.9 per cent and 6.7 per cent,
adjustment facility (LAF) unchanged at 4.0 respectively.
per cent.
3. After reversing the transient correction that had
The reverse repo rate under the LAF remains occurred towards end-November, commodity prices
unchanged at 3.35 per cent and the marginal standing resumed hardening and accentuated inflationary
facility (MSF) rate and the Bank Rate at 4.25 per cent. pressures. With several central banks focused on policy
• The MPC also decided to continue with the normalisation, including ending asset purchases and
accommodative stance as long as necessary earlier than expected hikes in policy rates, financial
to revive and sustain growth on a durable markets have turned volatile. Sovereign bond yields
basis and continue to mitigate the impact of firmed up across maturities and equity markets entered
COVID-19 on the economy, while ensuring correction territory. Currency markets in emerging
that inflation remains within the target going market economies (EMEs) have exhibited two-way
forward. movements in recent weeks, driven by strong capital
These decisions are in consonance with the outflows from equities with elevated uncertainty on
objective of achieving the medium-term target for the pace and quantum of US rate hikes. The latter
consumer price index (CPI) inflation of 4 per cent also led to an increasing and volatile movement in US
within a band of +/- 2 per cent, while supporting bond yields.
growth. Domestic Economy
The main considerations underlying the decision 4. The first advance estimates (FAE) of national
are set out in the statement below. income released by the National Statistical Office
Assessment (NSO) on January 7, 2022 placed India’s real gross
domestic product (GDP) growth at 9.2 per cent for
Global Economy
2021-22, surpassing its pre-pandemic (2019-20) level.
2. Since the MPC’s meeting in December 2021, the All major components of GDP exceeded their 2019-20
rapid spread of the highly transmissible Omicron levels, barring private consumption. In its January 31
variant and the associated restrictions have dampened release, the NSO revised real GDP growth for 2020-21
to (-) 6.6 per cent from the provisional estimates of (-)
*
Released on February 10, 2022. 7.3 per cent.

MONETARY POLICY STATEMENT, 2021-22 Monetary Policy Statement, 2021-22
5. Available high frequency indicators suggest some moderation from 6.2 per cent in November to 6.0
weakening of demand in January 2022 reflecting per cent in December, driven by transportation and
the drag on contact-intensive services from the fast communication, health, housing and recreation and
spread of the Omicron variant in the country. Rural amusement.
demand indicators – two-wheeler and tractor sales
8. Overall system liquidity continued to be in large
– contracted in December-January. Area sown under
surplus, although average absorption (through both
Rabi up to February 4, 2022 was higher by 1.5 per cent
the fixed and variable rate reverse repos) under the
over the previous year. Amongst the urban demand
LAF declined from `8.6 lakh crore during October-
indicators, consumer durables and passenger vehicle
November 2021 to `7.6 lakh crore in January 2022.
sales contracted in November-December on account of
Reserve money (adjusted for the first-round impact
supply constraints while domestic air traffic weakened
of the change in the cash reserve ratio) expanded by
in January under the impact of Omicron. Investment
8.4 per cent (y-o-y) on February 4, 2022. Money supply
activity displayed a mixed picture – while import of
(M3) and bank credit by commercial banks rose (y-o-y)
capital goods increased in December, production of
by 8.4 per cent and 8.2 per cent, respectively, as on
capital goods declined on a year-on-year (y-o-y) basis
January 28, 2022. India’s foreign exchange reserves
in November. Merchandise exports remained buoyant
increased by US$ 55 billion in 2021-22 (up to February
for the eleventh successive month in January 2022;
4, 2022) to US$ 632 billion.
non-oil and non-gold imports also continued to
expand on the back of domestic demand. Outlook
6. The manufacturing PMI stayed in expansion 9. Since the December 2021 MPC meeting, CPI
zone in January at 54.0, though it moderated from inflation has moved along the expected trajectory.
55.5 in the preceding month. Among services sector Going forward, vegetables prices are expected to ease
indicators, railway freight traffic, e-way bills, and toll further on fresh winter crop arrivals. The softening
collections posted y-o-y growth in December-January; in pulses and edible oil prices is likely to continue in
petroleum consumption registered muted growth and response to strong supply-side interventions by the
port traffic declined. While finished steel consumption Government and increase in domestic production.
contracted y-o-y in January, cement production grew Prospects of a good Rabi harvest add to the optimism
in double digits in December. PMI services continued on the food price front. Adverse base effect, however,
to exhibit expansion at 51.5 in January 2022, though is likely to prevent a substantial easing of food
the pace weakened from 55.5 in December. inflation in January. The outlook for crude oil prices
7. Headline CPI inflation edged up to 5.6 per cent is rendered uncertain by geopolitical developments
y-o-y in December from 4.9 per cent in November due even as supply conditions are expected to turn more
to large adverse base effects. The food group registered favourable during 2022. While cost-push pressures
a significant decline in prices in December, primarily on core inflation may continue in the near term, the
on account of vegetables, meat and fish, edible Reserve Bank surveys point to some softening in the
oils and fruits, but sharp adverse base effects from pace of increase in selling prices by the manufacturing
vegetables prices resulted in a rise in y-o-y inflation. and services firms going forward, reflecting subdued
Fuel inflation eased in December but remained in pass-through. On balance, the inflation projection
double digits. Core inflation or CPI inflation excluding for 2021-22 is retained at 5.3 per cent, with Q4 at 5.7
food and fuel stayed elevated, though there was some per cent. On the assumption of a normal monsoon in

Monetary Policy Statement, 2021-22 MONETARY POLICY STATEMENT FOR 2021-22
2022, CPI inflation for 2022-23 is projected at 4.5 per downside risks to the outlook. Taking all these factors
cent with Q1:2022-23 at 4.9 per cent; Q2 at 5.0 per into consideration, the real GDP growth for 2022-23
cent; Q3 at 4.0 per cent; and Q4:2022-23 at 4.2 per is projected at 7.8 per cent with Q1:2022-23 at 17.2
cent, with risks broadly balanced (Chart 1). per cent; Q2 at 7.0 per cent; Q3 at 4.3 per cent; and
Q4:2022-23 at 4.5 per cent (Chart 2).
10. Recovery in domestic economic activity is yet to
be broad-based, as private consumption and contact- 11. The MPC notes that inflation is likely to moderate
intensive services remain below pre-pandemic levels. in H1:2022-23 and move closer to the target rate
Going forward, the outlook for the Rabi crop bodes thereafter, providing room to remain accommodative.
well for agriculture and rural demand. The impact Timely and apposite supply-side measures from
of the ongoing third wave of the pandemic on the the Government have substantially helped contain
recovery is likely to be limited relative to the earlier inflationary pressures. The potential pick up of input
waves, improving the outlook for contact-intensive costs is a contingent risk, especially if international
services and urban demand. The announcements crude oil prices remain elevated. The pace of the
in the Union Budget 2022-23 on boosting public domestic recovery is catching up with pre-pandemic
infrastructure through enhanced capital expenditure trends, but private consumption is still lagging.
are expected to augment growth and crowd in private COVID-19 continues to impart some uncertainty
investment through large multiplier effects. The pick- to the future outlook. Measures announced in
up in non-food bank credit, supportive monetary the Union Budget 2022-23 should boost aggregate
and liquidity conditions, sustained buoyancy in demand. The global macroeconomic environment
merchandise exports, improving capacity utilisation is, however, characterised by deceleration in global
and stable business outlook augur well for aggregate demand in 2022, with increasing headwinds from
demand. Global financial market volatility, elevated financial market volatility induced by monetary policy
international commodity prices, especially crude oil, normalisation in the systemic advanced economies
and continuing global supply-side disruptions pose (AEs) and inflationary pressures from persisting supply

MONETARY POLICY STATEMENT, 2021-22 Monetary Policy Statement, 2021-22
chain disruptions. Accordingly, the MPC judges that 13. All members, namely, Dr. Shashanka Bhide,
the ongoing domestic recovery is still incomplete and Dr. Ashima Goyal, Dr. Mridul K. Saggar, Dr. Michael
needs continued policy support. It is in this context Debabrata Patra and Shri Shaktikanta Das, except
that the MPC has decided to keep the policy repo Prof. Jayanth R. Varma, voted to continue with the
rate unchanged at 4 per cent and to continue with an accommodative stance as long as necessary to revive
accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue
and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy,
to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the
while ensuring that inflation remains within the target going forward. Prof. Jayanth R. Varma expressed
target going forward. reservations on this part of the resolution.
12. All members of the MPC – Dr. Shashanka Bhide,
14. The minutes of the MPC’s meeting will be
Dr. Ashima Goyal, Prof. Jayanth R. Varma, Dr. Mridul
published on February 24, 2022.
K. Saggar, Dr. Michael Debabrata Patra and Shri
Shaktikanta Das – unanimously voted to keep the 15. The next meeting of the MPC is scheduled during
policy repo rate unchanged at 4.0 per cent. April 6-8, 2022.

STATEMENT ON DEVELOPMENTAL AND
REGULATORY POLICIES
Statement on Developmental and Regulatory Policies

Statement on Developmental and Regulatory Policies STATEMENT ON DEVELOPMENTAL AND
REGULATORY POLICIES
Statement on Developmental surplus liquidity up to the size of the COVID-19 loan

book, created under this scheme with the RBI. The
and Regulatory Policies amount in this COVID-19 loan book attracted a rate
which is 25 bps lower than the repo rate or, termed in
This Statement sets out various developmental a different way, 40 bps higher than the reverse repo
and regulatory policy measures relating to (i) liquidity rate. Banks desirous of deploying their own resources
measures; (ii) financial markets; (iii) payment without availing funds from the RBI under the scheme
and settlement systems and (iv) regulation and for lending were also eligible for this incentive. Banks
supervision. have deployed their own funds to the tune of `5,041
I. Liquidity Measures crore (up to February 4, 2022) to the entities under
contact intensive sector. In view of the response to
1. Extension of Term Liquidity Facility of `50,000
the scheme, it is now proposed to extend this window
crore to Emergency Health Services
up to June 30, 2022.
On May 5, 2021, an on-tap liquidity window of
II. Financial Markets
`50,000 crore at the repo rate with tenors of up to
three years was announced to boost provision of 3. Voluntary Retention Route (VRR) – Enhancement
immediate liquidity for ramping up COVID-19 related of Limits
healthcare infrastructure and services in the country. The Voluntary Retention Route (VRR) for
Banks were incentivised for quick delivery of credit investment in government and corporate debt
under the scheme through extension of priority sector securities by Foreign Portfolio Investors (FPIs)
classification to such lending up to March 31, 2022. was introduced on March 01, 2019 with a view to
Banks were expected to create a COVID-19 loan book facilitating stable investments in debt instruments
under the scheme. By way of an additional incentive, issued in the country. The Route sought to provide
such banks were eligible to park their surplus liquidity a separate channel, broadly free of macro-prudential
up to the size of the COVID-19 loan book with the RBI controls, to FPIs with long-term investment horizons.
under the reverse repo window at a rate 25 bps lower A dedicated investment limit of `1,50,000 crore
than the repo rate, i.e., 40 bps higher than the reverse was set for investments under the VRR. Given the
repo rate. Banks have deployed their own funds to the positive response to the VRR as evident from the
tune of `9,654 crore (up to February 4, 2022) towards near exhaustion of the current limit, it is proposed to
COVID-19 related emergency health services. In view increase the investment limit under VRR by `1,00,000
of the response to the scheme, it is now proposed to crore to `2,50,000 crore with effect from April 1, 2022.
extend this window up to June 30, 2022 from March The revised investment limits are being notified today.
31, 2022 as announced earlier.
4. Review of Credit Default Swaps (CDS) Guidelines
2. Extension of On-tap Liquidity Window for
Guidelines for Credit Default Swaps (CDS) were
Contact-intensive Sectors
last issued in January 2013. Given the importance of
On June 4, 2021, it was decided to open a separate the CDS market for the development of a liquid market
liquidity window of `15,000 crore at the repo rate for corporate bonds, especially for the bonds of lower
with tenors of up to three years available till March rated issuers, it was announced in the Statement on
31, 2022 for certain contact-intensive sectors. By way Developmental and Regulatory Policies of December
of an incentive, such banks were eligible to park their 4, 2020 that these guidelines would be reviewed.

STATEMENT ON DEVELOPMENTAL AND Statement on Developmental and Regulatory Policies
REGULATORY POLICIES
Accordingly, draft guidelines were issued on February largely for COVID-19 vaccination purposes. There are
16, 2021 for public consultation. Taking into account other use cases being actively considered by various
the feedback received, the final Directions are being State Government and Central Government Ministries
issued today. / Departments.
5. Permitting Banks to Deal in offshore Foreign To facilitate digital delivery of various government
Currency Settled Rupee Derivatives Market schemes to the beneficiaries, it is proposed to increase
the cap on amount for e-RUPI vouchers issued by
Banks in India were permitted in June 2019 to
Governments to `1,00,000/- per voucher and allow use
offer Rupee interest rate derivatives to non-residents
of the e-RUPI voucher multiple times (until the amount
to hedge their interest rate risk. Overseas entities were
of the voucher is completely redeemed). Necessary
also permitted to undertake Overnight Indexed Swap
instructions to NPCI will be issued separately.
(OIS) transactions for purposes other than hedging
with banks in India either directly or on a back-to-back 7. Enabling Better Infrastructure for MSME
basis through a foreign branch/parent/group entity Receivables Financing – Increasing NACH Mandate
(foreign counterpart) of the market-maker in India. Limit for TReDS Settlements
The initiative has added to liquidity in the domestic Trade Receivables Discounting System (TReDS)
OIS market, promoted diversity in participation and facilitates discounting / financing of receivables of
reduced the segmentation between the onshore Micro, Small and Medium Enterprises (MSMEs).
and offshore markets. With a view to providing a TReDS settlements are carried out through mandates
further fillip to the interest rate derivative market in the National Automated Clearing House (NACH)
in the country, removing the segmentation between system. Presently the amount of the NACH mandate
onshore and offshore markets and improving the is capped at `1 crore.
efficiency of price discovery, it has been decided to
To encourage innovation and competition
allow banks in India to undertake transactions in the
through increased participation, ‘on-tap’ authorisation
offshore Foreign Currency Settled Overnight Indexed
of TReDS operators was introduced by Reserve Bank
Swap (FCS-OIS) market with non-residents and other
in October 2019. Effective July 1, 2020 the Central
market makers. Banks may participate through their
Government has revised the definition of MSMEs with
branches in India, their foreign branches or through
linkage to their annual turnover as well. Keeping in
their IFSC Banking Units. Necessary directions are
view the growing liquidity requirements of the MSMEs
being issued today.
and the requests received from the TReDS platforms,
III. Payment and Settlement Systems it is proposed to increase the NACH mandate limit to
6. Enhancement of the Cap under e-RUPI (Prepaid `3 crore for TReDS settlements.
digital Vouchers using UPI) Necessary instructions will be issued separately.
The e-RUPI prepaid digital voucher, developed by IV. Regulation and Supervision
the National Payments Corporation of India (NPCI)
8. Master Direction (MD) on IT Outsourcing and
and launched in August 2021, is a person-specific and
Master Direction (MD) on Information Technology
purpose-specific cashless voucher and can be used by
Governance, Risk, Controls and Assurance Practices
individuals, corporates or governments. e-RUPI runs
on the UPI platform and has a cap of `10,000/- per The financial system is seeing extensive leveraging
voucher and each voucher can be used / redeemed and outsourcing of critical IT services by Regulated
only once. e-RUPI vouchers are presently being used Entities to get easier access to newer technologies

Statement on Developmental and Regulatory Policies STATEMENT ON DEVELOPMENTAL AND
REGULATORY POLICIES
through financial technology players to improve to Information Security Governance and Controls,
efficiencies. These arrangements expose them to Business Continuity Management and Information
significant financial, operational and reputational Systems Audit also require to be updated and
risks. Similarly, increasing dependence of customers consolidated.
on digital channels to avail banking services makes
Accordingly, the Reserve Bank proposes to issue
it imperative for Regulated Entities to focus on
guidelines addressing the above aspects. Two draft
operational resilience.
directions will be issued for comments of stakeholders
It is, therefore, felt that aspects such as risk and members of the public: (i) Reserve Bank of India
management framework for IT outsourcing, managing (IT Outsourcing) Directions, 2022; and (ii) Reserve
concentration risk, periodic risk assessment and Bank of India (Information Technology Governance,
outsourcing to foreign service providers require Risk, Controls and Assurance Practices) Directions,
suitable regulatory guidelines. Guidelines relating 2022.

SPEECH
RBI’s Pandemic Response: Stepping out of Oblivion

Michael Debabrata Patra
RBI’s Pandemic Response: Stepping out of Oblivion SPEECH
RBI’s Pandemic Response: industry, namely, the Industrial Finance Corporation

of India (IFCI). He also played an important role in
Stepping out of Oblivion* the Bretton Woods Conference in New Hampshire,
USA in July 1944, which established the International
Michael Debabrata Patra Monetary Fund (IMF) and the International Bank
for Reconstruction and Development (IBRD or the
Professor Muchkund Dubey, President, Professor
World Bank). His vision and ideas still resonate in the
Shanta Sinha, Chairperson, Managing Committee,
corridors of the RBI.
Professor Sujit Kumar Mishra, Regional Director (in-
Charge), Dr. Sunny Jose, RBI Chair Professor, faculty Among his many outstanding contributions to
and staff of the Council for Social Development, society at large, Late Shri Deshmukh and his wife Late
Hyderabad, (hereafter CSD), students, researchers and Shrimati Durgabai Deshmukh played a pioneering
faculty joining this event from various universities and role in the establishment of the CSD in 1962 as a
research institutions across the country, colleagues leading research and policy studies institution. Today,
and friends! It is indeed an honour to share my it is a matter of national pride that the CSD engages
thoughts today under the prestigious C D Deshmukh in policy-oriented research with a special focus on
social aspects of development planning, social justice
Memorial Lecture Series instituted by the CSD since
and equity. Research at the CSD continues to evaluate
1997.
the diverse impacts of policies on the relationship
For the Reserve Bank of India (hereafter RBI), between the state and people. Our association with
this lecture series has a special significance. Late Shri the CSD also goes back to 1985 when the RBI Chair
Chintaman Dwarakanath Deshmukh was the first Professorship was established. It is a matter of
Indian Governor of the RBI from August 11, 1943 to considerable satisfaction that many of our officers
June 30, 1949. His association with the RBI began even have been associated with the CSD in their self-
earlier in July 1939 when he was appointed Liaison actualisation.
Officer to the RBI by the Government of India. Three
Against this backdrop, I turn to the theme of
months later, he was appointed Secretary of the Central
my address today, which is the RBI’s response to the
Board of the Bank, two years later in December 1941
pandemic1.
as the Deputy Governor, and then Governor on August
11, 1943. He presided over the transformation of the When COVID-19 engulfed the world in early 2020,
RBI from a private shareholders’ bank to a nationalised humans had become oblivious of pandemics past.
institution. Under his stewardship, a comprehensive Yet, a hundred years ago and before – between 1817
legislation for the regulation of banking companies and 1920 – cholera, plague and influenza pandemics
was enacted. Another landmark legislation under his had visited the world repeatedly and wreaked havoc.
leadership led to the establishment of the first financial Of the estimated 70 million lives lost worldwide –
roughly the same as the casualties of the two World
institution for the provision of long-term credit to
Wars – India had accounted for nearly 60 per cent, and
*
yet somehow, we had erased those memories. After
Keynote Address delivered by Michael Debabrata Patra, Deputy
Governor, Reserve Bank of India at the C D Deshmukh Memorial Lecture all, astonishing progress had been made in the control
organised by the Council for Social Development, Hyderabad on January
28, 2022. Valuable comments from Sitikantha Pattanaik, Rajiv Ranjan,
1
Indranil Bhattacharya, Abhilasha and editorial help from Vineet Kumar The word ‘pandemic’ derives from the Greek word pandemos, which
Srivastava are gratefully acknowledged. means common to all people.

SPEECH RBI’s Pandemic Response: Stepping out of Oblivion
of diseases, food and nutrition were more plentily end of 2021, several advanced economies may have
available and we had learned to deal with natural reached or exceeded pre-pandemic levels of output,
calamities more effectively. As a result, longevity, but middle income emerging economies have suffered
which was as low as 25 years in 1920, had risen to 70 large losses of output, with the heaviest burden falling
years by 20202. on low income countries. This pandemic is also
If we had remembered, we would have prepared noteworthy for the unprecedented policy response
for the fact that influenza can evade pre-existing mounted by governments and central banks. The IMF
immunity by mutations. We would have recalled that estimates that since March 2020 and up to October
infections occur in waves – in the case of the 1918 2021, US$16.9 trillion or 16.4 per cent of global GDP
influenza pandemic, up to four waves occurred, lasting had been pledged as fiscal support in response to the
up to 1920. Our consciousness would have stirred to pandemic, with US$ 14.5 trillion provided by advanced
the fact that beyond the usual symptoms of fever economies (AEs) and US$ 2.4 trillion provided by
and body pain, infections turn pneumonic quickly, emerging market economies (EMEs), including the
allowing bacteria to attack the lungs. In hindsight, least developed countries. The total monetary support
it is this loss of collective accumulated knowledge was US$19.0 trillion or 18.4 per cent of global GDP,
that allowed COVID-19 to catch us off-guard. In fact, US$ 16.1 trillion by AEs and US$ 2.9 trillion by EMEs.
this loss of memory resulted in irrational actions –
What guided this once-in-a-lifetime policy
the declaration of COVID-19 as a pandemic by the
response, given the collective oblivion that I talked
World Health Organisation (WHO) on March 10, 2020
about earlier? It was the global financial crisis (GFC)
and India’s nationwide lockdown that followed set
of 2008. Typically, in crises of global proportions,
off one of the biggest migrations in human history
it is governments or fiscal policy that assume a
as people fled cities in fear of what was perceived
vanguard role, while central banks, known for their
widely as an urban disease only to find that the virus
conservativeness and preference for the back office,
pursued them to their villages. This amnesia was
play a supportive role as lenders of the last resort. In
global. To illustrate, the WHO, which is mandated to
declare pandemics, did so in respect of H1N1 in 2009, response to the GFC, however, it was central banks
but that came to be seriously questioned because it that rushed to the frontline. Faced with a loss of
turned out to be unusually mild, and scrutiny focused their main instrument – the interest rate – which
on pharmaceutical industries which benefited from had fallen to zero, then considered the lower bound
the production and sale of vaccines. The Severe to which interest rates can decline3, central banks
Acute Respiratory Syndrome (SARS), the Middle East unleashed unconventional measures, using their
Respiratory Syndrome-Coronavirus (MERS-COV) and balance sheets to support economic activity, providing
Ebola did spark pervasive alarm, but casualties were forward guidance to stabilise expectations and anchor
relatively few and the incidence of infections was the uncertain future, and directly influencing longer-
localised. term yields at the cost of being accused of the cardinal
sin of effectively monetising stimulus-distended fiscal
The 2020 pandemic caused worldwide contagion,
deficits. In that sense, they did have some sort of a
and the precipitous loss of lives and livelihood. By the
template when the pandemic arrived.
2
For these insights, I draw heavily on Chinmay Tumbe (2020): Age
3
Of Pandemics (1817-1920): How they shaped India and the World, More recently, interest rates have fallen even below zero to the negative
HarperCollins Publishers India. zone.

Leaning against the Pandemic reserve ratio (CRR) that freed up banks’ resources to
the extent of `1,37,000 crore.
Among the first steps that the RBI took within
six days of the WHO’s declaration of COVID-19 as a Turning to unconventional measures, long-term
pandemic was to create a business continuity bio- repo operations (LTROs) and targeted long-term repo
bubble. In the event that the rest of us became infected, operations (TLTROs) were undertaken to augment
150 selected officers, staff and service providers systemic liquidity, lower the banks’ cost of funds and
were kept in isolation in the bubble to work 24X7 in influence longer-term interest rates more directly.
order to keep essential RBI services such as currency While LTROs enhanced the overall liquidity in the
issue, retail and wholesale payment and settlement system, TLTROs ensured the distribution of liquidity
systems, financial markets regulation and supervision to specific sectors in need of funds. Additionally,
when redemption fears gripped the mutual fund
and liquidity management, to name only a salient
industry, a special liquidity facility for mutual funds
few that impact the lives of citizens, businesses and
(SLFMF) was crafted virtually over a weekend. When
financial institutions on a regular basis. This turned
these liquidity measures encountered risk aversion
out to be farsighted. Within days of the national
among banks in on-lending the RBI’s funds to troubled
lockdown being announced, financial markets in India
entities, special refinance facilities were provided
went into seizure, financial institutions were gripped
to All India Financial Institutions (AIFIs) to mitigate
by liquidity evaporation, and finance, that keeps the
sector-specific and small institution-specific liquidity
wheels of the economy turning, dried up. constraints. On tap TLTROs provided liquidity to
From March 27, 2020 the RBI unfurled a panoply banks for deployment in corporate bonds, commercial
of measures numbering more than a hundred in paper, nonconvertible debentures and bank loans to
total, some conventional and others out-of-the- specific sectors. In the first half of 2021-22, the RBI
box, to address pandemic-induced dislocations and pledged its balance sheet to mitigating the impact of
constraints, both system level and also specific to the pandemic and reviving the economy. From April
sectors, institutions and financial instruments. through September 2021, the RBI engaged in asset
purchases through a secondary market Government
In terms of conventional measures, the policy securities acquisition programme (G-SAP) which
repo rate was reduced by an unprecedented 115 bps involved an upfront commitment on amounts to be
in two phases. The interest rate on the fixed rate purchased and impacted yields directly. Total G-SAP
reverse repo rate under the liquidity adjustment purchases amounted to `2.2 lakh crore. In addition,
facility (LAF), under which market participants special open market operations (OMOs) involving
deposit their surpluses with the RBI, was reduced simultaneous purchase and sale of securities, which
cumulatively by 155 bps and it became the effective were liquidity neutral, were undertaken to distribute
anchor for the evolution of money market rates liquidity more evenly across the yield curve, thereby
and even longer-term interest rates. Banks’ access facilitating monetary transmission. Overall, liquidity
to liquidity under the marginal standing facility, a augmenting measures worth `17.2 lakh crore (8.7 per
lending window which is priced at 25 bps above the cent of nominal GDP of 2020-21) were announced
policy repo rate, was expanded by close to `1,37,000 since February 6, 20204.
crore. System level liquidity was also enhanced
4
The specific aspects of all these measures, including amounts
though large scale open market purchase operations sanctioned and utilised, are documented in https://www.rbi.org.in/scripts/
and a one percentage point reduction in the cash bs_viewcontent.aspx?Id=3894.

Forward guidance (FG) gained prominence in the of digital banking channels, ATMs, internet/mobile
RBI’s strategy. In every statement of the monetary banking facilities; (ii) strengthening cyber security;
policy committee (MPC), it was reiterated that the (iii) developing mechanisms for faster redressal of
policy stance would remain accommodative, including customer grievances; and (iv) improving financial
with explicit time-contingent and state-contingent literacy through sustained and focused campaigns
guidance. Financial markets were assured that the through RBI Kehta Hai5.
Reserve Bank will maintain congenial financial The Report Card so far
conditions for sustaining the recovery. This dispelled
illiquidity fears and bolstered market sentiment. The impact of these measures is still unravelling
and even when the outcomes have fully formed, a one-
While monetary and liquidity measures to-one correspondence may be difficult to establish,
addressed the immediate panic, the dislocations in given the many moving parts that are involved.
everyday activity and access to finance brought to the Notwithstanding this caveat, however, the overall
fore solvency concerns across individuals, small and state of the economy and of financial markets – which
large businesses, and raised fears of impending asset is what these measures sought to address – provides
quality stress among banks and financial institutions. some evidence of the efficacy or otherwise of the RBI’s
Accordingly, the RBI launched a suite of regulatory pandemic response.
measures that included a loan moratorium; asset
Ahead of the pandemic’s onset, the Indian
classification standstill; easing of working capital
economy was into a cyclical downturn, with real GDP
financing and deferment of interest; increasing of
growth having decelerated in 2019-20 to its lowest
group exposure norms; restructuring of advances
rate in a decade. Consequently, monetary policy had
to micro, small, and medium enterprises (MSMEs);
turned accommodative from February 2019, with a
and reduction of the liquidity coverage ratio (LCR)
cumulative reduction of 135 bps in the policy rate up
requirements, to mention the main initiatives. These
to February 2020. System level liquidity was kept in
steps provided a temporary reprieve to borrowers
surplus from June 2019 in consonance with the stance
affected by the pandemic and shored up the health of
of monetary policy. At the end of February 2020,
lending institutions, thereby preserving the resilience
market participants had deposited excess liquidity of
of the financial system. Several countercyclical
the order of `3 lakh crore under the LAF.
regulatory measures were also undertaken to ease
stress on both borrowers and the banking system: The first quarter of 2020-21 bore the full brunt of
rationalisation of risk weights for individual housing the pandemic’s onslaught. With mobility of people and
loans; revised risk weights for banks’ regulatory retail goods dropping to all-time lows, real GDP contracted
portfolio; and restrictions on banks from paying out by a precipitous 24.4 per cent, which was among the
dividends. deepest in the world. Unemployment peaked at 24
per cent in April, although in rural areas, farm activity
On the technological front, the RBI adopted a
displayed pandemic proofing and the Mahatma
proactive approach by leveraging on technology to
Gandhi National Rural Employment Guarantee Act
facilitate digital penetration, innovative payment
(MGNREGA) provided a measure of insulation. Exports
options and consumer awareness on the road to a “less
cash” reliant society. A few initiatives were customised,
5
‘RBI Kehta Hai’ is a 360-degree campaign initiated by the RBI using
keeping in view social distancing and contact protocols all mass media, including television, radio, newspapers, hoardings, web
of the pandemic, including (i) ensuring availability banners, gifs, social media and SMS.

plunged 61 per cent in April, with a commensurate estimated that real GDP will rise by 9.2 per cent
decline in imports. The National Statistical Office during the current financial year, cresting pre-
(NSO) could not collect price quotations for compiling pandemic levels, and marking a turnaround from the
the consumer price index due to the nation-wide decline of 7.3 per cent the year before. Exports have
lockdown and had to resort to imputations. been the silver lining, growing by 49.7 per cent year-
By early June, the fury of the pandemic abated and on-year in US dollars terms during April-December
the pace of infections started to ebb. This emboldened 2021 at a time when international trade has been
the unlocking of the economy in a phased manner that hamstrung by supply chain disruptions, shortages
took up to the end of December 2020 to be completed. and logistics impairments. Import demand has surged
As businesses haltingly resumed operations and on the back of the return of domestic demand to
mobility around workplaces, grocery stores and normal conditions. Employment has yet to recover
pharmacies improved, outmigration started to reverse fully though, and labour participation remains low.
and the unemployment rate eased to 10.2 per cent. Bank credit has begun to gain pace, helped by easing
Supply and work disruptions showed up in inflation of stress in banks’ balance sheets. Inflation has eased
surging to 6.2 per cent in June. The Indian economy from pandemic highs to more tolerable levels in
remained in contraction in the second quarter of 2020- recent months, although it remains elevated amidst
21 and it was only in the second half of the year that on high commodity prices, including of crude.
the back of policy stimulus, festival-related spending To summarise, the RBI’s measures have
and the release of pent-up demand a hesitant and contributed significantly in engineering the
uneven recovery started taking shape. Meanwhile, the turnaround in the Indian economy, supported by
RBI’s measures brought down borrowing costs to their rising financial inclusion and digitalisation. We are
lowest in 17 years and narrowed spreads across rating
on course to becoming among the fastest growing
categories on corporate bonds, commercial paper and
economies of the world, but there is far to go. Private
debentures to pre-pandemic levels. By engendering
consumption and investment are still work in
congenial financing conditions, the RBI supported
progress. The restoration of livelihoods and the revival
the recovery. Governments of various levels and
of MSMEs is a formidable task that lies ahead. The RBI
corporates utilised this opportunity to raise a record
remains committed to revive and sustain growth on
volume of resources from financial markets. In the
a durable basis and continue to mitigate the impact
corporate sector, deleveraging was facilitated and high
of COVID-19 on the economy, while ensuring that
cost debt could be replaced, reducing vulnerabilities
inflation remains within the target going forward.
and preparing the sector to participate in the ongoing
recovery. Abundant liquidity and the RBI’s measures Governor’s Statements
enabled a quick and full transmission of policy rate When the definitive chronicle of this period
cuts to deposit and lending rates, easing the cost of is recorded, history will judge the role of the RBI
funds for bank clientele. in ameliorating the impact of COVID-19 and in
The second wave dented the recovery in the first lifting the Indian economy out of the depths of the
quarter of 2021-22, but its impact turned out to be pandemic’s contraction. I would not hazard the
relatively less severe. The Indian economy renewed audacity of anticipating the judgment of history, but
its tryst with the interrupted recovery, which gained today, India is much better placed to deal with future
strength and pace through the rest of the year. It is waves of the pandemic relative to the first wave. In

the documentation of this journey, however, what I section as well as deferment of prudential standards.
fear may not receive a fuller appreciation is that the
Second, the statements were a beacon of light
RBI’s pandemic response was fashioned around and
and hope amidst the encircling gloom. Besides the
launched with a central anchor, a leit motif if you
steadfast encouragement to the nation to battle the
will, that bound everything together into a coherent
unseen assassin and emerge victorious, they cheered
whole. I refer to the Governor’s statements, which
the warriors at the frontline – government personnel;
have become an integral element of the institutional
employees of banks and financial institutions;
edifice of the RBI’s pandemic response. I propose to
doctors, healthcare and medical staff; police and
balance the future narrative upfront by sharing with
law enforcement agencies; and all those who kept
you an insider’s view of some noteworthy aspects of
essential services operational – commended their
these statements that may go unnoticed among the
tireless striving to beat the virus and inspired them
minutiae of rationale, high frequency indicators and
to raise the bar. For us in the RBI, the messages were
measures.
special and personalised, reaching out to those in the
Delving deep into hidden inner reserves of self- bio-bubble and to those outside it, including those
belief, conviction and fortitude, and guided by the light who provided intellectual, analytical and logistics
shone by the words of Mahatma Gandhi, Governor Shri support for the preparation of the statements. In
Shaktikanta Das has made 13 ‘pandemic’ statements the thick of the second wave, the statements of
so far, starting on March 27, 2020 when the monetary April 7 and June 4, 2021 reposed a belief in the
policy committee advanced its scheduled meeting indomitable spirit of humanity to confront the ‘trial
to deal with the extraordinary and unprecedented by virus’, stating that the need of the hour is not to
situation. be overwhelmed but to collectively overcome. The
August 6, 2021 statement emphasised that the RBI
The first noteworthy characteristic of the
remains in “whatever it takes” mode, with a readiness
statements is that they have been visionary. In fact,
to deploy all its policy levers - monetary, prudential
the statement of February 6, 2020 ahead of the
or regulatory. As the second wave waned, the October
formal declaration of the pandemic seemed to have a
2021 statement started guiding the economy on its
premonition of the dark days that were to follow. This
course to normalise and entrench the recovery in an
is reflected in the manner in which it assured markets
Indian trajectory, notwithstanding diverging paths of
that policy space is available for future action, which
growth globally and differing monetary policy stances.
needs to be ‘suitably timed’ and ‘used appropriately’.
The March 27, 2020 statement called on the nation By the time of the April 17, 2020 statement, it
to mount a war effort to combat COVID-19, while was clear that providing system level liquidity was
emphasising that ‘tough times never last; only tough not going to be enough because impediments like
people and tough institutions do’. My sense is that a risk aversion among banks were standing in the way
vision of the unprecedented loss and isolation that of further intermediation towards the small, the
was to follow was already in the mind’s eye when that disadvantaged and the truly credit constrained. This
statement soothed frayed and tense expectations by brought out the third important characteristic of
stating that the RBI ‘is at work and in mission mode’. It Governor’s statements: a wide consultative approach,
became the launching pad for aggressively unleashing which involved reaching out directly to all those
an array of instruments covering many of the liquidity entities that had been impacted by the pandemic
and regulatory measures enumerated in the preceding the most, including small non-banking financial

companies (NBFCs) and micro finance institutions resulted in record levels of market borrowings by both
(MFIs), and even vaccine manufacturers. When central and state governments. As the December 2020
inducements to banks to lend did not work, the RBI statement pointed out, the RBI’s role as debt manager
reached out to all India financial institutions (AIFIs) and banker to the government was tested to the hilt.
to onlend to rural and cooperative institutions, MFIs, A recurring theme in several statements has been
and HFCs. In subsequent months, this approach led that the RBI’s policy measures ensured the lowest
to the fashioning of liquidity lines and regulatory borrowing costs in nearly two decades and the highest
relief to specific sectors identified for restructuring, maturity of the stock of public debt while ensuring
emergency health services, contact intensive services, the smooth passage of the borrowing programme. For
and even individuals and small businesses. the states, ways and means advances (WMA) limits
were enhanced and rules governing withdrawals from
Fourth, the statements in themselves became
the consolidated sinking fund were relaxed. Liquidity
an instrument of policy by providing consistent
facilities were linked with credit guarantee schemes
and credible forward guidance, especially to
offered by the government. A shining example of
financial markets. This assumes central relevance
monetary fiscal coordination, which was placed on
because by that time, the RBI had already acted on
record by the statement of April 7, 2021 was the
conventional instruments to the extent practicable,
maintenance of status quo in the monetary policy
and had embarked on unconventional ones, including
framework by the government, entrenching a regime
asymmetrically widening the policy interest rate
in which the inflation target is set by the government
corridor and balance sheet policies, i.e., expansion
and the RBI is mandated to achieve the target. Yet
of its own balance sheet to infuse liquidity into
another instance that the statements of June 4,
the system. The statements emphasised financial
August 6, October 8 and December 8, 2021 underscore
stability, congenial financial conditions for growth
is the set of strong supply-side interventions by the
and the orderly evolution of the yield curve as public
government that broke the back of then stubborn food
goods and that both market participants and the RBI
inflation and brought headline inflation back into the
have a shared responsibility in securing cooperative
tolerance band.
solutions. By the time of the October 2020 statement,
Governor’s statements started contemplating the road Sixth, the statements brought to bear first-
to recovery, looking back at the hitherto untravelled hand views from Governor’s interactions in various
road and calling upon the courage of hope to strive multilateral fora on global developments and outlook,
and revive. Attention turned to qualitative aspects and the implications of global spillovers for the Indian
like deepening financial markets, digital payments economy and for the setting of monetary policy. In
security, financial inclusion, consumer protection hindsight, these insights turned out to be invaluable.
and innovations in payment and settlement. India In a situation in which several EMEs were jumping on
became one of the few nations in the world that ran to the bandwagon of tightening monetary policy and
its real time gross settlement (RTGS) system of swift, AEs were announcing normalisation or joining their
seamless and sound transfers of funds between banks EMEs in raising policy rates, India held its ground
and thereby their customers 365x24x7. and is among a few countries that have retained an
accommodative monetary policy6, despite some views
Fifth, the statements became the glue of a new
innings in monetary and fiscal coordination. Pandemic- 6
In fact, the statement of December 8, 2021 states that “our motto is to
related fiscal stimulus exacerbated fiscal deficits and ensure a soft landing that is well-timed.”

that we have fallen behind the curve. Only time will ensured, it falls back, usually unsung, but always
tell whether or not India has got it right but so far, this on guard. The pandemic continues to shape the
approach has served us well and helped in charting future, but the RBI remains armed and battle ready.
a course into the future which is different from the Continuously evaluating highly volatile and uncertain
world. conditions and remaining prepared to protect the
Conclusion economy from shocks, the RBI has committed all its
instruments to this objective, using conventional
In the hallowed tradition of central banks, the
RBI as an institution shuns the glare of the limelight, measures and fashioning new ones, as the pandemic
preferring to remain unglorified and grounded. Yet experience showed. The lessons of the pandemic will
when the chips are down and crises loom, it rises up be imbibed and the RBI will emerge stronger and more
from the depths that it inhabits and flings itself at the resilient than before, and committed to its mandate
gathering storm. When the job is done, the recovery of price stability, keeping in mind the objective of
secured and macroeconomic and financial stability growth.

ARTICLES
State of the Economy

Zombies and the Process of Creative Destruction
Bad Banks as Good Samaritans:
Lessons from Cross-Country Experience for India
Impact of COVID-19 on Sentiments of Indian Manufacturers
State of the Economy ARTICLE
State of the Economy* been inoculated with precautionary dose. With daily
infections and total number of infections on a waning
trajectory, India seems to be well past the third wave.
Domestic macroeconomic conditions are striking a path
that is diverging from global developments. In India, In February 2022, mobility indicators
the recovery in economic activity is gaining strength have recovered to pre-pandemic levels while
and traction as it emerges from the third wave. Both unemployment dropped. As businesses return to
manufacturing and services remain in expansion with new normal, hiring activities have gained traction –
optimism on demand parameters and uptick in consumer several Indian firms, global giants and startups have
and business confidence. As businesses return to a new announced massive hiring plans for India1. Buoyant
normal, the job landscape is expected to improve. Farm revenue collections under the goods and services
sector conditions remain robust albeit with some signs tax (GST), robust toll collections and e-way bill
of rural demand slackening. Even as monetary policy generations are all reflective of the ongoing revival.
remains accommodative, global spillovers have led to a The farm sector remains upbeat on the back of
tightening of financial conditions. higher minimum support prices (MSPs) announced
by the Government. The manufacturing activity
Introduction
remains in expansion with optimism on demand
Economic activity in India is recouping from a parameters such as production volumes, new orders
brief spell of moderation in January in view of the and job landscape during Q4:2021-22. Firms expect
less virulent effects of Omicron. Better planning further improvement in capacity utilisation and
and strategy, management of supply chain logistics overall financial situation. Firms in the services
and accelerated digitalisation helped firms mitigate sector remained optimistic on demand conditions,
pandemic risks. Unlike in the first two waves, overall while their expectations on overall business
consumer and business confidence stayed resilient situation, turnover and employment conditions have
on the back of the accelerated pace of vaccination, moderated marginally.
better prospects on the general economic situation,
Set against this backdrop, rest of the article
household incomes and spending.
is divided into five sections. The next section
The vaccination programme that commenced on encapsulates the evolving global economic and
January 16, 2021 has progressed impressively, with financial market situation. Section III analyses
around 95 per cent of the adult population inoculated the current developments unfolding in domestic
with the first dose, while 77 per cent have received economy. Section IV examines the evolving financial
both the doses. Thus far, 5.24 crore people have been market conditions. The last section sums up the
administered with the first dose in the 15-18 year age discussion.
group. As on February 16, 2022 over 1.79 crore people
II. Global Setting
in the 60 plus age group and frontline workers have
The outlook for the global economy is beset with
*
This article has been prepared by Madhuresh Kumar, Shashidhar M.
downside risks. Omicron continues to weigh on overall
Lokare, Kunal Priyadarshi, Rajeev Jain, Vineet Kumar Srivastava, Harshita
Keshan, Rigzen Yangdol, Prashant Kumar, Jobin Sebastian, Rachit Solanki, activity as mobility restrictions and containment
Saksham Sood, Priyanka Sachdeva, Abhinandan Borad, Deepika Rawat,
Jibin Jose, Avnish Kumar, Rajas Saroy, Asish Thomas George, Deba Prasad
Rath and Samir Ranjan Behera. Views expressed in this article are those 1 https://www.india.com/business/new-year-new-job-heres-a-list-
of the authors and do not necessarily represent the views of the Reserve of-companies-with-promising-hiring-plans-for-2022-employment-
Bank of India. opportunities-5201022/

ARTICLE State of the Economy
measures resurface in several jurisdictions. Its Table 1: GDP Growth Projections –

mutations are imparting high uncertainty to the Select AEs and EMEs
(Per cent)
future evolution of the pandemic. As an increasing
Country 2021 2022
number of central banks watch with alarm ever higher
October January October January
levels of inflation and rush to tighten monetary policy 2021 2022 2021 2022
across advanced and emerging market economies World* 5.9 5.9 4.9 4.4
(EMEs), the pace of the global recovery is at risk.

Advanced Economies
Financial conditions are tightening as markets brace US 6.0 5.6 5.2 4.0
up for shifts in liquidity and northwards movement in
interest rates are triggering wide sell-offs in bond and UK 6.8 7.2 5.0 4.7
equity markets as well as in currency markets in the
Euro area 5.0 5.2 4.3 3.9
emerging world. Hardening of food and energy prices,
along with supply bottlenecks are keeping inflation Japan 2.4 1.6 3.2 3.3
entrenched and broad-based across economies.
Accentuating geopolitical tensions provide another Emerging Market Economies
Brazil 5.2 4.7 1.5 0.3
layer of uncertainty to the outlook.
In its latest World Economic Outlook (WEO) Russia 4.7 4.5 2.9 2.8
update, released on January 25, 2022, the

India 9.5 9.0 8.5 9.0
International Monetary Fund (IMF) has projected
global growth to moderate from 5.9 per cent in 2021 China 8.0 8.1 5.6 4.8
to 4.4 per cent in 2022 – half a percentage point
lower than in its October 2020 projection (Table 1). South Africa 5.0 4.6 2.2 1.9
The IMF regards escalating energy prices and supply

Source: IMF.
disruptions as purveyors of elevated inflation, with
the prognosis that they would persist for longer than
previously envisioned. suppliers’ delivery time has eased in January relative
to preceding months (Chart 1b).
The global composite purchasing managers’ index
(PMI), though still in expansion zone, slipped to an Reflecting the modest easing of supply chain and
18-month low of 51.4 in January (Chart 1a). The global logistics pressures, the United Nations Conference
services PMI fell to an 18-month low of 51.3 in January on Trade and Development (UNCTAD) has nowcast
from 54.7 in December on account of lower incoming global merchandise and service trade volume to have
new orders. The global manufacturing PMI also increased by 2.2 per cent (q-o-q) in Q4:2021, up from
tumbled to a 15-month low of 53.2 in January – down 0.2 per cent in the previous quarter. Accordingly,
from 54.3 in December – due to weak growth of new world merchandise trade volume would have grown
work orders, declining international trade volumes, by 9.1 per cent in 2021. This is also borne out by
supply chain disruptions and rising COVID-19 forecast from the IMF and the CPB Netherlands
infections. Fortuitously, input price pressure and (Chart 2a and b).

Chart 1: Global High Frequency Indicators

a.Global PMIs b. Select Components of Manufacturing PMI
Sources: IHS Markit; and Barclays.
The Baltic Dry Index, a measure of shipping west coast ports remained ten times higher than their
charges for dry bulk commodities, in January, plunged pre-Covid levels, implying strong demand for goods
to its lowest level since December 2020 (Chart 3). in the US, supply chain bottlenecks causing higher
turnaround time at US ports, and truck shortages
Container freight rates across all major sea routes,
(Chart 4b).
however, still rule higher than their pre-pandemic
levels (Chart 4a). Freight rates from China to the US The Bloomberg commodity price index, which
had plummeted in November, began rising again
Chart 2: Analysis of World Trade Volume
a. Trend in World Trade Volume of Goods and Services b. Trend in World Merchandise Trade Volume
Sources: CPB Netherlands; and IMF.

oil prices (Chart 5b). Gold prices faced safe haven

Chart 3: Baltic Dry Index
competition from a stronger US dollar although
geopolitical tensions continue to provide support to
bullion (Chart 5c). The FAO Food Price Index averaged
135.7 points in January 2022, 1.1 percent higher than
in December 2021 and largely driven by vegetable oils
and dairy sub-indices (Chart 5d).
Inflation has soared to multi-decadal highs

in most AEs and a few EMEs (Chart 6). In the US,
inflation measured by the y-o-y change in consumer
price index (CPI) climbed to 7.5 per cent in January
2022 – its highest level since 1982. Fed’s preferred
gauge of inflation measured by personal consumption
expenditure (PCE) price index rocketed to 5.8 per cent
Source: Bloomberg.
in December. Concomitantly, core PCE inflation also
accelerated to a near 40-year high of 4.9 per cent for
to touch a 7- year high in the first week of February the same month. CPI inflation in the UK also surged
(Chart 5a). Prices rallied across most commodities to 5.4 per cent in December – the highest in the data
and starkly so for crude oil, with Brent breaching the series, that began in January 1997. Euro area inflation
US$ 95 per barrel in the beginning of February — the touched a fresh peak of 5.1 per cent in January from
first time since 2014. Geopolitical acrimony in the 5 per cent in December. Among BRICS economies, CPI
Middle East and in Central Asia are fueling speculations inflation in Brazil and Russia edged up further to 10.38
of supply disruptions, and lending support to crude per cent and 8.7 percent, respectively, in January 2022
Chart 4: Analysis of Sea Freight Prices

a. Increase in Freight Price from 2019 level b. Increase in Price from January 2020 Level
Source: Reuters.

Chart 5. Commodity and Food Prices

a: Bloomberg Commodity Index b: Brent
c: Gold d: Food Prices
Sources: Bloomberg; World Bank Pink Sheet; and FAO.
from 10.06 per cent and 8.4 per cent, respectively, in Global financial markets were unsettled by sharp
December 2021. sell-offs since the beginning of January and investor
Chart 6: Inflation
a. Advanced Economies b. Emerging Market Economies
Source: Bloomberg.

sentiments have been shaken by the combination of EME currencies depreciated, with net capital outflows
policy pivots, geopolitical tensions and the slowing exacerbating these downward movements (Chart 7d).
pace of global growth. In the last week of January, Monetary policy actions and stances continue
the Morgan Stanley Capital International (MSCI) to deviate across countries, with more AE central
World Equity Index fell to levels previously seen banks undertaking or giving forward guidance of rate
in October 2021, driven down by both AE and EME hikes (Chart 8). In its January meeting, the US Fed
stock indices (Chart 7a). In the bond markets, the announced that it would wind up quantitative easing
US 10-year Treasury yield hardened by more than by early March as scheduled, while also providing
25 bps since the commencement of the year; these forward guidance that it would soon be appropriate to
levels were last seen in February 2020. Bond market raise the target range for the federal funds rate. It also
participants are pricing in more aggressive tightening set out principles for balance sheet reduction. The
by systemic central banks than previously anticipated. Bank of England (BoE) effected its second consecutive
Furthermore, with short term rates rising even higher rate hike in February as it increased its benchmark rate
a flatter yield curve has emerged (Chart 7b). The US by 25 basis points (bps) to 0.5 per cent, a cumulative
dollar strengthened in the second half of January increase by 40 bps. The Reserve Bank of Australia
amidst a flurry of strong economic data and the Fed’s maintained its policy rate but announced a halt to
more hawkish stance (Chart 7c). Concomitantly, most its bond purchase programme in early February. The
Chart 7: Financial Markets

a: Equity Indices (MSCI) b: US Government Bond Yields
c: Currency Indices d: Portfolio Flows to EMEs
Sources: Bloomberg; and IIF.

prime rate (LPR) for the second consecutive time by 10

Chart 8: Rate Actions of Central Banks of
Select Countries bps to 3.7 per cent. It also lowered the 5-year LPR – the
benchmark for pricing of mortgages – by 5 bps to 4.6
per cent, its first reduction since April 2020. China also
lowered rates on 1-year medium term lending facility
loans and 7-day reverse repurchase agreements by 10
bps each.
To sum up, the global economic outlook
continues to be held hostage by the pandemic, even
as geopolitical face-offs and intensified volatility in
financial markets impart uncertainty. Supply chain
disruptions, strains in production lines, energy price
volatility and wage pressures entail upside risks to
inflation, sharpening the policy trade-offs. Risks to
Source: Central bank websites. EMEs in the form of capital outflows, depreciating
currencies, and deteriorating fiscal positions have
Bank of Japan kept its benchmark rate unchanged heightened and darkened the outlook.
while acknowledging a higher inflation forecast. III. Domestic Developments
Similarly, the Bank of Canada did not alter its policy
Domestic macroeconomic conditions are diverging
rate, but it withdrew its exceptional forward guidance
from global configuration. A recovery in economic
on its policy rate as economic slack got absorbed.
activity is gaining strength and traction after the
The Monetary Authority of Singapore tightened
slight moderation encountered in the face of the
its monetary policy settings for the second time in
third wave. India’s total active case count surged past
seven years in its first out-of-cycle move by raising
22.36 lakh on January 24, 2022 from a low of 84,349
the rate of appreciation for its S$NEER policy band.
on December 28, 2021. Daily infections, however,
Among EME central banks, Chile and Brazil hiked
plateaued since January 21, 2022 and declined to
their benchmark rates by 150 bps each in January and
27,409 on February 14, 2022 from a peak of 3.47 lakh
February, respectively. Bank of Russia raised its key
on January 20, 2022 (Chart 9a). On the vaccination
rates for the eighth consecutive meeting by 100 bps
front, the daily vaccination rate increased to more
to 10.5 per cent in February 2022. Similarly, Hungary,
than 90 lakhs in the first ten days of January but
South Africa and Sri Lanka also increased their policy
has slowed since then. Currently, while the daily
rates by 50 bps, 25 bps and 50 bps, respectively, last
vaccinations stand at around the 50-lakh mark, total
month. Indonesia has made a move towards liquidity
vaccinations have crossed 173 crore doses (Chart 9b).
normalisation by announcing an increase of 300
bps in domestic currency reserve requirement for In conjunction with the decline in new
commercial banks to be implemented in three steps infections, mobility improved in February 2022,
from March to September 2022. Turkey took a pause with Google and Apple mobility indices surpassing
in its January meeting after a cumulative 500 bps levels sequentially as well as over a year ago. The
reduction in rates between September and December Google mobility index for mobility around retail
2021. The People’s Bank of China cut its 1-year loan and recreation activities, parks, transit stations and

Chart 9: Covid-19 Cases and Vaccinations

a: COVID-19 Daily Cases and Deaths 7-Day MA b. 7-Day Moving Average of Daily Vaccinations
Source: Ministry of Health and Family Welfare (MoH&FW).
workplaces reached pre-pandemic levels, while the of activity, electricity generation, picked up in the
Apple mobility index moved upward across all major first fortnight of February, surpassing pre-pandemic
cities (Charts 10a and 10b). With the resumption levels (Chart 10c).
Chart 10: Impact of Second Wave of COVID-19 on Economic Activity

a. Google Mobility Changes: India
b. City-wise Apple Mobility: Driving
c. Electricity Generation
Sources: Google; CEIC; and POSOCO.

Chart 11: E-way Bills and Toll Collections

a. E-Way Bills b.Toll Collections
Sources: GSTN; Reserve Bank of India; and Authors’ own calculations.
Aggregate Demand sales of tractors contracting by 32.6 per cent partially

In spite of the third wave, e-way bills generation owing to an unfavourable base effect. The decline in
remained above pre-pandemic levels (Chart 11a), tractor demand is reported to be attributed to delayed
although there was a sequential dip in January due harvest of Kharif crops due to late monsoons. Sales
to mobility restrictions. Toll collections remained of two wheelers, three wheelers and motorcycles
resilient in January 2022, even as the y-o-y growth tumbled on both y-o-y and over pre-pandemic levels,
moderated to 54.8 per cent owing to the waning of owing to a lackluster rural demand, coupled with
base effect (Chart 11b). rising fuel prices (Chart 12d). Within two wheelers,
the electric segment continued to post robust growth
Petroleum consumption moderated with re-
invocation of mobility restrictions. The moderation by over 44 per cent sequentially in January 2022 as
was recorded across all major categories in January online retailers turned to electric two wheelers for
2022. The consumption of diesel and aviation turbine logistical operations and last mile deliveries.
fuel also declined (Chart 12a). As per the household survey of the Centre for
Vehicle registrations continued to decline, led Monitoring Indian Economy (CMIE), the labour
by a drag in the non-transport segment, though the participation rate fell from 40.9 in December 2021
transport segment registered a sequential increase to 39.9 in January 2022 as containment measures
(Chart 12c). Rural demand slumped, with domestic increased (Chart 13).

Chart 12: Transport Sector Indicators

a: Petroleum Consumption b: Automobile Sales
Sources: Petroleum Planning & Analysis Cell; and Authors’ own calculations. Sources: SIAM; and Authors’ own calculations.
c: Vehicle Registrations d: Rural Demand
Sources: Vahan Dashboard; and Authors’ own calculations. Sources: SIAM; and TMA; and Authors’ own calculations.
As per the CMIE’s employment statistics, the under the impact of the third wave. Though the
labour market suffered marginally in January 2022 number of workers employed declined sequentially,
Chart 13: Employment, Unemployment and Labour Participation Rates
Sources: CMIE.

India’s merchandise exports at US$ 34.1 billion

Chart 14: Number of Workers in Employment
in January 2022 registered a robust expansion of 23.7
per cent y-o-y (31.8 per cent over the pre-pandemic
level) (Chart 16a and b). During April 2021 – January
2022, the merchandise exports reached US$ 335.4
billion, covering 83.9 per cent of the target set for
2021-22.
Export growth was broad-based, with ten major
commodity groups accounting for more than 78
per cent of exports recording an expansion above
their pre-pandemic level (Table 2). However, decline
in export momentum was visible across major
categories. The improvement in export performance
stemmed from higher value of shipments of
Source: CMIE. engineering goods, chemicals and petroleum
products. Pharmaceuticals exports grew by 15.3 per
cent over the pre-pandemic level supported by record
there was an expansion in the workforce over a year
exports of 309.3 lakh COVID-19 vaccine doses. The
ago (Chart 14).
engineering goods exports stayed above US$ 9 billion
The PMIs show that employment under both mark for the second consecutive month in January
manufacturing and services contracted for the second 2022. The Engineering Exports Promotion Council
consecutive month after showing expansion in (EEPC) expects exports of heating, ventilation, air-
November 2021 (Chart 15). conditioning and refrigeration (HVAC) segment to
Chart 15: PMI Employment Indices
Sources: IHS Markit.

Chart 16: India’s Merchandise Exports – January 2022

a: Trend in India’s Merchandise Exports b: Decomposition of Sequential Change in Y-o-Y Export Growth
Sources: PIB; DGCI&S; and Authors’ own calculations.
grow exponentially. Rice, the largest constituent of bolster electronic export potential. The reduction of
the agricultural export basket, surged by 35.9 per customs duty on diamonds and gemstones that was
cent over the pre-pandemic level. also announced in the Budget may lower the input
During April 2021-January 2022, exports of costs and thus turn our gems and jewellery exports
electronic goods accelerated by 26.3 per cent over more competitive. The rationalisation of custom
pre-pandemic levels. The recent policy measures duties aims to empower Aatmanirbhar Bharat goals
announced in the Union Budget 2022-23 such as through increasing value-added manufacturing and
calibration of customs duty to promote domestic thereby strengthening India’s participation in global
manufacturing of electronic goods would further value chains.
Table 2: Top 10 Exported Commodities

Top 10 Export Commodity Group Jan-22 (% Share) Jan-22/Jan-20 (Growth) Jan-22/Dec-21 (Growth) Apr 21 - Jan 22/Apr 19 - Jan 20 (Growth)
Engineering Goods 27.0 47.9 -6.0 37.7
Petroleum Products 11.0 17.1 -36.6 32.4
Gems and Jewellery 9.5 12.4 8.0 4.5
Organic and Inorganic Chemicals 7.2 29.4 -8.1 28.3
Drugs and Pharmaceuticals 6.0 15.3 -11.4 16.2
Readymade Garments of All Textiles 4.5 6.7 5.6 -1.7
Cotton Yarn/Fabrics 4.1 52.8 -3.8 50.2
Electronic Goods 4.0 33.8 -18.4 26.3
Plastic and Linoleum 2.5 46.5 -6.2 26.4
Rice 2.4 35.9 -9.1 52.1
Total of 10 Major Commodity Groups 78.2 29.8 -11.3 26.9
Total Exports 100.0 31.8 -9.9 27
Source: MoCI.

Chart 17: Growth in India’s Services exports Chart 18: Global IT Spending
Source: RBI. Source: Gartner.
As per the provisional data released on services remained above the US$ 50 billion mark for the fifth
trade (February 1), India’s services exports surged consecutive month (Chart 20a and 20b).
rapidly to clock a double-digit growth for the third
Import growth was broad-based, with nine major
consecutive quarter in Q3:2021-22, boosted mainly
commodity groups accounting for more than half
by IT and business services. During April-December
of imports recording an expansion over their pre-
2021, the y-o-y growth in services exports surged well
pandemic levels (Table 3). Higher demand for imports
beyond the average growth recorded during preceding
of electronic goods, electrical and non-electrical
5 years (Chart 17).
machinery, chemicals and coal drove this expansion.
The latest forecasts of global IT spending by
Gartner2 for 2022 and 2023 indicate a buoyant outlook Chart 19: OECD’s Trade Restrictiveness Index for
(Chart 18). Furthermore, the OECD’s latest services Computer Services
trade restrictiveness index3 indicates accelerated
pace of liberalisation in 2021 relative to 2020. Trade
liberalisation in sectors such as computer services by
India’s major trading partners, i.e., the US and the UK,
may bolster India’s software exports going forward
and aid in sustaining the higher growth (Chart 19).
Merchandise imports at US$ 52.0 billion in
January 2022 rose sharply even though import
growth moderated sequentially. Nonetheless, imports
2 Gartner press release on Worldwide IT spending dated January 18,

2022. Note: STRI (Services Trade Restrictiveness Index) take values between 0 to 1,
3 where 0 is completely open and 1 is completely closed.
OCED press release on Services trade restrictiveness index dated
Source: OECD.
February 02, 2022.

Chart 20: India’s Merchandise Imports – January 2022

a: Trend in India’s Merchandise Imports b: Decomposition of Sequential Change in Y-o-Y Import Growth
Oil imports, on the other hand, slumped by 12.1 per per cent over pre- pandemic performance (Chart 21a).
cent in January 2022 over pre-pandemic levels as Overall non-oil non-gold imports maintained strong
restrictions in the wake of Omicron impacted demand. growth for the eighth consecutive month in January
Gold imports witnessed contraction on both y-o-y and 2022 (Chart 21b).
sequential basis due to weak demand. The World Gold
India’s merchandise trade deficit widened to
Council (WGC) expects India’s gold imports to reach
US$ 17.9 billion in January 2022, up from US$ 14.5
800-850 tonnes level in 2022.
billion a year ago and US$ 15.3 billion in January 2020.
The imports of electronic goods remained at The Union Budget 2022-23 reiterated the
record levels in January 2022 and expanded by 82.6 commitment to growth revival through a focus on
Table 3: Top 10 Imported Commodities

Top 10 Import Commodity Group Jan-22 (% Share) Jan-22/Jan-20 (Growth) Jan-22/Dec-21 (Growth) Apr 21 - Jan 22/Apr 19 - Jan 20 (Growth)
Petroleum, Crude & products 22.0 -12.1 -29.3 18.9
Electronic goods 15.8 82.6 27.8 24.3
Machinery, electrical & non-electrical 7.8 18.3 6.4 1.8
Organic & Inorganic Chemicals 5.1 56.2 -17.8 40.8
Coal, Coke & Briquettes, etc. 5.0 53.2 -7.0 27.5
Gold 4.6 51.7 -49.2 64.1
Pearls, pre & Semi-prec. stones 4.5 59.5 -19.3 31.6
Vegetable Oil 3.6 121.5 1.7 96.6
Non-ferrous metals 3.5 59.6 7.4 28.6
Artificial resins, plastic materials, 3.4 39.3 -10.6 32.1
Total of 10 Major Commodity Groups 75.3 27.8 -14.1 27.3
Total Imports 100.0 26.4 -12.6 22.3
Source: MoCI.

Chart 21: Growth in Imports of Key Commodities (Growth over Pre-Covid Level)
a: Electronic Goods b: Non-Oil Non-Gold
capital expenditure. Its emphasis on public investment 25. Revenue projections for 2022-23 (BE) are based
through infrastructure development is expected on realistic assumptions, viz., tax buoyancy of 0.9
to crowd-in private investment and strengthen job and disinvestment receipts of `65,000 crore (as
creation and demand in 2022-23 and beyond. against the target of `1.75 lakh crore in 2021-22
The gross fiscal deficit (GFD) in 2021-22 (RE) (BE)). On the expenditure front, the government has
is placed at 6.9 per cent of GDP as against budget placed a major thrust on infrastructure spending.
estimates (BE) of 6.8 per cent of GDP. Underlying the Capital expenditure is budgeted to increase to 2.9
modest deviation of 0.1 percentage points are sizeable per cent from an average of 1.7 per cent during
deviations in revenue and expenditure from their 2010-20. Effective capital expenditure, which includes
budgeted levels. Specifically, net tax revenue of the capital expenditure of the centre plus grants-in-aid
Union government exceeded the budget estimates to states for creation of capital assets, is budgeted
(BE) by 0.9 per cent of GDP. Non-tax revenue overshot
at 4.1 per cent in 2022-23(BE). The Budget proposals
the BE by 0.3 per cent of GDP, aided by higher than
for 2022-23 entail gross market borrowings of
budgeted surplus transfer by the Reserve Bank. In
`14.95 lakh crore, which somewhat exceeded the
the revised estimates (RE) disinvestment receipts
market expectations, and resulted in the hardening
have been brought down by 0.4 per cent of GDP.
of 10-year G-sec benchmark (6.54 GS 2032) by 15
On the expenditure front, both revenue and capital
basis points, recording its largest jump in 12 months
expenditure have overshot the BE by 1.0 and 0.2 per
cent of GDP, respectively. (Table 4).
In 2022-23 (BE), the GFD is placed at 6.4 per After contracting by around 9 per cent in
cent of GDP, a consolidation of 42 basis points 2020-21, tax devolution to states has recovered sharply
over 2021-22 (RE) in line with the medium-term in 2021-22 (RE), exceeding the budget estimates for
target of bringing GFD below 4.5 per cent by 2024- 2021-22. Overall tax devolution grew by 25.2 per cent

from `15,000 crore in 2021-22 (RE) to `1 lakh crore in

Table 4: Key Indicators (as per cent of GDP)
2022-23 (BE). The y-o-y growth in states’ capital outlay
2020-21 2021-22 2022-23
Actuals BE RE BE
for the period April-November, 2021 stands at a robust
1 2 3 4 5 55.2 per cent, with many states registering a growth of
1. Fiscal Deficit 9.2 6.8 6.9 6.4 over 100 per cent y-o-y.
2. Revenue Deficit 7.3 5.1 4.7 3.8
3. Primary Deficit 5.7 3.1 3.3 2.8 Aggregate Supply
4. Gross Tax Revenue 10.2 9.9 10.8 10.7
5. Non-Tax Revenue 1.0 1.1 1.4 1.0
As on February 04, 2022 the overall acreage
6. Revenue Expenditure 15.6 13.1 13.6 12.4 under rabi crops touched a new record of 700.8 lakh
7. Capital Expenditure 2.2 2.5 2.6 2.9
hectares, which is 1.5 per cent above the previous
of which:
Capital Outlay 1.6 2.3 2.4 2.4 year’s acreage and 8.2 per cent above the normal (5-
Note: Capital outlay is capital expenditure less loans and advances.
year average) acreage (Chart 22a). The sowing was
Source: Union Budget Documents. spurred by adequate reservoir levels (Chart 22b) and
in 2021-22 (RE) over a year ago and has been budgeted a spatially and temporally well-distributed Northeast
to grow further by 9.6 per cent in 2022-23. In order (NE) monsoon rainfall. Wheat sowing has recorded a
to give impetus to states’ capital expenditure, the decline from last year mainly due to diversification
budget has stepped up the outlay for the ‘Scheme for towards oilseeds and pulses in Haryana, Maharashtra
Financial Assistance to States for Capital Investment’ and Gujarat. The share of oilseeds, mainly rapeseed
Chart 22: Rural Economy

a. Progress of Rabi Sowing (as on February 04,2022)
Note: Normal refers to previous 5-year average.

Source: Ministry of Agriculture and Farmer’s Welfare.
b. Reservoir Level (as on February 10, 2022)
Source: Central Water Commission.
c: Demand for work under MGNREGS
Source: Ministry of Rural Development.

and mustard in total acreage has stepped up from

Chart 23: Increasing Prospects for Zaid Season
12.3 per cent (full season normal) to 14.7 per cent.
The demand for work under the Mahatma Gandhi
National Rural Employment Guarantee Scheme
(MGNREGS) has been on decline (y-o-y basis) all
through the season, partly reflecting the employment
generated by the rabi sowing in the rural hinterlands
(Chart 22c).
The Zaid crop season (March to May), that

extends from the end of the rabi season to the
beginning of kharif season, accounts for between
2.9 per cent to 5.1 per cent of net sown area. The
increase in zaid acreage in the last couple of years
has engaged the attention (Chart 23). Note: Some states grow summer rice (nearly 20-30 lakh ha area) which overlaps
with kharif season. Summer vegetables are also grown in many states.
Source: Ministry of Agriculture and Farmers’ Welfare.
As on February 14, 2022, procurement of
rice touched 457.5 lakh tonnes (kharif marketing
January 2022 even as it decreased from 55.5 a month
season 2021-22) which is 6.5 higher than a year ago.
ago. The sub-indices of new orders and production
As per the quarterly buffer norms (January-March)
expanded at a slower pace and output prices picked
stock levels for both rice and wheat stay comfortable
up. PMI services too remained in expansion mode at
(7.8 and 2.0 times respectively) as of end-January
51.5, though it recorded the lowest expansion in the
2022.
last six months. The business expectations index (BEI)
In the industrial sector, the headline for services expanded for the sixth successive month
manufacturing PMI remained in expansion at 54.0 in in January 2022 (Chart 24).
Chart 24: Purchasing Managers’ Index

a. PMI Manufacturing b. PMI Services
Source: IHS Markit.

Chart 25: Railway and Air Traffic

a: Railway Freight Revenue (Y-o-Y Growth) b. Port Cargo
Source: Rail Drishti. Source: Indian Ports Association.
In the services sector, railways freight traffic In the first fortnight of February 2022, daily
clocked a growth of 7.7 per cent y-o-y in January domestic airport footfalls averaged 4.7 lakh per day –
2022 vis-à-vis 8.7 per cent a year ago (Chart 25a). An a contraction by 5.7 per cent from the corresponding
increase in freight was recorded for coal and cement, period in January. International airport footfalls
even as iron ore registered a decline on a high base. also declined by 7.1 per cent sequentially, while the
Cumulatively, railway freight traffic improved by 17.1 cargo segment recorded a contraction by 1.8 per cent
per cent y-o-y in April-January 2021-22, after recording for domestic cargo and a growth of 4.6 per cent for
a contraction for two years. The ‘operating ratio4’ international cargo.
for the railways sector is expected to be above 95 in
2021-22, an improvement over previous years5. Chart 26: Construction Sector Indicators
As shipping begins to overcome the constraints of
container shortages globally, port traffic witnessed a
marginal sequential recovery in January (Chart 25b).
Both cement production and steel consumption
recorded growth over pre-pandemic levels
(Chart 26). An improved demand outlook in respect of
construction is expected to be matched with capacity
additions in the industry, with more than 84 million
tonnes (MT) new capacity planned to be added over
next two fiscal years.
4 Operating ratio is expressed as a company’s operating expenses as a

percentage of revenue. A lower ratio implies higher efficiency. Sources: Joint Plant Committee; and Office of the Economic Advisor, Ministry
5
of Commerce and Industry.
Mint, Jan 29, 2022.

Table 5: High Frequency Indicators- Services

High Frequency Indicators- Services Growth (y-o-y, per cent) Growth over 2019
Sector Indicator Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Oct 21/ Nov 21/ Dec 21/ Jan 22/
Oct 19 Nov 19 Dec 19 Jan 20
Urban Demand Passenger Vehicles Sales 7.6 -41.2 -27.1 -18.6 -13.3 -8.1 -16.7 -14.8 -1.5 2.2
Two Wheelers Sales -14.6 -17.4 -24.9 -34.4 -10.8 -21.1 -12.3 -25.5 -4.2 -15.9
Rural Demand Three Wheelers Sales 59.7 53.8 19.1 -6.6 27.0 -8.5 -52.6 -59.7 -47.7 -60.4
Tractor Sales -17.0 -14.8 0.4 -22.5 -27.5 -32.6 8.2 17.2 3.8 -1.2
Commercial Vehicles Sales 24.5 0.9 -0.3
Railway Freight Traffic 16.9 3.6 8.4 6.1 7.2 7.7 25.1 15.6 16.5 17.1
Port Cargo Traffic 11.5 0.5 6.3 -0.2 -0.4 -2.7 5.2 3.9 4.0 1.3
Domestic Air Cargo Traffic 35.7 10.1 6.7 -1.7 2.0 -10.0 -11.4 -1.1
Trade, hotels, International Air Cargo Traffic 25.8 18.1 23.8 11.7 10.5 8.4 -5.0 -3.6
transport, Domestic Air Passenger Traffic 132.6 76.5 68.7 65.5 53.3 -27.0 -17.6 -12.5
communication International Air Passenger Traffic 119.2 155.9 162.9 140.2 121.7 -61.0 -58.6 -54.5
GST E-way Bills (Total) 33.3 18.3 14.5 5.9 11.6 4.7 39.0 14.5 29.3 15.6
GST E-way Bills (Intra State) 30.8 15.6 14.1 7.3 8.9 2.2 40.7 17.6 33.0 9.2
GST E-way Bills (Inter State) 37.2 22.3 15.1 3.9 13.4 6.3 36.7 10.1 24.0 20.1
Tourist Arrivals 329.9 278.8 337.0 255.0 235.5 -80.8 -76.9 -75.2
Steel Consumption -2.2 -3.2 -3.8 -7.7 -8.6 -3.7 2.4 10.1 7.4 5.3
Construction
Cement Production 36.3 10.8 14.5 -3.6 12.9 18.1 -10.6 4.8
Manufacturing 52.3 53.7 55.9 57.6 55.5 54.0
PMI Index
Services 56.7 55.2 58.4 58.1 55.5 51.5
Sources: CMIE; CEIC data; IHS Markit; SIAM; Airports Authority of India and Joint Plant Committee.
Within the services sector, the contact intensive unfavourable base effect of around 2.1 percentage
non-transport segment of the automobile sector and points. Vegetables prices moved out of deflation in
aviation sectors continue to experience a slowdown January. Price increased on a year-on-year basis in
even as some improvement in trade and transport respect of cereals, meat and fish, eggs, milk, pulses
became evident (Table 5). and spices while inflation in oils and fats, fruits,
sugar and confectionary, non-alcoholic beverages
Inflation
and prepared meals and snacks moderated.
Data released by the NSO on February 14, 2022
After remaining in double digits for eight
showed that headline CPI inflation (year-on-year) for
consecutive months, fuel inflation moderated to 9.3
the month of January 2022 edged up to 6.0 per cent
per cent in January from 11.0 per cent in December.
from 5.7 per cent a month ago (Chart 27a). A month-
LPG and kerosene inflation moderated, and electricity
on-month decline in CPI by around 30 bps was more
prices continued to remain in deflation in January.
than offset by a large unfavourable base effect (month-
CPI fuel (weight of 6.84 per cent in the CPI basket)
on-month change in prices a year ago) of around 65
contributed around 10 per cent of headline inflation
bps, resulting in the increase in headline inflation by
in January (Chart 27b).
around 35 bps between December and January.
CPI inflation excluding food and fuel6 or core
Food group inflation was the main driver,
inflation remained elevated at 6.0 per cent in January,
rising 5.6 per cent in January from 4.5 per cent in
December. The decline in food price momentum by 6 CPI excluding food and fuel is worked out by eliminating the groups
around 1.1 percentage points was subdued by an ‘food and beverages’ and ‘fuel and light’ from the headline CPI.

Chart 27: CPI Inflation

a. CPI Inflation (y-o-y) b. Contributions
Note: CPI inflation for April-May 2021 were computed based on imputed CPI indices for April-May 2020.
Sources: National Statistical Office (NSO); and RBI staff estimates.
though it eased from 6.1 per cent in December and household goods and services edged up,
(Chart 27a). While inflation in clothing and footwear, inflation in pan, tobacco and intoxicants, housing,
Chart 28: DCA Essential Commodity Prices

a. Cereals b. Pulses
c. Vegetables d. Edible Oils (packed)
Sources: Department of Consumer Affairs, GoI; and RBI staff estimates.

health, transport and communication, recreation and IV. Financial Conditions

amusement and personal care and effects moderated.
Domestic financial conditions remain benign
High frequency food price data from the Ministry although there has been some tightening more
of Consumer Affairs, Food and Public Distribution recently. In its monetary policy statement on
(Department of Consumer Affairs) for February February 10, 2022, the Reserve Bank announced four
so far (February 1-14, 2022) indicate some uptick decisions to restore the revised liquidity management
in prices of cereals. Pulses prices remained largely framework in order to make it more flexible and agile:
steady. In the case of edible oils, refined edible oils (i) variable rate repo operations of varying tenors to
like sunflower oil continued to experience price be conducted as and when warranted by the evolving
declines, on the other hand, prices of mustard oil and liquidity and financial conditions within the cash
vanaspati edged up. Prices of tomatoes and potatoes reserve ratio (CRR) maintenance cycle; (ii) variable rate
witnessed further seasonal price correction, while repos (VRRs) and variable rate reverse repos (VRRRs)
onion prices have remained steady in February so far of 14-day tenor to operate as the main liquidity
(Chart 28). management tool and to be conducted to coincide
with the CRR maintenance cycle; (iii) main operations
In February so far (February 1-14, 2022), retail
to be supported by fine-tuning operations to tide
selling prices of petrol and diesel in the four major
over any unanticipated liquidity changes during the
metros remained unchanged. While LPG prices
reserve maintenance period and auctions of longer
remained steady, kerosene prices registered an
maturity to be conducted as warranted; and (iv) with
increase in the first half of February (Table 6).
effect from March 1, 2022, the fixed rate reverse repo
Input costs rose further in January, across and the marginal standing facility (MSF) operations
manufacturing and services, as reflected in the PMIs, to be available only during 17.30-23.59 hours on all
with services seeing a more pronounced rate of days and not during 09.00-23.59 hours, as instituted
increase. Selling price increases, however, remained from March 30, 2020 to deal with the pandemic
muted across manufacturing and services in January. situation. In view of Omicron-related infections and
disruption, on-tap liquidity facilities of `50,000 crore
and `15,000 crore for emergency health services and
Table 6: Petroleum Products Prices
contact-intensive sectors, respectively, were extended
Item Unit Domestic Prices Month-over-
month (per cent)
from March 31, 2022 to June 30, 2022.
Feb-21 Jan-22 Feb-22^ Jan-22 Feb-22 Surplus liquidity in the banking system
Petrol `/litre 91.26 102.87 102.87 -0.1 0.0 moderated, with daily net liquidity absorption under
Diesel `/litre 82.99 90.51 90.51 0.0 0.0 the LAF averaging `6.4 lakh crore in the second
Kerosene `/litre 27.36 36.56 42.17* -5.5 15.4
(subsidised) half of January through February 14, 2022, lower
LPG (non- `/cylinder 771.29# 910.13 910.13 0.0 0.0 than `7.0 lakh crore during December 2021 to mid-
subsidised)
January 2022. Liquidity rebalancing continued,
^: For the period February 1-14, 2022. *: As on February 2, 2022.
#: Average price in February 2021. with surplus liquidity migrating from the overnight
Note: Other than kerosene, prices represent the average Indian Oil fixed rate reverse repo window to VRRR auctions of
Corporation Limited (IOCL) prices in four major metros (Delhi, Kolkata,
Mumbai and Chennai). For kerosene, prices denote the average of the various maturities, including the main 14-day VRRR
subsidized prices in Kolkata, Mumbai and Chennai.
operation, in a seamless and non-disruptive manner.
Sources: IOCL; Petroleum Planning and Analysis Cell (PPAC); and RBI staff
estimates. Consequently, the average daily absorption under

the fixed rate reverse repo window moderated to of the revised liquidity management framework in
`1.4 lakh crore during the second fortnight of coping with evolving liquidity requirements.
January through February 14, 2022 from `1.5 lakh Interest rates rose across the outer term
crore during mid-December 2021 to mid-January 2022. money market segment. The 3-month T-bill rate
In view of transient tightness in systemic liquidity and certificates of deposit (CD) rate were pulled up
due to higher than anticipated GST collections, the towards the policy repo rate, notwithstanding softer
Reserve Bank conducted three VRR operations – one overnight rates. At the same time, the 3-month
auction of `50,000 crore on January 20, and two commercial paper (CP)-NBFC rate traded above the
auctions of `75,000 crore each on January 21 and policy repo rate, reflecting large issuances (Chart 30).
January 24, 2022, respectively. The gradual enhancement in the size of absorption
GST outflows in the latter part of January 2022 through the VRRR at higher cut offs has nudged short
pulled the overnight money market rates above the term rates upwards.
policy repo rate. In the uncollateralised segment, the Bond yields hardened, with the yield on the
weighted average call rate (WACR) touched the policy newly issued 10-year G-sec benchmark (6.54 GS
repo rate while the collateralised rates – the tri-party 2032) closing at 6.67 per cent as on February 14,
repo and the market repo rate – reached the ceiling of 2022 (Chart 31a). The yield curve remained steady,
the interest rate corridor (marginal standing facility but with a sharp rise in 8-10 year maturities (Chart
rate) briefly. This transient tightness eased with 31b). While the conduct of switch operations for
liquidity injections through the variable rate repo government securities and oil bonds worth `1.2
operations and large government spending towards lakh crore provided temporary respite, the yields
the end of January (Chart 29). The use of fine-tuning hardened sharply with the announcements in the
operations to tide over unanticipated liquidity Union Budget 2022-23 translating into higher than
mismatches demonstrated the inherent flexibility expected central government market borrowing of
Chart 29: Absorption under Reverse Repo and Overnight Money Market Rates
Sources: RBI; and RBI staff calculations.

and domestic bond market concerns on the size of

Chart 30: Policy Corridor and Money
Market Rates the market borrowing programme ahead of the Union
Budget 2022-23, contributed to the hardening of G-sec
yields. Yields, however, softened thereafter following
the announcement of monetary policy on February
10, 2022 and cancellation of the auction of securities
scheduled to be held on February 11, 2022 and
further on February 18, 2022. In the primary market,
all weekly auctions conducted during January 2022
witnessed partial devolvement. Subsequently, the
Reserve Bank did not accept any bids for 5 year and
14 year securities in the weekly auction conducted on
February 4, 2022.
In tandem with G-sec yields, yields on
Source: Bloomberg. corporate bonds exhibited a hardening bias, albeit,
to a lesser extent than the risk-free (G-sec) rate
`14.95 lakh crore which rattled market sentiment. The (Table 7). Consequently, the risk premia (corporate
resultant sell-off pushed up the 10-year benchmark bond spreads over G-sec of comparable maturities)
yield by almost 15 bps with the Budget day ending at remained unchanged or rose at the margin during
6.83 per cent. On the global front, the faster pace of February 2022 (up to Feb 10) from a month
policy normalisation signalled by the US Fed, elevated ago. Lower issuance of corporate bonds during
crude oil prices amidst rising geopolitical tensions 2021-22 has capped the upward pressure on yields.
Chart 31: Bond Yields

a.10 year G-sec Yield b: Movement in G-sec Yields
Source: Bloomberg.

Table 7: Financial Markets - Rates and Spread

Instrument Interest Rates Spread (bps)
(Per cent) (Over corresponding risk-free rate)
Jan 2022 Feb 2022 (up to Feb 10) Variation (in bps) Jan 2022 Feb 2022 (up to Feb 10) Variation (in bps)
1 2 3 (4 = 3-2) 5 6 (7 = 6-5)
Corporate Bonds
(i) AAA (1-year) 4.65 4.82 17 14 12 -2
(ii) AAA (3-year) 5.61 5.82 21 12 18 6
(iii)AAA (5-year) 6.07 6.23 16 -17 -16 1
(iv) AA (3-year) 6.40 6.57 17 91 93 2
(v) BBB-minus (3-year) 10.41 10.22 8 458 458 0
10-year G-sec 6.41 6.73 32
Note: Yields and spreads are computed as monthly averages.

Sources: Fixed Income Money Market and Derivatives Association of India (FIMMDA); and Bloomberg.
Overall monetary and credit conditions evolved median marginal cost of funds-based lending rate
in sync with the Reserve Bank’s accommodative policy (MCLR) declined by 95 bps (Chart 33). The improved
stance. Reserve money (RM), excluding the first-round monetary transmission has resulted in lower cost
impact of the cash reserve ratio (CRR) restoration, grew of borrowings for many sectors, including for major
at 8.4 per cent y-o-y as on February 4, 2022 (18.9 per non-banking financial companies (NBFCs) sector.
cent a year ago) with the currency in circulation, the The median term deposit rate (MTDR) moderated
largest constituent of RM, rising at a similar pace (8.2 by 151 bps during March 2020 to January 2022 on
per cent; 20.8 per cent a year ago). Money supply (M3) account of surplus liquidity. The perceptible decline
also expanded by 8.4 per cent as on January 28, 2022 of 178 bps is particularly discernible for shorter
(12.1 per cent a year ago), primarily reflecting growth tenor deposits of maturity of up to one year. Across
in banks’ aggregate deposits at 8.3 per cent (10.5 per domestic banks, private banks have effected higher
cent a year ago). The growth in scheduled commercial
banks’ (SCBs’) credit to the commercial sector, which Chart 32: Monetary and Credit Aggregates
rose above the 7 per cent mark in November 2021 for
the first time since April 2020, stood at 8.2 per cent as
on January 28, 2022 (much above the 5.9 per cent level
a year ago) [Chart 32].
SCBs continue to price new loans at historically

low rates, mirroring improved transmission during
the current easing phase. Testifying to the
effectiveness of the Reserve Bank’s policy measures,
SCBs have effected complete pass-through of the
policy rate cuts of 115 bps to weighted average
Note: 1. Data pertain to the last reporting Friday of every month for money
lending rate (WALR) on fresh rupee loans as well supply, aggregate deposits, and SCBs’ credit; and last Friday of every
month for reserve money.
as outstanding loans since March 2020. During 2. For February, however, reserve money data are as on February 4, 2022.
Source: RBI.
March 2020 through January 2022, the one-year

Chart 33: Transmission to Lending and Deposit Chart 34: Maturity-wise Transmission to
Rates (March 2020 to January 2022) Median Term Deposit Rate
(March 2020 to January 2022)
Note: Latest data on WALRs pertain to December 2021.

Sources: RBI; and RBI staff estimates. Sources: RBI; and RBI staff estimates.
pass-through to term deposit rates than public sector Indian equity markets experienced high
banks (PSBs) on account of robust deposit growth volatility in the month of January 2022 amidst
(Chart 34). However, SCBs have reached an inflection risk-off sentiments sparked by the prospects of
point. With an increase in credit demand and lower early tightening of monetary policy by the US Fed
accretion in aggregate deposits, banks have started (Chart 35a). Equity markets in major economies,
pricing in their deposits at higher rates in recent recorded larger declines, with investors turning
months. As a result, the MTDR rose marginally by 5 cautious towards the technology sector (Chart 35b).
bps since October 2021. After opening the month on a positive note, the
Chart 35: Equity Markets

a. BSE Sensex and Institutional Flows b. Performance of Global Equity Markets during 2022
Note: FPI and MF investments are represented on 15 days rolling-sum basis.

Sources: Bloomberg; NSDL; and SEBI.

BSE Sensex turned volatile on rising number of

Chart 36: Performance of Listed
Omicron cases and the hawkish tone in the minutes of Non-Financial Companies
the latest US Federal Open Market Committee (FOMC)
meeting. Thereafter, the market bounced back on
expectations of robust Q3:2021-22 corporate earnings
results and expectations of a limited economic impact
of Omicron. The rally, however, proved transient
as investors fretted over rising global inflation, US
Treasury yields, and crude oil prices coupled with the
geopolitical tensions between Russia and Ukraine.
In early February, the equity markets rebounded on
prospects of announcements in the Union Budget with
positive global cues aiding the domestic sentiment.
Sharp swings followed thereafter, mostly tracking
Note: Excludes extra-ordinary items.
global cues. The markets tumbled on February 14, Sources: Prowess; and RBI staff calculations.
2022 on escalating geopolitical tensions but recovered

almost entirely on the following day amid de-escalation attracted most of the investment. Net outward FDI
of concerns. Overall, the BSE Sensex declined by 0.2 from India turned out to be higher on a y-o-y basis.
per cent during 2022 so far – a decline of 0.4 per cent
Foreign portfolio investors (FPIs) continued
during January 2022, and a gain of 0.2 per cent during
to pull their investment out of the domestic equity
February 2022 (up to February 15, 2022). The BSE IPO
market during January 2022 amidst global geopolitical
index, which tracks the performance of recently listed
tensions, rising crude oil prices and concerns over
initial public offering (IPO) stocks, underperformed
aggressive policy normalisation in the US. The debt
the market benchmark, declining by 13.8 per cent
segment, however, recorded modest inflows during
during 2022 so far (up to February 15, 2022).
the month (Chart 38).
Corporate earnings results of 1,273 listed non-
financial companies representing 80 per cent of market Chart 37: Foreign Direct Investment
capitalisation of all listed non-financial companies,
show double-digit y-o-y sales growth during Q3:2021-
22 (Chart 36). High performance sectors in terms of
sales growth were hotels and tourism, oil and gas,
metals and mining, textiles, chemicals, machinery,
consumer durables and information technology (IT).
Input cost pressures impacted the profitability of a
few sectors.
During April-December 2021, gross inward foreign
direct investment (FDI) moderated to US$ 60.3 billion
from its level US$ 68.3 billion a year ago (Chart 37).
Manufacturing, computer services, communication
services, retail and wholesale trade and education,
Source: RBI.
research and development are the sectors that

Chart 38: Net Foreign Portfolio Investment Chart 39: Foreign Exchange Reserves
*: Up to February 11th. *: As on February 4.

Source: National Securities Depository Limited (NSDL). Source: RBI.
Net disbursements of external commercial for on-lending/sub-lending, refinancing of earlier ECBs

borrowings (ECBs) to India, including inter-company and refinancing of rupee loans.
borrowings, were to the tune of US$ 6.6 billion during
The foreign exchange reserves were at US$ 632.0
April-December 2021 as compared with net outflows
billion on February 4, 2022 equivalent to about 12.6
of US$ 2.6 billion a year ago, while net disbursements
months of imports projected for 2021-22 (Chart 39).
excluding repayments and inter-company borrowings
were of the order of US$ 3.6 billion as against net In the foreign exchange market, the Indian rupee
repayments of US$ 5.9 billion a year ago. In December, (INR) appreciated against the US dollar in January
a considerable amount of borrowing was channelised 2022 by 1.3 per cent (m-o-m). In both nominal and
Chart 40: Monthly Movements in 40-Currency Real Effective Exchange Rate (REER)
(Base:2015-16 = 100)
a. Monthly Changes b. Decomposition of Monthly Changes
Note: Figures for January 2022 are provisional.

Sources: RBI.

Table 8: Growth Rates in Select Payment Systems

Payment Transaction Volume Growth (Y-o-Y, per cent) Transaction Value Growth (Y-o-Y, per cent)
System
Dec-2020 Dec-2021 Jan-2021 Jan-2022 Dec-2020 Dec-2021 Jan-2021 Jan-2022
RTGS 20.2 17.9 14.1 15.7 3.3 21.7 -7.2 13.9
NEFT 31.6 22.3 10.3 26.2 31.7 6.5 12.3 12.8
UPI 70.8 104.4 76.5 100.5 105.5 98.7 99.4 93.0
IMPS 38.7 24.5 33.5 27.0 38.6 35.6 33.1 34.1
NACH 28.0 -2.7 -14.6 28.8 32.2 5.1 11.6 26.4
NETC 115.2 74.9 60.4 54.8 83.3 59.7 48.1 50.0
BBPS 86.2 137.0 84.0 130.2 97.9 165.2 106.0 148.8
Source: RBI.
real effective terms (40-currency basket), the INR growth of 45.6 per cent and 54.3 per cent
appreciated by 1.1 and 0.1 per cent, respectively, over respectively.7 Overall, the highest growth stemmed
its level a month ago (Chart 40a and 40b). from the food and beverages sector, followed
Payment Systems closely by financial services. Games, utilities and
e-commerce were also prominent drivers of digital
The year 2022 has begun with a strong rally in
payments growth. Furthermore, strong growth was
digital payments in the first month, with wholesale
recorded in the wholesale e-commerce segment over
and retail transactions exhibiting consistent growth
the year.
(y-o-y) on the top of remarkable milestones achieved
in the previous year. On the large value payments
front, transaction volume through the Real Time Chart 41: RBI Digital Payments Index
Gross Settlement (RTGS) sustained double-digit
growth in January 2022 (Table 8). In the retail
segment, UPI transactions nearly doubled in terms
of both volume and value relative to January 2021.
The Bharat Bill Payment System (BBPS) - a one-stop
ecosystem for recurring bill payments, mirrored this
trend. With efforts to reach the hitherto unreached in
the payments space bearing fruit, the Aadhar-enabled
Payments System (AePS) achieved its highest number
of transactions ever this month.
Recent evidence suggests that the digital divide
across geographies, sectors and businesses may
Source: RBI.
have narrowed over the year gone by, with online
transaction volumes from Tier 2 and 3 cities on a 8 The RBI DPI comprises 5 broad parameters that enable measurement
private payment gateway during 2021 demonstrating of deepening and penetration of digital payments in the country over
different time periods. These parameters are – (i) Payment Enablers
(weight 25 per cent); (ii) Payment Infrastructure – Demand-side factors (10
per cent); (iii) Payment Infrastructure – Supply-side factors (15 per cent);
7 https://razorpay.com/blog/the-covid-era-of-rising-fintech-razorpay- (iv) Payment Performance (45 per cent); and (v) Consumer Centricity (5
report-10th-edition/ per cent).

The Reserve Bank’s Digital Payments Index8

Chart 42: Financial Conditions Index
climbed to 304 in September 2021 (Chart 41),
reflecting the rapid growth in digital payments. There
has been rapid penetration of digital technology and
smartphones since the outbreak of the pandemic,
with the number of wireless internet subscribers
reaching 77.7 crore9, and the average time spent on
mobile per day per Indian user jumping from 3.7
hours in 2019 to 4.7 hours in 202110 (fifth highest
among the countries analysed). The continuous
expansion of the app economy is expected to lead to
sustained growth in the digital payments ecosystem.
According to NASSCOM, digital payments volume
Source: Goldman Sachs.
in India may surge by 16 times over the five years
spanning up to 2025.11
Conclusion
In the Statement on Developmental and
Today global economy stands at an inflection
Regulatory Policies12, the Reserve Bank has
point. Inflation has become entrenched across
announced the enhancement of the amount cap
economies owing to a spike in commodity prices and
on e-RUPI vouchers issued by governments from
persistence of supply chain bottlenecks. The global
`10,000 to `1,00,000, which will further facilitate
macroeconomic situation remains embroiled in a
digital delivery of government benefits and services.
heightened state of uncertainty, with risks tilted to the
The cap on the National Automated Clearing House
downside. The Goldman Sachs Financial Conditions
(NACH) mandate limit – a solution facilitating
Index - a composite index including interest rates,
repetitive and periodic payments – for settlements
equity valuations, borrowing costs and currency data
on the Trade Receivables Discounting System
- shows significant tightening of financial conditions
(TReDS) is also proposed to be raised from `1 crore
especially for the emerging market economies
to `3 crore. This will help cater to the growing
(Chart 42). Investor sentiment has been dampened
liquidity requirements of micro, small and medium
by risk aversion, which could unsettle capital flows
enterprises (MSMEs). The Union Budget 2022-23 has
and impede the embryonic recovery going forward.
proposed various measures to promote the digital
and FinTech ecosystem, including the setting up of Notwithstanding this unsettled global
digital banking units, the continuation of financial environment, the domestic economic situation
support to incentivise digital modes of payment and continues to improve. The Union Budget 2022-23 and
relaxations in the tax incentive scheme for start-ups. the monetary policy announcement of February 10,
2022 have set the tone for a durable and broad-based
revival. The renewed emphasis on public investment
9 https://www.trai.gov.in/sites/default/files/PR_No.04of2022_1.pdf
through infrastructure development is expected to
10 https://www.appannie.com/en/go/state-of-mobile-2022/
11
crowd-in private investment and strengthen job
https://nasscom.in/knowledge-center/publications/india-digital-
payments-40-2025-outlook creation and demand in 2022-23. Fundamental to
12 https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53248 the infrastructure boost is the GatiShakti national

master plan, which aims to achieve inclusive growth Shri Shaktikanta Das emphasised that monetary
through multi-modal connectivity and logistics policy would continue in its endeavour to achieve
efficiency. price stability, while ensuring a strong and sustained
economic recovery13. Higher spending and ease of
With inflation projected to stay within the doing business have brightened the outlook. India
tolerance band in 2022-23, the Monetary Policy has once again emerged as the fastest growing
Committee (MPC) decided to pause and persevere economy among the major economies of the world
with an accommodative policy stance. Governor according to the IMF.
13 Governor’s statement on February 10, 2022.

Zombies and the Process of Creative Destruction ARTICLE
Zombies and the Process of growth potential, but policy interventions to protect
weak firms and mitigate job losses can hinder medium-
Creative Destruction* term progress and involve technological “sclerosis”
(Caballero and Hammour, 1996). The countercyclical
The Schumpeterian creative destruction process requires
policy response, thus, involves a choice – preserving
a dynamic reallocation of resources from weak and
existing jobs versus encouraging creative destruction,
vulnerable firms to strong firms having high growth
allowing jobs and resources to move away from
potential. Zombie firms that often survive longer than
unsuccessful firms towards more successful firms
desirable taking advantage of countercyclical policy
(G30, 2020).
support, however, tend to thwart that process. Using
firm-level data for India, this article finds that monetary Globally, there has been an increase in the
policy does not hinder the creative destruction process by number of perpetually loss-making zombie firms,
misallocating credit flows to zombies during periods of who use more credit/external finance to service
economic slowdown, but zombies seem to have dampened debt regularly, enabling them to remain in business
the effectiveness of monetary policy at the margin as they (Banerjee and Hofmann, 2020). Weak banks often
use borrowed resources more for their survival than for lend to such zombie firms at higher interest rates,
undertaking new investment. enabling the survival of such weak banks in a financial
system. Accommodative monetary policy and low-
Introduction interest rates also help zombies – dubbed widely as
There is a growing evidence-based realisation that the “living dead” – to remain in business. Following
business cycles are costly and stabilisation policies are the unpleasant Japanese experience with the zombies
more beneficial than widely thought (Jordà, Schularick in the 1990s, it has been progressively realised
and Taylor, 2020). Because of the endogenous effects that zombification may be a global phenomenon,
from weak cyclical conditions on the growth trajectory, and accordingly, research attention has shifted to
aggressive and proactive countercyclical policy actions multiple facets of this challenge – zombies crowd-
may be optimal (Cerra, Fatás and Saxena, 2020). It has out growth opportunities of more productive firms
often been argued that in the post-global financial crisis and their rising presence in an economy can lower
(GFC) period, the slowdown in productivity growth – potential growth (McGowan, Andrews and Millot,
a secular pre-GFC trend that was only amplified by 2018); countries operating with weak banks and weak
the crisis – might have also been partly the result of insolvency regimes allow zombies to thrive (Andrews
ultra-accommodative monetary policy, that created an and Petroulakis, 2019); the “zombie credit channel”
enabling environment for weak banks to evergreen thrives in a weakly capitalised banking (financial)
loans to zombies and keep them alive (Obstfeld and system, and accommodative monetary policy in such
Duval, 2018). a system can propel a practice of “loan evergreening”
enabling weak banks and weak firms to stay afloat,
The Schumpeterian creative destruction process
with the latter servicing debt timely using new
requires a dynamic reallocation of resources from
borrowings from the former, and the former thereby
weak and vulnerable firms to strong firms with high
also postponing recognition of bad assets to stay

* This article is prepared by Sitikantha Pattanaik, Silu Muduli and Jibin above the minimum regulatory capital requirement
Jose, Department of Economic and Policy Research, Reserve Bank of India.
The views expressed in this article are those of the authors and do not
(Acharya, 2019); “…Schumpeter’s theory of creative
represent the views of the Reserve Bank of India. destruction is not corroborated in the data” (Bosio,

ARTICLE Zombies and the Process of Creative Destruction
Djankov, Jolevski and Ramalho, 2020); and, the risk of may decline to the extent that loans are contracted at
death of a weak firm decreases the longer it survives variable rates of interest; and third, cash flows of firms
as a zombie (Nurmi, Vanhala and Virén, 2020). may improve when the aggregate demand situation
in the economy responds to the monetary stimulus.
The nature of the firms operating in an economy
All these three forces could help reduce the external
– strong, weak or zombies – can often influence the
finance premium for the firms. The credit channel (or
outcome of monetary policy response and the impact
the credit supply channel) can also mitigate the risk of
of a shock on the economy. Strong firms may pile up
credit rationing.
surplus cash in the event of a recession, deleverage
to strengthen the balance sheet and remain prepared In an atmosphere characterised by growing
to take advantage of the cyclical pick-up. Weak firms, presence of zombies, however, stabilisation policies
with limited liquid assets and collaterals and poor can potentially endanger the medium-term growth
credit history, however, may face the heat of flight to trajectory by hampering creative destruction. Set
quality, leading to lower access to credit when they against this context, this article focuses on examining
may need it the most, that too at higher rates (or how the influence of zombies in the Indian
external finance premium). Counter-cyclical monetary economy has changed over time, and how zombies
policy can help contain the propagation of a shock by respond to monetary policy vis-à-vis non-zombies.
protecting weak firms. Section II outlines the relevance of a clear distinction
between zombies and non-zombies in empirical firm-
The creditworthiness of borrowers is endogenous
level research to monetary policy analysis. It also
to an adverse shock, as they suffer cash-flow
explains the approach followed in this paper for
disruptions (or liquidity stress) at a time when their
the identification of zombies, and then presents a
net worth (or capacity to present collateral or own
factual assessment of how zombies have performed
equity) goes down. While the net worth of a firm is
relative to non-zombies over time in India. Section III
pro-cyclical (i.e., a recession lowers the capacity of
examines empirically the sensitivity of (a) borrowings
a firm to borrow), the external finance premium is
from banks, (b) investment, and (c) cost of finance of
countercyclical (i.e., in a recession, given information
zombies to changes in the monetary policy rate and
asymmetry, banks may either charge higher interest
liquidity conditions relative to non-zombies. While
rate or ration credit1), and therefore a counter-cyclical
monetary policy is captured through the weighted
monetary policy (that can mitigate the risk of excessive
average call money rate (WACR) – it being the operating
increase in external finance premium and propel
target of monetary policy in India, liquidity condition
credit supply from banks to the vulnerable) becomes
is captured through net surplus/deficit position under
necessary. Both the balance sheet channel and credit
the liquidity adjustment facility (LAF) as a percentage
channel of monetary policy could help stabilise the
of net demand and time liabilities (NDTL). Concluding
economy following an exogenous shock. As regards
observations are presented in Section IV.
the balance sheet channel, first, lower interest rates
may increase the value of marketable collaterals (such II. Some Evidence of Zombification in India
as shares and bonds); second, debt servicing burden
In India, the non-government non-financial
1 When banks manage to deal with the information asymmetry challenge corporate sector comprises firms in both organised
(by say monitoring cash flows/balance sheet position) the cost of credit and unorganised sectors. The information available
may rise (Beranke and Gertler, 1989), whereas when banks fail to overcome
the problem of information asymmetry they may resort to credit rationing
on the former has both listed and unlisted companies,
(Stiglitz and Weiss, 1981). while many small and medium enterprises are in the

unorganised sector. The analysis presented in this weak banks (that face the risk of falling below the
paper is based on the Prowess database of the CMIE minimum regulatory capital requirement in the event
and therefore relates to the organised sector. Past of defaults) may strengthen. The response of firms
studies using this dataset for India have found that (their leverage) to business cycles, and counter-cyclical
smaller firms rely more on external finance compared monetary policy, may differ between zombies and
with larger firms2. Importantly, “alternative finance” non-zombies. Depending on the relative importance
within “external finance” – i.e., finance raised from of zombies in the leverage cycle in the overall non-
friends/relatives/family, business partners and trade financial non-government corporate sector, the
credit, often without legal contracts – is the primary effectiveness of monetary policy – in stabilising the
source for small and medium enterprises (SMEs) business cycle versus promoting zombies – could
and unlisted firms, with financing from banks and be assessed. In India, limited literature is available
markets coming second in the pecking order for them, on the effect of the business cycle on the leverage
unlike large and listed firms. Moreover, contrary to of firms (Pattanaik and Sengupta, 2018). To the best
perceptions, firms relying more on alternative finance, of our knowledge, no research is available on how
rather than finance from banks and markets, exhibit counter-cyclical monetary policy operates through
stronger growth (Allen, Chakrabarti, De and Qian, the leverage profile of zombies versus non-zombies,
2012)3. and accordingly, whether monetary policy impedes
Changes in the leverage of non-zombie firms creative destruction and thereby contributes to
(or their recourse to external finance as opposed to misallocation of resources.
internal finance), unlike zombies, could depend on On the role of Zombies in India, Kashyap,
the state of the business cycle, which may impact not Mahapatro and Tantri (2021) found evidence of
only their cash flows but also their decisions on the indirect evergreening in India (i.e., weak firms increase
timing and size of new investment. The investment leverage by borrowing through related parties from
cycle could go through either a period of temporary weak banks, but decrease real investment) which
cyclical slowdown or protracted weakness, depending often goes undetected. Such resource misallocation
on several causative factors (Pattanaik, Behera, supports the crowding-out effects ascribed to zombies.
Kavediya and Shrivastava, 2020). In the case of the In empirical research, it is not that straightforward
latter, the unholy relationship between zombies4 and though to identify zombies and distinguish them
from firms that face stress due to an adverse shock
2 The total pool of financing available to firms has two broad components
striking the economy or those that by design may
- internal sources (which include net income after payment of dividends,
plus depreciation, plus provisions) and external sources (which include be promoted through subsidies and directed credit.
funds sourced from banks and financial institutions, markets and Kulkarni, Ritadhi, Vij and Waldock (2019) deployed
alternative finance).
3 a novel approach using supervisory data to identify
The initial cost of alternative financing may be high, but once the
relationship between firms, customers, investors, and suppliers is forged, Indian zombies as those firms that are 60-90 days past
the average cost for them remains lower than the cost of bank or market
due (but still not classified as NPAs) and of below AA
financing. Such businesses run on mutual trust and the track record of
relationships, rather than legal enforceability of contracts. In regimes credit rating. 11 per cent of borrowers in India, as per
with weak investor/firm protection, “alternative finance” within external this approach, were found to be zombies.
finance may remain high.
4 Zombies are firms that must borrow more to survive, and they often do For the empirical analysis (in the next section),
not make enough profits to service their debt. Accommodative monetary
policy can set off a process of creeping zombification, perpetually delaying/
annual financial statements of non-financial firms
deferring Schumpeterian creative destruction. have been considered in this article for the period

2000-01 to 2019-20. This is an unbalanced panel data. they fall in the risky category vis-à-vis non-zombies.
Firms are classified into zombies and non-zombies
In India, close to two-thirds of the total financing
based on the following criteria: of non-financial corporates is secured from external
A firm is categorized as a zombie at time t if: sources, corroborating the significance of examining
not only the external finance premium channel
1. The leverage of the firm is above the median
of monetary policy but also the importance of
leverage;
zombification to the effectiveness of monetary policy
2. Interest coverage ratio (ICR) < 1;
(Chart 1).
3. Rating is in the risky category; and
As per the scheme of identification laid out earlier,
4. Debt growth is positive.
around 10 per cent of non-financial firms in India could
Among the above-mentioned classification be viewed as zombies (Chart 2). This share increased
filters, (1), (2) and (3) indicate the degree of financial in the post-global financial crisis (GFC) period up to
distress facing a firm, while condition (4) reflects its 2016, and subsequently, some stabilisation has been
access to external financing. Detailed definitions of
other variables considered for the study are provided Table 1: Summary Statistics
in Appendix-1. The summary statistics of variables Obs. Mean Std. Median Kurtosis Skewness
Dev.
used in the analysis have been provided separately
Non-zombies
for zombies and non-zombies in Table 1. It can be
Age (years) 24137 30.90 20.23 26.00 6.31 1.56
observed that there are no significant differences
Size 24137 8.25 1.66 8.12 2.48 0.33
between zombies and non-zombies in respect of their ROA (%) 24137 3.59 6.21 3.22 4.73 -0.35
age (i.e., the number of years in business) and size; Leverage (%) 24137 33.15 24.77 31.60 638.68 13.12
Cost of Funds (%) 24137 10.11 5.08 9.79 4.63 0.82
however, on profitability, zombies, on average, have Bank 24137 4.87 4.13 4.00 4.76 1.48
delivered only negative return on their assets, unlike Relationship
Bank 24137 10.81 7.75 9.00 2.28 0.59
non-zombies. The average debt of non-zombies is Relationship
below 35 per cent of their total assets, while zombies Length
Investment 21198 0.06 0.09 0.03 77.91 5.47
have debt levels of about 65 per cent of their total Bank Borrowings 16154 2744.98 5283.64 686.35 13.93 3.22
assets. Part of this high difference in leverage could Mean Rating 24137 6.18 2.12 6.33 2.67 -0.70
be the result of the choice of the first classification Zombies

filter. The average cost of funds, defined as the ratio Age (years) 2046 27.56 18.24 24.00 6.67 1.61
Size 2046 7.59 1.65 7.43 2.41 0.49
of their total interest expenses to average debt, is only
ROA (%) 2046 -5.08 6.90 -2.86 1.99 -0.56
40 basis points higher for zombies. Zombies have Leverage (%) 2046 66.00 37.81 58.07 59.93 5.60
relationships with fewer banks on average compared Cost of Funds (%) 2046 10.41 4.43 10.73 4.16 0.08
Bank 2046 4.43 4.10 3.00 5.60 1.72
to non-zombies, but the length of the relationship Relationship
continuing with a bank is higher for non-zombies Bank 2046 8.77 7.16 7.00 2.85 0.88
Relationship
than zombies. Investment, measured by the ratio of Length
annual addition of fixed assets to total assets is lower Investment 1726 0.04 0.09 0.01 31.96 4.82
Bank Borrowings 1453 3027.63 5462.31 745.50 11.56 2.87
for zombies, though for non-zombies the average Mean Rating 2046 1.67 0.66 2.00 1.98 0.41
investment is not significantly higher. From the Note: Please refer to Appendix-1 for explanation of variables used in this
table.
perspective of rating, since zombies are identified
Source: Centre for Monitoring Indian Economy (CMIE) and authors’
based on the average rating of different instruments, estimates.

Chart 1:Internal versus External Financing Pattern (Non-financial Corporate Sector in India)
Source: Reserve Bank of India and authors’ estimates.
observed. While the post-GFC increase could have tolerant of non-performing businesses staying alive
been an outcome of the massive policy stimulus that for long.
was directed at containing the damage to the real What emerges as a particularly striking finding
economy from the GFC, the recent stabilisation may is that zombies in India, post-GFC, have increased
be on account of the welcome change in India’s credit their share in total non-financial corporate sector debt
market conditions following the new insolvency and to more than 10 per cent (Chart 3). Further analysis
bankruptcy (IBC)-led regime that is relatively less corroborates the expected differences between
Chart 2: Share of Zombie Firms in total Number Chart 3: Debt Share of Zombies vs. Non-zombies
of Non-Financial Firms
Source: Centre for Monitoring Indian Economy (CMIE) and authors’ estimates. Source: Centre for Monitoring Indian Economy (CMIE) and authors’ estimates.

Chart 4: Leverage and Cost of Funds of Zombies

a. Leverage b. Cost of funds
Source: Centre for Monitoring Indian Economy (CMIE) and authors’ estimates.
zombies and non-zombies in key financial parameters times, which can be viewed as an evidence of zombies
– zombies in India operate with significantly higher in India contributing to misallocation of resources and
leverage, defined by total debts to total assets, hampering creative destruction in the economy (Chart
compared to non-zombies, but surprisingly they 5). Moreover, while the year-on-year (Y-o-Y) growth in
manage to borrow funds at costs somewhat similar to debt of zombies has been very similar to that of non-
what non-zombies pay (Chart 4). Despite their greater zombies, the former lagged consistently in generating
leverage, the share of zombies in total sales of the profits, which is another noticeable evidence of
non-financial corporate sector has declined in recent resource misallocation (Chart 6).
Chart 5: Investment and Share in Sales

a. Investment b. Sales Share of Zombies

Chart 6: Debt Growth and Profitability - Zombies versus Non-zombies

a. Annual Growth in Incremental Debt Flows b. Return on Assets
III. Empirical Analysis • The impact of monetary policy on the cost of

funds of zombies versus non-zombies;
Creative destruction and the effectiveness of
monetary policy in stabilising business cycle are • Sensitivity of bank borrowings to changes
often studied in isolation in empirical research, in the cost of funds of zombies versus non-
even as the latter could potentially undermine the zombies; and
former, and the former can also potentially ease the • Sensitivity of investment to changes in
burden on monetary policy to support growth over bank borrowings of zombies versus non-
an extended period, implying that both issues may zombies.
be interconnected. This paper aims to examine only
As a first step, the study examines the role of
one aspect of this interconnectedness, i.e., whether
identified factors in influencing the likelihood of a
growth supportive monetary policy protects zombies
firm being categorized as a zombie. For this estimation,
and thereby clogs the creative destruction process in
a panel data logit model has been employed. Formally,
the Indian economy. Monetary policy actions tend
let or a firm with characteristics vector
to operate by impacting the cost of funds of firms
be represented as a zombie at time . In the case of a
and their volume of new borrowings (or change
logistic model, it can be expressed as:
in leverage), which in turn may influence new
investment decisions (or change in fixed assets). It
would be interesting to know how the cost of funds, Here is the cumulative distribution of
new borrowings and new investment of zombies and a standard normal distribution and and are
non-zombies respond to monetary policy shocks, individual and time fixed effects, respectively. The
under different liquidity conditions. Accordingly, the impact of specific variables on the likelihood of a
following three empirical issues are emphasised in firm being a zombie is estimated by examining the
this paper: marginal effect of a change in any variable, say

on . So, the marginal effect of a unit change separately studied for surplus and deficit liquidity
in the characteristics of variables on the likelihood phases [captured through annual average net liquidity
of a firm being categorised as a zombie could be adjustment facility (LAF) positions as a percentage of
approximated as: net demand and time liabilities (NDTL)]. To examine
whether zombies borrow from banks to undertake
new investment or to just survive by meeting current
expenses, the sensitivity of investment of firms to
new borrowings is studied next. Bank borrowings
Here is the normal probability density
can be broadly categorised into two types: short-term
function. These estimates show the incremental
borrowings and long-term borrowings, with the latter
impact of these variables on the likelihood of a firm
often indicating the intention of new investment by
being classified as zombies.
firms. In the data sample used in this paper, around
As the next step, the following panel regression 40 per cent of total bank borrowings are found to be of
framework is used to test the three specific empirical long-term.
hypotheses discussed earlier. The general specification Before proceeding to examine the three empirical
of the model is: issues, the importance of specific factors that may
characterise a firm as a zombie (or influence the
likelihood of a firm as a zombie) is assessed first (Table
2). A firm with a higher age profile (or that survives
where is the dependent variable, is the vector longer) is relatively less likely to be a zombie; but
of explanatory variables, and is the error term overall, zombies tend to succeed in surviving long
with individual fixed effect and time fixed effect enough, posing risks to creative destruction. A higher
. For certain regression specifications in which return on assets lowers a firm’s likelihood of being a
panel-invariant explanatory variables are included zombie. There are two interesting findings on banking
(for instance, the monetary policy rate is the same for relationships: first, firms having relationships with a
all firms during a year), only firm-specific fixed effect lesser number of banks are more likely to be zombies;
is considered for the estimation. second, firms with shorter banking relationships
are also more likely to be zombies. A longer banking
Monetary policy is captured through the weighted
relationship helps banks in acquiring soft information
average call rate (WACR) – the operating target of
about firms, which in turn may contribute to the
monetary policy in India, to study the impact on the realistic assessment of a firm’s creditworthiness. The
cost of funds of firms. In addition to WACR, the role banking relationship structure for zombies is expected
of firm-specific factors such as their size, profitability, to differ from that of non-zombies in a competitive
and the number and length of banking relationships banking system that may progressively assign greater
that may determine the cost of funds are also importance to the risk-return profile and outlook of
included in the model. To assess whether the credit firms rather than the past relationship with a firm.
channel of monetary policy works at the firm level, Zombies tend to depend more on bank borrowings
the differential bank borrowing pattern of zombies (evident for overall as well as long-term loans) as
and non-zombies in response to changes in their cost market sources may differentiate better between good
of funds is also estimated. The response pattern is and bad firms and deny access to the latter.

On the first empirical issue of interest, estimates insolvency and bankruptcy procedures could, thus,
suggest that a 100-basis point reduction in WACR lower the probability of accommodative monetary
lowers the cost of funds of firms by 35 basis points policy impeding creative destruction in an economy.
in the same year (Table 3). Surprisingly, in some
specifications, zombies seem to manage lower An increase in bank borrowings in response to
average cost of funds, which could be an indication an accommodative monetary policy shock is found
of the impact of evergreening to avoid higher explicit to raise the investment of firms, defined as the ratio
recognition of NPAs and the associated higher capital of incremental addition of fixed capital to total assets
charges by banks, or also simple relationship-based (Table 5). The sensitivity of investment, however,
banking that some banks may prefer to protect as is found to be lower for zombies. The interactive
long as the magnitude of the problem is manageable. dummy coefficient validates similar results even
The interactive dummy coefficient highlights that for long-term bank borrowings. Given that bank
compared to non-zombies, the cost of funds of
borrowings of zombies account for around 10 per cent
zombies is more sensitive to changes in WACR. An
of total bank credit absorbed by all non-financial firms
interest rate shock, expectedly, matters more to
in the past five years, they seem to be dampening
zombies but, from the standpoint of the effectiveness
of monetary policy, it is found that cost of funds of all the effectiveness of monetary policy to some extent.
firms (zombies and non-zombies) change in response The real investment response to an accommodative
to changes in WACR. Again, along the expected lines, monetary policy shock could strengthen if further
firms that are larger and profitable have lower average improvement in resource allocation in the banking
costs of funds. system could lower the share of zombies in the flow of
The lower average cost of funds tends to stimulate new credit from banks. An accommodative monetary
higher bank borrowings for all firms (Table 4). policy stance often aims at boosting the flow of credit
During liquidity surplus phases, borrowings are also to productive sectors of the economy and by intent,
generally higher, attesting to the overall effectiveness therefore, it does not work against the process of
of monetary policy. As one would expect, bank creative destruction, which is also corroborated by the
borrowings of zombies are comparatively higher empirical results of this article.
than non-zombies. However, importantly, zombies
borrow relatively less compared to non-zombies IV. Conclusion
during surplus liquidity conditions, which does not In the post-Global Financial Crisis (GFC) period,
support the perception that pro-growth counter- return to a robust and durable growth trajectory has
cyclical monetary policy may at times clog the creative been elusive for a vast majority of countries, even
destruction process in the economy. Normally, in
as counter-cyclical policies have experimented with
a period of economic slowdown, good firms may
extreme variants of conventional and unconventional
accumulate cash surpluses while bad firms may need
measures to support growth. In the process of doing
more credit to survive. Banks that may be driven by
credit growth targets could still meet the credit needs so, a perception has developed that such policies
of the latter, but in a well-supervised banking system, may be hindering creative destruction and thereby
the increasing emphasis on the risk sensitivity of contributing, quite inadvertently though, to lower
new assets created by banks may refrain them from trend investment and productivity growth. With the
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Appendix-1
Variables Definition
Age Age of a firm at time is defined as ( – the year of incorporation) number of years.
Size The logarithm of total assets.
Return on assets (ROA) Net income (i.e., profit after tax) to total assets (in per cent).
Leverage Total debt to total assets (in per cent).
Cost of funds Interest expenses to total average debt (in per cent).
Bank relationship (BR) The number of banks with which a firm has a relationship at time .
Bank relationship length (BRL) The maximum year of relationship with a bank (among all bankers) (in years).
Investment Addition to fixed capital in a year (new investment) to total assets (in per cent).
Bank borrowings Amount of bank borrowings during a year, including both short-term and long-term borrowings (in million rupees).
Average rating The average rating is the average rating for different instruments of a firm at time . The lowest rating value is 1,
representing default; the highest rating value is 8; any rating value of less than 4 falls under the risky category.
Zombie Dummy A dummy variable which takes the value of 1 if the firm is categorised as a zombie, else it is 0.
LAF Dummy A dummy variable which takes the value of 1 for the years when net LAF was in surplus, else it is 0.
Table 2: Factors that Determine the Likelihood of a Firm being a Zombie

Marginal Effects
P(Zombie Dummy=1) P(Zombie Dummy=1) P(Zombie Dummy=1) P(Zombie Dummy=1)
Age -0.00692*** -0.00403*** -0.00483*** -0.00425***

(0.00123) (0.00128) (0.00155) (0.00154)
Number of Banking Relationships -0.0136** -0.00287 -0.0177** -0.00844
(0.00556) (0.00572) (0.00839) (0.00678)
Return on assets -0.120*** -0.120*** -0.126*** -0.126***
(0.00304) (0.00302) (0.00392) (0.00391)
Bank relationship length -0.0205*** -0.0185*** -0.0179***
(0.00319) (0.00378) (0.00375)
Bank borrowings 0.0526**
(0.0207)
Long-term bank borrowing share 0.00287***
(836 10-6)
Constant -1.620*** -1.563*** -1.833*** -1.665***
(0.0529) (0.0520) (0.132) (0.0751)
N 26183 26183 17607 17607
Firm fixed effect Yes Yes Yes Yes
Year fixed effect Yes Yes Yes Yes
Standard errors in parentheses. * p < 0.1, ** p < 0.05, *** p < 0.01.
Source: Authors’ estimates.

Table 3: Sensitivity of Cost of Funds to Monetary Policy Changes

(1) (2) (3) (4) (5)
Cost of Funds Cost of Funds Cost of Funds Cost of Funds Cost of Funds
WACR 0.356*** 0.356*** 0.340*** 0.356*** 0.320***

(0.0201) (0.0201) (0.0207) (0.0201) (0.0321)
Size -0.262*** -0.260*** -0.258*** -0.259*** -0.261***
(0.0534) (0.0535) (0.0535) (0.0571) (0.0571)
ROA -0.0261*** -0.0277*** -0.0275*** -0.0277*** -0.0276***
(0.00559) (0.00577) (0.00577) (0.00579) (0.00579)
Zombie Dummy -0.139 -2.062*** -0.139 -0.141
(0.124) (0.616) (0.124) (0.124)
Zombie Dummy WACR 0.291***
(0.0914)
BR -0.000781 -0.0437
(0.0166) (0.0344)
BR WACR 0.00656
(0.00460)
Constant 10.06*** 10.06*** 10.15*** 10.06*** 10.31***
(0.457) (0.457) (0.458) (0.465) (0.498)
N 26183 26183 26183 26183 26183
Overall 0.00992 0.0101 0.0104 0.0100 0.00993
Firm fixed effect Yes Yes Yes Yes Yes
Year fixed effect No No No No No
Standard errors in parentheses. * p < 0.1, ** p < 0.05, *** p < 0.01. Source: Authors’ estimates.
Table 4: Sensitivity of Bank Borrowings to Changes in Cost of Funds

(1) (2) (3)
log(Bank Borrowings) log(Bank Borrowings) log(Bank Borrowings)
Cost of funds -0.0148*** -0.0149*** -0.0160***

(0.00188) (0.00188) (0.00194)
Zombie Dummy 0.367*** 0.436*** 0.299***
(0.0250) (0.0298) (0.0701)
LAF Dummy 0.0259** 0.0387*** 0.0384***
(0.0113) (0.0117) (0.0117)
Zombie Dummy LAF Dummy -0.199*** -0.146***
(0.0470) (0.0472)
Zombie Dummy Cost of funds 0.0125**
(0.00567)
Constant 6.735*** 6.732*** 6.743***
(0.0208) (0.0208) (0.0214)
N 17607 17607 17607
Overall 0.00340 0.00418 0.00471
Firm fixed effect Yes Yes Yes
Year fixed effect No No No
Standard errors in parentheses. * p < 0.1, ** p < 0.05, *** p < 0.01.

Table 5: Sensitivity of Investment to Changes in Bank Borrowings

(1) (2) (3)
Investment Investment Investment
Long-term bank borrowings 162 10-8*** 181 10-8***

(367 10-9) (379 10-9)
Zombie Dummy -0.0112*** -0.00823** -0.0108**
(0.00309) (0.00343) (0.00534)
ROA 631 10-6*** 626 10-6*** 731 10-6***
(161 10-6) (161 10-6) (158 10-6)
Long-term bank borrowings Zombie Dummy -132 10-8**
(662 10-9)
Long-term bank borrowings / total bank borrowings 423 10-6***
(391 10-7)
Long-term bank borrowings / total bank borrowings Zombie Dummy 220 10-6
(102 10-6)
Constant 0.0839*** 0.0839*** 0.0691***
(0.0140) (0.0140) (0.0135)
N 17259 17259 15788
Overall 0.0178 0.0176 0.0600
Firm fixed effect Yes Yes Yes
Year fixed effect Yes Yes Yes
Standard errors in parentheses. p < 0.1,

* **
p < 0.05, ***
p < 0.01.

Bad Banks as Good Samaritans: ARTICLE
Bad Banks as Good Samaritans: to understand the characteristics that helped in their
success. The features of the NARCL are then juxtaposed
Lessons from Cross-Country against the lessons learnt from international
Experience for India* experience to gauge the possibility of its success. The
rest of the article is structured as follows- Section 2
The cross-country experience in management of non- explains the concept and the evolution of bad banks
performing assets (NPAs) suggests that the establishment and Section 3 elaborates upon cross-country design
of a bad bank proves most effective when it has adequate elements. Sections 4 and 5 outline the advantages in
government and legal backing. In the Indian context, their creation and challenges faced in their operation,
the setting up of the National Asset Reconstruction respectively. The next section evaluates the features
Company Ltd. (NARCL), with a clear mandate and an of the NARCL vis-à-vis cross-country learnings, while
explicit government guarantee, will help in alleviating Section 7 concludes.
the financial stress on commercial banks. NARCL will 2. Concept and Development of Bad Banks
be an additional mechanism for resolution of large
stressed assets, complementing the activities of existing Globally, the policy options to deal with the
asset management companies. Going forward, continued overhang of non-performing assets (NPAs) include loan
commitment, professional staff and transparency in restructuring, harnessing and reforming insolvency
operation will help in making the exercise cost and time and resolution frameworks and operationalisation of
effective. bad banks. Although these alternative mechanisms
have been tried and tested over a period across
1. Introduction
countries, the bad bank remains one of the more
The establishment of the National Asset popular concepts, especially while dealing with
Reconstruction Company Ltd. (NARCL) as a ‘bad bank’ system-wide stressed assets.
and the recent announcement by the Government
The term ‘bad bank’ may be used to represent any
to extend guarantee of `30,600 crore for its security
structure which enables a segregation of performing
receipts (SRs) have been received with enthusiasm as
assets from the non-performing, either on or off-
well as scepticism in equal measure1. While some have
balance sheet. On-balance sheet models, where
hailed this development as a panacea for all ills, other
bad assets are placed in a separate internal unit,
less sanguine analysts point out the pre-existence of
help increase transparency and work as a signalling
a multitude of avenues for resolution of distressed
mechanism for the market, showcasing the bank’s
assets and the challenges faced by them.
commitment to clean its balance sheet. The off-
Such conflicting views represent the trade-offs balance sheet models, on the other hand, can take the
inherent in establishment of bad banks. The present form of a special-purpose entity structure, wherein
paper analyses cross-country practices of such banks bad assets are offloaded, securitized and sold to a
diverse set of investors. Alternatively, the bad assets
* The article is prepared by Dr. Snehal S. Herwadkar, Arpita Agarwal
can be shifted to an external asset management or
and Sambhavi Dhingra from Banking Research Division of Department
of Economic and Policy Research under the guidance of Ashok Sahoo, reconstruction company (AMC/ARC). The latter model,
Adviser. The views expressed in this article are those of the authors and though complex and expensive, ensures maximum
do not represent the views of the Reserve Bank of India.
1 Press Bureau of India, press release dated September 16, 2021, available
risk transfer in comparison to the others (Martini, et
at https://pib.gov.in/PressReleseDetailm.aspx?PRID=1755466. al., 2009).

ARTICLE Bad Banks as Good Samaritans:
mandate, well-defined lifespan, realistic pricing and

Table 1: CAMCs and their Dates of Establishment
explicit government financial support have also been
Country Name of Centralised Asset Management Establishment
Company Date touted as reasons for their success (Fung, George,
Korea Korean Asset Management Company (KAMCO)* 1962 Hohl, and Ma, 2004).
US Resolution Trust Corporation (RTC) 1989
Sweden Securum 1992
3.1 Financing of CAMC
Indonesia Indonesian Bank Restructuring Agency (IBRA) 1998
A bad bank can be financed through partial or full
Malaysia Danaharta 1998
Orient, Great Wall, Cinda, Huarong Asset funding by the government—either through issuance
China 1999
Management
of bonds or through equity contribution, special loans
Japan Resolution and Collection Corporation (RCC) 1999
Thailand Thai Asset Management Company (TAMC) 2001 from the central bank, or public offering of shares. In
Ireland National Asset Management Company (NAMA) 2009 the case of Sweden and the United States, Securum
Germany FMS Wertmanagement 2010
and Resolution Trust Corporation (RTC), respectively,
UK UK Asset Resolution Limited (UKAR) 2010
Spain SAREB 2012 were funded fully by their respective governments
Note: *KAMCO’s role expanded after the Asian Financial Crisis. (Bhagwati, Khan, & Bogathi, 2017). In many East
Asian countries, CAMCs have been financed through
The present study focuses on centralised asset issuance of government guaranteed AMC bonds, which
management companies (CAMCs)- characterised by allows the government to keep the potential liability
varying degrees of government involvement and off its balance sheet. For instance, the Korean Asset
discusses their design features, while outlining factors Management Company (KAMCO) issues government-
that led to the success of some CAMCs over others. guaranteed bonds to raise funds and other financial
Pioneered in the 1980s in the US, the idea of CAMCs institutions contribute about one-fourth of its paid-
received traction when several other countries adopted up capital (He, 2004). Explicit government guarantee
it in the aftermath of the East Asian Crisis in the late ensures that these bonds are often characterised by
1990s, and more recently, after the global financial
zero risk weight in capital adequacy calculations, thus
crisis (GFC) (Annex I). A list of CAMCs reviewed for
providing an incentive to banks to invest in them.
this study, along with their dates of establishment, is
presented in Table 1. 3.2 Acquisition of Bad Assets
3. Design Elements of Bad Banks: Cross-Country CAMCs have historically bought toxic assets
Evidence from financial institutions, mostly from banks and
investment trust companies, at varied discount rates,
Centralised bad banks can be differentiated from
ranging from 20 per cent to 80 per cent. Typically, the
each other based on several criteria, such as their
seller is compensated with cash and security receipts
capital funding, methods of acquisition of assets and
(SRs), the latter usually guaranteed by the government.
the price paid for the same, mechanism for disposal
NPAs are also screened based on whether their
of bad loans, as also the bank’s winding down strategy
collateral and transfer rights are legally executable.
on completion of its objective. An analysis of cross-
Some of the other factors that are considered in the
country experiences suggests that political consensus,
acquisition process are as follows:
efficient legal processes, adequate statutory powers
to the new institution, well-developed financial • Depending on the degree of government
markets and use of private sector expertise are crucial involvement and the mandate of the bad
ingredients for the success of bad banks (Martini, et bank, transfer of stressed assets can be
al., 2009). In the case of some Asian AMCs, a clear voluntary or compulsory. In Thailand, for

instance, while TAMC acquired assets from in the sectoral composition of the bad assets
both government-owned and private-owned they acquire. In China, for example, the four
financial institutions, transfer of qualifying state-owned AMCs took over diverse assets,
assets was obligatory for the former and ranging from the manufacturing sector to the
optional for the latter. farm sector. IBRA has concentrated more on
corporate loans, which constitute 84 per cent
• In some cases, bad banks are mandated to
of its acquired assets. On the other hand,
buy only a part of the toxic assets. In South
some of the European AMCs, such as NAMA
Korea, for example, half of the loans were
and SAREB, have land and commercial real
required to be disposed off by financial
estate as their target assets and acquire these
institutions themselves, and the remaining
from different banks.
half were to be purchased by the CAMC.
In Malaysia, Danaharta concentrated only 3.3 Pricing and Recovery
on non-performing loans (NPLs) above
The viability and success of the bad bank crucially
MYR 5 million, as smaller NPLs would be
depend upon pricing that is fair to both the originator
best handled by the financial institutions
bank as well as the CAMC, irrespective of the method
themselves. Moreover, the sheer number of
of transfer. Overpriced NPAs dampen the CAMC’s
accounts relating to small loans made it cost
profitability and ability to achieve the mandate, in
and time ineffective to be dealt with by a
addition to serving as a disguise for the government
centralised AMC.
to bail out troubled financial institutions. Alternately,
• There are wide variations in terms of the acquiring NPAs at very low prices defeats the purpose
volume of assets taken over in different of the entire exercise, affecting the financial gain
countries depending on the scale of the that banks stand to make. Countries adopt different
problem and the capacity of the bad bank, mechanisms to decide on the transfer price depending
among other factors. Danaharta acquired 80 on various factors like the availability of data, nature
per cent of the total NPLs, while the Irish and quality of assets acquired, and the market for
NAMA took over assets worth 44 per cent of stressed assets (Table 2). In the European countries,
the country’s GDP in 2009. transfer price is typically set between the estimated
(current) market value and the estimated real (long
• In some cases, there are geographical
term) economic value, which in turn is based on
restrictions on acquisition of assets; for
projected future cash flows, book value, market
example, in China, the local and provincial
value, value of collateral, and probability of recovery,
AMCs being set up since 2013-14 can only
amongst others.
acquire toxic assets originating from the
same region in which they are located, 3.4 Management and Disposal of Assets
although no such regional restrictions exist
Acquisition and aggregation of assets by a
while disposing them off.
centralised agency does not in itself guarantee their
• Bad banks can also be distinguished based on effective or profitable handling, as the two functions
whether their mandate is sector-specific or may require separate sets of skills and expertise. In
general purpose. General purpose bad banks Malaysia, for example, Danaharta was accompanied
are those which do not make a distinction by a Corporate Debt Restructuring Committee, as well

Table 2: Pricing, Acquisition and Recovery

Bad Bank Purchase or Transfer Price Assets acquired Average rate of
(as percentage recovery
of GDP) (per cent)
Danaharta Market value based on new appraisal for real estate loans; 10 per 5 58
cent of outstanding principal in case of unsecured loans.
Indonesian Bank Restructuring Agency (IBRA) Assets transferred at zero value. 27 22
KAMCO Based on present value of discounted projected cash flows; 3 per 20 47
cent of face value in case of unsecured loans.
Orient, Great Wall, Cinda, Huarong NPLs purchased from respective banks at book value. 18 34
Resolution Trust Corporation (RTC) Did not purchase assets. N.A. 87
SAREB Based on real economic value calculated by independent valuation 10 N.A.
reports, determined by the Central Bank.
Securum Did not purchase assets. Loans and associated reserves were 4 N.A.
transferred, while the government recapitalised the banks directly.
NAMA Transferred below book value and paid for with Irish Government 44 33
Bonds based on appraisals.
N.A.: Not applicable/ not available.

Source: Based on referred research papers.
as Danamodal, a banking recapitalisation agency, to specified time period. SAREB aims to make a profit
aid the completion of the resolution process. Joint of 15 per cent over its 15-year life, while the UKAR
venture partnerships are also used to access specialised was set up to sell off the government’s stake in the
knowledge on asset management and bridge the lack troubled institutions. The ‘Asian view’, on the other
of expertise in a government-owned AMC. hand, usually believes in making AMCs a part of its
financial crisis toolkit, retaining the infrastructure
Techniques employed by CAMCs for asset disposal
and expertise, while requiring safeguards to prevent
are tailor-made to suit the type of assets being dealt
moral hazard problems (Martin, 2020). While the
with. Viable loans may be restructured, while the non-
Chinese and Korean AMCs had no clear sunset dates,
viable businesses, assets, or the underlying collateral,
Danaharta was set up with a finite timeline and
are sold off. For example, homogenous assets could
wound down its operations in 2005.
be pooled and securitised through issuance of asset-
backed securities. Cases in which liquidation of 3.6 Super Legal Powers
individual assets is required, foreclosure and public In countries where the extant legal system
auctions of collateral are undertaken for price caused impediments or delays to debt workouts,
discovery. restructuring negotiations or foreclosures, the CAMCs
were bestowed with super legal powers to overcome
3.5 Wind-down Strategy
the hurdles. For instance, Danaharta was conferred
Two views have emerged on the ideal lifetime of with two special powers: ability to acquire NPLs via
the AMC. The ‘European view’ is dominated by moral statutory vesting with certainty of title; and power to
hazard concerns and advocates a clearly defined, appoint independent special administrators to manage
realistic lifetime of the AMC, with asset transfers financially troubled company borrowers. Similarly,
from banks preferably being completed in a single SAREB enjoys a special status as a preferential creditor
round. SAREB, UKAR and FMS were all set up with for subordinated debt over other creditors, and other
clear mandates of winding up after making profits or legal advantages that do not apply to all Spanish
selling off all the loans on their books, or after a pre- limited liability companies. NAMA, under its Act,

has been allowed to take over commercial real estate preserving the economic value of assets. For
collateral from its insolvent debtors, a facility not instance, RTC timed the sale of its real estate
allowed for other lenders in Ireland. assets so as to not cause further deterioration
in prices.
4. Advantages of a Centralised Bad Bank
• Consolidation of stressed loans in bad banks
Evidence world-wide suggests that a centralised
and centralised ownership of collateral can
bad bank can help in substantial stress reduction and
effectively address the problems faced by
has various systemic benefits, complementing and
individual banks in attracting investors for
enabling the pre-existing stressed asset resolution
these assets. For instance, public AMCs in
mechanisms.
Asia provided a market for NPLs by giving
• For selling banks, the clear segregation of banks an option to either sell their NPLs
weak assets from the rest grants an occasion or through forcing them to offload the
and rationale to restructure its balance problematic assets (Lee, 2020).
sheet and reshape the business model,
• Centralised AMCs and public or private ARCs
while providing transparent insights to
can complement each other, like in Thailand,
customers and investors into the bank’s core
and need not be substitutes in stressed
performance. By freeing up provisions and
assets management. Bad banks can hold
thereby, boosting capital for lending, CAMCs
assets which the private AMCs may not, due
enable banks to support the economy. Scarce
to their long gestation periods, or the assets
human resources can also concentrate on
that might not be adequately profitable in the
more important banking operations such as
medium term but are economically important
new lending, rather than managing distressed
and have significant positive externalities
assets and corporate restructuring.
(Acharya, 2017)
• The CAMC model can be relied upon when
• CAMCs are usually set up through special
banks do not have sufficient resources to
acts of law or through government orders.
resolve large amounts of NPAs through
As such, they can be bestowed with special
individual departments within banks or
legal powers to accelerate loan recovery, as
through subsidiaries. As opposed to internal
seen in some successful experiences such as
restructuring, a CAMC provides a swift
Danaharta.
vehicle to get stressed assets off a bank’s
balance sheet and reduces the need for fresh • The use of cash and/or coupon-paying
recapitalisation either from the government government-guaranteed securities to
or from markets. purchase NPAs, apart from being more
attractive than the SRs issued by private
• Leveraging this mechanism, banks can avoid
ARCs, improve banks’ balance sheets and add
fire sales of assets which result in lower
to the income of the financial institutions.
recovery values. Gradual sales through
It facilitates more efficient price discovery
CAMCs that have expertise in the field can
through creation of a vibrant market for
help in optimal recovery rates.
distressed assets and a uniform valuation
• CAMCs are usually driven by other concerns criterion as compared to private forces
in addition to value maximisation, such as working in isolation.

5. Challenges of a Centralised Bad Bank reducing the NPLs, it has come at a cost to the
government exchequer (Fung, George, Hohl,
Economists and policymakers have long
acknowledged that the establishment of a bad & Ma, 2004).
bank is fraught with many trade-offs. These include • Another challenge that emerges is keeping
– how to relieve banking stress without encouraging the bad bank funded enough to tackle a major
moral hazard; how to minimise the cost to the share of NPLs. International experience
government exchequer and how to arrive at a valuation suggests that in certain cases, the bad bank’s
that is fair to both the acquiring entity as well as the resources accounted for a miniscule share
seller. In view of the following serious challenges, of the bad assets, thus rendering the whole
utmost care needs to be taken in their design and exercise redundant.
structure.
• Market creation for distressed assets and
• Bad banks, essentially formed to ease the their fair valuation at both the buying and
burden off banks’ balance sheets, may selling stages is another operational challenge
encourage further build-up of risky assets. that arises, as it determines the viability and
Knowing that they have the bad bank option sustainability of the solution. Asset disposal
to fall back on, banks may become less vigilant by state-owned AMCs may be disincentivised
in giving out loans, leading to the problem of by challenges such as political pressures
moral hazard. against selling of certain assets and the fear
• The design of CAMCs needs to be carefully of audit scrutiny relating to sell-offs (Fung,
crafted to suit country-specific and/or sector- George, Hohl, & Ma, 2004).
specific requirements. Furthermore, there is • The CAMCs, by virtue of being financed
also a tendency to deviate from the primary by the government, are required to take
objective as in the case of China’s big four a macroeconomic perspective rather than
bad banks, wherein investments in financial focusing on asset value maximisation. Thus,
institutions—such as banks and insurance their decisions relating to either sell-offs or
companies—rather than in bad loans, now retaining the assets may be constrained by
constitute a major part of their business the need to help stabilise asset markets.
(Ingves, Seelig, & He, 2004). There is also a
• Lack of transparency in operations and lack of
need to provide proper incentives to their
reliable data can hinder the objective valuation
governing bodies and employees, as staff
of assets and creation of optimal portfolios
recruitment and retention are problems that
for resale (Deloitte, 2020). In countries such
often arise.
as Ireland and Spain, insufficient or missing
• Financing remains a dominant issue in documentation created hurdles in smooth
the context of a central bad bank. Unless functioning of their CAMCs (Cas & Peresa,
carefully designed and efficiently executed, 2016).
the cost of setting up a CAMC falls inevitably
6. Stressed Assets Management in India
on the resource-constrained government,
and ultimately, on the taxpayers. Even in The Indian banking system has been weighed
countries where the CAMC has succeeded in down by mounting NPAs since 2012. Various

mechanisms like Lok Adalats, Debt Recovery the right price for a bad asset could be tricky and these
Tribunals, SARFAESI Act and the Insolvency and commercial decisions can go wrong with evolving
Bankruptcy Code (IBC) are available to banks to deal circumstances. In such a situation, not taking bold
with the stress, while maintaining these assets in actions for resolution now and kicking the can down
their books till resolution. An internal restructuring the road may always be perceived as a pareto superior
unit-like model has also been experimented in India, option.
but only with partial success. While the Specified The experience so far suggests that due to
Undertaking of Unit Trust of India (SUUTI) was set up repeated litigations, the resolution processes drag on,
as a special purpose entity with the primary function leading to asset value erosion, which adversely affects
of managing the bad loans of UTI and administering the health of the banking sector in the meantime.
redemptions, it is yet to be wound up. Other assets The ineffectiveness of these mechanisms manifests
that were transferred to SUUTI have subsequently itself in the large outstanding stock of bad assets,
increased in value, disincentivising their disposal and a major share of which (72.1 per cent as at end-
making their retention and continuation of SUUTI as September 2021) are in the balance sheets of PSBs,
a going concern, beneficial. resulting in the burden of recapitalisation falling on
Alternately, banks can exercise the option of the public exchequer. Moreover, the bad loan problem
outright sale of bad loans to private ARCs against has dampened the risk-taking ability of the banks,
the issue of SRs, albeit at a haircut. The ARC model affecting their credit growth.
has proved to be constrained by several factors, like Design Features of NARCL
vintage NPAs being passed on to them, lack of debt
Certain features of NARCL closely resemble
aggregation, non-availability of additional funding for
successful models adopted elsewhere and may prove
stressed borrowers, difficulty in raising funds by the helpful in reducing the NPA stress.
ARCs, etc. Also, they lack the focus on recovery and
acquiring necessary skill sets for holistic resolution • Structure: The establishment of NARCL
for acquiring and consolidating stressed
of distressed borrowers (RBI, 2021). Further, the
assets, along with the India Debt Resolution
uncertainty surrounding recovery makes the
Company Limited (IDRCL) for managing
secondary market for SRs illiquid, causing these SRs to
these assets by engaging market professionals
remain on the books of the subscribing entity, which
and turnaround experts, is similar to the
are often the original selling banks themselves (Yadav
mechanism followed in Malaysia, which
& Chavan, 2021).
proved highly successful in resolving its
In the Indian case, majority of the bad assets stressed assets.
lie with public sector banks (PSBs) and their top
• Ownership: NARCL, has an initial capital base
management have always faced a dilemma while
of `6,000 crores, of which PSBs own a majority
taking decisive action on stressed assets: what is
(51 per cent) stake while the remaining
the right amount of haircut that could be assumed
shareholding vests in private sector banks and
without the fear of raising eyebrows now and the
non-bank finance companies3. This structure,
possibility of vigilance action in the future?2 Deciding
thus, does not put immediate strain on the
2 ‘CVC finds many flaws in sale of bad debt by banks’, Times of India
3 Accessed on February 14, 2022, from https://www.moneycontrol.com/
dated March 18, 2019. Available on https://timesofindia.indiatimes.com,
accessed on February 15, 2022. article dated October 5, 2021.

government’s limited resources. The majority are bound to improve the liquidity and
private shareholding of the IDRCL and the tradability of SRs, helping in development of
resultant professional and expert handling of a secondary market for them.
bad assets is expected to ensure maximum • Complementarity with existing ARCs: Under
and timely recovery. the proposed mechanism, NARCL is required
• Acquisition: The NPAs will be acquired from to go for the “Swiss Challenge method”,
banks by paying up to 15 per cent of the where the 28 existing ARCs in India will be
agreed or discounted value of the loans in invited to make a better offer for the stressed
cash, while issuing government-guaranteed asset. Rather than being substitutes or rivals
SRs for the rest, following successful models as buyers in the market of stressed assets, the
such as Korea and Malaysia. Given that in nationalised entity will act as a complement
phase I, assets worth `90,000 crores (out of to the existing companies. They will help
total planned acquisition of `2,00,000 crores) in debt consolidation, minimising the time
that have already been fully provided for taken for aggregating the bad loans, and
are expected to be acquired, recovery will avoiding the inter-lender litigations.
instantly strengthen banks’ balance sheets.
7. Conclusion
Further, by concentrating on legacy large
value accounts of more than `500 crores, Creation of a bad bank at the current juncture
the NARCL may lead to faster resolution of may prove helpful in reducing banking stress and
overall stress4. kick-start the credit cycle. The cross-country evidence
suggests that if the logistical and financial challenges
• Government guarantee: The guarantee of
are carefully navigated, experiments of centralised
up to `30,600 crores may be invoked to
bad bank can have more hits than misses. While it
make good the shortfall between the face
may be unfair to hail them as a universal antidote
value of the SR and the actual realisation.
to deal with financial stress, they have proven to be
The time-bound nature of the guarantee,
valid for 5 years conditional on resolution or a worthwhile exercise when armed with conducive
liquidation, and gradual increase in guarantee institutional frameworks. Experience of international
fee payable to the government by NARCL, best practices suggests that the NARCL in India
are expected to disincentivise any delays in is likely to serve as a time-efficient mechanism,
resolution. The structure, ownership pattern while reviving investor interest in primary as well
and the government guarantee backing the as secondary markets for stressed assets and SRs,
SRs is expected to impart credibility to the respectively. Going forward, continued commitment,
institution and allay fears of banks regarding professional staff and transparency in operation will
scrutiny by various regulators about their help in making the exercise cost and time effective. At
sell-off decisions. the same time, care needs to be taken to ensure that
fresh slippages are arrested, and bank balance sheets
• Security Receipts: Apart from reducing
are strengthened to avoid future build-up of stress.
upfront capitalisation requirements of the
bad bank, guarantees by the government References
Acharya, V. (2017). Some Ways to Decisively Resolve
4 At the time of publishing of this article, assets worth `50,000 crores are Bank Stressed Assets. Indian Banks’ Association
scheduled to be transferred to the NARCL by end-March 2022. Accessed
from https://www.thehindubusinessline.com/ article dated January 28, 2022. Banking Technology Conference. Mumbai.

Bhagwati, J., Khan, M. S., & Bogathi, R. R. (2017). Lee, J. (2020). Country Case Studies on Resolving
Can Asset Reconstruction Companies (ARCs) be Part Problem Loans in Asia. SEACEN Centre Seminar.
Solution to the Indian Debt Problem? Working Paper Manila: Asian Development Bank.
No. 338, ICRIER.
Martin, R. (2020). Asset Management Companies
Cas, S. M., & Peresa, I. (2016). What Makes a Good ‘Bad and NPL Resolution. SEACEN Webinar. Joint Vienna
Bank’? The Irish, Spanish and German Experience. Institute.
European Commission Discussion Paper No. 036.
Martini, L., Stegemann, U., Windhagen, E., Heuser, M.,
Deloitte. (2020). Bad Banks in India. Schneider, S., Poppensieker, T., . . . Brenna, G. (2009).
European Commission. (2018). AMC Blueprint. Bad Banks: Finding the Right Exit from the Financial
Brussels. Crisis. McKinsey Working Papers on Risk.
Fung, B., George, J., Hohl, S., & Ma, G. (2004). Public asset McCauley, R. (2003). Unifying government bond
management companies in East Asia- A comparative markets in East Asia. paper presented at the Hong
study. Occasional paper, Financial Stability Institute. Kong Institute of Monetary Research, Hong Kong SAR.
He, D. (2004). The Role of KAMCO in Resolving Reserve Bank of India (2021): Report of the Committee
Nonperforming Loans in the Republic of Korea. IMF to Review the Working of Asset Reconstruction
Working Paper. Companies (Chairman: Shri Sudarshan Sen).
Ingves, S., Seelig, S. A., & He, D. (2004). Issues in the Terada-Hagiwara, A., & Pasadilla, G. (2004). Experience
Establishment of Asset Management Companies. IMF of Asian Asset Management Companies: Do They
Policy Discussion paper, PDP/04/3. Increase Moral Hazard?- Evidence from Thailand. ERD
Working Paper No. 55, Asian Development Bank.
Klingebiel, D. (2000). The Use of Asset Management
Companies in the Resolution of Banking Crises: Cross- Yadav, A., & Chavan, P. (2021, April). ARCs in India: A
Country Experience. World Bank Policy Research Study of their Business Operations and Role in NPA
Working Paper No. 2284. Resolution. RBI Bulletin.

Annex I: Cross-Country Experience
Country Background Name of bad Year Structure Comments

bank
Sweden A deflation Securum for 1992- • Securum bought assets worth • The model, combining
in housing Nordbanken 1997 SEK 67 billion (a little over recapitalisation, government
bubble in and Gota 4 per cent of GDP) from guarantee, nationalisation
1991-92 Nordbanken at SEK 50 billion of certain banks along with
resulted in and worth SEK 45 billion from creation of a bad bank, was
widespread Gota, (amounting to 3 per cent highly successful in ending
bank of the banking sector’s assets). the banking crisis.
insolvency.
• The price of bad assets was • The entire Securum exercise
determined by consultants cost tax-payers SEK 35 billion,
and government examiners, about SEK 15 billion less
as close to pure market value than initial estimates which
as possible. amounted to 2.1 per cent of
GDP at 1997 prices.
South Asian crisis Korea Asset 1997 • KAMCO is a centralized • Half of the loans were bought
Korea Management publicly owned asset by financial institutions
Corporation management company (setup themselves by either selling
(KAMCO) in 1962), also involved in off collateral or calling
corporate restructuring. in loans, while KAMCO
purchased the other half.
• Its major shareholders are the
government (42.8 per cent), • Successful in reducing NPLs
the Korean Development but at a high net cost.
Bank (28.6 per cent), and
other financial institutions
(28.6 per cent).
• KAMCO purchased over
300,000 NPLs with a face
value of won 110 trillion
(approximately US$92
billion), representing 9 per
cent of financial sector assets
or about 20 per cent GDP from
banks and non-bank financial
institutions.
Malaysia Asian Danaharta 1998- • Danaharta was a public • Successfully stopped further
currency 2005 company, wholly owned by slippage, repaid all its bonds
crisis the Government, which had as of March 2005, was wound
statutory backing. up after seven years in
December 2005.
• Danaharta took over NPLs
of more than MYR 5 million, • Incurred a small loss for the
amounting to around 70 per government, on a cumulative
cent of the banking system’s basis.
NPLs at a discount.
(Contd.)


bank
• Borrowers with viable loans

were allowed to restructure
and rehabilitate their loans
while non-viable loans were
recovered through sale of a
borrower's business, assets or
the underlying collateral.
China One AMC Big Four 1999 • During the original process, • Bad banks, instead of closing
each was AMCs the government required the down as initially planned,
formed to (Cinda, AMCs to buy the assets at face turned into financial
acquire bad Huarong, value rather than at fair value, conglomerates, picking up
loans worth China based on credit performance. brokerage and real estate
RMB 1.4 Orient, and operations and even lending
• Government provided each
trillion from Great Wall) for takeovers.
AMC with an initial equity
its big four
capital injection of RMB 10
state-owned
billion (USD 1.2 billion).
commercial
banks. • The big four banks transferred
their NPLs to their respective
linked but independent
AMCs.
Ireland Irish National 2009 • The NAMA Bill applied to • The assets were purchased
financial Asset the six financial institutions by using government bonds,
crisis Management which were covered by the which led to a significant
and Irish Agency Irish government's deposit increase in Ireland's gross
property (NAMA) guarantee scheme. national debt.
bubble
• NAMA arranged and
supervised the identification
and valuation of property-
backed loans on the books
of qualifying financial
institutions in Ireland, but the
purchase and management
of these loans were the
responsibility of a SPV.
• The privately funded SPV
purchased assets from
financial institutions by
issuing securities, most of
which were backed by a
government guarantee.
(Contd.)


bank
Germany Global Unwinding 2009 • The bank got three billion • WestLB was split into
financial institute for euros in capital from WestLB three parts, one of which
crisis of WestLB and one billion euros in was the bad bank, Erste
2008 guarantees from shareholders Abwicklungsanstalt (EAA),
to cover potential losses from which was winding down bad
the portfolio. assets worth around 51 billion
euros as of the end of 2011.
• The savings and loan
The EAA was also tasked with
institutes of North Rhine-
winding down about 100
Westphalia provided
billion euros of additional
guarantees worth one billion
assets from WestLB’s final
euros, while Berlin provided
breakup.
up to four billion euros.
United Global UK Asset 2010 • Was set up to facilitate • Sold off its final assets in
Kingdom financial Resolution the orderly wind down of February 2021.
crisis of (UKAR) the government owned
2008 businesses of NRAM Limited
and Bradford & Bingley plc
(B&B), including its subsidiary
Mortgage Express Managed by
UK Government
• Investments (UKGI) on behalf
of HM Treasury.
Spain Formed in SAREB 2012 • Private shareholders own 55 • SAREB aims to make a profit
the wake per cent of SAREB and the of 15per cent over its 15-year
of systemic remaining 45 per cent is held life.
financial by the Fund for Orderly Bank
• However, SAREB is struggling,
distress Restructuring (FOBR).
as a slump in Spanish real
with the
• It received funding from the estate prices has depressed
burst of a
European Union via 1) capital the value of loans and
real-estate
injection into the FOBR from foreclosed assets it took on,
bubble.
the European bailout fund despite buying them at the
and 2) acceptance of the time at a substantial discount.
bonds issued as payment for
supposedly impaired assets
by the ECB.
• SAREB functions by acquiring
property development loans
from Spanish banks in return
for government bonds. The
Spanish central bank is
responsible for asset price
setting.
Source: Based on referred research papers.

Impact of COVID-19 on Sentiments of Indian Manufacturers ARTICLE
Impact of COVID-19 on pace of the expected recovery process as perceived by

the enterprises.
Sentiments of Indian
The Industrial Outlook Survey (IOS) conducted
Manufacturers* by the Reserve Bank plays an important role in
supporting monetary policy decision. Being a forward-
This article lists the key findings of the industrial outlook looking survey, IOS captures the sentiments of
survey (IOS) for the manufacturing sector conducted enterprises engaged in manufacturing activities. The
during 2019-21. The sentiments of the respondents perception includes the assessment of the current
reflected that the slowdown in growth momentum was quarter and expectations for next quarter. In the
mainly due to weakening of demand for three consecutive wake of coronavirus outbreak in early 2020, along
years beginning 2017-18. Just when the manufacturers’ with other sectors, the manufacturing industries also
outlook started looking up, the COVID -19-induced got impacted adversely. After coping with the first
lockdown measures slowed down the revival process. The wave, the economy showed some signs of recovery
pandemic affected the producers’ sentiments negatively from Q3:2020-21. Although the second wave of the
by bringing down the survey parameters to historic pandemic again worsened the economic conditions,
lows. While the impact of the second wave has been the manufacturing sector quickly regained traction.
less pronounced than the first one, and various macro Though the economic activities were impacted by
parameters related to manufacturing sector may soon sudden surge of omicron variant of the pandemic in
attain their pre-COVID levels, the process of attaining end-December 2021, the impact is likely to be much
their long-term trend levels may take some time. lower.
Introduction Against this backdrop, the present article aims
In early 2020, the COVID-19 pandemic spread to extract the stylised facts emanating from various
with alarming speed infecting millions and bringing rounds of survey conducted since 2019. At the same
economic activity to a near-standstill. The economic time, the outlook on the recovery process as perceived
damage became evident and turned out to be the by the manufacturers are also presented in this article.
largest economic shock the world has experienced in During this period, total 11 rounds of the survey were
decades. This posed tough challenges to policymakers. conducted by the Reserve Bank i.e., round 86 (April-
As the forward-looking surveys play a major role June 2019) to round 96 (October-December 2021).
in supporting policy decisions, these were used by This article also attempts to formulate a recovery
majority of the central banks to capture the sentiments path of major macroeconomic variables, namely
of enterprises. The surveys helped to gauge the impact Index of Industrial Production (IIP) and Gross Value
of the pandemic as well as to assess the timing and Added (GVA), for the manufacturing sector using
an analytical framework under specific assumed
* This article is prepared by Nivedita Banerjee and S. Majumdar, scenarios based on the information available from
Division of Enterprise Surveys, Department of Statistics and Information
Management (DSIM). The views expressed in the article are those of the
survey outlook.
authors only and do not necessarily represent the views of the Reserve
Bank of India. The latest round of the survey data was released on
The rest of the article is presented in four sections.
February 10, 2022 on the RBI’s website at https://www.rbi.org.in/Scripts/ In Section II, the underlying sentiments of the
PublicationsView.aspx?id=21001. The previous article was published in
February 2020 issue of the RBI Bulletin and can be accessed at https://
manufacturing units are presented. Section III focuses
www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=18765. on the expected recovery process after the pandemic

ARTICLE Impact of COVID-19 on Sentiments of Indian Manufacturers
shock, as perceived by the manufacturers. Section IV summarising the survey results. By construction,
attempts to study the pandemic impact on the macro NR can take a value between -100 to +100 where a
variables as well as the subsequent recovery using an negative value represents contraction/pessimism and
analytical framework and Section V concludes with a positive NR signifies growth/optimism.
some policy implications.
II.2 Key findings during 2019-21
II: Stylised Facts 2019-21
The survey results are presented in terms of
II.1 Sample Frame, Survey Questionnaire and Survey assessment (A) and expectations (E) of the companies
Methodology on ‘demand conditions’, ‘financing conditions’, ‘price
The survey questionnaire1 is canvassed to a situation’ and ‘overall business situation’. In this
panel of manufacturing companies which undergoes article, the net responses (NR) for assessment quarter
periodic revision with addition of new companies and is termed as assessment NR (NRA) and the NR for
removal of closed/merged companies. The survey seeks expectations quarter is described as expectations NR
qualitative responses from the senior management (NRE).
personnel or finance heads of manufacturing units. a. Demand conditions
The questionnaire is structured in five blocks covering
The sentiments on demand conditions, as
general information about the respondent companies;
product details in order of sales; information on the captured through production (PR), order book (OB),
size of few performance indicators; and assessment for capacity utilisation (CU), inventory of raw materials
current quarter and expectations for the next quarter. (IRM), exports (EXP), imports (IMP) and employment
Owing to uncertainty on account of lockdown and (EMP), deteriorated in early 2019-20. The assessment
restrictions imposed because of COVID-19 pandemic, NRs were low in Q2:2019-20 and Q3:2019-20 as
an additional block was included since April-June compared to previous quarters. However, there were
2020 quarter to capture expectations for two and three some signs of improvement in Q4:2019-20 as demand
quarters ahead to get an outlook of the enterprises started firming up. The resolution of the Monetary
on the expected recovery process. The responses Policy Committee in March 2020 also mentioned
are collected on a three-point scale i.e., increase, no that pick up in manufacturing in January 2020 pulled
change and decrease and are converted into single the industrial production in positive territory after
quantitative measure viz., net response (NR)2 for contraction over the past five months. But the COVID-
induced lockdown impacted the economic activity
adversely and brought down the NRs to a historic low
1 The questionnaire can be accessed at the link: https://www.rbi.org.in/ in Q1:2020-21.
Scripts/BS_ViewForms.aspx?FCId=40
2 If I, N and D correspond to proportion of ‘increase’, ‘no change’ With the easing of lockdown in a phased manner,
and ‘decrease’, respectively for the response to the question on a a pickup in demand was seen, which was indicated
particular parameter, the NR is calculated as, NR=100* (I-D) and no
through an upward movement in survey parameters.
change (NC) or status quo is presented as NC=100*N. Usually the
NR is calculated as proportion of optimistic responses minus proportions The sentiments of manufacturers started improving
of pessimistic responses; considering an increase as an optimistic after a sharp decline in Q1:2020-21. But the demand
response for all parameters, except the cost related parameters; such
as cost of raw materials, cost of finance etc., where, the decrease option condition again deteriorated in Q1:2021-22 due to
signifies optimism from the viewpoint of a respondent company. second wave of the pandemic, but it triggered a
However, NRs have been calculated as 100* (I-D) for all parameters in
this article, to maintain uniformity and also directly linking with the
comparatively lower reduction in production which,
macro variables. in fact, quickly reversed in Q2:2021-22.

Both the NRs on production for assessment quarter pandemic (Chart 1a). The proportion of no change
(NRA_PR) and expectations quarter (NRE_PR) broadly (NC) in responses as measured by NCA_PR and NCE_
tracked the quarter-over-quarter (q-o-q) movement PR, which was at around 50 per cent throughout the
of index of industrial production in manufacturing study period, witnessed a sharp deterioration during
(IIPM) during the period under study. However, pandemic. The perception of the manufacturers
the NRA_PR reflects the severity of COVID related on production is also reflected by other demand
lockdown better than NRE_PR, as the manufacturers parameters covered in this survey, e.g. order book, both
could not anticipate the collapse in demand due to in terms of assessment (NRA_OB) and expectations
the sudden onset of the first and second wave of the (NRE_OB) (Chart 1b). Although the assessment NR
Chart 1: Demand Parameters

a: Production and IIP-Manufacturing b: Order Books and Production
c: Capacity Utilisation d: Exports and Imports
e: Employment f: Inventory of Raw Materials
Sources: RBI, National Statistical Office (NSO).

reached below (-) 50 per cent due to sudden lockdown slow-moving demand parameter as companies
in Q1:2020-21, the impact was much less in second target to maintain a fixed level of IRM except when
wave. However, the expectations NR remained in large changes are anticipated in demand or price.
positive zone throughout the period under study. The responses on IRM are dominated by NC which
remained around 80 per cent throughout the period
An alternate demand parameter canvased in
under study, but sentiments were adversely impacted
IOS is the capacity utilisation (CU) which is defined
by the pandemic in past one and a half year (Chart 1f).
as the proportion of the actual capacity utilised by a
manufacturing company to its installed capacity. The b. Financing Conditions
assessment and expectations NR for CU (NRA_CU and
Sound financing conditions give impetus to
NRE_CU respectively), as captured in IOS, provided an
companies to strengthen their businesses. The
early indication in the movement of CU which was
respondents expressed positive sentiments on overall
later estimated based on another survey conducted by
financial situation (OFS) in pre-COVID period except
the Reserve Bank viz., order books, inventories and
Q2:2019-20. Sentiments for Q3:2019-20 were also
capacity utilisation survey (OBICUS)3 which collects
positive but very low. Although the manufacturers’
the actual quantitative information on manufacturing
sentiments dipped in Q1:2020-21, it was boosted
CU. The NRA-CU tracked the actual CU (CU_OBICUS)
immediately by several relief measures announced by
better even during COVID-19 period when the
the government to revive the business environment
economy experienced an unprecedented demand
(Chart 2a). However, the second wave again clouded
shock (Chart 1c). After witnessing a sharp fall in
the sentiments of manufacturers. The cost of external
Q1:2020-21, respondents’ sentiments on exports and
finance (CoF) started showing some respite since 2019-
imports started recovering, which again dropped in
20 signifying better avenues for the manufacturers to
Q1:2021-22 during second wave of the pandemic. It is
run their businesses (Chart 2b) which started edging
also evident that, with the strengthening of demand
up again since Q4:2020-21.
conditions, the expectations on exports and imports
improved significantly since the second half of the c. Price Situation
year 2020-21. The price situation is assessed based on parameters
The proportion of respondents indicating no like cost of raw materials (CRM), salary outgo and
change (both NCA_EMP and NCE_EMP) usually selling prices (SP) of enterprises as collected in IOS. It
dominate the responses on the slow-moving is important to evaluate how the demand conditions
employment parameter.4 Although the job landscape coupled with financial situation are factored into
started recovering in Q4:2019-20 after gradual the business for deciding the profitability of the
decline in past one year, it collapsed in Q1:2020- companies under the prevailing input cost pressure
21 due to pandemic. The optimism started firming and market uncertainty.
up in subsequent quarters with abated effect of the The CRM, which captures the movement in
pandemic (Chart 1e) but witnessed another shock WPI inflation of industrial raw materials5, remained
during the second wave. IRM is considered another an abiding concern for the manufacturers through
Q1:2018-19 and softened thereafter. Yet, the cost
3 The OBICUS data are released quarterly on RBI website and the latest
again spiked up in Q2:2020-21 due to supply chain
such data release can be accessed through the link: https://www.rbi.org.in/
Scripts/PublicationsView.aspx?id=21000
4 The employment parameter includes both full-time and part-time 5 Comprises specific items from WPI with total weight being 18.1
employees including casual labourers. per cent.

Chart 2: Financial Situation

a: Overall Financial Situation b: Cost of External Finance
Source: RBI.
disruption and transportation delays (Chart 3a). quarters which again turned passive during the
As a result, the selling price also started hardening second wave in Q1:2021-22 (Chart 4a). Based on
since Q2:2020-21 passing the input cost pressure the NRs calculated for various survey parameters, a
to the consumers (Chart 3b). Although the selling composite index is calculated separately for business
price moved in tandem with the WPI inflation in assessment (BAI) and expectations (BEI)7. The BAI
manufactured products (weight: 64.2 per cent) during remained in contraction zone in Q2 and Q3 of
the entire period under study, the unprecedented 2019-20 as slowdown in economy was observed in
supply shock impacted the survey sentiments much most of the demand parameters. The summary index
more than was actually reflected in the movement in started improving and entered in expansion zone in
the wholesale inflation in early 2020-21. The outlook Q4:2019-20. However, the COVID-related lockdown
on profit margins6 (NRE_PM) remained passive pushed the BAI to the historically lowest value in
since Q3:2019-20 on the back of persistent input Q1:2020-21 at 56.5 per cent (second lowest being in
cost pressures, which turned positive in Q1:2021-22 Q4:2008-09 during global financial crisis (GFC) as 82.6
(Chart 3c). per cent). The BEI also declined notably in Q2:2020-21
d. Overall Business Situation although remained in expansion zone. However, both
BAI and BEI improved immediately in Q3:2020-21 and
The NC response for overall business situation
(OBS), which remained around 50 per cent till 2019- 7 BAI and BEI are composite indicators calculated as simple average of
20, reduced substantially in 2020-21 as the perception nine business parameters for assessment and expectations respectively,
where each parameter is derived as a weighted net response, weights
changed due to the pandemic as indicated by 60 being the share of industry groups in gross value added (GVA). The nine
per cent negative sentiments in NR in Q1:2020- parameters considered are: (1) overall business situation; (2) production;
21. The opinion started firming up in subsequent (3) order books; (4) inventory of raw material; (5) inventory of finished
goods; (6) profit margins; (7) employment; (8) exports; and (9) capacity
utilisation. By construction, the indices range from 0 to 200 with the 100
6 Defined as gross profits as percentage of net sales. mark separating expansion (>100) from contraction (<100).

Chart 3: Price Situation

a: Cost of Raw Materials and WPI - Raw Materials Inflation b: Selling Prices and WPI Manufacturing Inflation
c: Profit Margins
Sources: RBI, Ministry of Commerce and Industry.
strengthened further in subsequent quarters. Though, again in Q1:2021-22, it promptly recovered in the next
in the wake of the second wave, the BAI contracted quarter. BEI continued to expand (Chart 4b).
Chart 4: Overall Business Situation

a: Overall Business Situation b: Business Sentiment Indices
Source: RBI.

III: Perception of Manufacturers on Post-COVID of FED Reserve Philadelphia, in its October 2020
Recovery Process survey round, asked special questions on current
capacity utilisation rates compared with the same
As most of the economies worldwide were
time last year. Manufacturers were also asked about
impacted severely by the outbreak of COVID-19,
majority of the central banks felt it critical to study its the impact of economic policy uncertainty and the
effect and the expected recovery process thereafter, effects of COVID-19 on their total capital spending
on the response pattern of the outlook surveys plans for next year. Special questions about firms’
conducted by them. current capacity utilisation reflected sizable impact of
the pandemic, where most of the firms reported to
III.1 Cross-Country Experiences operate at significantly lower levels of capacity than a
As the forward-looking surveys play an important year ago.
role to support policy decisions, major economies8 III.2 The Indian Context
used these surveys as instruments to capture the
outlook of the enterprises on the COVID-19 impact. As the usual surveys were conducted much
Adhoc survey conducted by the Federal Reserve Bank before the lockdown was imposed, the respondents
of New York during March 2 to 10, 2020 with only a did not anticipate the contraction in advance as they
few specific questions indicated downbeat sentiments could not foresee the full impact of the severe and
of the manufacturing as well as services firms. The sudden nature of the pandemic which was witnessed
March round of the Empire State Manufacturing later9. Therefore, in the Q4:2019-20, when COVID-19
Survey, conducted by Federal Reserve Bank of New cases started increasing in India, a quick survey10
York, indicated declined business activity in New York was conducted on a few critical parameters during
State. Further, the optimism about the six-month March 18-20, 2020. The quick survey indicated severe
outlook also fell sharply, with firms less optimistic pessimistic sentiments. Further, in addition, to capture
than they had been since 2009. To capture the impact future expectations through the usual questionnaire,
more specifically, supplemental questions were a block was introduced since Q1:2020-21 for assessing
included in the Empire State Manufacturing Survey the business outlook of the corporate sector on critical
and Business Leaders Survey of March 2020 which parameters for two more subsequent quarters.
were focused on observed effects of the novel corona The survey results indicated initial persistence
virus on various aspects of business. in the sentiments of the companies, which generally
To understand the COVID-19 impact and expected remain optimistic about the future. They chose to
recovery path, the Kansas City FED included specific wait and watch before changing their outlook. But as
relevant questions in their monthly surveys on the adverse situation prolonged, the sentiments were
manufacturing in 2020. The Bank of Canada, as part significantly affected. All such additional information
of their business outlook surveys in 2020, also had was useful for taking policy decisions during the highly
consultations with a small, targeted sample of Canadian uncertain times. The survey results of the additional
businesses and associations to better understand the
economic impacts and the post-pandemic recovery. 9 The usual Jan-March 2020 round of the survey was launched on January
The monthly Manufacturing Business Outlook Survey 30, 2020 and results were compiled with data received till March 18, 2020.
10 The results are available in RBI website in the link:
8 Details are presented in reference list. https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=19437

block were also disseminated by the Reserve Bank in Demand Conditions

its quarterly data releases since April 2020.
With various stimulus packages and measures
Including two additional quarters, a total of three announced by the Government and the Reserve Bank,
expectations quarters were covered in the survey the manufacturers’ business confidence somewhat
rounds11 since 2020-21. Therefore, for certain common recovered. Though the expectations started firming
quarters, expectations are captured through different up after the first wave, sentiments were again
survey rounds. The parameters covered in the clouded due to the second wave, though it reverted
additional block include PR, OB, CU and employment quickly (Charts 5a and 5b)12. Similar patterns were
from demand side, CRM and SP on price dynamics observed for CU and employment (Charts 5c and 5d).
and the OBS. The job landscape started improving, but at a slower
Chart 5: Sentiments on Recovery Process: Demand Parameters

a: Production b: Order Book
c: Capacity Utilisation d: Employment
Source: RBI.
11 The surveys conducted during Q1:2020-21 to Q3:2021-22 correspond to IOS rounds 90-96. These are represented as R90, R91, R92, R93, R94, R95 and
R96 respectively. For example, in the April-June 2020 round survey (R90), with the assessment of Q1:2020-21, the respondents conveyed their expectations
for Q2-Q4:2020-21.
12 Charts 5 to 7 represents the expectations only.

Chart 6: Sentiments on Recovery Process: Price Situation

a: Cost of Raw Materials b: Selling Price
Source: RBI.
pace due to social distancing at the factory level and wave of the pandemic, the confidence recovered
owing to transportation issues, but improved in with proactive policy supports. The measures taken
the latest survey rounds reflecting confidence over by the government to create better opportunities for
vaccination drive. the enterprises to run their businesses led to higher
business optimism as reflected in the survey results
Price Situation13
(Chart 7).
The input cost pressures intensified over the
quarters, as expected by the manufacturers. Following
Chart 7: Sentiments on Recovery Process: Overall
the slow recovery in demand, the manufacturers Business Situation
passed on the cost pressure to the consumers leading
to an increase in SP. Respondents expected input cost
pressures to continue and SP to harden gradually
(Chart 6).
Overall Business Situation
Manufacturers were seen to be optimistic about
the future as was reflected from their expectations.
Although they were less optimistic in 90th round
about the future due to the initial impact of the first
13 The questions on prices were included in the additional block in R91;

however, to keep uniformity in charts, the response on price situation for
only one expectation quarter for R90 is included as asked in usual survey
Source: RBI.
rounds.

III.3 Challenges faced by the Manufacturers during that in GVA manufacturing (GVAMyoy) respectively.
COVID period However, such correlations of macro variables with the
expectations parameters, i.e., NREs and BEI are much
The comments/suggestions received from the
lower than that with assessment parameters i.e., NRAs
manufacturers reflected distress in their business
and BAI (Annex Table 1). Moreover, the assessment
in April-June 2020 round of survey (R90) as most of
parameters detect the signals of the macro variables
the factories were closed. Manufacturers of essential
over the expectations parameters more efficiently
commodities also faced challenges due to shortage
(Annex Table 2). The NREs are seen to be higher due
of raw materials, supply chain disruptions and to lower sentiments of the manufacturers in the
transportation delays. As consumers were purchasing current quarter in the pandemic-hit years. However,
only essential commodities, higher inventory of being available for only one quarter, the assessment is
finished goods became a worry for manufacturers. useful to provide prior information only for the current
Sentiments improved over subsequent survey quarter. This is supplemented by the information on
rounds, but companies reported unavailability of raw expectations for subsequent three quarters, which are
materials, working capital requirement along with especially captured through the survey since round
labour shortage as major constraints. Although the 90. The information on expectations for some more
moratorium announced by the Reserve Bank brought quarters may give a better idea about the expected
some respite to the manufacturers, their optimism recovery process perceived by the manufacturers.
was again clouded by the second wave which The first investigation relates to whether
hampered their repayment capacity. They also sought COVID-19 has led to a permanent shift in economic
express vaccinations so that the firms could run at full activity adopting a new normal or a short-term shock
capacity. from where the economy will soon recover. The Bai-
Although the lack of domestic and overseas Perron test for structural break point and subsequent
Chow test suggested a structural break in IIPMyoy
demand, the economic uncertainty, and higher input
in 2008-09, but for NRA_PR, BAI and GVAMyoy, the
cost were the major concerns, manufacturers are seen
breakpoints are at different time points (Annex Table
to be optimistic about restoring their businesses to the
3, 4, 5, 6). The evidence of the GFC in 2008 suggests
pre-pandemic level in near future with prompt sector-
a structural break in IIPMyoy in 2008, as seen from
specific relief provided by the government, proactive
the permanent shift in rolling mean and standard
monetary policy measures by the Reserve Bank and
deviation, but a pure shock to the NRA_PR as the series
rapid vaccinations. returned to its normal pace after few quarters. Similar
IV: Outlook on the Recovery difference is visible for GVAMyoy and BAI. Charts 8a to
8d present the respective series along with its rolling14
In this section, an attempt has been made to
mean and rolling standard deviation.
estimate the post-COVID recovery based on the survey
sentiments. A longer time series covering 20 years’ The above charts suggest that the COVID
span has been considered for analysis from Q1:2000- pandemic impacted the economy more severely than
01 onwards. This article focused on the demand the global financial crisis. Further investigation about
the full impact and structural changes due to the
parameters captured in IOS (mainly NRA_PR and BAI)
and the related macroeconomic series. It is observed
14
The rolling window for four quarters is considered i.e. for a particular
that NRA_PR and BAI have a strong contemporaneous quarter, the ‘mean’ and ‘sd’ are average and standard deviation of that
relationship with Y-o-Y growth in IIPM (IIPMyoy) and quarter and previous three quarters.

Chart 8: Rolling Mean and Standard Deviation of Survey Parameters vis-à-vis Macro Variables
a: NRA_PR b: IIPMyoy
c: BAI d. GVAMyoy
Sources: RBI, NSO, Authors’ calculations.
COVID-19 episode will be better captured once the and Bhowmick, 2022). The estimated models are as
economy recovers completely and become stable. under:
Recovery from COVID-19 Shock: A Scenario Analysis For IIPM, the estimated models are:
An attempt has been made to outline the 1.

expected recovery path for IIPM and GVAM based on
manufacturer’s outlook collected from the survey. 2.
As IOS captures current quarter assessment and
subsequent three quarters expectations, it can be 3.
used to envisage the macro variables in next one-
year horizon. The Hidden Markov Model Regression 4.
(HMMR) technique was employed to estimate the
recovery path of the macro variables following existing And similarly for GVAM, the estimated equations
literature (Goldfeld and Quandt, 1973; Hamilton, are:
1989; Diebold et.al., 1994; Diebold and Rudebusch, 5.
1996; Filardo and Gordon, 1998; Bellone Saint Martin,
2003; Bardaji, 2009; Camacho et.al., 2012; Bernardelli, 6.
2015; Bhowmick and Majumdar, 2020; and Samanta

Chart 9: Estimated Recovery Path for Macro Variables related to Manufacturing Sector
a: IIP Manufacturing and Its Trend
b: GVA Manufacturing and Its Trend (Rescaled)
Sources: RBI, NSO, Authors’ calculations.
where, APR(I) and APR(D) stands for Increase and in subsequent four quarters (Q3:2021-22 to Q2:2022-
Decrease in Assessment for Production parameter; 23) are estimated using IOS sentiments (Chart 9)15.
EPR(I) and EPR(D) stands for Increase and Decrease
The results may be viewed as hypothetical
in Expectations for Production parameter; and D is a
constructs with assumptions under different
dummy used to take care of the COVID shock. Results
scenarios, not a traditional forecast. The above charts
for the model estimation are presented in Annex
exhibit that, although both IIPM and GVAM reached
Table 7 and 8.
the pre-COVID trend path in Q4:2020-21, the second
Following the literature, the long-term trends wave impacted the recovery process adversely by
for IIPM and GVAM are calculated by using one- disrupting the growth momentum. However, both
sided Hodrick-Prescott (HP) filter, first for the period are projected to reach the pre-pandemic trend path in
Q1:2000-01 to Q4:2018-19 and second being the pre- near-term, but likely to take some more time to attain
COVID trend calculated for Q1:2000-01 to Q4:2019- the long-term trend path.
20. Both the trends have been extended under two V. Conclusion
different scenarios based on quarterly averages of
The 11 rounds of IOS conducted during Q1:2019-
past five years; first scenario following long-term
20 to Q3:2021-22 point to three different phases of the
trend, whereas, the second being with slowdown in
the economy before 2019-20 but excluding COVID-19
impact as the yardstick. Projections for macro variables 15 GVAM is rescaled by taking Q1:2000-01 as 100 for simpler representation.

Indian economy. In 2019-20, the survey parameters www.kansascityfed.org/surveys/manufacturing-

reflected slowdown in the overall economy in terms of survey/202002-tenth-district-manufacturing-activity-
sentiments of the manufacturers. The first and second increased-modestly-february/.
waves of the pandemic slowed down the economic
Federal Reserve Bank of Kansas City (2020),
activity, and the perception of the manufacturers
‘Manufacturing Survey’, various monthly survey
was impacted adversely. The conditions improved
reports, https://www.kansascityfed.org/research/
with gradual resumption of normalcy. Going forward,
indicatorsdata/mfg.
this analysis can be further extended to understand
the structural changes in macro variables, once Federal Reserve Bank of New York (2020) ,
the recovery materialises fully. At the same time, ‘Business Leaders Survey’, March issue, https://
although the major macroeconomic variables are www.newyorkfed.org/medialibrary/media/survey/
supposed to achieve their pre-COVID trend in near- business_leaders/2020/2020_03blsreport.pdf?la=en .
term with improvement in demand conditions, they
Federal Reserve Bank of New York (2020), ‘Empire
are expected to take time to return to their long-term
State Manufacturing Survey’, various issues https://
trend path. Concurrently, the subsequent waves of the
www.newyorkfed.org/survey/empire/empiresurvey_
pandemic and the re-imposition of virus containment
measures may dampen the manufacturers’ sentiments archives .
and slow down the recovery process. However, the Federal Reserve Bank of Philadelphia (2020),
accelerated rollout of vaccines, an inclusive growth- ‘Manufacturing Business Outlook Survey’, October
oriented Union Budget 2022-23 with fiscal and other issue, https://www.philadelphiafed.org/-/media/
reforms and enhanced infrastructure spending and frbp/assets/surveys-and-data/mbos/2020/bos1020.
sector-specific support, investment-oriented stimulus pdf?la=en .
under various tranches of Aatma Nirbhar Bharat, easy
financial conditions, etc. are expected to provide a Morten O. Ravn and Harald Uhlig (2002). ‘On
strong impetus for revival of the economy and will Adjusting the Hodrick-Prescott Filter for the Frequency
facilitate regaining of the growth potential over the of Observations’, The Review of Economics and
medium-term. Continued policy support in future Statistics, May 2002, 84(2): 371–380.
may make the recovery smoother and faster. Piet de Jong; Jeremy Penzer (1998). ‘Diagnosing Shocks
References in Time Series’, Journal of the American Statistical
Association, Vol. 93, No. 442. (Jun., 1998), pp. 796-806.
Bank of Canada (2020), ‘Business Outlook Survey’,
Spring, Summer and Autumn issue, https://www. Reserve Bank of India (2020), ‘Industrial Outlook
bankofcanada.ca/2020/04/business-outlook-survey . Survey’, April, August, October issues https://
Bhowmick, S. and Majumdar, S. (2020). ‘Sentiments w w w. r b i . o r g . i n / S c r i p t s / P u b l i c a t i o n s V i e w.
of Indian Manufacturers in 2018-19’, RBI Bulletin, aspx?id=19437/19717/19984.
February. Reserve Bank of India (2020), Monetary policy
Dana E. Goin and Jennifer Ahern (2018). ‘Identification resolution March 27, 2020, https://www.rbi.org.in/
of Spikes in Time Series’, Division of Epidemiology, Scripts/BS_PressReleaseDisplay.aspx?prid=49581 .
School of Public Health, University of California, Samanta, G. P. and Bhowmick, S. (2022). ‘Quantifying
Berkeley, California, January. Survey-based Qualitative Responses on Capacity
Federal Reserve Bank of Kansas City (2020), Utilisation-An Analysis for India’, RBI Working Paper
‘Manufacturing Survey’, February issue, https:// No. 05/2022.

Annex
Table 1: Contemporaneous Correlation Between Survey Parameters and Macro Variables
NRA_PR NRE_PR BAI BEI

IIPMyoy 0.70 0.64
GVAMyoy 0.49 0.38
Note: Correlation has been calculated excluding the COVID-19 pandemic period
Table 2: Signal Detected by Assessment and Expectations Parameters for Macro Variables
In per cent NRA_PR/IIPM NRE_PR/IIPM BAI/GVAM BEI/GVAM

TRUE 64 59 52 49
FALSE 36 41 48 51
Table 3: Detecting Structural Break in NRA_PR
Break type: Bai-Perron tests of L+1 vs. L sequentially determined breaks

Break: 2012Q2
Selection: Trimming 0.15, , Sig. level 0.05
t-Statistics Prob
2000Q2 - 2012Q1 -- 48 obs 17.94709 0.0000
2012Q2 - 2021Q1 -- 36 obs 7.031145 0.0000
Chow Breakpoint Test: 2012Q2 F-Statistics Prob
Null Hypothesis: No breaks at specified breakpoints 42.89050 0.0000
Table 4: Detecting Structural Break in IIPMyoy

Break: 2005Q4, 2008Q4
t-Statistics Prob
2000Q2 - 2005Q3 -- 22 obs 4.787717 0.0000
2005Q4 - 2008Q3 -- 12 obs 8.166848 0.0000
2008Q4 - 2020Q4 -- 49 obs 2.667591 0.0000
Chow Breakpoint Test: F-Statistics Prob
For 2005Q4: Null Hypothesis: No breaks at specified breakpoints 0.644799 0.4244
For 2008Q4: Null Hypothesis: No breaks at specified breakpoints 20.84616 0.0000

Table 5: Detecting Structural Break in BAI

Break: 2012Q2
t-Statistics Prob
2000Q2 - 2012Q1 -- 48 obs 94.34883 0.0000
2012Q2 - 2021Q1 -- 36 obs 73.16671 0.0000
Table 6: Detecting Structural Break in GVAMyoy

Break: 2017Q2
t-Statistics Prob
2000Q2 - 2017Q1 -- 68 obs 9.546114 0.0000

2017Q2 - 2020Q4 -- 15 obs 0.465348 0.6429
Table 7: Regression Results for HMM

Equation 1 Intercept IIPMyoy(-1) APR(I) APR(D) D sd
St1 -3.269 0.932 0.062 0.006 2.046 0.734
St2 -3.763 0.878 0.059 -0.173 10.498 2.608
Equation 2 Intercept IIPMyoy (-1) NRA_PR D sd
St1 -5.774 0.904 0.042 1.98 0.751
St2 -18.256 0.869 0.113 10.46 2.632
Equation 3 Intercept IIPMyoy (-1) EPR(I) EPR(D) D sd
St1 -8.055 0.485 0.238 -0.138 3.159 1.345
St2 47.952 1.014 -0.822 -1.41 12.32 2.590
Equation 4 Intercept IIPMyoy (-1) NRE_PR D sd
St1 -4.751 0.933 0.03 2.202 0.827
St2 -23.732 0.934 0.136 12.114 2.695
Equation 5 Intercept GVAMyoy (-1) BAI D sd
St1 -11.808 0.866 0.099 2.648 0.918
St2 -16.888 0.773 0.133 8.656 2.823
Equation 6 Intercept GVAMyoy (-1) BEI D sd
St1 -7.417 0.946 0.049 3.531 1.284
St2 -6.534 0.848 0.014 11.902 2.863

Table 8: Transition Probability Matrices for IIPM and GVAM
IIPM GVAM
Equation 1 to St1 to St2 Equation 5 to St1 to St2
from St1 0.823 0.177 from St1 0.791 0.209
from St2 0.197 0.803 from St2 0.183 0.817
Equation 2 to St1 to St2 Equation 6 to St1 to St2
from St1 0.823 0.177 from St1 0.826 0.174
from St2 0.196 0.804 from St2 0.337 0.663
Equation 3 to St1 to St2
from St1 0.820 0.180
from St2 0.445 0.555
Equation 4 to St1 to St2
from St1 0.825 0.175
from St2 0.213 0.787
Note: State 1 is associated with period of lower growth and State 2 denotes period of higher growth.
Initial state probabilities assumed State 1 as certain, i.e., probability=1.

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
CURRENT STATISTICS
Contents
No. Title Page
1 Select Economic Indicators 97

2 RBI – Liabilities and Assets 98
3 Liquidity Operations by RBI 99
4 Sale/ Purchase of U.S. Dollar by the RBI 100
4A Maturity Breakdown (by Residual Maturity) of Outstanding Forwards of RBI (US$ Million) 101
5 RBI's Standing Facilities 101
Money and Banking

6 Money Stock Measures 102
7 Sources of Money Stock (M3) 103
8 Monetary Survey 104
9 Liquidity Aggregates 104
10 Reserve Bank of India Survey 105
11 Reserve Money – Components and Sources 105
12 Commercial Bank Survey 106
13 Scheduled Commercial Banks' Investments 106
14 Business in India – All Scheduled Banks and All Scheduled Commercial Banks 107
15 Deployment of Gross Bank Credit by Major Sectors 108
16 Industry-wise Deployment of Gross Bank Credit 109
17 State Co-operative Banks Maintaining Accounts with the Reserve Bank of India 110

18 Consumer Price Index (Base: 2012=100) 111
19 Other Consumer Price Indices 111
20 Monthly Average Price of Gold and Silver in Mumbai 111
21 Wholesale Price Index 112
22 Index of Industrial Production (Base: 2011-12=100) 116

23 Union Government Accounts at a Glance 116
24 Treasury Bills – Ownership Pattern 117
25 Auctions of Treasury Bills 117
Financial Markets
26 Daily Call Money Rates 118
27 Certificates of Deposit 119
28 Commercial Paper 119
29 Average Daily Turnover in Select Financial Markets 119
30 New Capital Issues by Non-Government Public Limited Companies 120

CURRENT STATISTICS
No. Title Page
External Sector
31 Foreign Trade 121
32 Foreign Exchange Reserves 121
33 Non-Resident Deposits 121
34 Foreign Investment Inflows 122
35 Outward Remittances under the Liberalised Remittance Scheme (LRS) for Resident Individuals 122
36 Indices of Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) 123
of the Indian Rupee
37 External Commercial Borrowings (ECBs) – Registrations 124
38 India’s Overall Balance of Payments (US $ Million) 125
39 India's Overall Balance of Payments (` Crore) 126
40 Standard Presentation of BoP in India as per BPM6 (US $ Million) 127
41 Standard Presentation of BoP in India as per BPM6 (` Crore) 128
42 International Investment Position 129

43 Payment System Indicators 130
Occasional Series
44 Small Savings 132
45 Ownership Pattern of Central and State Governments Securities 133
46 Combined Receipts and Disbursements of the Central and State Governments 134
47 Financial Accommodation Availed by State Governments under various Facilities 135
48 Investments by State Governments 136
49 Market Borrowings of State Governments 137
Notes: .. = Not available.

– = Nil/Negligible.
P = Preliminary/Provisional. PR = Partially Revised.


CURRENT STATISTICS
No.No.
1: 1: SelectEconomic
Select EconomicIndicators
Indicators
Item 2020-21 2021-22

2020-21
Q1 Q2 Q1 Q2
1 2 3 4 5
1 Real Sector (% Change)
1.1 GVA at Basic Prices -4.8 -22.4 -7.3 18.8 8.5
1.1.1 Agriculture 3.3 3.5 3.0 4.5 4.5
1.1.2 Industry -1.8 -31.0 -1.6 40.4 6.7
1.1.3 Services -7.8 -24.9 -11.0 16.1 9.9
1.1a Final Consumption Expenditure -4.5 -19.9 -13.4 13.8 8.6
1.1b Gross Fixed Capital Formation -10.4 -46.6 -8.6 55.3 11.0
2020 2021
2020-21
Nov. Dec. Nov. Dec.
1 2 3 4 5
1.2 Index of Industrial Production -8.4 -1.6 2.2 1.3 0.4
2 Money and Banking (% Change)
2.1 Scheduled Commercial Banks
2.1.1 Deposits 11.4 10.7 10.8 8.9 10.3
2.1.2 Credit 5.6 5.9 6.2 6.9 9.1
2.1.2.1 Non-food Credit 5.5 5.9 6.2 7.1 9.3
2.1.3 Investment in Govt. Securities 19.3 19.3 17.3 3.6 2.8
2.2 Money Stock Measures
2.2.1 Reserve Money (M0) 18.8 15.3 14.9 12.8 14.7
2.2.2 Broad Money (M3) 12.2 12.5 12.4 9.5 11.4
3 Ratios (%)
3.1 Cash Reserve Ratio 3.50 3.00 3.00 4.00 4.00
3.2 Statutory Liquidity Ratio 18.00 18.00 18.00 18.00 18.00
3.3 Cash-Deposit Ratio 4.2 3.8 3.7 4.8 5.0
3.4 Credit-Deposit Ratio 72.4 72.2 73.1 71.0 71.9
3.5 Incremental Credit-Deposit Ratio 37.4 11.0 23.5 37.3 64.8
3.6 Investment-Deposit Ratio 29.5 30.5 30.4 29.0 28.4
3.7 Incremental Investment-Deposit Ratio 46.8 73.6 72.0 17.7 12.9
4 Interest Rates (%)
4.1 Policy Repo Rate 4.00 4.00 4.00 4.00 4.00
4.2 Reverse Repo Rate 3.35 3.35 3.35 3.35 3.35
4.3 Marginal Standing Facility (MSF) Rate 4.25 4.25 4.25 4.25 4.25
4.4 Bank Rate 4.25 4.25 4.25 4.25 4.25
4.5 Base Rate 7.40/8.80 7.40/8.80 7.30/8.80 7.30/8.80 7.25/8.80
4.6 MCLR (Overnight) 6.55/7.05 6.60/7.10 6.55/7.10 6.50/7.00 6.50/7.00
4.7 Term Deposit Rate >1 Year 4.90/5.50 4.90/5.50 4.90/5.50 4.90/5.50 4.90/5.60
4.8 Savings Deposit Rate 2.70/3.00 2.70/3.00 2.70/3.00 2.70/3.00 2.70/3.00
4.9 Call Money Rate (Weighted Average) 3.25 3.10 3.24 3.35 3.32
4.10 91-Day Treasury Bill (Primary) Yield 3.32 2.93 3.08 3.53 3.66
4.13 10-Year G-Sec Par Yield (FBIL) 6.34 5.84 5.89 6.33 6.47
5 Reference Rate and Forward Premia
5.1 INR-US$ Spot Rate (Rs. Per Foreign Currency) 72.40 73.80 73.58 74.71 74.30
5.2 INR-Euro Spot Rate (Rs. Per Foreign Currency) 85.31 88.02 89.81 83.85 84.05
5.3 Forward Premia of US$ 1-month (%) 6.80 3.36 3.84 3.69 3.96
3-month (%) 5.64 3.52 3.75 3.80 4.15
6-month (%) 5.47 4.23 4.35 4.71 4.71
6 Inflation (%)
6.1 All India Consumer Price Index 6.18 6.9 4.6 4.9 5.6
6.2 Consumer Price Index for Industrial Workers 5.03 5.3 3.7 4.8 5.6
6.3 Wholesale Price Index 1.29 2.3 2.0 14.9 13.6
6.3.1 Primary Articles 1.71 3.8 -0.6 10.2 13.4
6.3.2 Fuel and Power -7.99 -7.0 -6.1 44.4 32.3
6.3.3 Manufactured Products 2.75 3.2 4.5 12.3 10.6
7 Foreign Trade (% Change)
7.1 Imports -16.91 -12.2 8.4 56.4 38.5
7.2 Exports -6.88 -8.3 0.4 34.4 38.9
Note : Financial Benchmark India Pvt. Ltd. (FBIL) has commenced publication of the G-Sec benchmarks with effect from March 31, 2018 as per RBI circular
FMRD.DIRD.7/14.03.025/2017-18 dated March 31, 2018. FBIL has started dissemination of reference rates w.e.f. July 10, 2018.

CURRENT STATISTICS

No.
No.2:2:RBI
RBI- Liabilities
- Liabilitiesand
andAssets
Assets**
(` Crore)
Item As on the Last Friday/ Friday
2020-21L 2021 2022
Jan. Dec. 31 Jan. 7 Jan. 14 Jan. 21 Jan. 28
1 2 3 4 5 6 7
1 Issue Department 1
1.1 Liabilities 1
1.1.1 Notes in Circulation 1.
2831727 2780045 2959237 2989898 3006151 3008989 3004604
1.1.2 Notes held in Banking Department 1.
11 13 13 16 14 16 16
1.1/1.2 Total Liabilities (Total Notes Issued) or Assets 1.
2831738 2780058 2959250 2989914 3006165 3009004 3004619
1.2 Assets 2
1.2.1 Gold 1.
106555 114391 113486 112475 114143 116293 114864
1.2.2 Foreign Securities 1.
2724437 2664788 2845196 2876892 2891494 2892200 2889257
1.2.3 Rupee Coin 1.
746 879 567 546 528 512 498
1.2.4 Government of India Rupee Securities 1.
– – – – – – –
2 Banking Department 2
2.1 Liabilities 1
2.1.1 Deposits 2.
1504697 1512883 1991453 1969320 1914602 1985921 1929291
2.1.1.1 Central Government 2.
100 101 100 100 101 101 100
2.1.1.2 Market Stabilisation Scheme 2.
2.1.1.3 State Governments 2.
42 42 42 42 42 42 42
2.1.1.4 Scheduled Commercial Banks 2.
542693 476349 716432 644326 683105 658094 681336
2.1.1.5 Scheduled State Co-operative Banks 2.
6529 6536 7631 7036 7400 6939 7560
2.1.1.6 Non-Scheduled State Co-operative Banks 2.
3204 2619 3416 3788 4002 3696 3766
2.1.1.7 Other Banks 2.
31820 26397 37349 37240 36699 37648 36681
2.1.1.8 Others 2.
895440 987112 1180276 1215308 1147216 1232104 1139410
2.1.1.9 Financial Institution Outside India 2.
24868 13726 46206 61480 36038 47297 60395
2.1.2 Other Liabilities 2.
1343670 1440272 1313545 1289986 1308879 1306804 1300073
2.1/2.2 Total Liabilities or Assets 2.
2848367 2953154 3304998 3259306 3223482 3292725 3229365
2.2 Assets 2
2.2.1 Notes and Coins 2.
11 13 13 17 14 16 16
2.2.2 Balances held Abroad 2.
1204135 1357052 1412900 1378487 1366456 1372901 1387051
2.2.3 Loans and Advances 2.
2.2.3.1 Central Government 2.
– – – – – – –
2.2.3.2 State Governments 2.
1674 4769 6677 13016 13975 2899 716
2.2.3.3 Scheduled Commercial Banks 2.
90275 84597 102489 94323 94732 169843 94286
2.2.3.4 Scheduled State Co-op.Banks 2.
– – – – – – –
2.2.3.5 Industrial Dev. Bank of India 2.
– – – – – – –
2.2.3.6 NABARD 2.
26422 26181 24770 24770 24770 24770 24770
2.2.3.7 EXIM Bank 2.
– – – – – – –
2.2.3.8 Others 2.
6678 6643 77 77 3077 1459 811
2.2.3.9 Financial Institution Outside India 2.
24858 6521 46227 49829 20966 22993 30404
2.2.4 Bills Purchased and Discounted 2.
2.2.4.1 Internal 2.
– – – – – – –
2.2.4.2 Government Treasury Bills 2.
– – – – – – –
2.2.5 Investments 2.
1331671 1308808 1521572 1510000 1507414 1502486 1497144
2.2.6 Other Assets 2.
162643 158570 190274 188789 192078 195359 194167
2.2.6.1 Gold 2.
146572 150412 179293 177696 180696 183856 181597
* Data are provisional

CURRENT STATISTICS
No. 3:Liquidity
No. 3: Liquidity Operations
Operations by RBI by RBI
(` Crore)
Date Liquidity Adjustment Facility MSF Standing Market OMO (Outright) Long Term Targeted Special Special Net Injection (+)/
Liquidity Stabilisation Repo Long Term Long-Term Reverse Absorption (-)
Facilities Scheme Operations Repo Repo Repo £ (1+3+5+6+9+10+
& Operations Operations 11+12-2-4-7-8-13)
# for Small
Repo Reverse Variable Variable Sale Purchase Finance
Repo Rate Rate Banks
Repo Reverse
Repo
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Dec. 1, 2021 - 242239 - - 2 – - 835 - - - - - -243072
Dec. 2, 2021 - 268334 - - 100 – - 100 - - - - - -268334
Dec. 3, 2021 - 227557 - 469737 0 – - 115 - - - - - -697409
Dec. 4, 2021 - 34814 - - 129 – - - - - - - - -34685
Dec. 5, 2021 - 4998 - - 8 – - - - - - - - -4990
Dec. 6, 2021 - 220915 - - 1 – - 10 - - - - - -220924
Dec. 7, 2021 - 229680 - 200012 10 – - 365 - - - - - -430047
Dec. 8, 2021 - 212608 - - 8 – - 150 - - - - - -212750
Dec. 9, 2021 - 219375 - - 255 – - 485 - - - - - -219605
Dec. 10, 2021 - 205465 - - 0 – - 370 - - - - - -205835
Dec. 11, 2021 - 3489 - - 207 – - - - - - - - -3282
Dec. 12, 2021 - 2455 - - 13 – - - - - - - - -2442
Dec. 13, 2021 - 211943 - - 56 – - 160 - - - 150 - -211897
Dec. 14, 2021 - 210008 - 200010 0 – - 200 - - - - - -410218
Dec. 15, 2021 - 168446 - - 1259 – - 815 - - - - - -168002
Dec. 16, 2021 - 87551 - - 263 1000 - 155 - - - - - -86443
Dec. 17, 2021 - 167019 - 312876 122 -1000 - 705 - - - - - -481478
Dec. 18, 2021 - 49249 - - 116 – - - - - - - - -49133
Dec. 19, 2021 - 2807 - - 368 – - - - - - - - -2439
Dec. 20, 2021 - 97266 - 81160 104 – - 330 - - - 100 - -178552
Dec. 21, 2021 - 116282 - 155438 304 4399 - 225 - - -1281 - - -268523
Dec. 22, 2021 - 113494 - - 570 – - 255 - - -1153 - - -114332
Dec. 23, 2021 - 93518 - 133332 272 – - 765 - - - - - -227343
Dec. 24, 2021 - 93955 - - 6508 – - 570 - - - - - -88017
Dec. 25, 2021 - 3829 - - 55 – - - - - - - - -3774
Dec. 26, 2021 - 1981 - - 199 – - - - - - - - -1782
Dec. 27, 2021 - 95412 - 129567 501 – - 230 - - 2275 255 - -222178
Dec. 28, 2021 - 135747 - 174412 0 – - 340 - - - - - -310499
Dec. 29, 2021 - 162196 - - 15 – - 540 - - - - - -162721
Dec. 30, 2021 - 184315 - 142729 3913 – - 1995 - - - - - -325126
Dec. 31, 2021 - 208070 - 267022 8176 – - 1415 - - - - - -468331
Notes: #Includes Targeted Long Term Repo Operations (TLTRO), Targeted Long Term Repo Operations 2.0 (TLTRO 2.0) and On Tap Targeted Long Term Repo Operations. Negative (-)
sign indicates repayments done by Banks.
& Negative (-) sign indicates repayments done by Banks.
£ As per Press Release No. 2021-2022/177 dated May 07, 2021. From June 18, 2021, the data also includes the amount absorbed as per the
Press Release No. 2021-2022/323 dated June 04, 2021.

CURRENT STATISTICS
No. 4: Sale/ Purchase of U.S. Dollar by the RBI
i) Operations in onshore / offshore OTC segment
Item 2020 2021

2020-21
Dec. Nov. Dec.
1 2 3 4
1 Net Purchase/ Sale of Foreign Currency (US $ Million) (1.1–1.2) 68315 3991 0 -2917
1.1 Purchase (+) 162479 10014 8489 7475
1.2 Sale (–) 94164 6023 8489 10392
2 ` equivalent at contract rate (` Crores) 510516 29439 1669 -20809
3 Cumulative (over end-March) (US $ Million) 68315 72379 40330 37413
(` Crores) 510516 538628 306805 285996
4 Outstanding Net Forward Sales (–)/ Purchase (+) at the end of month 72751 39792 49106 49106
(US $ Million)
ii) Operations in currency futures segment
Item 2020 2021

2020-21
Dec. Nov. Dec.
1 2 3 4
1 Net Purchase/ Sale of Foreign Currency (US $ Million) (1.1–1.2) 0 0 0 0
1.1 Purchase (+) 12118 3985 0 0
1.2 Sale (–) 12118 3985 0 0
2 Outstanding Net Currency Futures Sales (–)/ Purchase (+) 690 1962 0 0
at the end of month (US $ Million)

CURRENT STATISTICS
No. No.
4 A4:AMaturity
: MaturityBreakdown (byResidual
Breakdown (by Residual Maturity)
Maturity) of Outstanding
of Outstanding
Forwards of RBI (US $ Million)
Forwards of RBI (US $ Million)
Item As on December 31, 2021

Long (+) Short (-) Net (1-2)
1 2 3
1. Upto 1 month 6548 5849 699
2. More than 1 month and upto 3 months 9011 7816 1195
3. More than 3 months and upto 1 year 52212 5000 47212
4. More than 1 year 0 0 0
Total (1+2+3+4) 67771 18665 49106
No.
No.5:
5: RBI’s
RBI's Standing Facilities
Standing Facilities
(` Crore)
Item As on the Last Reporting Friday
2020-21 2021 2022
Jan. 29 Aug. 27 Sep. 24 Oct. 22 Nov. 19 Dec. 31 Jan. 28
1 2 3 4 5 6 7 8
1 MSF 182 0 2 152 461 7201 8176 38
2 Export Credit Refinance for Scheduled Banks
2.1 Limit – - - - - - - -
2.2 Outstanding – - - - - - - -
3 Liquidity Facility for PDs
3.1 Limit 4900 4900 4900 4900 4900 4900 4900 4900
3.2 Outstanding – 0 0 0 0 0 0 734
4 Others
4.1 Limit 75000 75000 76000 76000 76000 76000 76000 76000
4.2 Outstanding 32387 32205 23296 25396 21696 24196 24401 24401
5 Total Outstanding (1+2.2+3.2+4.2) 32569 32205 23298 25548 22157 31397 32577 25173
Note :1.Special refinance facility to Others, i.e. to the EXIM Bank, is reopened since May 22, 2020
2.Refinance facility to Others, i.e. to the NABARD/SIDBI/NHB U/S 17(4H) of RBI ACT,1934, since, April 17, 2020.

CURRENT STATISTICS
Money and Banking

No.6:6:Money
No. MoneyStock
Stock Measures
Measures
(` Crore)
Item Outstanding as on March 31/last reporting Fridays of the month/reporting Fridays
2020-21 2020 2021
Dec. 18 Nov. 19 Dec. 17 Dec. 31
1 2 3 4 5
1 Currency with the Public (1.1 + 1.2 + 1.3 – 1.4) 2751828 2681512 2878246 2894325 2881115
1.1 Notes in Circulation 2826851 2749859 2961030 2970938 2959237
1.2 Circulation of Rupee Coin 26170 25875 26698 26796 26921
1.3 Circulation of Small Coins 743 743 743 743 743
1.4 Cash on Hand with Banks 101935 94965 110225 104152 105786
2 Deposit Money of the Public 2042471 1728417 2005116 2042731 2257098
2.1 Demand Deposits with Banks 1995120 1686628 1957254 1994275 2206052
2.2 ‘Other’ Deposits with Reserve Bank 47351 41788 47861 48456 51045
3 M 1 (1 + 2) 4794299 4409929 4883362 4937057 5138213
4 Post Office Saving Bank Deposits 170025 164567 170025 170025 170025
5 M 2 (3 + 4) 4964324 4574496 5053387 5107082 5308238
6 Time Deposits with Banks 14050278 13645443 14762272 14804346 14975823
7 M 3 (3 + 6) 18844578 18055372 19645634 19741403 20114036
8 Total Post Office Deposits 509544 489323 509544 509544 509544
9 M 4 (7 + 8) 19354122 18544695 20155178 20250947 20623580

CURRENT STATISTICS
No.
No.7:7:
Sources of Money
Sources StockStock
of Money (M3 ) (M )
3
(` Crore)
Sources Outstanding as on March 31/last reporting Fridays of
the month/reporting Fridays
2020-21 2020 2021
Dec. 18 Nov. 19 Dec. 17 Dec. 31
1 2 3 4 5
1 Net Bank Credit to Government 5850374 5637236 6075285 6024478 6100716
1.1 RBI’s net credit to Government (1.1.1–1.1.2) 1099686 980473 1193964 1127230 1194335
1.1.1 Claims on Government 1337300 1290946 1555163 1546804 1526753
1.1.1.1 Central Government 1333917 1284643 1546532 1533230 1520076
1.1.1.2 State Governments 3383 6303 8631 13574 6677
1.1.2 Government deposits with RBI 237615 310473 361199 419574 332418
1.1.2.1 Central Government 237572 310431 361156 419531 332375
1.1.2.2 State Governments 42 42 42 42 42
1.2 Other Banks’ Credit to Government 4750689 4656763 4881321 4897248 4906381
2 Bank Credit to Commercial Sector 11668466 11204826 11869926 12022917 12389335
2.1 RBI’s credit to commercial sector 8709 11205 4634 1945 2094
2.2 Other banks’ credit to commercial sector 11659757 11193621 11865291 12020972 12387240
2.2.1 Bank credit by commercial banks 10949509 10547037 11162194 11313933 11680480
2.2.2 Bank credit by co-operative banks 694758 636368 684429 688730 688991
2.2.3 Investments by commercial and co-operative banks in other securities 15490 10216 18669 18308 17769
3 Net Foreign Exchange Assets of Banking Sector (3.1 + 3.2) 4578846 4597615 4960354 5038744 4924971
3.1 RBI’s net foreign exchange assets (3.1.1–3.1.2) 4199400 4267681 4586034 4664425 4550652
3.1.1 Gross foreign assets 4199637 4267926 4586275 4664665 4550897
3.1.2 Foreign liabilities 237 245 241 241 245
3.2 Other banks’ net foreign exchange assets 379446 329934 374319 374319 374319
4 Government’s Currency Liabilities to the Public 26913 26618 27441 27539 27664
5 Banking Sector’s Net Non-monetary Liabilities 3280021 3410924 3287371 3372275 3328650
5.1 Net non-monetary liabilities of RBI 1356660 1478577 1327908 1417697 1307042
5.2 Net non-monetary liabilities of other banks (residual) 1923362 1932347 1959464 1954578 2021608
M 3 (1+2+3+4–5) 18844578 18055372 19645634 19741403 20114036

CURRENT STATISTICS
No.
No. 8: MonetarySurvey
8: Monetary Survey
(` Crore)
Item Outstanding as on March 31/last reporting Fridays of the
month/reporting Fridays
2020-21 2020 2021
Dec. 18 Nov. 19 Dec. 17 Dec. 31
1 2 3 4 5
Monetary Aggregates
NM11 (1.1 + 1.2.1+1.3) 4794299 4409929 4883362 4937057 5138213
NM 2 (NM 1 + 1.2.2.1) 11048277 10476477 11461215 11532850 11814892
NM 3 (NM 2 + 1.2.2.2 + 1.4 = 2.1 + 2.2 + 2.3 – 2.4 – 2.5) 18936051 18142693 19761139 19864680 20245248
1 Components
1.1 Currency with the Public 2751828 2681512 2878246 2894325 2881115
1.2 Aggregate Deposits of Residents 15892848 15167847 16574706 16651595 17043116
1.2.1 Demand Deposits 1995121 1686628 1957254 1994275 2206052
1.2.2 Time Deposits of Residents 13897727 13481219 14617452 14657319 14837063
1.2.2.1 Short-term Time Deposits 6253977 6066549 6577853 6595794 6676679
1.2.2.1.1 Certificates of Deposit (CDs) 78702 67260 56026 73916 84894
1.2.2.2 Long-term Time Deposits 7643750 7414671 8039598 8061526 8160385
1.3 ‘Other’ Deposits with RBI 47351 41788 47861 48456 51045
1.4 Call/Term Funding from Financial Institutions 244025 251545 260325 270304 269971
2 Sources
2.1 Domestic Credit 18518950 17794755 18949988 19042687 19479623
2.1.1 Net Bank Credit to the Government 5850374 5637236 6075285 6024478 6100716
2.1.1.1 Net RBI credit to the Government 1099686 980473 1193964 1127230 1194335
2.1.1.2 Credit to the Government by the Banking System 4750689 4656763 4881321 4897248 4906381
2.1.2 Bank Credit to the Commercial Sector 12668575 12157519 12874703 13018209 13378907
2.1.2.1 RBI Credit to the Commercial Sector 34134 37338 26610 22242 26864
2.1.2.2 Credit to the Commercial Sector by the Banking System 12634441 12120181 12848093 12995967 13352043
2.1.2.2.1 Other Investments (Non-SLR Securities) 951313 917177 973791 967331 958477
2.2 Government’s Currency Liabilities to the Public 26913 26618 27441 27539 27664
2.3 Net Foreign Exchange Assets of the Banking Sector 4438202 4461072 4825536 4878329 4755068
2.3.1 Net Foreign Exchange Assets of the RBI 4199400 4267681 4586034 4664425 4550652
2.3.2 Net Foreign Currency Assets of the Banking System 238802 193391 239502 213904 204416
2.4 Capital Account 2775245 2872234 2994318 3077536 2976588
2.5 Other items (net) 1272767 1267519 1047508 1006339 1040519
No.
No. 9: LiquidityAggregates
9: Liquidity Aggregates
(` Crore)
Aggregates 2020-21 2020 2021
Dec. Oct. Nov. Dec.
1 2 3 4 5
1 NM3 18936051 18142693 19634678 19761139 20245248
2 Postal Deposits 509544 489323 509544 509544 509544
3 L1 ( 1 + 2) 19445595 18632016 20144222 20270683 20754792
4 Liabilities of Financial Institutions 33179 34795 26662 26861 24644
4.1 Term Money Borrowings 2645 2645 3627 3631 1984
4.2 Certificates of Deposit 25550 28865 18175 18175 15360
4.3 Term Deposits 4984 3285 4860 5054 7299
5 L2 (3 + 4) 19478774 18666811 20170884 20297544 20779435
6 Public Deposits with Non-Banking Financial Companies 31905 31905 .. .. 31905
7 L3 (5 + 6) 19510679 18698716 .. .. 20811340
Note : 1. Figures in the columns might not add up to the total due to rounding off of numbers.

CURRENT STATISTICS
No. 10: Reserve Bank of India Survey

No. 10: Reserve Bank of India Survey
(` Crore)
Item Outstanding as on March 31/last reporting Fridays of the
month/reporting Fridays
2020-21 2020 2021
Dec. 18 Nov. 19 Dec. 17 Dec. 31
1 2 3 4 5
1 Components
1.1 Currency in Circulation 2853763 2776477 2988471 2998477 2986901
1.2 Bankers’ Deposits with the RBI 698867 522176 731562 741305 764828
1.2.1 Scheduled Commercial Banks 651748 488262 683604 693730 716432
1.3 ‘Other’ Deposits with the RBI 47351 41788 47861 48456 51045
Reserve Money (1.1 + 1.2 + 1.3 = 2.1 + 2.2 + 2.3 – 2.4 – 2.5) 3599981 3340442 3767894 3788238 3802775
2 Sources
2.1 RBI’s Domestic Credit 730328 524719 482327 513971 531501
2.1.1 Net RBI credit to the Government 1099686 980473 1193964 1127230 1194335
2.1.1.1 Net RBI credit to the Central Government (2.1.1.1.1 +
1096345 974212 1185376 1113698 1187700
2.1.1.1.2 + 2.1.1.1.3 + 2.1.1.1.4 – 2.1.1.1.5)
2.1.1.1.1 Loans and Advances to the Central Government – – – – –
2.1.1.1.2 Investments in Treasury Bills – – – – –
2.1.1.1.3 Investments in dated Government Securities 1333174 1283889 1545839 1532614 1519509
2.1.1.1.3.1 Central Government Securities 1333174 1283889 1545839 1532614 1519509
2.1.1.1.4 Rupee Coins 743 754 693 616 567
2.1.1.1.5 Deposits of the Central Government 237572 310431 361156 419531 332375
2.1.1.2 Net RBI credit to State Governments 3340 6261 8588 13532 6634
2.1.2 RBI’s Claims on Banks -403492 -493092 -738247 -635502 -689698
2.1.2.1 Loans and Advances to Scheduled Commercial Banks -378066 -466959 -716272 -615205 -664928
2.1.3 RBI’s Credit to Commercial Sector 34134 37338 26610 22242 26864
2.1.3.1 Loans and Advances to Primary Dealers – – – – –
2.1.3.2 Loans and Advances to NABARD 25426 26133 21976 20297 24770
2.2 Government’s Currency Liabilities to the Public 26913 26618 27441 27539 27664
2.3 Net Foreign Exchange Assets of the RBI 4199400 4267681 4586034 4664425 4550652
2.3.1 Gold 247723 272328 300065 298092 292779
2.3.2 Foreign Currency Assets 3951694 3995371 4285987 4366350 4257890
2.4 Capital Account 1173033 1292910 1235252 1319795 1221533
2.5 Other Items (net) 183626 185667 92656 97901 85509
No.11:
No. 11:Reserve
Reserve Money
Money - Components
- Components and Sources
and Sources
(` Crore)
Item Outstanding as on March 31/ last Fridays of the month/ Fridays
2020-21 2021
Jan. 1 Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31
1 2 3 4 5 6 7 8
Reserve Money
(1.1 + 1.2 + 1.3 = 2.1 + 2.2 + 2.3 + 2.4 + 2.5 – 2.6) 3599981 3322152 3736107 3764934 3742918 3788238 3744266 3802775
1 Components
1.1 Currency in Circulation 2853763 2770377 2983295 2984193 3000647 2998477 2996038 2986901
1.2 Bankers' Deposits with RBI 698867 509365 704368 732507 693849 741305 697251 764828
1.3 ‘Other’ Deposits with RBI 47351 42410 48443 48235 48423 48456 50977 51045
2 Sources
2.1 Net Reserve Bank Credit to Government 1099686 1102053 1177312 1309946 1266149 1127230 1091480 1194335
2.2 Reserve Bank Credit to Banks -378066 -630217 -726053 -832999 -810981 -615205 -622634 -664928
2.3 Reserve Bank Credit to Commercial Sector 8709 11496 2135 2067 2140 1945 2130 2094
2.4 Net Foreign Exchange Assets of RBI 4199400 4269569 4597067 4605630 4642680 4664425 4595536 4550652
2.5 Government's Currency Liabilities to the Public 26913 26681 27539 27539 27539 27539 27539 27664
2.6 Net Non- Monetary Liabilities of RBI 1356660 1457429 1341893 1347249 1384610 1417697 1349785 1307042

CURRENT STATISTICS
No.
No.12:
12:Commercial Bank Survey
Commercial Bank Survey
(` Crore)
Item Outstanding as on last reporting Fridays of the month/
reporting Fridays of the month
2020-21 2020 2021
Dec. 18 Nov. 19 Dec. 17 Dec. 31
1 2 3 4 5
1 Components
1.1 Aggregate Deposits of Residents 14960961 14314736 15634295 15720406 16103094
1.1.1 Demand Deposits 1861193 1564598 1820862 1857984 2066651
1.1.2 Time Deposits of Residents 13099768 12750138 13813433 13862422 14036443
1.1.2.1 Short-term Time Deposits 5894896 5737562 6216045 6238090 6316400
1.1.2.1.1 Certificates of Deposits (CDs) 78702 67260 56026 73916 84894
1.1.2.2 Long-term Time Deposits 7204873 7012576 7597388 7624332 7720044
1.2 Call/Term Funding from Financial Institutions 244025 251545 260325 270304 269971
2 Sources
2.1 Domestic Credit 16378019 15878502 16720791 16880922 17244818
2.1.1 Credit to the Government 4461632 4411845 4582873 4599330 4607365
2.1.2 Credit to the Commercial Sector 11916387 11466657 12137918 12281592 12637453
2.1.2.1 Bank Credit 10949509 10547037 11162194 11313933 11680480
2.1.2.1.1 Non-food Credit 10888255 10453884 11079778 11228353 11591800
2.1.2.2 Net Credit to Primary Dealers 23633 9647 9273 7927 6589
2.1.2.3 Investments in Other Approved Securities 894 1759 1622 1363 869
2.1.2.4 Other Investments (in non-SLR Securities) 942351 908214 964828 958369 949514
2.2 Net Foreign Currency Assets of Commercial Banks (2.2.1–2.2.2–2.2.3) 238802 193391 239502 213904 204416
2.2.1 Foreign Currency Assets 454866 418715 456666 436485 418116
2.2.2 Non-resident Foreign Currency Repatriable Fixed Deposits 152552 164224 144821 147027 138760
2.2.3 Overseas Foreign Currency Borrowings 63512 61101 72344 75554 74940
2.3 Net Bank Reserves (2.3.1+2.3.2–2.3.3) 1010202 1040155 1498308 1401403 1475543
2.3.1 Balances with the RBI 542693 488262 683604 693730 716432
2.3.2 Cash in Hand 90748 84934 98432 92469 94182
2.3.3 Loans and Advances from the RBI -376761 -466959 -716272 -615205 -664928
2.4 Capital Account 1578041 1555153 1734895 1733570 1730885
2.5 Other items (net) (2.1+2.2+2.3–2.4–1.1–1.2) 843995 990613 829084 771949 820827
2.5.1 Other Demand and Time Liabilities (net of 2.2.3) 593095 553551 536420 547007 559684
2.5.2 Net Inter-Bank Liabilities (other than to PDs) 80681 69404 32065 34218 29767
No.
No.13:
13:Scheduled
Scheduled Commercial Banks’Investments
Commercial Banks' Investments
(` Crore)
Item As on 2020 2021
March 26,
2021 Dec. 18 Nov. 19 Dec. 17 Dec. 31
1 2 3 4 5
1 SLR Securities 4462526 4413605 4584495 4600693 4608235
2 Commercial Paper 82584 75341 67080 57649 53140
3 Shares issued by
3.1 PSUs 9840 11241 9778 8711 8397
3.2 Private Corporate Sector 64035 70834 70047 71928 73058
3.3 Others 5210 5409 5111 5007 5007
4 Bonds/Debentures issued by
4.1 PSUs 121008 127646 116887 116484 115486
4.2 Private Corporate Sector 308904 313097 332529 334142 341692
4.3 Others 149325 142431 148190 146064 147470
5 Instruments issued by
5.1 Mutual funds 31142 29618 52558 50667 38177
5.2 Financial institutions 167130 132419 162752 167716 167086

CURRENT STATISTICS
No.
No.14:
14:Business
BusinessininIndia
India -- All
All Scheduled Banksand
Scheduled Banks andAll
AllScheduled
Scheduled Commercial
Commercial Banks
Banks
(` Crore)
Item As on the Last Reporting Friday (in case of March)/ Last Friday
All Scheduled Banks All Scheduled Commercial Banks
2020 2021 2020 2021

2020-21 2020-21
Dec. Nov. Dec. Dec. Nov. Dec.
1 2 3 4 5 6 7 8
Number of Reporting Banks 209 208 211 212 133 132 135 136
1 Liabilities to the Banking System 259530 269495 240488 254662 254589 264487 235957 250071
1.1 Demand and Time Deposits from Banks 200585 208104 180927 190557 195866 203319 176748 186316
1.2 Borrowings from Banks 40886 44060 37571 37900 40880 44058 37564 37883
1.3 Other Demand and Time Liabilities 18059 17331 21989 26204 17843 17110 21645 25873
2 Liabilities to Others 16457782 15805240 17096687 17592142 16014145 15372567 16654491 17146449
2.1 Aggregate Deposits 15540152 14904791 16212125 16670206 15113512 14488370 15784717 16241854
2.1.1 Demand 1899343 1601779 1880478 2109729 1861193 1565783 1840383 2066651
2.1.2 Time 13640809 13303012 14331647 14560478 13252320 12922587 13944334 14175203
2.2 Borrowings 248271 257321 267747 274394 244025 252891 263467 269971
2.3 Other Demand and Time Liabilities 669359 643127 616815 647542 656607 631306 606307 634624
3 Borrowings from Reserve Bank 90275 77318 93677 102489 90275 77318 93677 102489
3.1 Against Usance Bills /Promissory Notes – – – – – – – –
3.2 Others 90275 77318 93677 102489 90275 77318 93677 102489
4 Cash in Hand and Balances with Reserve Bank 650745 557529 777305 830773 633440 542590 757991 810615
4.1 Cash in Hand 92793 86836 103870 96489 90748 84872 101328 94182
4.2 Balances with Reserve Bank 557951 470693 673435 734284 542693 457719 656663 716432
5 Assets with the Banking System 265729 264863 268815 288252 197541 204254 213515 226894
5.1 Balances with Other Banks 179430 180945 185698 192589 143294 147352 151303 156132
5.1.1 In Current Account 16796 17423 15520 19253 14226 15174 12961 16055
5.1.2 In Other Accounts 162634 163522 170178 173336 129068 132178 138342 140077
5.2 Money at Call and Short Notice 36716 31389 27208 32082 10654 8512 9590 12048
5.3 Advances to Banks 19908 21271 24033 30207 16764 20573 23599 28574
5.4 Other Assets 29675 31259 31876 33373 26829 27817 29024 30139
6 Investment 4598924 4537040 4728243 4752753 4462526 4403341 4582167 4608235
6.1 Government Securities 4591896 4528809 4720370 4745686 4461632 4401696 4580669 4607365
6.2 Other Approved Securities 7029 8231 7873 7067 894 1645 1499 869
7 Bank Credit 11297014 10926301 11548488 12037369 10949509 10587475 11199939 11680480
7a Food Credit 91653 126156 121828 124497 61254 95754 86011 88680
7.1 Loans, Cash-credits and Overdrafts 11081668 10752941 11337403 11812259 10736491 10416107 10990885 11457609
7.2 Inland Bills-Purchased 30896 22894 31807 34268 30531 22629 31793 34255
7.3 Inland Bills-Discounted 128831 101639 127812 136359 127883 100728 126685 135027
7.4 Foreign Bills-Purchased 20762 18020 18228 20865 20394 17727 17978 20446
7.5 Foreign Bills-Discounted 34857 30808 33240 33619 34210 30285 32598 33143

CURRENT STATISTICS
No.
No.15:
15:Deployment of Gross
Deployment of Gross BankBank
CreditCredit
by Majorby Major Sectors
Sectors
(` Crore)
Outstanding as on Growth (%)
Mar.26, Financial
2021 2020 2021 year so Y-o-Y
Sector
far
Dec.18 Nov.19 Dec.31 2021-22 2021
1 2 3 4 % %
I. Gross Bank Credit (II+III) 10949509 10702596 11162247 11683413 6.7 9.2
II. Food Credit 61254 92545 82415 88680 44.8 -4.2
III. Non-food Credit 10888255 10610052 11079831 11594733 6.5 9.3
1. Agriculture & Allied Activities 1280240 1237957 1344129 1417969 10.8 14.5
2. Industry (Micro and Small, Medium and Large ) 2899531 2774549 2865403 2985278 3.0 7.6
2.1 Micro and Small 1 387220 371463 410646 447566 15.6 20.5
2.2 Medium 136108 120242 183668 224255 64.8 86.5
2.3 Large 2376203 2282844 2271089 2313458 -2.6 1.3
3. Services 2673753 2569512 2626577 2848108 6.5 10.8
3.1 Transport Operators 137405 134191 132364 141056 2.7 5.1
3.2 Computer Software 19219 17594 18720 19712 2.6 12.0
3.3 Tourism, Hotels & Restaurants 49085 49614 50282 52760 7.5 6.3
3.4 Shipping 7188 7217 7469 7026 -2.3 -2.6
3.5 Aviation 25643 23436 26771 12229 -52.3 -47.8
3.6 Professional Services 105333 103760 101363 105280 -0.1 1.5
3.7 Trade 599158 561052 588738 644771 7.6 14.9
3.7.1 Wholesale Trade 310377 269945 303758 329918 6.3 22.2
3.7.2 Retail Trade 288780 291108 284979 314853 9.0 8.2
3.8 Commercial Real Estate 264889 260768 260262 270860 2.3 3.9
2
3.9 Non-Banking Financial Companies (NBFCs) of which, 940205 883392 920630 1002081 6.6 13.4
3.9.1 Housing Finance Companies (HFCs) 215617 179730 220855 229942 6.6 27.9
3.9.2 Public Financial Institutions (PFIs) 78442 57491 90751 108035 37.7 87.9
3.10 Other Services 3 525628 528488 519979 592334 12.7 12.1
4. Personal Loans 2857789 2701738 2985430 3087845 8.1 14.3
4.1 Consumer Durables 8812 8435 12313 13115 48.8 55.5
4.2 Housing 1460091 1392259 1490157 1521439 4.2 9.3
4.3 Advances against Fixed Deposits 63676 58829 64797 73011 14.7 24.1
4.4 Advances to Individuals against share & bonds 4419 4705 4714 4820 9.1 2.5
4.5 Credit Card Outstanding 116549 110350 122111 124743 7.0 13.0
4.6 Education 63969 64843 63452 63213 -1.2 -2.5
4.7 Vehicle Loans 269706 258062 275249 279485 3.6 8.3
4.8 Loan against gold jewellery 60849 48859 65630 70871 16.5 45.1
4.9 Other Personal Loans 809718 755397 887007 937148 15.7 24.1
5. Priority Sector (Memo)
5.1 Agriculture & Allied Activities 4 1244276 1201642 1283063 1346408 8.2 12.0
5.2 Micro & Small Enterprises 5 1134976 1148883 1099438 1253505 10.4 9.1
5.3 Medium Enterprises 6 207870 183825 242069 276485 33.0 50.4
5.4 Housing 470325 468365 444762 468623 -0.4 0.1
5.5 Education Loans 48201 50574 47039 46884 -2.7 -7.3
5.6 Renewable Energy 1171 1481 1244 1764 50.7 19.2
5.7 Social Infrastructure 2448 1909 2331 2333 -4.7 22.2
5.8 Export Credit 19028 15322 16969 31545 65.8 105.9
5.9 Others 10726 9627 17303 19273 79.7 100.2
5.10 Weaker Sections including net PSLC- SF/MF 816816 794582 862276 897351 9.9 12.9
Note 1: Data are provisional. Gross bank credit and non-food credit data are based on Section-42 return, which covers all scheduled commercial banks (SCBs), while
sectoral non-food credit data are based on sector-wise and industry-wise bank credit (SIBC) return, which covers select banks accounting for about 90 per cent of total
non-food credit extended by all SCBs.
Note 2: With effect from January 2021, sectoral credit data are based on revised format due to which values and growth rates of some of the existing components
published earlier have undergone some changes.
Note 3: For the serial numbers I, II and III, Y-o-Y growth rates were calculated based on the outstanding credit as on December 31, 2021, over January 1, 2021. However,
since the SIBC data is available only for the fortnight of December 18, 2020, the growth rate for the sectoral credit is calculated on December 31, 2021, over December 18,
2020.
1 Micro & Small includes credit to micro & small industries in the manufacturing sector.
2 NBFCs include HFCs, PFIs, Microfinance Institutions (MFIs), NBFCs engaged in gold loan and others.
3 Other Services include Mutual Fund (MFs), Banking and Finance other than NBFCs and MFs and other services which are not indicated elsewhere under services.
4 Agriculture and Allied Activities also include priority sector lending certificates (PSLCs).
5 Micro and Small Enterprises include credit to micro and small enterprises in manufacturing and services sector and also include PSLCs.
6 Medium Enterprises include credit to medium enterprises in the manufacturing and services sector.

CURRENT STATISTICS
No. No.
16: Industry-wise Deployment
16: Industry-wise of Gross Bank
Deployment CreditBank Credit
of Gross
(` Crore)
Outstanding as on Growth (%)
Financial
2020 2021 Y-o-Y
Mar. 26, year so far
Industry
2021
Dec. 18 Nov.19 Dec. 31 2021-22 2021
1 2 3 4 % %
2 Industries (2.1 to 2.19) 2899531 2774549 2865403 2985278 3.0 7.6
2.1 Mining & Quarrying (incl. Coal) 46185 44820 51080 52100 12.8 16.2
2.2 Food Processing 153382 155377 143214 164290 7.1 5.7
2.2.1 Sugar 25519 26816 16763 20748 –18.7 –22.6
2.2.2 Edible Oils & Vanaspati 18972 18194 17251 19369 2.1 6.5
2.2.3 Tea 4273 4375 4933 5155 20.6 17.8
2.2.4 Others 104619 105993 104267 119017 13.8 12.3
2.3 Beverage & Tobacco 15978 14518 15760 15794 –1.1 8.8
2.4 Textiles 200810 190465 200578 212884 6.0 11.8
2.4.1 Cotton Textiles 90549 86597 85002 91792 1.4 6.0
2.4.2 Jute Textiles 2726 2541 2769 2995 9.9 17.9
2.4.3 Man-Made Textiles 38861 35282 41555 42667 9.8 20.9
2.4.4 Other Textiles 68674 66046 71252 75430 9.8 14.2
2.5 Leather & Leather Products 10467 10364 10330 10868 3.8 4.9
2.6 Wood & Wood Products 13533 13110 13363 14259 5.4 8.8
2.7 Paper & Paper Products 35507 34397 36849 38234 7.7 11.2
2.8 Petroleum, Coal Products & Nuclear Fuels 66909 56502 67963 86527 29.3 53.1
2.9 Chemicals & Chemical Products 192444 175873 191240 198293 3.0 12.7
2.9.1 Fertiliser 32241 37885 29327 30236 –6.2 –20.2
2.9.2 Drugs & Pharmaceuticals 51754 49261 52133 54700 5.7 11.0
2.9.3 Petro Chemicals 45621 34977 43178 42497 –6.8 21.5
2.9.4 Others 62827 53749 66602 70860 12.8 31.8
2.10 Rubber, Plastic & their Products 54483 51302 61748 65349 19.9 27.4
2.11 Glass & Glassware 6344 6802 5714 5810 –8.4 –14.6
2.12 Cement & Cement Products 54291 58864 44765 46586 –14.2 –20.9
2.13 Basic Metal & Metal Product 329047 329824 277870 286405 –13.0 –13.2
2.13.1 Iron & Steel 232988 242265 186191 187331 –19.6 –22.7
2.13.2 Other Metal & Metal Product 96059 87558 91678 99074 3.1 13.2
2.14 All Engineering 148152 144210 149368 155875 5.2 8.1
2.14.1 Electronics 34013 33532 36359 37587 10.5 12.1
2.14.2 Others 114138 110677 113009 118289 3.6 6.9
2.15 Vehicles, Vehicle Parts & Transport Equipment 83188 84260 84872 84887 2.0 0.7
2.16 Gems & Jewellery 63448 70108 70141 67881 7.0 –3.2
2.17 Construction 94565 101230 95881 95644 1.1 –5.5
2.18 Infrastructure 1092611 1023831 1115313 1135536 3.9 10.9
2.18.1 Power 567584 553919 576805 591639 4.2 6.8
2.18.2 Telecommunications 112120 101195 110269 114040 1.7 12.7
2.18.3 Roads 237095 201322 246836 248869 5.0 23.6
2.18.4 Airports 7327 6179 7570 7510 2.5 21.5
2.18.5 Ports 7363 8461 7546 7268 –1.3 –14.1
2.18.6 Railways 11261 12287 13790 10079 –10.5 –18.0
2.18.7 Other Infrastructure 149861 140466 152497 156131 4.2 11.2
2.19 Other Industries 238189 208691 229353 248056 4.1 18.9
Note : With effect from January 2021, sectoral credit data are based on revised format due to which values and growth rates of some of
the existing components published earlier have undergone some changes.

CURRENT STATISTICS
No. 17:
No.State Co-operative
17: State Banks
Co-operative Maintaining
Banks MaintainingAccounts with the
Accounts with theReserve
ReserveBank
Bankof of India
India
(` Crore)
Item Last Reporting Friday (in case of March)/Last Friday/
Reporting Friday
2020 2021
2020-21
Nov, 27 Sep, 24 Oct, 08 Oct, 22 Oct, 29 Nov, 05 Nov, 19 Nov, 26
1 2 3 4 5 6 7 8 9
Number of Reporting Banks Number of Reporting Banks 32 32 33 33 33 33 33 33 33
1 Aggregate Deposits (2.1.1.2+2
1 Aggregate Deposits (2.1.1.2+2.2.1.2) 125859.6 124549.5 125238.2 126845.4 127303.3 128013.9 127248.2 126843.4 126631.3
2 Demand and Time Liabilities 2 Demand and Time Liabilities
2.1 Demand Liabilities 2.1 Demand Liabilities 23736.9 22922.9 26961.0 25556.0 25393.8 25243.2 26361.0 24421.0 23568.9
2.1.1 Deposits 2.1.1 Deposits
2.1.1.1 Inter-Bank 2.1.1.1 Inter-Bank 4896.9 3926.9 5734.8 5387.3 5285.9 5539.9 6114.8 5879.7 5294.8
2.1.1.2 Others 2.1.1.2 Others 13,899.4 13488.9 14619.8 14657.9 14799.4 14672.8 14884.2 13527.1 13473.5
2.1.2 Borrowings from Banks 0.0
2.1.2 Borrowings from Banks 0.0 999.7 749.8 279.9 80.0 309.8 174.9 150.0
2.1.3 Other Demand Liabilities
2.1.3 Other Demand Liabilities 4940.6 5507.1 5606.6 4761.0 5028.6 4950.5 5052.1 4839.4 4650.6
2.2 Time Liabilities 2.2 Time Liabilities 179957.5 170541.9 168977.8 170167.9 171836.3 171867.5 172989.1 174852.8 175629.1
2.2.1 Deposits 2.2.1 Deposits
2.2.1.1 Inter-Bank 2.2.1.1 Inter-Bank-Bank 65333.7 57870.7 56505.0 56018.2 57474.2 56659.6 58734.0 58455.0 59386.8
2.2.1.2 Others 2.2.1.2 Others 111960.2 111060.7 110618.4 112187.5 112503.9 113341.1 112364.0 113316.3 113157.7
2.2.2 Borrowings from Banks630.0
2.2.2 Borrowings from Banks 629.9 911.0 985.1 910.1 927.5 910.1 910.1 910.1
2.2.3 Other Time Liabilities2.2.3 Other Time Liabilities 2033.7 980.6 943.3 977.1 948.0 939.3 980.9 2171.4 2174.4
3 Borrowing from Reserve Bank 3 Borrowing from Reserve Bank
0.0 0.0 35.0 0.0 0.0 0.0 0.0 0.0 0.0
4 Borrowings
4 Borrowings from a notified bank / Government from a notified ban
63559.8 58609.1 54926.2 55750.0 57812.6 58096.5 57950.6 60487.7 62398.8
4.1 Demand 4.1 Demand 15691.8 14440.6 12031.5 12308.4 12150.6 12222.9 11745.3 12210.4 12380.4
4.2 Time 4.2 Time 47868.0 44168.5 42894.6 43441.6 45661.9 45873.6 46205.3 48277.2 50018.4
5 Cash
5 Cash in Hand and Balances with in Hand
Reserve Bank and Balances wi
8151.1 7139.8 8940.2 9036.9 8911.0 9282.9 9058.6 9268.7 9075.7
5.1 Cash in Hand 5.1 Cash in Hand 570.3 554.2 640.7 633.1 672.7 722.8 631.3 722.6 691.6
5.2 Balance with Reserve Bank5.2 Balance with Reserve Bank
7580.8 6585.6 8299.5 8403.8 8238.2 8560.1 8427.3 8546.1 8384.1
6 Balances with Other Banks in6Current
Balances with Other Banks
Account in
1148.1 947.3 1223.7 1165.1 1217.3 1299.6 1283.3 1280.3 1215.4
7 Investments in Government
7 Investments in Government Securities Se
64455.2 60795.8 70603.5 70631.0 70288.0 71010.3 71104.6 71886.2 73814.2
8 Money at Call and Short28835.7
8 Money at Call and Short Notice Notic 24696.5 20170.1 19721.6 20940.3 20265.8 20550.8 22786.2 21853.7
9 Bank Credit (10.1+11) 9 Bank Credit (10.1+11) 114631.6 110586.0 106670.5 107983.1 107964.4 107241.8 107467.1 107529.9 107879.4
10 Advances 10 Advances.
10.1 Loans, Cash-Credits and10.1 Loans, Cash-Credits114612.1
Overdrafts and O 110566.8 106650.9 107962.5 107943.9 107221.4 107446.6 107509.4 107858.5
10.2 Due from Banks 10.2 Due from Banks 89429.1 84270.3 88508.1 91408.2 94217.9 95223.9 95541.5 97554.3 99264.9
11 Bills Purchased and Discount
11 Bills Purchased and Discounted 19.5 19.1 19.6 20.6 20.5 20.4 20.5 20.5 20.8

CURRENT STATISTICS

No.
No. 18:
18: Consumer PriceIndex
Consumer Price Index(Base:
(Base:2012=100)
2012=100)
Group/Sub group 2020-21 Rural Urban Combined
Rural Urban Combined Dec. 20 Nov. 21 Dec 21(P) Dec. 20 Nov. 21 Dec 21(P) Dec. 20 Nov. 21 Dec 21(P)
1 2 3 4 5 6 7 8 9 10 11 12
1 Food and beverages 156.7 161.1 158.3 159.6 167.5 165.8 163.4 173.5 172.2 161.0 169.7 168.2
1.1 Cereals and products 145.4 149.9 146.8 143.4 146.9 147.4 148.0 151.0 151.6 144.9 148.2 148.7
1.2 Meat and fish 185.2 192.4 187.7 187.5 199.8 197.0 194.8 204.9 202.2 190.1 201.6 198.8
1.3 Egg 160.3 164.8 162.0 173.4 171.5 176.5 178.4 175.4 180.0 175.3 173.0 177.9
1.4 Milk and products 154.1 154.4 154.2 154.0 159.1 159.8 154.4 159.6 160.0 154.1 159.3 159.9
1.5 Oils and fats 148.2 139.9 145.2 154.8 198.4 195.8 144.1 175.8 173.5 150.9 190.1 187.6
1.6 Fruits 146.9 153.4 149.9 147.0 153.2 152.0 152.6 160.3 158.3 149.6 156.5 154.9
1.7 Vegetables 174.2 196.2 181.7 187.8 183.9 172.4 206.8 229.1 219.5 194.2 199.2 188.4
1.8 Pulses and products 154.4 156.0 154.9 159.5 165.4 164.4 162.1 165.1 164.2 160.4 165.3 164.3
1.9 Sugar and confectionery 114.4 117.0 115.3 113.8 122.1 120.6 116.3 123.1 121.9 114.6 122.4 121.0
1.10 Spices 161.9 160.4 161.4 164.5 170.8 171.7 163.0 167.2 168.2 164.0 169.6 170.5
1.11 Non-alcoholic beverages 149.8 141.3 146.3 156.1 169.1 169.7 145.9 156.1 156.5 151.8 163.7 164.2
1.12 Prepared meals, snacks, sweets 163.2 165.5 164.3 164.3 174.3 175.1 167.2 176.8 178.1 165.6 175.5 176.5
2 Pan, tobacco and intoxicants 181.8 188.7 183.6 184.6 191.4 190.9 191.8 197.0 196.8 186.5 192.9 192.5
3 Clothing and footwear 155.6 149.7 153.3 156.8 169.8 171.2 150.2 159.7 160.7 154.2 165.8 167.0
3.1 Clothing 156.4 152.0 154.7 157.5 170.4 171.9 152.5 162.3 163.3 155.5 167.2 168.5
3.2 Footwear 151.1 137.2 145.3 152.4 166.0 167.3 137.3 145.3 146.7 146.1 157.4 158.7
4 Housing - 157.2 157.2 - - - 157.7 164.2 163.4 157.7 164.2 163.4
5 Fuel and light 149.1 140.9 146.0 150.9 165.3 165.6 142.9 161.6 161.7 147.9 163.9 164.1
6 Miscellaneous 153.9 146.1 150.2 155.9 165.2 166.0 147.6 157.3 157.8 151.9 161.4 162.0
6.1 Household goods and services 152.9 145.2 149.3 153.9 162.9 163.9 145.7 155.2 156.0 150.0 159.3 160.2
6.2 Health 160.3 151.3 156.9 162.5 173.4 174.0 154.1 164.2 165.1 159.3 169.9 170.6
6.3 Transport and communication 144.9 135.0 139.7 147.5 158.9 160.1 136.9 151.2 151.6 141.9 154.8 155.6
6.4 Recreation and amusement 154.0 144.3 148.5 155.1 163.8 164.5 145.4 156.7 157.6 149.6 159.8 160.6
6.5 Education 162.5 156.2 158.9 163.5 169.3 169.7 156.1 160.8 160.6 159.2 164.3 164.4
6.6 Personal care and effects 153.7 155.8 154.5 156.2 162.4 162.8 157.7 161.8 162.4 156.8 162.2 162.6
General Index (All Groups) 156.1 154.4 155.3 158.5 167.6 167.0 156.0 165.6 165.1 157.3 166.7 166.1
Source: National Statistical Office, Ministry of Statistics and Programme Implementation, Government of India.
P: Provisional.
P: Provisional
No.
No. 19:
19: Other
Other Consumer Price Indices
Consumer Price Indices
Item Base Year Linking 2020-21 2020 2021
Factor Dec. Nov. Dec.
1 2 3 4 5 6
1 Consumer Price Index for Industrial Workers 2016 2.88 - 118.8 125.7 125.4
2 Consumer Price Index for Agricultural Labourers 1986-87 5.89 1034 1047 1092 1097
3 Consumer Price Index for Rural Labourers 1986-87 – 1040 1053 1101 1106
Source: Labour Bureau, Ministry of Labour and Employment, Government of India.
No.
No.20:
20:Monthly
Monthly Average Price of
Average Price ofGold
Goldand
andSilver
Silverinin Mumbai
Mumbai
Item 2020-21 2020 2021
Dec. Nov. Dec.
1 2 3 4
1 Standard Gold ( ` per 10 grams) 48723 49444 48193 47890
2 Silver ( ` per kilogram) 59283 64757 64667 61280
Source: India Bullion & Jewellers Association Ltd., Mumbai for Gold and Silver prices in Mumbai.

CURRENT STATISTICS
No. 21: Wholesale Price Index

(Base: 2011-12 = 100)
Commodities Weight 2020-21 2020 2021
Dec. Oct. Nov. (P) Dec. (P)

1 2 3 4 5 6
1 ALL COMMODITIES 100.000 123.4 125.4 140.7 142.9 142.4
1.1 PRIMARY ARTICLES 22.618 145.7 148.0 163.0 168.6 167.8
1.1.1 FOOD ARTICLES 15.256 160.7 161.1 171.6 178.4 176.5
1.1.1.1 Food Grains (Cereals+Pulses) 3.462 159.3 157.4 163.7 164.8 165.1
1.1.1.2 Fruits & Vegetables 3.475 179.2 180.7 208.2 235.1 227.0
1.1.1.3 Milk 4.440 153.4 154.1 157.3 157.5 157.3
1.1.1.4 Eggs,Meat & Fish 2.402 151.2 151.2 161.4 163.4 161.3
1.1.1.5 Condiments & Spices 0.529 149.5 153.2 161.6 161.6 165.8
1.1.1.6 Other Food Articles 0.948 162.0 164.4 164.5 166.1 167.0
1.1.2 NON-FOOD ARTICLES 4.119 130.5 138.0 153.7 157.0 164.2
1.1.2.1 Fibres 0.839 119.8 123.5 156.1 164.2 166.8
1.1.2.2 Oil Seeds 1.115 161.7 164.4 199.7 202.3 210.1
1.1.2.3 Other non-food Articles 1.960 109.0 113.8 119.9 120.7 121.9
1.1.2.4 Floriculture 0.204 210.0 285.0 217.9 228.7 309.8
1.1.3 MINERALS 0.833 164.9 172.2 178.7 190.3 178.7
1.1.3.1 Metallic Minerals 0.648 159.8 168.2 169.4 183.8 169.4
1.1.3.2 Other Minerals 0.185 183.1 186.3 211.2 213.0 211.2
1.1.4 CRUDE PETROLEUM & NATURAL GAS 2.410 70.4 74.1 118.9 119.2 115.4
1.2 FUEL & POWER 13.152 94.0 96.9 126.0 131.7 128.2
1.2.1 COAL 2.138 126.6 127.0 128.9 130.4 130.9
1.2.1.1 Coking Coal 0.647 141.8 141.9 143.4 143.4 143.4
1.2.1.2 Non-Coking Coal 1.401 119.3 119.8 119.8 119.8 119.8
1.2.1.3 Lignite 0.090 130.9 131.1 166.0 200.5 212.6
1.2.2 MINERAL OILS 7.950 79.2 81.1 128.9 137.8 131.9
1.2.3 ELECTRICITY 3.064 109.6 116.9 116.7 116.7 116.7
1.3 MANUFACTURED PRODUCTS 64.231 121.5 123.3 135.9 136.1 136.4
1.3.1 MANUFACTURE OF FOOD PRODUCTS 9.122 141.4 144.0 158.5 157.0 156.6
1.3.1.1 Processing and Preserving of meat 0.134 137.2 137.6 142.4 142.4 143.8
1.3.1.2 Processing and Preserving of fish, Crustaceans, Molluscs and 0.204 139.0 135.4 146.5 144.9 143.6
products thereof
1.3.1.3 Processing and Preserving of fruit and Vegetables 0.138 120.2 121.8 122.1 121.9 121.7
1.3.1.4 Vegetable and Animal oils and Fats 2.643 143.5 155.0 187.3 182.4 181.1
1.3.1.5 Dairy products 1.165 146.9 146.6 148.8 147.9 147.8
1.3.1.6 Grain mill products 2.010 143.5 141.6 146.0 147.3 146.6
1.3.1.7 Starches and Starch products 0.110 115.9 119.1 130.3 135.1 138.1
1.3.1.8 Bakery products 0.215 138.1 138.9 145.6 147.2 149.2
1.3.1.9 Sugar, Molasses & honey 1.163 118.4 118.2 127.9 125.7 125.2
1.3.1.10 Cocoa, Chocolate and Sugar confectionery 0.175 128.0 128.1 131.3 130.1 133.0
1.3.1.11 Macaroni, Noodles, Couscous and Similar farinaceous products 0.026 132.3 131.6 139.0 133.4 131.4
1.3.1.12 Tea & Coffee products 0.371 166.5 161.1 168.4 170.3 172.8
1.3.1.13 Processed condiments & salt 0.163 147.0 149.1 155.9 154.8 157.7
1.3.1.14 Processed ready to eat food 0.024 132.2 133.2 135.4 135.3 136.4
1.3.1.15 Health supplements 0.225 142.9 137.9 154.6 154.3 153.1
1.3.1.16 Prepared animal feeds 0.356 170.5 171.4 201.0 198.6 197.6
1.3.2 MANUFACTURE OF BEVERAGES 0.909 124.5 123.0 127.4 127.5 127.2
1.3.2.1 Wines & spirits 0.408 120.2 119.3 123.7 124.0 123.8
1.3.2.2 Malt liquors and Malt 0.225 126.5 124.3 131.6 131.4 131.7
1.3.2.3 Soft drinks; Production of mineral waters and Other bottled waters 0.275 129.4 127.6 129.4 129.4 128.5
1.3.3 MANUFACTURE OF TOBACCO PRODUCTS 0.514 157.2 157.2 160.2 160.7 161.5
1.3.3.1 Tobacco products 0.514 157.2 157.2 160.2 160.7 161.5

CURRENT STATISTICS
No. 21: Wholesale Price Index (Contd.)

(Base: 2011-12 = 100)

1.3.4 MANUFACTURE OF TEXTILES 4.881 117.6 119.1 134.8 137.1 139.1
1.3.4.1 Preparation and Spinning of textile fibres 2.582 106.6 108.5 127.1 130.8 133.4
1.3.4.2 Weaving & Finishing of textiles 1.509 131.7 133.3 147.0 147.7 149.6
1.3.4.3 Knitted and Crocheted fabrics 0.193 115.2 114.2 124.1 126.8 127.0
1.3.4.4 Made-up textile articles, Except apparel 0.299 132.3 132.5 138.9 139.8 141.1
1.3.4.5 Cordage, Rope, Twine and Netting 0.098 155.6 159.4 169.9 170.5 167.1
1.3.4.6 Other textiles 0.201 116.3 115.1 127.8 127.9 128.2
1.3.5 MANUFACTURE OF WEARING APPAREL 0.814 138.6 139.2 144.2 144.6 144.0
1.3.5.1 Manufacture of Wearing Apparel (woven), Except fur Apparel 0.593 138.1 138.0 142.9 143.3 142.4
1.3.5.2 Knitted and Crocheted apparel 0.221 139.8 142.2 147.8 147.9 148.5
1.3.6 MANUFACTURE OF LEATHER AND RELATED PRODUCTS 0.535 117.9 118.6 119.0 118.7 119.3
1.3.6.1 Tanning and Dressing of leather; Dressing and Dyeing of fur 0.142 101.1 100.9 104.4 103.1 102.5
1.3.6.2 Luggage, HandbAgs, Saddlery and Harness 0.075 138.6 138.6 140.0 141.9 142.5
1.3.6.3 Footwear 0.318 120.6 121.8 120.5 120.2 121.3
1.3.7 MANUFACTURE OF WOOD AND PRODUCTS OF WOOD AND 0.772 134.6 135.3 141.4 142.6 143.0
CORK
1.3.7.1 Saw milling and Planing of wood 0.124 120.7 121.1 130.8 131.4 131.6
1.3.7.2 Veneer sheets; Manufacture of plywood, Laminboard, Particle 0.493 136.6 137.1 141.9 142.5 144.1
board and Other panels and Boards
1.3.7.3 Builder's carpentry and Joinery 0.036 185.8 188.5 194.5 194.4 194.5
1.3.7.4 Wooden containers 0.119 125.7 126.6 134.2 139.0 134.4
1.3.8 MANUFACTURE OF PAPER AND PAPER PRODUCTS 1.113 121.7 121.3 137.2 139.0 140.8
1.3.8.1 Pulp, Paper and Paperboard 0.493 124.1 123.1 141.4 143.8 145.3
1.3.8.2 Corrugated paper and Paperboard and Containers of paper and 0.314 122.2 124.1 139.5 137.9 138.2
Paperboard
1.3.8.3 Other articles of paper and Paperboard 0.306 117.4 115.5 128.0 132.4 136.2
1.3.9 PRINTING AND REPRODUCTION OF RECORDED MEDIA 0.676 153.8 155.5 157.0 156.4 161.5
1.3.9.1 Printing 0.676 153.8 155.5 157.0 156.4 161.5
1.3.10 MANUFACTURE OF CHEMICALS AND CHEMICAL PRODUCTS 6.465 118.2 119.7 134.3 135.6 136.9
1.3.10.1 Basic chemicals 1.433 118.6 119.8 146.5 148.5 149.5
1.3.10.2 Fertilizers and Nitrogen compounds 1.485 123.6 123.7 128.3 129.6 131.1
1.3.10.3 Plastic and Synthetic rubber in primary form 1.001 116.7 121.7 141.9 143.0 142.3
1.3.10.4 Pesticides and Other agrochemical products 0.454 124.4 125.8 131.6 132.4 133.9
1.3.10.5 Paints, Varnishes and Similar coatings, Printing ink and Mastics 0.491 114.9 115.7 131.0 132.4 137.0
1.3.10.6 Soap and Detergents, Cleaning and Polishing preparations, 0.612 120.6 121.7 129.0 129.7 130.8
Perfumes and Toilet preparations
1.3.10.7 Other chemical products 0.692 115.1 115.1 131.0 132.5 134.0
1.3.10.8 Man-made fibres 0.296 93.7 95.7 108.3 108.8 109.2
1.3.11 MANUFACTURE OF PHARMACEUTICALS, MEDICINAL 1.993 130.9 131.9 136.0 136.0 137.3
CHEMICAL AND BOTANICAL PRODUCTS
1.3.11.1 Pharmaceuticals, Medicinal chemical and Botanical products 1.993 130.9 131.9 136.0 136.0 137.3
1.3.12 MANUFACTURE OF RUBBER AND PLASTICS PRODUCTS 2.299 111.3 114.4 126.7 127.0 127.0
1.3.12.1 Rubber Tyres and Tubes; Retreading and Rebuilding of Rubber 0.609 98.3 98.7 104.1 104.8 106.5
Tyres
1.3.12.2 Other Rubber Products 0.272 93.3 93.3 102.2 102.0 104.8
1.3.12.3 Plastics products 1.418 120.3 125.2 141.2 141.4 140.0
1.3.13 MANUFACTURE OF OTHER NON-METALLIC MINERAL 3.202 117.6 117.4 123.8 124.6 125.1
PRODUCTS
1.3.13.1 Glass and Glass products 0.295 127.2 127.8 137.2 136.5 141.1
1.3.13.2 Refractory products 0.223 109.5 109.7 115.4 116.2 118.8
1.3.13.3 Clay Building Materials 0.121 109.3 110.8 124.3 117.5 120.9
1.3.13.4 Other Porcelain and Ceramic Products 0.222 109.5 109.7 111.6 112.2 114.3
1.3.13.5 Cement, Lime and Plaster 1.645 120.9 119.7 126.5 128.7 127.7

CURRENT STATISTICS
No. 21: Wholesale Price Index (Contd.)

(Base: 2011-12 = 100)

1.3.13.6 Articles of Concrete, Cement and Plaster 0.292 125.3 127.1 128.4 129.3 129.5
1.3.13.7 Cutting, Shaping and Finishing of Stone 0.234 121.1 121.0 123.4 123.3 120.4
1.3.13.8 Other Non-Metallic Mineral Products 0.169 78.9 81.3 92.4 89.2 96.6
1.3.14 MANUFACTURE OF BASIC METALS 9.646 111.4 115.8 143.9 143.9 141.5
1.3.14.1 Inputs into steel making 1.411 109.2 116.2 161.6 162.6 153.3
1.3.14.2 Metallic Iron 0.653 113.3 120.8 151.2 150.4 145.2
1.3.14.3 Mild Steel - Semi Finished Steel 1.274 99.8 103.2 120.9 119.4 118.3
1.3.14.4 Mild Steel -Long Products 1.081 112.0 118.2 140.8 140.0 139.1
1.3.14.5 Mild Steel - Flat products 1.144 117.2 123.5 159.7 163.4 160.6
1.3.14.6 Alloy steel other than Stainless Steel- Shapes 0.067 108.3 113.5 136.1 133.6 131.1
1.3.14.7 Stainless Steel - Semi Finished 0.924 108.7 107.7 147.2 147.8 142.7
1.3.14.8 Pipes & tubes 0.205 127.9 129.8 159.9 159.7 161.8
1.3.14.9 Non-ferrous metals incl. precious metals 1.693 112.3 117.7 142.9 141.3 142.8
1.3.14.10 Castings 0.925 109.1 109.2 119.0 118.5 119.2
1.3.14.11 Forgings of steel 0.271 145.7 146.5 157.6 160.2 160.6
1.3.15 MANUFACTURE OF FABRICATED METAL PRODUCTS, EXCEPT 3.155 115.9 117.9 130.9 131.6 133.6
MACHINERY AND EQUIPMENT
1.3.15.1 Structural Metal Products 1.031 114.1 116.3 123.5 123.9 126.9
1.3.15.2 Tanks, Reservoirs and Containers of Metal 0.660 127.8 132.8 157.6 158.6 161.4
1.3.15.3 Steam generators, Except Central Heating Hot Water Boilers 0.145 98.9 97.2 97.1 97.5 97.6
1.3.15.4 Forging, Pressing, Stamping and Roll-Forming of Metal; Powder 0.383 96.7 95.1 117.9 120.1 120.0
Metallurgy
1.3.15.5 Cutlery, Hand Tools and General Hardware 0.208 102.9 103.6 108.7 109.7 109.7
1.3.15.6 Other Fabricated Metal Products 0.728 125.0 126.8 136.9 137.0 139.2
1.3.16 MANUFACTURE OF COMPUTER, ELECTRONIC AND OPTICAL 2.009 109.8 109.7 113.4 113.6 113.2
PRODUCTS
1.3.16.1 Electronic Components 0.402 99.1 99.9 105.7 106.2 106.7
1.3.16.2 Computers and Peripheral Equipment 0.336 134.8 134.4 134.7 134.9 134.9
1.3.16.3 Communication Equipment 0.310 114.9 114.6 119.3 119.8 119.8
1.3.16.4 Consumer Electronics 0.641 98.5 97.5 102.8 103.3 100.9
1.3.16.5 Measuring, Testing, Navigating and Control equipment 0.181 107.7 109.6 107.1 107.1 108.5
1.3.16.6 Watches and Clocks 0.076 141.8 141.7 145.4 145.9 146.5
1.3.16.7 Irradiation, Electromedical and Electrotherapeutic equipment 0.055 102.8 102.8 108.6 102.9 107.1
1.3.16.8 Optical instruments and Photographic equipment 0.008 102.7 95.2 98.5 98.5 98.4
1.3.17 MANUFACTURE OF ELECTRICAL EQUIPMENT 2.930 113.6 115.1 123.2 121.9 123.5
1.3.17.1 Electric motors, Generators, Transformers and Electricity 1.298 113.2 114.9 120.6 117.7 121.0
distribution and Control apparatus
1.3.17.2 Batteries and Accumulators 0.236 117.1 115.4 123.8 123.7 124.1
1.3.17.3 Fibre optic cables for data transmission or live transmission of 0.133 98.1 100.2 103.7 102.4 100.6
images
1.3.17.4 Other electronic and Electric wires and Cables 0.428 115.9 119.5 141.9 141.8 141.7
1.3.17.5 Wiring devices, Electric lighting & display equipment 0.263 111.1 111.6 114.9 114.6 115.5
1.3.17.6 Domestic appliances 0.366 119.7 120.4 128.7 129.4 130.4
1.3.17.7 Other electrical equipment 0.206 109.5 111.6 113.2 113.2 113.4
1.3.18 MANUFACTURE OF MACHINERY AND EQUIPMENT 4.789 114.0 114.6 120.4 120.7 120.8
1.3.18.1 Engines and Turbines, Except aircraft, Vehicle and Two wheeler 0.638 106.3 107.4 120.6 120.5 121.5
engines
1.3.18.2 Fluid power equipment 0.162 119.4 120.8 121.4 121.7 122.1
1.3.18.3 Other pumps, Compressors, Taps and Valves 0.552 111.6 111.5 115.0 116.0 116.0
1.3.18.4 Bearings, Gears, Gearing and Driving elements 0.340 111.8 113.5 118.3 118.7 118.0
1.3.18.5 Ovens, Furnaces and Furnace burners 0.008 80.2 83.6 73.2 73.1 73.0
1.3.18.6 Lifting and Handling equipment 0.285 113.4 114.4 120.0 119.9 121.3

CURRENT STATISTICS
No. 21: Wholesale Price Index (Concld.)

(Base: 2011-12 = 100)

1.3.18.7 Office machinery and Equipment 0.006 130.2 130.2 130.2 130.2 130.2
1.3.18.8 Other general-purpose machinery 0.437 128.7 127.3 133.0 132.9 130.6
1.3.18.9 Agricultural and Forestry machinery 0.833 121.6 121.3 129.4 129.7 130.1
1.3.18.10 Metal-forming machinery and Machine tools 0.224 108.4 107.6 116.0 116.0 115.8
1.3.18.11 Machinery for mining, Quarrying and Construction 0.371 75.7 75.8 78.3 78.7 78.7
1.3.18.12 Machinery for food, Beverage and Tobacco processing 0.228 128.0 131.9 131.9 132.6 131.0
1.3.18.13 Machinery for textile, Apparel and Leather production 0.192 121.9 123.4 123.7 124.0 126.2
1.3.18.14 Other special-purpose machinery 0.468 128.7 130.4 134.2 134.6 135.7
1.3.18.15 Renewable electricity generating equipment 0.046 65.2 65.7 66.7 66.3 66.8
1.3.19 MANUFACTURE OF MOTOR VEHICLES, TRAILERS AND SEMI- 4.969 117.8 118.4 122.9 123.2 123.9
TRAILERS
1.3.19.1 Motor vehicles 2.600 119.4 120.6 122.3 123.2 123.8
1.3.19.2 Parts and Accessories for motor vehicles 2.368 116.1 116.1 123.6 123.1 124.1
1.3.20 MANUFACTURE OF OTHER TRANSPORT EQUIPMENT 1.648 126.2 127.5 132.4 132.6 133.0
1.3.20.1 Building of ships and Floating structures 0.117 158.8 158.8 158.9 158.9 158.9
1.3.20.2 Railway locomotives and Rolling stock 0.110 105.0 104.8 105.1 104.5 103.8
1.3.20.3 Motor cycles 1.302 124.7 126.1 131.8 132.2 132.6
1.3.20.4 Bicycles and Invalid carriages 0.117 130.3 132.7 137.3 137.9 138.0
1.3.20.5 Other transport equipment 0.002 128.5 129.3 136.9 136.6 137.4
1.3.21 MANUFACTURE OF FURNITURE 0.727 133.2 135.1 151.0 150.6 151.4
1.3.21.1 Furniture 0.727 133.2 135.1 151.0 150.6 151.4
1.3.22 OTHER MANUFACTURING 1.064 132.4 134.4 138.1 136.6 137.1
1.3.22.1 Jewellery and Related articles 0.996 130.5 132.7 136.2 134.6 135.2
1.3.22.2 Musical instruments 0.001 173.7 164.3 190.5 192.6 195.7
1.3.22.3 Sports goods 0.012 132.0 131.9 141.1 142.1 142.6
1.3.22.4 Games and Toys 0.005 142.4 143.1 149.6 151.6 151.1
1.3.22.5 Medical and Dental instruments and Supplies 0.049 167.4 168.1 172.9 172.9 171.1
2 FOOD INDEX 24.378 153.4 154.7 166.7 170.4 169.0
Source: Office of the Economic Adviser, Ministry of Commerce and Industry, Government of India.

CURRENT STATISTICS
No. 22: No.

Index
22: of Industrial
Index Production
of Industrial (Base:2011-12=100)
Production (Base:2011-12=100)
Industry Weight
April-November November
2019-20 2020-21
2020-21 2021-22 2020 2021
1 2 3 4 5 6 7
General Index
General Index 100.00 129.0 118.1
Gen Ge 108.5 127.4 126.7 128.5
1 Sectoral Classification
1.1 Mining 14.37 109.6 101.0
Sect El 89.5 105.8 106.6 111.9
1.2 Manufacturing 77.63 129.6 117.2
Ma 107.2 127.0 128.5 129.6
1.3 Electricity 7.99 158.4 157.6
Mi 154.4 170.2 144.8 147.9
2 Use-Based Classification
2.1 Primary Goods 34.05 127.0 Use- Pri
118.1 110.4 125.0 122.2 126.5
2.2 Capital Goods 8.22 93.3 Ca
75.9 64.9 83.7 84.3 81.2
2.3 Intermediate Goods 17.22 137.7 Int
124.7 113.0 139.8 138.4 141.8
2.4 Infrastructure/ Construction Goods 12.34 136.6 Inf
124.7 112.1 142.9 137.3 142.5
2.5 Consumer Durables 12.84 119.0 Co
101.2 88.5 109.7 113.0 106.7
2.6 Consumer Non-Durables 15.33 145.3 Co
142.1 136.3 145.0 149.1 150.3
Source : National Statistical Office, Ministry of Statistics and Programme Implementation, Government of India.

No. 23:
No. 23: Union
Union Government
GovernmentAccounts
AccountsatataaGlance
Glance
(` Crore)
Financial April - December

Year
2021-22 2021-22 2020-21 Percentage to Revised
(Revised (Actuals) (Actuals) Estimates
Item
Estimates)
2021-22 2020-21
1 2 3 4 5
1 Revenue Receipts 2078936 1733223 1088580 83.4 70.0
1.1 Tax Revenue (Net) 1765145 1473809 962399 83.5 71.6
1.2 Non-Tax Revenue 313791 259414 126181 82.7 59.9
2 Non-Debt Capital Receipt 99975 28469 33098 28.5 71.2
2.1 Recovery of Loans 21975 19105 14202 86.9 98.0
2.2 Other Receipts 78000 9364 18896 12.0 59.1
3 Total Receipts (excluding borrowings) (1+2) 2178911 1761692 1121678 80.9 70.0
4 Revenue Expenditure 3167289 2129414 1971173 67.2 65.5
4.1 Interest Payments 813791 564414 472171 69.4 68.1
5 Capital Expenditure 602711 391644 308974 65.0 70.4
6 Total Expenditure (4+5) 3770000 2521058 2280147 66.9 66.1
7 Revenue Deficit (4-1) 1088352 396191 882593 36.4 60.6
8 Fiscal Deficit (6-3) 1591089 759366 1158469 47.7 62.7
9 Gross Primary Deficit (8-4.1) 777298 194952 686298 25.1 59.4
Source: Controller General of Accounts (CGA), Ministry of Finance, Government of India and Union Budget 2022-23.

CURRENT STATISTICS
No.24:
No. 24:Treasury
TreasuryBills
Bills –– Ownership
Ownership Pattern
Pattern
(` Crore)
Item 2020-21 2021
1 2 3 4 5 6 7 8
1 91-day
1.1 Banks 5676 2499 11133 11166 11984 12039 12767 9354
1.2 Primary Dealers 16740 15783 31737 29783 26984 33326 29687 26882
1.3 State Governments 13347 90891 86665 91665 95565 98315 102016 103016
1.4 Others 52802 116333 100079 103154 102100 96703 100679 106541
2 182-day
2.1 Banks 67473 101471 63455 61466 59320 57654 58141 56154
2.2 Primary Dealers 30966 27744 47832 44432 40691 39262 34421 32988
2.4 Others 31800 67852 57109 49895 43067 34218 27631 19711
3 364-day
3.1 Banks 119024 150120 110185 117220 119024 115639 119885 115964
3.2 Primary Dealers 154197 122449 107891 104078 105426 110194 111859 117965
3.4 Others 174501 127373 97489 97258 97677 100389 97357 99125
4 14-day Intermediate
4.1 Banks
4.2 Primary Dealers
4.4 Others 747 183 726 851 444 754 60761
Total Treasury Bills
694471 843088 741446 738079 729798 725698 718603 715802
(Excluding 14 day Intermediate T Bills) #
# 14D intermediate T-Bills are non-marketable unlike 91D, 182D and 364D T-Bills. These bills are ‘intermediate’ by nature as these are liquidated
to replenish shortfall in the daily minimum cash balances of State Governments
No.
No.25:
25: Auctions of Treasury
Auctions of TreasuryBills
Bills
(Amount in ` Crore)
Date of Notified Bids Received Bids Accepted Total Cut-off Implicit Yield
Auction Amount Number Total Face Value Number Total Face Value Issue Price at Cut-off
(6+7) Price (per
Competitive Non- Competitive Non-
cent)
Competitive Competitive
1 2 3 4 5 6 7 8 9 10
91-day Treasury Bills
2021-22
Dec. 1 10000 108 46007 9501 38 9999 9501 19500 99.13 3.5243
Dec. 8 10000 103 51182 6801 15 9999 6801 16800 99.14 3.4945
Dec. 15 10000 84 26541 11202 48 9998 11202 21200 99.13 3.5296
Dec. 22 10000 131 36123 13737 52 9999 13737 23736 99.09 3.7023
Dec. 29 10000 149 66767 5051 32 9949 5051 15000 99.10 3.6570
2021-22
Dec. 1 3000 75 12006 0 22 3000 0 3000 98.13 3.8217
Dec. 8 3000 86 12209 0 35 3000 0 3000 98.13 3.8197
Dec. 15 3000 65 7797 0 39 3000 0 3000 98.11 3.8738
Dec. 22 3000 90 11891 0 15 3000 0 3000 98.05 3.9795
Dec. 29 3000 100 12645 1029 29 3000 1029 4028 98.06 3.9699
2021-22
Dec. 1 7000 124 16184 2092 88 6998 2092 9090 96.03 4.1482
Dec. 8 7000 117 16737 0 60 7000 0 7000 96.03 4.1490
Dec. 15 7000 106 19050 0 56 7000 0 7000 96.00 4.1750
Dec. 22 7000 123 21735 1 49 6999 1 7000 95.93 4.2598
Dec. 29 7000 116 22770 3800 46 7000 3800 10800 95.92 4.2650

CURRENT STATISTICS
Financial Markets
No.
No.26:
26:Daily
Daily Call Money
MoneyRates
Rates
(Per cent per annum)
As on Range of Rates Weighted Average Rates

1 Borrowings/ Lendings Borrowings/ Lendings
1 2
December 1, 2021 2.00-3.50 3.27
December 2, 2021 2.20-3.50 3.26
December 3, 2021 2.00-3.60 3.28
December 4, 2021 2.70-3.25 2.99
December 6, 2021 2.00-3.45 3.26
December 7, 2021 2.00-3.50 3.29
December 8, 2021 2.00-3.55 3.26
December 9, 2021 2.00-3.45 3.28
December 10, 2021 2.00-3.45 3.28
December 13, 2021 2.00-3.50 3.28
December 14, 2021 2.00-3.45 3.29
December 15, 2021 2.00-3.60 3.33
December 16, 2021 2.00-4.50 3.53
December 17, 2021 2.00-4.25 3.61
December 18, 2021 2.70-3.50 3.31
December 20, 2021 2.00-3.99 3.38
December 21, 2021 1.50-4.00 3.52
December 22, 2021 2.00-3.75 3.38
December 23, 2021 2.00-3.90 3.43
December 24, 2021 2.00-3.80 3.41
December 27, 2021 2.00-3.95 3.26
December 28, 2021 2.00-4.15 3.27
December 29, 2021 2.00-3.55 3.28
December 30, 2021 2.00-3.60 3.33
December 31, 2021 2.00-3.80 3.45
January 1, 2022 2.70-3.70 3.27

January 3, 2022 2.00-3.50 3.29
January 4, 2022 2.00-3.50 3.28
January 5, 2022 2.00-3.45 3.21
January 6, 2022 2.00-3.45 3.21
January 7, 2022 2.10-3.65 3.26
January 10, 2022 2.10-3.60 3.31
January 11, 2022 2.10-3.65 3.36
January 12, 2022 2.10-3.55 3.33
January 13, 2022 2.10-3.45 3.27
January 14, 2022 2.10-4.10 3.41
January 15, 2022 2.65-3.60 3.07
Note: Includes Notice Money.

CURRENT STATISTICS
No. 27: Certificates

No. CertificatesofofDeposit
Deposit
Item 2020 2021

Dec. 18 Nov. 19 Dec. 3 Dec. 17 Dec. 31
1 2 3 4 5
1 Amount Outstanding ( ` Crore) 67960.05 55596.33 63365.56 73298.30 84702.40
1.1 Issued during the fortnight ( ` Crore) 8003.34 2272.75 13977.84 12506.20 17497.20
2 Rate of Interest (per cent) 3.08-4.44 3.59-4.22 3.59-4.83 3.53-4.72 3.74-5.31
No.
No. 28: Commercial
CommercialPaper
Paper
Item 2020 2021

Dec. 31 Nov. 15 Nov. 30 Dec. 15 Dec. 31
1 2 3 4 5
1 Amount Outstanding ( ` Crore) 365185.05 450890.70 388363.05 446975.40 350068.65
1.1 Reported during the fortnight ( ` Crore) 87488.25 172504.00 115234.25 161701.60 87182.55
2 Rate of Interest (per cent) 3.06-12.73 3.38-10.44 3.38-12.76 3.38-12.34 3.50-12.31
No.
No.29:
29:Average
Average Daily Turnoverin
Daily Turnover inSelect
SelectFinancial
Financial Markets
Markets
(` Crore)
Item 2020-21 2021
1 2 3 4 5 6 7 8
1 Call Money 17461 18634 15488 14651 16764 15776 17695 13822
2 Notice Money 2604 4281 912 3983 539 3653 616 3125
3 Term Money 757 370 358 437 277 1003 735 640
4 Triparty Repo 421118 648949 652602 829105 624321 741834 665034 834645
5 Market Repo 337341 376407 402681 507154 370923 459449 337263 402671
6 Repo in Corporate Bond 2990 1090 6203 2953 5502 1057 234 0
7 Forex (US $ million) 67793 62266 73584 91112 65486 72374 70064 75085
8 Govt. of India Dated Securities 62490 38420 51839 58113 50991 33208 48074 37640
9 State Govt. Securities 5080 7724 5137 3846 3926 4692 5237 6397
10 Treasury Bills
10.1 91-Day 4970 5734 4211 2872 4649 3810 5688 4503
10.2 182-Day 4870 5985 2282 676 1778 1418 1149 1706
10.3 364-Day 4010 4851 2083 1986 1869 1884 2815 2120
10.4 Cash Management Bills 1490
11 Total Govt. Securities (8+9+10) 82910 62714 65552 67494 63213 45012 62963 52366
11.1 RBI – 4053 873 633 458 702 892 1662

CURRENT STATISTICS
No.No.
30: 30:
New New Capital
Capital Issues
Issues ByByNon-Government
Non-GovernmentPublic
Public Limited
Limited Companies
Companies
(Amount in ` Crore)
Security & Type of Issue 2020-21 2020-21 (Apr.-Dec.) 2021-22 (Apr.-Dec.) * Dec. 2020 Dec. 2021 *
No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount
Issues Issues Issues Issues Issues
1 2 3 4 5 6 7 8 9 10
1 Equity Shares 74 1020621 47 89390 124 130083
1 4 1652 30 18258
1A Premium 73 976481 47 85708 117 128289

1 4 1487 28 17906
1.1 Public 53 380041 31 28483 96 104870

1 3 1353 20 15681
1.1.1 Premium 53 348481 31 25576 95 103725

1 3 1199 20 15444
1.2 Rights 21 640591 16 60907 28 25212

1 1 299 10 2577
1.2.1 Premium 20 628001 16 60132 22 24563

1 1 288 8 2462
2 Preference Shares – –2 – – – 2– – – – –
2.1 Public – –2 – – – 2– – – – –
2.2 Rights – –2 – – – 2– – – – –
3 Bonds & Debentures 16 58063 10 3871 21 9589

3 – – 1 456
3.1 Convertible – –3 – – – 3– – – – –
3.1.1 Public – –3 – – – 3– – – – –
3.1.2 Rights – –3 – – – 3– – – – –
3.2 Non-Convertible 16 58063 10 3871 21 9589

3 – – 1 456
3.2.1 Public 16 58063 10 3871 21 9589

3 – – 1 456
3.2.2 Rights – –3 – – – 3– – – – –
4 Total(1+2+3) 90 1078685 57 93261 145 139671

5 4 1652 31 18714
4.1 Public 69 438095 41 32354 117 114459

5 3 1353 21 16137
4.2 Rights 21 640595 16 60907 28 25212

5 1 299 10 2577
Note : 1.Since April 2020, monthly data on equity issues is compiled on the basis of their listing date.
2.Figures in the columns might not add up to the total due to rounding of numbers.
Source : Securities and Exchange Board of India.
* : Data is Provisional

CURRENT STATISTICS
External Sector
No.
No. 31:
31: Foreign Trade
Foreign Trade
Item Unit 2020-21 2020 2021

Dec. Aug. Sep. Oct. Nov. Dec.
1 2 3 4 5 6 7
` Crore 2159043 200295 247603 248767 267667 236501 284961
1 Exports
US $ Million 291808 27216 33377 33817 35729 31747 37807
` Crore 190896 17196 34535 38219 40219 41272 44377
1.1 Oil
US $ Million 25804 2337 4655 5195 5369 5540 5888
` Crore 1968147 183098 213068 210548 227447 195229 240584
1.2 Non-oil
US $ Million 266004 24880 28721 28621 30361 26206 31919
` Crore 2915958 315971 336112 415494 400640 394020 448353
2 Imports
US $ Million 394436 42935 45307 56481 53479 52891 59485
` Crore 611353 70863 71805 125101 93949 109327 121847
2.1 Oil
US $ Million 82684 9629 9679 17006 12541 14675 16166
` Crore 2304605 245107 264307 290394 306691 284693 326506
2.2 Non-oil
US $ Million 311752 33306 35628 39475 40938 38216 43319
` Crore -756914 -115676 -88509 -166727 -132973 -157519 -163392
3 Trade Balance
US $ Million -102627 -15718 -11931 -22664 -17750 -21144 -21678
` Crore -420457 -53667 -37270 -86881 -53729 -68055 -77470
3.1 Oil
US $ Million -56880 -7292 -5024 -11810 -7172 -9135 -10278
` Crore -336458 -62009 -51238 -79846 -79244 -89464 -85922
3.2 Non-oil
US $ Million -45748 -8426 -6907 -10854 -10578 -12009 -11400
Source: DGCI&S and Ministry of Commerce & Industry.
No.
No.32:
32:Foreign
Foreign Exchange Reserves
Exchange Reserves
Item Unit 2021 2022

Jan. 29 Dec. 24 Dec. 31 Jan. 7 Jan. 14 Jan. 21 Jan. 28
1 2 3 4 5 6 7
1 Total Reserves ` Crore 4306005 4765329 4707812 4702360 4707359 4719835 4727298
US $ Million 590185 635080 633614 632736 634965 634287 629755
1.1 Foreign Currency Assets ` Crore 3992516 4287220 4234327 4231613 4231207 4238297 4249350
US $ Million 547218 571369 569889 569392 570737 569582 566077
1.2 Gold ` Crore 264803 295562 292779 290171 294839 300149 296461
US $ Million 36294 39390 39405 39044 39770 40337 39493
Volume (Metric
676.65 754.1 754.1 754.1 755.03 755.42 755.42
Tonnes)
1.3 SDRs SDRs Million 1049 13657 13657 13657 13657 13657 13657
` Crore 11006 143418 142017 141930 142491 142511 142706
US $ Million 1508 19114 19114 19098 19220 19152 19011
1.4 Reserve Tranche Position in IMF ` Crore 37679 39129 38690 38646 38822 38878 38780
US $ Million 5165 5207 5207 5202 5238 5216 5174
* Difference,if any, is due to rounding off.

* Difference, if any, is due to rounding off.
No. 33:
No. 33: Non-Resident
Non-Resident Deposits
Deposits
(US$ Million)
Scheme Outstanding Flows
2020 2021 2020-21 2021-22
2020-21
Dec. Nov. Dec. Apr.-Dec. Apr.-Dec.
1 2 3 4 5 6
1 NRI Deposits 141,895 140,496 140,745 142,797 7,903 3,951
1.1 FCNR(B) 20,473 22,128 18,673 18,155 –2,116 –2,318
1.2 NR(E)RA 102,579 100,849 101,794 103,062 8,759 3,069
1.3 NRO 18,842 17,520 20,279 21,581 1,260 3,200

CURRENT STATISTICS
No.
No.34:
34:Foreign
Foreign Investment Inflows
Investment Inflows
(US$ Million)
Item 2020-21 2020-21 2021-22 2020 2021

Apr.-Dec. Apr.-Dec. Dec. Nov. Dec.
1 2 3 4 5 6
1.1 Net Foreign Direct Investment
1.1(1.1.1–1.1.2)
Net Foreign Direct Investment
1.1 Net
(1.1.1–1.1.2)
Foreign Direct43,955
Investment (1.1.1–1.1.2)
41,277 25,298 6,239 1,604 625
1.1.1 Direct Investment to India 1.1.1
(1.1.1.1–1.
Direct1.1.2)
Investment to India1.1.1
(1.1.1.1–1.
Direct Investment
1.1.2)54,927to India (1.1.1.1–1.
49,177 1.1.2)37,774 7,130 2,675 1,839
1.1.1.1 Gross Inflows/Gross Investments
1.1.1.1 Gross Inflows/Gross Investments
1.1.1.1 Gross
81,973
Inflows/Gross68,294
Investments 60,338 9,441 6,107 6,260
1.1.1.1.1 Equity 1.1.1.1.1 Equity 1.1.1.1.1
61,088Equity 52,535 44,239 7,747 4,515 4,037
1.1.1.1.1.1 Government (SIA/FIPB)
1.1.1.1.1.1 Government (SIA/FI
948 1.1.1.1.1.1 Government
320 (SIA/FI
1,574 55 112 25
1.1.1.1.1.2 RBI 1.1.1.1.1.2 RBI 51,597 1.1.1.1.1.2
45,638
RBI 30,646 7,039 3,894 3,044
1.1.1.1.1.3 Acquisition of shares 1.1.1.1.1.3 Acquisition of shares
7,091 1.1.1.1.1.35,512
Acquisition of10,953
shares 527 384 842
1.1.1.1.1.4 Equity capital of 1.1.1.1.1.4 Equity capital of 1.1.1.1.1.4 Equity capital of
unincorporated bodies unincorporated1,452
bodie unincorporated1,065
1,065 bodie 126 126 126
1.1.1.1.2 Reinvested earnings 1.1.1.1.2 Reinvested earnings 1.1.1.1.2
16,935Reinvested12,417
earnings 13,129 1,464 1,464 1,464
1.1.1.1.3 Other capital 1.1.1.1.3 Other capital 1.1.1.1.3
3,950Other capital
3,343 2,970 230 128 759
1.1.1.2 Repatriation/Disinvestment
27,046 19,117 22,564 2,311 3,432 4,421
1.1.1.2.1 Equity 1.1.1.2.1 Equity 1.1.1.2.1
26,983Equity 19,089 22,003 2,306 3,326 4,314
1.1.1.2.2 Other capital 1.1.1.2.2 Other capital 1.1.1.2.263Other capital 28 561 4 106 107
1.1.2 Foreign Direct Investment 1.1.2
by India
Foreign Direct Investment1.1.2
by India
Foreign Direct Investment by India
(1.1.2.1+1.1.2.2+1.1.2.3–1.1.2.4) (1.1.2.1+1.1.2.2+1.1.2.3–1.1.2.4)(1.1.2.1+1.1.2.2+1.1.2.3–1.1.2.4)
10,972 7,900 12,476 891 1,072 1,215
1.1.2.1 Equity capital 1.1.2.1 Equity capital 1.1.2.1 Equity5,583
capital 4,386 6,544 642 772 755
1.1.2.2 Reinvested Earnings 1.1.2.2 Reinvested Earnings 1.1.2.2 Reinvested
3,013Earnings 2,260 2,316 251 251 251
1.1.2.3 Other Capital 1.1.2.3 Other Capital 1.1.2.3 Other 6,688
Capital 3,853 5,900 491 201 381
1.1.2.4 Repatriation/Disinvestment1.1.2.4 Repatriation/Disinvestment
4,313 2,598 2,285 493 153 172
1.2 Net Portfolio Investment (1.2.1+1.2.2+1.2.3–1.2.4)
1.2 Net Portfolio Investment (1.2.1+1.2.2+1.2.3–1.2.4)
1.2 Net Portfolio Investment
36,137 (1.2.1+1.2.2+1.2.3–1.2.4)
28,857 –2,039 8,551 –42 –3,613
1.2.1 GDRs/ADRs 1.2.1 GDRs/ADRs 1.2.1 GDRs/ADRs – – – – – –
1.2.2 FIIs 1.2.2 FIIs 1.2.2 FIIs 38,725 30,536 –737 8,713 –255 –3,275
1.2.3 Offshore funds and others 1.2.3 Offshore funds and others 1.2.3 Offshore funds and–others – – – – –
1.2.4 Portfolio investment by India1.2.4 Portfolio investment by India
1.2.4 Portfolio investment
2,589 by India 1,679 1,302 162 –213 338
1 Foreign Investment Inflows 1 Foreign Investment Inflows 1 Foreign Investment Inflows
80,092 70,133 23,259 14,791 1,561 –2,989
No.No.
35:35:
Outward
OutwardRemittances
Remittancesunder
under the
the Liberalised RemittanceScheme
Liberalised Remittance Scheme(LRS)
(LRS)
forfor Resident
Resident Individuals
Individuals
(US$ Million)
Item 2020-21 2020 2021
Dec. Oct. Nov. Dec.
1 2 3 4 5
1 Outward Remittances under the LRS 12684.40 1149.17 1564.90 1547.41 1773.56
1.1 Deposit 680.37 35.33 46.58 50.40 56.64
1.2 Purchase of immovable property 62.75 5.05 7.43 11.01 10.77
1.3 Investment in equity/debt 471.80 38.76 55.20 57.68 54.30
1.4 Gift 1586.24 145.15 172.06 206.21 214.59
1.5 Donations 12.59 0.67 0.83 0.94 2.69
1.6 Travel 3239.67 322.25 464.59 456.31 884.10
1.7 Maintenance of close relatives 2680.10 217.30 221.56 267.22 281.46
1.8 Medical Treatment 29.75 2.82 3.11 3.30 3.33
1.9 Studies Abroad 3836.12 373.32 579.84 482.35 253.69
1.10 Others 85.03 8.54 13.71 11.99 11.99

CURRENT STATISTICS
No.Indices
No. 36: 36: Indices of Nominal
of Nominal EffectiveEffective
Exchange Exchange Rateand
Rate (NEER) (NEER) and
Real Effective
Real Effective Exchange Rate (REER) of the Indian Rupee
Exchange Rate (REER) of the Indian Rupee
2021 2022
2019-20 2020-21
January December January
Item 1 2 3 4 5
40-Currency Basket (Base: 2015-16=100)
1 Trade-weighted
1.1 NEER 98.00 93.92 93.71 93.49 94.51
1.2 REER 103.20 103.46 103.00 104.53 104.61
2 Export-weighted
2.1 NEER 97.38 93.59 93.30 93.69 94.67
2.2 REER 102.88
2019-20 102.96
2020-21 102.57 104.15 104.15
6-Currency Basket (Trade-weighted)
1 Base: 2015-16 = 100
1.1 NEER 94.92 88.47 87.34 86.64 87.58
1.2 REER 103.62 101.88 100.74 102.70 103.42
2 Base: 2018-19 = 100
2.1 NEER 100.78 93.93 92.73 91.98 92.99
2.2 REER 103.32 101.59 100.45 102.41 103.12

CURRENT STATISTICS
No.No.
37:37:External
ExternalCommercial
Commercial Borrowings
Borrowings(ECBs)
(ECBs)– Registrations
– Registrations
(Amount in US$ Million)
Item 2020-21 2020 2021 2021
Dec-20 Nov-21 Dec-21
1 2 3 4
1 Automatic Route
1.1 Number 1063 95 90 139
1.2 Amount 26799 2994 1694 4374
2 Approval Route
2.1 Number 13 0 3 1
2.2 Amount 8456 0 705 1175
3 Total (1+2)
3.1 Number 1076 95 93 140
3.2 Amount 35255 2994 2399 5549
4 Weighted Average Maturity (in years) 6.03 4.59 4.37 5.30
5 Interest Rate (per cent)
5.1 Weighted Average Margin over 6-month LIBOR or reference rate for Floating Rate Loans 1.93 1.65 2.79 1.01
5.2 Interest rate range for Fixed Rate Loans 0.00-13.00 0.00-13.00 0.00-10.60 0.00-10.25
Borrower Category
I. Corporate Manufacturing 12827 1868 401 442
II. Corporate-Infrastructure 9985 916 1110 2584
a.) Transport 636 338 0 109
b.) Energy 2713 219 1106 959
c.) Water and Sanitation 151 0 0 0
d.) Communication 757 1 1 5
e.) Social and Commercial Infrastructure 1761 0 0 0
f.) Exploration,Mining and Refinery 1346 17 0 1100
g.) Other Sub-Sectors 2622 342 3 411
III. Corporate Service-Sector 1894 122 48 291
IV. Other Entities 1026 0 100 500
a.) units in SEZ 26 0 0 0
b.) SIDBI 0
c.) Exim Bank 1000 0 100 500
V. Banks 0 0 0 0
VI. Financial Institution (Other than NBFC ) 2110 0 4 0
VII. NBFCs 6934 80 724 1690
a). NBFC- IFC/AFC 6024 10 550 1275
b). NBFC-MFI 84 15 1 17
c). NBFC-Others 827 55 173 398
VIII. Non-Government Organization (NGO) 0 0 0 0
IX. Micro Finance Institution (MFI) 8 0 0 0
X. Others 470 8 12 42

CURRENT STATISTICS
No.38:
No. 38:India’s
India's Overall
Overall Balance
BalanceofofPayments
Payments
(US $ Million)
Jul-Sep 2020 Jul-Sep 2021(P)
Credit Debit Net Credit Debit Net
Item 1 2 3 4 5 6
Overall Balance of Payments(1+2+3) 296176 264608 31568 404597 373408 31189
1 CURRENT ACCOUNT (1.1+ 1.2) 150791 135541 15250 194275 203886 -9611
1.1 MERCHANDISE 75591 90407 -14816 104842 149265 -44423
1.2 INVISIBLES (1.2.1+1.2.2+1.2.3) 75200 45134 30066 89434 54621 34813
1.2.1 Services 49793 28707 21086 61421 35836 25585
1.2.1.1 Travel 2138 2764 -626 2147 3919 -1772
1.2.1.2 Transportation 5368 4759 609 7584 8181 -597
1.2.1.3 Insurance 590 537 53 796 575 220
1.2.1.4 G.n.i.e. 144 190 -46 217 198 19
1.2.1.5 Miscellaneous 41554 20458 21096 50678 22962 27716
1.2.1.5.1 Software Services 24791 2769 22021 29965 3184 26781
1.2.1.5.2 Business Services 11624 12354 -730 13858 12457 1401
1.2.1.5.3 Financial Services 1003 1107 -104 1303 1463 -160
1.2.1.5.4 Communication Services 661 355 306 766 275 491
1.2.2 Transfers 20421 2035 18386 21154 2239 18915
1.2.2.1 Official 36 270 -233 18 315 -297
1.2.2.2 Private 20385 1766 18619 21135 1924 19212
1.2.3 Income 4986 14391 -9405 6859 16546 -9688
1.2.3.1 Investment Income 3541 13695 -10154 5362 15792 -10430
1.2.3.2 Compensation of Employees 1445 696 749 1497 754 743
2 CAPITAL ACCOUNT (2.1+2.2+2.3+2.4+2.5) 145010 129067 15943 209579 169522 40057
2.1 Foreign Investment (2.1.1+2.1.2) 97296 65874 31422 132378 119040 13338
2.1.1 Foreign Direct Investment 30502 6077 24424 20447 10987 9461
2.1.1.1 In India 29527 2450 27078 19281 6475 12806
2.1.1.1.1 Equity 23794 2445 21350 13940 6259 7681
2.1.1.1.2 Reinvested Earnings 4117 4117 4482 0 4482
2.1.1.1.3 Other Capital 1617 5 1611 859 216 643
2.1.1.2 Abroad 974 3627 -2653 1167 4512 -3345
2.1.1.2.1 Equity 974 1202 -228 1167 2060 -894
2.1.1.2.2 Reinvested Earnings 0 753 -753 0 781 -781
2.1.1.2.3 Other Capital 0 1672 -1672 0 1670 -1670
2.1.2 Portfolio Investment 66794 59796 6998 111931 108054 3877
2.1.2.1 In India 66420 58684 7736 110448 105904 4544
2.1.2.1.1 FIIs 66420 58684 7736 110448 105904 4544
2.1.2.1.1.1 Equity 55007 48183 6824 95335 94718 618
2.1.2.1.1.2 Debt 11413 10501 912 15112 11186 3926
2.1.2.1.2 ADR/GDRs 0 0 0 0 0 0
2.1.2.2 Abroad 375 1113 -738 1483 2150 -666
2.2 Loans (2.2.1+2.2.2+2.2.3) 20645 24532 -3887 25555 17965 7590
2.2.1 External Assistance 3209 1323 1886 2420 1303 1117
2.2.1.1 By India 10 21 -11 14 30 -15
2.2.1.2 To India 3199 1302 1897 2406 1273 1132
2.2.2 Commercial Borrowings 8775 12731 -3956 9114 5004 4110
2.2.2.1 By India 769 1005 -235 282 249 33
2.2.2.2 To India 8005 11726 -3721 8832 4755 4077
2.2.3 Short Term to India 8662 10479 -1817 14021 11658 2364
2.2.3.1 Buyers' credit & Suppliers' Credit >180 days 8662 9770 -1108 9615 11658 -2043
2.2.3.2 Suppliers' Credit up to 180 days 0 709 -709 4407 0 4407
2.3 Banking Capital (2.3.1+2.3.2) 18762 30025 -11263 20817 20457 360
2.3.1 Commercial Banks 18749 30025 -11276 20473 20457 17
2.3.1.1 Assets 7207 16747 -9539 10097 9858 239
2.3.1.2 Liabilities 11541 13279 -1737 10376 10598 -222
2.3.1.2.1 Non-Resident Deposits 10311 8377 1934 8574 9357 -783
2.3.2 Others 13 0 13 344 0 344
2.4 Rupee Debt Service 0 2 -2 0 2 -2
2.5 Other Capital 8307 8633 -327 30829 12059 18770
3 Errors & Omissions 375 375 742 0 742
4 Monetary Movements (4.1+ 4.2) 0 31568 -31568 0 31189 -31189
4.1 I.M.F. 0 0 0 0 0 0
4.2 Foreign Exchange Reserves (Increase - / Decrease +) 31568 -31568 0 31189 -31189
Note : P : Preliminary

CURRENT STATISTICS
No.
No.39:
39:India’s
India's Overall BalanceofofPayments
Overall Balance Payments
(` Crore)
Jul-Sep 2020 Jul-Sep 2021(P)
Item 1 2 3 4 5 6
Overall Balance of Payments(1+2+3) 2203029 1968215 234814 2997726 2766643 231083
1 CURRENT ACCOUNT (1.1+ 1.2) 1121622 1008187 113435 1439417 1510625 -71208
1.1 MERCHANDISE 562264 672468 -110205 776788 1105928 -329140
1.2 INVISIBLES (1.2.1+1.2.2+1.2.3) 559358 335719 223639 662629 404696 257932
1.2.1 Services 370373 213533 156840 455079 265514 189566
1.2.1.1 Travel 15903 20559 -4657 15905 29037 -13132
1.2.1.2 Transportation 39926 35397 4528 56188 60613 -4425
1.2.1.3 Insurance 4385 3994 391 5896 4263 1633
1.2.1.4 G.n.i.e. 1074 1414 -339 1607 1467 141
1.2.1.5 Miscellaneous 309085 152168 156917 375483 170133 205350
1.2.1.5.1 Software Services 184399 20598 163801 222016 23589 198426
1.2.1.5.2 Business Services 86464 91890 -5426 102675 92295 10380
1.2.1.5.3 Financial Services 7462 8233 -771 9652 10836 -1184
1.2.1.5.4 Communication Services 4914 2638 2275 5676 2035 3641
1.2.2 Transfers 151896 15140 136756 156732 16588 140144
1.2.2.1 Official 269 2006 -1737 137 2334 -2198
1.2.2.2 Private 151627 13134 138492 156596 14254 142342
1.2.3 Income 37089 107046 -69956 50817 122594 -71777
1.2.3.1 Investment Income 26339 101868 -75528 39725 117005 -77280
1.2.3.2 Compensation of Employees 10750 5178 5572 11092 5589 5503
2 CAPITAL ACCOUNT (2.1+2.2+2.3+2.4+2.5) 1078616 960028 118588 1552809 1256019 296790
2.1 Foreign Investment (2.1.1+2.1.2) 723708 489983 233725 980814 881990 98824
2.1.1 Foreign Direct Investment 226877 45202 181675 151499 81403 70095
2.1.1.1 In India 219632 18223 201410 142854 47973 94880
2.1.1.1.1 Equity 176987 18184 158803 103281 46371 56909
2.1.1.1.2 Reinvested Earnings 30620 0 30620 33210 0 33210
2.1.1.1.3 Other Capital 12025 39 11987 6364 1602 4761
2.1.1.2 Abroad 7245 26980 -19735 8645 33430 -24785
2.1.1.2.1 Equity 7245 8940 -1695 8645 15265 -6620
2.1.1.2.2 Reinvested Earnings 0 5603 -5603 0 5789 -5789
2.1.1.2.3 Other Capital 0 12437 -12437 0 12375 -12375
2.1.2 Portfolio Investment 496831 444780 52050 829315 800587 28729
2.1.2.1 In India 494044 436504 57540 818325 784660 33664
2.1.2.1.1 FIIs 494044 436504 57540 818325 784660 33664
2.1.2.1.1.1 Equity 409153 358396 50757 706356 701779 4577
2.1.2.1.1.2 Debt 84891 78108 6783 111968 82881 29087
2.1.2.1.2 ADR/GDRs 0 0 0 0 0 0
2.1.2.2 Abroad 2786 8276 -5490 10991 15927 -4936
2.2 Loans (2.2.1+2.2.2+2.2.3) 153564 182478 -28914 189343 133104 56239
2.2.1 External Assistance 23866 9840 14026 17930 9654 8276
2.2.1.1 By India 71 153 -82 106 220 -114
2.2.1.2 To India 23795 9687 14108 17824 9434 8390
2.2.2 Commercial Borrowings 65268 94694 -29426 67525 37075 30451
2.2.2.1 By India 5722 7473 -1751 2087 1844 242
2.2.2.2 To India 59545 87221 -27675 65439 35231 30208
2.2.3 Short Term to India 64430 77945 -13515 103887 86375 17512
2.2.3.1 Buyers' credit & Suppliers' Credit >180 days 64430 72671 -8241 71239 86375 -15136
2.2.3.2 Suppliers' Credit up to 180 days 0 5273 -5273 32649 0 32649
2.3 Banking Capital (2.3.1+2.3.2) 139558 223336 -83778 154236 151566 2670
2.3.1 Commercial Banks 139459 223336 -83877 151690 151566 124
2.3.1.1 Assets 53611 124564 -70953 74810 73041 1769
2.3.1.2 Liabilities 85848 98771 -12923 76881 78525 -1645
2.3.1.2.1 Non-Resident Deposits 76699 62311 14387 63530 69328 -5798
2.3.2 Others 99 0 99 2545 0 2545
2.4 Rupee Debt Service 0 15 -15 0 15 -15
2.5 Other Capital 61787 64217 -2430 228416 89344 139073
3 Errors & Omissions 2791 0 2791 5500 0 5500
4 Monetary Movements (4.1+ 4.2) 0 234814 -234814 0 231083 -231083
4.1 I.M.F. 0 0 0 0 0 0
4.2 Foreign Exchange Reserves (Increase - / Decrease +) 0 234814 -234814 0 231083 -231083
Note : P: Preliminary

CURRENT STATISTICS
No.
No.40:
40:Standard
Standard Presentation ofBoP
Presentation of BoPininIndia
Indiaasas per
per BPM6
BPM6
(US $ Million)
Item Jul-Sep 2020 Jul-Sep 2021(P)
1 2 3 4 5 6
1 Current Account (1.A+1.B+1.C) 150790 135515 15275 194275 203856 -9581
1.A Goods and Services (1.A.a+1.A.b) 125384 119114 6270 166263 185101 -18838
1.A.a Goods (1.A.a.1 to 1.A.a.3) 75591 90407 -14816 104842 149265 -44423
1.A.a.1 General merchandise on a BOP basis 75243 84319 -9076 104327 133243 -28916
1.A.a.2 Net exports of goods under merchanting 348 0 348 515 0 515
1.A.a.3 Nonmonetary gold 6088 -6088 16022 -16022
1.A.b Services (1.A.b.1 to 1.A.b.13) 49793 28707 21086 61421 35836 25585
1.A.b.1 Manufacturing services on physical inputs owned by others 68 11 56 75 16 59
1.A.b.2 Maintenance and repair services n.i.e. 35 204 -169 74 418 -345
1.A.b.3 Transport 5368 4759 609 7584 8181 -597
1.A.b.4 Travel 2138 2764 -626 2147 3919 -1772
1.A.b.5 Construction 589 563 26 716 715 0
1.A.b.6 Insurance and pension services 590 537 53 796 575 220
1.A.b.7 Financial services 1003 1107 -104 1303 1463 -160
1.A.b.8 Charges for the use of intellectual property n.i.e. 313 1456 -1143 202 2189 -1987
1.A.b.9 Telecommunications, computer, and information services 25515 3290 22225 30823 3651 27172
1.A.b.10 Other business services 11624 12354 -730 13858 12457 1401
1.A.b.11 Personal, cultural, and recreational services 530 817 -287 713 1243 -530
1.A.b.12 Government goods and services n.i.e. 144 190 -46 217 198 19
1.A.b.13 Others n.i.e. 1875 655 1220 2915 811 2105
1.B Primary Income (1.B.1 to 1.B.3) 4986 14391 -9405 6859 16546 -9688
1.B.1 Compensation of employees 1445 696 749 1497 754 743
1.B.2 Investment income 2753 13394 -10641 4349 15572 -11223
1.B.2.1 Direct investment 1272 8131 -6859 1983 9630 -7647
1.B.2.2 Portfolio investment 49 2126 -2076 111 2859 -2748
1.B.2.3 Other investment 78 3137 -3059 62 3082 -3020
1.B.2.4 Reserve assets 1354 1 1353 2193 1 2193
1.B.3 Other primary income 788 301 487 1012 220 792
1.C Secondary Income (1.C.1+1.C.2) 20419 2009 18410 21153 2209 18944
1.C.1 Financial corporations, nonfinancial corporations, households, and NPISHs 20385 1766 18619 21135 1924 19212
1.C.1.1 Personal transfers (Current transfers between resident and/
19711 1287 18424 20237 1356 18881
non-resident households)
1.C.1.2 Other current transfers 674 479 195 899 568 331
1.C.2 General government 35 243 -209 18 285 -267
2 Capital Account (2.1+2.2) 109 198 -88 189 210 -20
2.1 Gross acquisitions (DR.)/disposals (CR.) of non-produced nonfinancial assets 8 100 -92 62 132 -71
2.2 Capital transfers 101 97 4 128 77 50
3 Financial Account (3.1 to 3.5) 144902 160464 -15562 209391 200531 8859
3.1 Direct Investment (3.1A+3.1B) 30502 6077 24424 20447 10987 9461
3.1.A Direct Investment in India 29527 2450 27078 19281 6475 12806
3.1.A.1 Equity and investment fund shares 27911 2445 25466 18422 6259 12163
3.1.A.1.1 Equity other than reinvestment of earnings 23794 2445 21350 13940 6259 7681
3.1.A.1.2 Reinvestment of earnings 4117 4117 4482 4482
3.1.A.2 Debt instruments 1617 5 1611 859 216 643
3.1.A.2.1 Direct investor in direct investment enterprises 1617 5 1611 859 216 643
3.1.B Direct Investment by India 974 3627 -2653 1167 4512 -3345
3.1.B.1 Equity and investment fund shares 974 1955 -981 1167 2842 -1675
3.1.B.1.1 Equity other than reinvestment of earnings 974 1202 -228 1167 2060 -894
3.1.B.1.2 Reinvestment of earnings 753 -753 781 -781
3.1.B.2 Debt instruments 0 1672 -1672 1670 -1670
3.1.B.2.1 Direct investor in direct investment enterprises 1672 -1672 1670 -1670
3.2 Portfolio Investment 66794 59796 6998 111931 108054 3877
3.2.A Portfolio Investment in India 66420 58684 7736 110448 105904 4544
3.2.1 Equity and investment fund shares 55007 48183 6824 95335 94718 618
3.2.2 Debt securities 11413 10501 912 15112 11186 3926
3.2.B Portfolio Investment by India 375 1113 -738 1483 2150 -666
3.3 Financial derivatives (other than reserves) and employee stock options 2858 3936 -1078 5367 5806 -439
3.4 Other investment 44749 59086 -14337 71646 44496 27150
3.4.1 Other equity (ADRs/GDRs) 0 0 0 0 0 0
3.4.2 Currency and deposits 10325 8377 1948 8918 9357 -439
3.4.2.1 Central bank (Rupee Debt Movements; NRG) 13 0 13 344 0 344
3.4.2.2 Deposit-taking corporations, except the central bank (NRI Deposits) 10311 8377 1934 8574 9357 -783
3.4.2.3 General government 0
3.4.2.4 Other sectors 0
3.4.3 Loans (External Assistance, ECBs and Banking Capital) 20421 35702 -15281 23433 17406 6026
3.4.3.A Loans to India 19642 34677 -15035 23137 17128 6009
3.4.3.B Loans by India 779 1025 -246 296 279 17
3.4.4 Insurance, pension, and standardized guarantee schemes 78 62 16 55 13 42
3.4.5 Trade credit and advances 8662 10479 -1817 14021 11658 2364
3.4.6 Other accounts receivable/payable - other 5263 4466 797 7356 6062 1295
3.4.7 Special drawing rights 0 17862 17862
3.5 Reserve assets 0 31568 -31568 0 31189 -31189
3.5.1 Monetary gold 0
3.5.2 Special drawing rights n.a. 0 17862 -17862
3.5.3 Reserve position in the IMF n.a. 0
3.5.4 Other reserve assets (Foreign Currency Assets) 0 31568 -31568 0 13326 -13326
4 Total assets/liabilities 144902 160464 -15562 209391 200531 8859
4.1 Equity and investment fund shares 87202 57694 29508 121829 111787 10042
4.2 Debt instruments 52437 66736 -14299 62343 51494 10849
4.3 Other financial assets and liabilities 5263 36034 -30771 25219 37251 -12032
5 Net errors and omissions 375 375 742 742
Note : P : Preliminary

CURRENT STATISTICS
No.
No.41:
41:Standard PresentationofofBoP
Standard Presentation BoPininIndia
Indiaasas per
per BPM6
BPM6
(` Crore)
Item Jul-Sep 2020 Jul-Sep 2021(P)
1 2 3 4 5 6
1 Current Account (1.A+1.B+1.C) 1121609 1007991 113618 1439413 1510403 -70990
1.A Goods and Services (1.A.a+1.A.b) 932637 886001 46635 1231868 1371442 -139574
1.A.a Goods (1.A.a.1 to 1.A.a.3) 562264 672468 -110205 776788 1105928 -329140
1.A.a.1 General merchandise on a BOP basis 559675 627181 -67506 772976 987218 -214242
1.A.a.2 Net exports of goods under merchanting 2588 0 2588 3812 0 3812
1.A.a.3 Nonmonetary gold 0 45287 -45287 0 118711 -118711
1.A.b Services (1.A.b.1 to 1.A.b.13) 370373 213533 156840 455079 265514 189566
1.A.b.1 Manufacturing services on physical inputs owned by others 505 85 420 558 118 440
1.A.b.2 Maintenance and repair services n.i.e. 263 1519 -1256 546 3100 -2554
1.A.b.3 Transport 39926 35397 4528 56188 60613 -4425
1.A.b.4 Travel 15903 20559 -4657 15905 29037 -13132
1.A.b.5 Construction 4383 4186 197 5302 5299 3
1.A.b.6 Insurance and pension services 4385 3994 391 5896 4263 1633
1.A.b.7 Financial services 7462 8233 -771 9652 10836 -1184
1.A.b.8 Charges for the use of intellectual property n.i.e. 2330 10833 -8503 1499 16220 -14721
1.A.b.9 Telecommunications, computer, and information services 189787 24472 165315 228370 27051 201318
1.A.b.10 Other business services 86464 91890 -5426 102675 92295 10380
1.A.b.11 Personal, cultural, and recreational services 3944 6078 -2135 5279 9207 -3928
1.A.b.12 Government goods and services n.i.e. 1074 1414 -339 1607 1467 141
1.A.b.13 Others n.i.e. 13948 4871 9077 21601 6006 15595
1.B Primary Income (1.B.1 to 1.B.3) 37089 107046 -69956 50817 122594 -71777
1.B.1 Compensation of employees 10750 5178 5572 11092 5589 5503
1.B.2 Investment income 20478 99630 -79152 32225 115376 -83151
1.B.2.1 Direct investment 9463 60481 -51018 14692 71350 -56658
1.B.2.2 Portfolio investment 366 15810 -15445 820 21184 -20364
1.B.2.3 Other investment 579 23331 -22752 461 22836 -22375
1.B.2.4 Reserve assets 10070 7 10063 16251 5 16246
1.B.3 Other primary income 5861 2238 3623 7500 1629 5871
1.C Secondary Income (1.C.1+1.C.2) 151883 14944 136939 156729 16367 140361
1.C.1 Financial corporations, nonfinancial corporations, households, and NPISHs 151627 13134 138492 156596 14254 142342
1.C.1.1 Personal transfers (Current transfers between resident and/
146616 9573 137043 149936 10045 139891
non-resident households)
1.C.1.2 Other current transfers 5011 3561 1450 6659 4209 2451
1.C.2 General government 257 1810 -1553 133 2113 -1980
2 Capital Account (2.1+2.2) 813 1471 -658 1402 1553 -151
2.1 Gross acquisitions (DR.)/disposals (CR.) of non-produced nonfinancial assets 62 747 -685 457 981 -524
2.2 Capital transfers 751 725 27 946 572 374
3 Financial Account (3.1 to 3.5) 1077815 1193566 -115751 1551410 1485770 65641
3.1 Direct Investment (3.1A+3.1B) 226877 45202 181675 151499 81403 70095
3.1.A Direct Investment in India 219632 18223 201410 142854 47973 94880
3.1.A.1 Equity and investment fund shares 207607 18184 189423 136490 46371 90119
3.1.A.1.1 Equity other than reinvestment of earnings 176987 18184 158803 103281 46371 56909
3.1.A.1.2 Reinvestment of earnings 30620 0 30620 33210 0 33210
3.1.A.2 Debt instruments 12025 39 11987 6364 1602 4761
3.1.A.2.1 Direct investor in direct investment enterprises 12025 39 11987 6364 1602 4761
3.1.B Direct Investment by India 7245 26980 -19735 8645 33430 -24785
3.1.B.1 Equity and investment fund shares 7245 14543 -7298 8645 21055 -12410
3.1.B.1.1 Equity other than reinvestment of earnings 7245 8940 -1695 8645 15265 -6620
3.1.B.1.2 Reinvestment of earnings 0 5603 -5603 0 5789 -5789
3.1.B.2 Debt instruments 0 12437 -12437 0 12375 -12375
3.1.B.2.1 Direct investor in direct investment enterprises 0 12437 -12437 0 12375 -12375
3.2 Portfolio Investment 496831 444780 52050 829315 800587 28729
3.2.A Portfolio Investment in India 494044 436504 57540 818325 784660 33664
3.2.1 Equity and investment fund shares 409153 358396 50757 706356 701779 4577
3.2.2 Debt securities 84891 78108 6783 111968 82881 29087
3.2.B Portfolio Investment by India 2786 8276 -5490 10991 15927 -4936
3.3 Financial derivatives (other than reserves) and employee stock options 21257 29276 -8019 39762 43017 -3256
3.4 Other investment 332850 439493 -106643 530835 329679 201155
3.4.1 Other equity (ADRs/GDRs) 0 0 0 0 0 0
3.4.2 Currency and deposits 76798 62311 14486 66075 69328 -3253
3.4.2.1 Central bank (Rupee Debt Movements; NRG) 99 0 99 2545 0 2545
3.4.2.2 Deposit-taking corporations, except the central bank (NRI Deposits) 76699 62311 14387 63530 69328 -5798
3.4.2.3 General government 0 0 0
3.4.2.4 Other sectors 0 0 0
3.4.3 Loans (External Assistance, ECBs and Banking Capital) 151894 265558 -113664 173616 128967 44649
3.4.3.A Loans to India 146100 257932 -111832 171423 126903 44520
3.4.3.B Loans by India 5793 7626 -1833 2193 2064 128
3.4.4 Insurance, pension, and standardized guarantee schemes 580 462 117 405 97 308
3.4.5 Trade credit and advances 64430 77945 -13515 103887 86375 17512
3.4.6 Other accounts receivable/payable - other 39149 33218 5932 54505 44912 9592
3.4.7 Special drawing rights 0 0 0 132346 0 132346
3.5 Reserve assets 0 234814 -234814 0 231083 -231083
3.5.1 Monetary gold 0 0 0
3.5.2 Special drawing rights n.a. 0 0 0 0 132346 -132346
3.5.3 Reserve position in the IMF n.a. 0 0 0
3.5.4 Other reserve assets (Foreign Currency Assets) 0 234814 -234814 0 98737 -98737
4 Total assets/liabilities 1077815 1193566 -115751 1551410 1485770 65641
4.1 Equity and investment fund shares 648628 429138 219490 902649 828246 74403
4.2 Debt instruments 390038 496397 -106359 461910 381529 80382
4.3 Other financial assets and liabilities 39149 268031 -228882 186851 275995 -89145
5 Net errors and omissions 2791 0 2791 5500 0 5500
Note : P: Preliminary

CURRENT STATISTICS
No.42:
No. 42:International
International Investment
Investment Position
Position
(US$ Million)
Item As on Financial Year /Quarter End
2020-21 2020 2021
Sep. Jun. Sep.
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities

1 2 3 4 5 6 7 8
1 Direct Investment Abroad/in India 193929 482226 188243 455981 199440 493763 202785 506723
1.1 Equity Capital and Reinvested Earnings 122726 456947 121267 430714 125397 467990 127072 480697
1.2 Other Capital 71203 25278 66976 25267 74043 25773 75713 26026
2 Portfolio Investment 7936 274104 5041 244308 7912 272859 8578 276375
2.1 Equity 2340 177278 1906 149095 3146 176203 4590 177034
2.2 Debt 5596 96826 3136 95213 4766 96657 3988 99341
3 Other Investment 80606 454253 64785 440252 76828 455000 80317 475775
3.1 Trade Credit 5644 100337 2792 102187 7875 102117 11879 100267
3.2 Loan 13335 197773 9038 189705 13622 197443 10131(US$ Million)
201213
Item3.3 Currency and Deposits 2020-21

42436 143760 2020
34864 138822 35904 2021
143096 41102 142904
3.4 Other Assets/Liabilities 19191 12384 Sep.
18092 9538 Jun.
19427 12344 Sep.
17205 31391
4 Reserves 576984 Assets 544687 Assets 611075 Assets 635363 Assets
5 Total Assets/ Liabilities 859454 1210583
1 802757 1140541
3 895254 1221622
4 927043 1258873
5
6 IIP (Assets - Liabilities) -351129 -337784 -326368 -331830

CURRENT STATISTICS

No.43: Payment System Indicators
PART I - Payment System Indicators - Payment & Settlement System Statistics
System Volume Volume Value Value
(Lakh ) (Lakh ) (` Crore)
(` Crore)
FY 2020-21 2020 2021 FY 2020-21 2020 2021
1 2 3 4 5 6 7 8
A. Settlement Systems – – – – – – – –
Financial Market Infrastructures (FMIs) – – – – – – – –
1 CCIL Operated Systems (1.1 to 1.3) 27.97 2.62 2.56 3.13 161943141 15757032 17364381 20703988
1.1 Govt. Securities Clearing (1.1.1 to 1.1.3) 11.55 1.00 0.97 1.10 110634315 10816866 12229072 14801512
1.1.1 Outright 6.28 0.51 0.46 0.48 10032187 772886 617831 651103
1.1.2 Repo 2.84 0.25 0.26 0.30 43751173 4089804 4273958 5075401
1.1.3 Tri-party Repo 2.43 0.24 0.25 0.31 56850956 5954176 7337283 9075009
1.2 Forex Clearing 16.04 1.58 1.53 1.96 48903961 4651382 4816873 5516604
1.3 Rupee Derivatives @ 0.38 0.04 0.06 0.07 2404865 288785 318437 385873
B. Payment Systems – – – – – – – –
I Financial Market Infrastructures (FMIs) – – – – – – – –
1 Credit Transfers - RTGS (1.1 to 1.2) 1591.92 163.48 172.14 192.78 105599849 10659120 10981778 12966991
1.1 Customer Transactions 1573.47 161.72 170.95 191.50 91008367 9058136 9589985 11418233
1.2 Interbank Transactions 18.45 1.75 1.19 1.29 14591482 1600984 1391793 1548758
II Retail – – – – – – – –
2 Credit Transfers - Retail (2.1 to 2.6) 317867.59 31735.79 51855.52 56422.79 33504168 3393355 3552986 4076395
2.1 AePS (Fund Transfers) @ 11.31 1.03 0.62 0.65 623 61 35 36
2.2 APBS $ 14372.99 1018.90 1119.16 1082.20 111001 8180 9750 14987
2.3 IMPS 32783.47 3556.93 4120.29 – 2941500 292325 364672 –
2.4 NACH Cr $ 16465.29 1741.20 1356.65 1483.71 1216477 118309 95602 113132
2.5 NEFT 30927.89 3076.15 3394.00 3763.38 25130910 2558304 2314490 2724980
2.6 UPI @ 223306.64 22341.58 41864.80 45662.99 4103658 416176 768436 826848
2.6.1 of which USSD @ 10.45 0.88 1.00 1.12 172 14 15 16
3 Debit Transfers and Direct Debits (3.1 to 3.3) 10456.54 922.53 1031.91 1064.54 865520 81871 87212 91163
3.1 BHIM Aadhaar Pay @ 160.84 8.90 19.78 19.59 2580 187 536 611
3.2 NACH Dr $ 9645.75 840.43 900.10 937.92 862027 81576 86517 90426
3.3 NETC (linked to bank account) @ 649.96 73.21 112.03 107.03 913 108 158 126
4 Card Payments (4.1 to 4.2) 57786.60 5502.88 5418.21 5701.80 1291799 128665 156325 161498
4.1 Credit Cards (4.1.1 to 4.1.2) 17641.06 1737.79 2011.16 2112.59 630414 63487 89217 93907
4.1.1 PoS based $ 8688.81 914.20 1068.93 1093.48 280769 28961 37499 36713
4.1.2 Others $ 8952.25 823.59 942.23 1019.10 349645 34526 51718 57195
4.2 Debit Cards (4.2.1 to 4.2.1 ) 40145.54 3765.09 3407.02 3589.21 661385 65178 67109 67591
4.2.1 PoS based $ 20773.50 2165.50 2112.05 2292.51 377630 39437 43751 44162
4.2.2 Others $ 19372.04 1599.59 1294.97 1296.71 283755 25741 23358 23429
5 Prepaid Payment Instruments (5.1 to 5.2) 49742.55 4372.11 6107.23 7008.24 197696 18153 25583 26896
5.1 Wallets 39987.01 3521.48 4870.19 5661.02 152065 13392 21041 21220
5.2 Cards (5.2.1 to 5.2.2) 9755.54 850.63 1237.04 1347.22 45631 4761 4542 5676
5.2.1 PoS based $ 607.15 58.15 74.48 99.63 10690 1107 1287 1893
5.2.2 Others $ 9148.39 792.48 1162.56 1247.59 34941 3654 3255 3784
6 Paper-based Instruments (6.1 to 6.2) 6703.70 719.40 577.00 660.33 5627190 618015 533223 640955
6.1 CTS (NPCI Managed) 6702.54 719.40 577.00 660.33 5625941 618015 533223 640955
6.2 Others 1.17 – – – 1249 – – –
Total - Retail Payments (2+3+4+5+6) 442557.14 43252.72 64989.85 70857.70 41486430 4240059 4355329 4996908
Total Payments (1+2+3+4+5+6) 444149.06 43416.20 65161.98 71050.48 147086278 14899180 15337107 17963898
Total Digital Payments (1+2+3+4+5) 437445.36 42696.80 64584.98 70390.15 141459089 14281164 14803884 17322943

CURRENT STATISTICS
PART II - Payment Modes and Channels

System Volume Volume Value Value
(Lakh ) (Lakh ) (` Crore) (` Crore)
FY 2020-21 2020 2021 FY 2020-21 2020 2021
1 2 3 4 5 6 7 8
A. Other Payment Channels – – – – – – – –
1 Mobile Payments (mobile app based) (1.1 to 1.2) 258033.70 25296.64 45548.53 49881.01 9201212 901655 1324008 1433624
1.1 Intra-bank $ 25220.71 2183.03 3732.97 3927.18 1871390 174603 239989 254442
1.2 Inter-bank $ 232812.99 23113.62 41815.57 45953.83 7329822 727052 1084018 1179182
2 Internet Payments (Netbanking / Internet Browser Based) @ (2.1 to 2.2) 32493.63 3147.85 2860.67 3102.24 41581497 4079472 3937877 4530694
2.1 Intra-bank @ 6886.15 637.64 570.26 611.14 20601554 1934396 1788978 2082236
2.2 Inter-bank @ 25607.48 2510.20 2290.41 2491.10 20979943 2145077 2148899 2448458
B. ATMs – – – – – – – –
3 Cash Withdrawal at ATMs $ (3.1 to 3.3) 60905.81 5680.37 5691.73 5928.20 2889826 266709 271730 280372
3.1 Using Credit Cards $ 51.41 5.01 5.45 5.90 2560 246 276 295
3.2 Using Debit Cards $ 60602.23 5650.86 5657.83 5893.54 2878025 265569 270515 279100
3.3 Using Pre-paid Cards $ 252.17 24.51 28.44 28.76 9240 893 939 977
4 Cash Withdrawal at PoS $ (4.1 to 4.2) 394.77 39.89 4.82 3.89 1533 149 63 42
4.1 Using Debit Cards $ 353.50 34.53 4.14 3.71 1484 142 39 35
4.2 Using Pre-paid Cards $ 41.27 5.37 0.68 0.18 49 6 24 7
5 Cash Withrawal at Micro ATMs @ 9460.43 715.03 925.63 940.20 225420 19671 25112 25208
5.1 AePS @ 9460.43 715.03 925.63 940.20 225420 19671 25112 25208
PART III - Payment Infrastructures (Lakh)

As on 2020 2021
System March 2021

Dec. Nov. Dec.
1 2 3 4
Payment System Infrastructures – – – –
1 Number of Cards (1.1 to 1.2) 9602.51 9460.57 10015.90 10066.90
1.1 Credit Cards 620.49 603.97 675.83 689.49
1.2 Debit Cards 8982.02 8856.60 9340.07 9377.42
2 Number of PPIs @ (2.1 to 2.2) 21952.60 20819.05 25918.94 26426.15
2.1 Wallets @ 20052.10 19156.35 23408.81 23828.54
2.2 Cards @ 1900.51 1662.70 2510.13 2597.62
3 Number of ATMs (3.1 to 3.2) 2.39 2.33 2.42 2.41
3.1 Bank owned ATMs $ 2.14 2.08 2.13 2.11
3.2 White Label ATMs $ 0.25 0.25 0.29 0.30
4 Number of Micro ATMs @ 4.04 3.56 5.57 5.91
5 Number of PoS Terminals 47.20 45.85 52.92 54.98
6 Bharat QR @ 35.70 32.00 45.41 46.47
7 UPI QR * 925.22 752.31 1373.33 1440.10
@: New inclusion w.e.f. November 2019
$ : Inclusion separately initiated from November 2019 - would have been part of other items hitherto.
*: New inclusion w.e.f. September 2020; Includes only static UPI QR Code
Note : 1. Data is provisional.

2. ECS (Debit and Credit) has been merged with NACH with effect from January 31, 2020.
3. The data from November 2019 onwards for card payments (Debit/Credit cards) and Prepaid Payment Instruments (PPIs) may not be comparable with earlier
months/ periods, as more granular data is being published along with revision in data definitions.
4. Only domestic financial transactions are considered. The new format captures e-commerce transactions; transactions using FASTags, digital
bill payments and card-to-card transfer through ATMs, etc.. Also, failed transactions, chargebacks, reversals, expired cards/ wallets, are excluded.

CURRENT STATISTICS
Occasional Series
No.Small
No. 44: 44: Small
SavingsSavings
(` Crore)
Scheme 2019-20 2020 2021
Feb. Dec. Jan. Feb.

1 2 3 4 5
1 Small Savings Receipts 159573 16911 16781 14261 14405
Outstanding 1078535 1046766 1196084 1210379 1224772
1.1 Total Deposits Receipts 116389 11460 12407 9820 10143
Outstanding 734807 716363 827156 836976 847119
1.1.1 Post Office Saving Bank Deposits Receipts 25893 2690 3307 2049 2252
Outstanding 166140 156258 190437 192486 194738
1.1.2 MGNREG Receipts
Outstanding
1.1.3 National Saving Scheme, 1987 Receipts 36 -20 -21 -26 -23
Outstanding 3143 2939 3086 3060 3037
1.1.4 National Saving Scheme, 1992 Receipts -1 -3 -3 0 57
Outstanding 9 -23 -17 -17 40
1.1.5 Monthly Income Scheme Receipts 16510 1887 1053 1162 1135
Outstanding 209168 207059 217980 219142 220277
1.1.6 Senior Citizen Scheme 2004 Receipts 20334 2131 2014 1886 1950
Outstanding 76042 73728 90914 92800 94750
1.1.7 Post Office Time Deposits Receipts 41795 4494 4330 3952 3798
Outstanding 166087 161115 195847 199799 203597
1.1.7.1 1 year Time Deposits Outstanding 92618 90327 104601 105928 107099
1.1.8 Post Office Recurring Deposits Receipts 11821 281 1727 797 974
Outstanding 114222 115291 128912 129709 130683
1.1.9 Post Office Cumulative Time Deposits Receipts 1 0 0 0 0
Outstanding -25 -25 -24 -24 -24
1.1.10 Other Deposits Receipts 0 0 0 0 0
Outstanding 21 21 21 21 21
1.2 Saving Certificates Receipts 30170 3937 3941 3909 3647
Outstanding 252190 248022 274905 278848 282483
1.2.1 National Savings Certificate VIII issue Receipts 19495 2619 1923 1903 1843
Outstanding 117987 115127 129270 131173 133016
1.2.2 Indira Vikas Patras Receipts -101 1 -1 -1 0
Outstanding 162 -288 158 157 157
1.2.3 Kisan Vikas Patras Receipts -18168 -1120 -669 -603 -470
Outstanding 1135 3949 -5121 -5724 -6194
1.2.4 Kisan Vikas Patras - 2014 Receipts 28972 2452 2677 2610 2274
Outstanding 122602 118507 140538 143148 145422
1.2.5 National Saving Certificate VI issue Receipts -4 0 8 0 0
Outstanding -155 -180 -147 -147 -147
1.2.6 National Saving Certificate VII issue Receipts -24 -15 3 0 0
Outstanding -106 -99 -103 -103 -103
1.2.7 Other Certificates Outstanding 10565 11006 10310 10344 10332
1.3 Public Provident Fund Receipts 13014 1514 433 532 615
Outstanding 91538 82381 94023 94555 95170
Note : Data on receipts from April 2017 are net receipts, i.e., gross receipt minus gross payment.
Source: Accountant General, Post and Telegraphs.

CURRENT STATISTICS
TABLE 45 : No. 45 : Ownership

OWNERSHIP PATTERNPattern of CentralAND
OF CENTRAL andSTATE
State Governments
GOVERNMENTSSecurities
SECURITIES
(Per cent)
Central Government Dated Securities
2020 Securities
Central Government Dated 2021
Category Sep. Dec. Mar. Jun. Sep.
1 2 3 4 5
(A) Total (in `. Crore) 7137069 7357111 7635902 7882533 8235318
1 Commercial Banks 38.55 37.81 37.77 35.99 37.82
2 Non-Bank PDs 0.34 0.25 0.27 0.34 0.35
3 Insurance Companies 25.33 25.64 25.30 25.83 24.18
4 Mutual Funds 2.42 2.62 2.94 2.82 2.91
5 Co-operative Banks 1.86 1.83 1.82 1.82 1.50
6 Financial Institutions 1.42 1.00 1.00 1.43 1.17
7 Corporates 0.94 1.05 1.06 1.39 0.72
8 Foreign Portfolio Investors 2.05 2.10 1.87 1.79 1.81
9 Provident Funds 4.77 4.61 4.44 4.04 3.77
10 RBI 15.00 15.71 16.20 17.11 16.98
11. Others 7.32 7.37 7.33 7.43 8.79
11.1 State Governments 1.86 1.76 1.69 1.67 1.67
State Governments Securities

2020Loans
State Development 2021
1 2 3 4 5
(B) Total (in `. Crore) 3564979 3721573 3879982 4028849 4153508
2 Non-Bank PDs 0.54 0.36 0.48 0.39 0.44
4 Mutual Funds 1.96 1.92 1.82 1.74 1.97
7 Corporates 0.39 0.45 0.49 1.45 1.32
9 Provident Funds 21.31 21.20 22.00 21.09 18.27
10 RBI 0.00 0.81 0.77 0.88 0.85
11. Others 4.80 4.82 4.77 5.10 8.38
Treasury Bills
2020
Treasury Bills 2021
1 2 3 4 5
(C) Total (in `. Crore) 982286 839729 690646 901327 763582
2 Non-Bank PDs 2.16 1.65 2.82 1.82 1.33
4 Mutual Funds 19.90 18.98 17.80 19.93 17.72
7 Corporates 1.63 2.01 3.16 3.00 2.40
9 Provident Funds 0.00 0.09 0.22 0.10 0.37
10 RBI 4.80 0.68 0.49 2.58 2.63
11. Others 10.99 14.63 10.70 11.42 17.62
Notes : "-" represents nil of negligible
1. The revised table format since June 2016, incorporates the ownership pattern of State Governments Securities and
Treasury Bills along with the Central Government Securities.
RBI Bulletin February 2022
2. State Government Securities include special bonds issued under Ujwal DISCOM Assurance Yojana (UDAY) scheme. 133
3. Bank PDs are clubbed under Commercial Banks. However, they form very small fraction of total outstanding securities.
4. The category ‘Others’ comprises State Governments, Pension Funds, PSUs, Trusts, HUF/Individuals etc.
CURRENT STATISTICS
No.No.
46:46: CombinedReceipts
Combined Receipts and
and Disbursements
Disbursements ofofthe
theCentral
Centraland State
and Governments
State Governments
(` Crore)
Item 2016-17 2017-18 2018-19 2019-20 2020-21 RE 2021-22 BE

1 2 3 4 5 6
1 Total Disbursements 4265969 4515946 5040747 5410887 6523916 7160694
1.1 Developmental 2537905 2635110 2882758 3074492 3906147 4254004
1.1.1 Revenue 1878417 2029044 2224367 2446605 3259401 3242247
1.1.2 Capital 501213 519356 596774 588233 636062 922982
1.1.3 Loans 158275 86710 61617 39654 10684 88775
1.2 Non-Developmental 1672646 1812455 2078276 2253027 2526514 2810847
1.2.1 Revenue 1555239 1741432 1965907 2109629 2334608 2602289
1.2.1.1 Interest Payments 724448 814757 894520 955801 1082302 1244457
1.2.2 Capital 115775 69370 111029 141457 189487 177328
1.2.3 Loans 1632 1654 1340 1941 2419 31230
1.3 Others 55417 68381 79713 83368 91255 95843
2 Total Receipts 4288432 4528422 5023352 5734166 6489736 7039032
2.1 Revenue Receipts 3132201 3376416 3797731 3851563 3834126 4682025
2.1.1 Tax Receipts 2622145 2978134 3278947 3231582 3175594 3829889
2.1.1.1 Taxes on commodities and services 1652377 1853859 2030050 2012578 2100982 2514708
2.1.1.2 Taxes on Income and Property 965622 1121189 1246083 1216203 1071552 1311449
2.1.1.3 Taxes of Union Territories (Without Legislature) 4146 3086 2814 2800 3060 3732
2.1.2 Non-Tax Receipts 510056 398282 518783 619981 658532 852135
2.1.2.1 Interest Receipts 33220 34224 36273 31137 39830 33198
2.2 Non-debt Capital Receipts 69063 142433 140287 110094 54861 201138
2.2.1 Recovery of Loans & Advances 20942 42213 44667 59515 21151 19581
2.2.2 Disinvestment proceeds 48122 100219 95621 50578 33710 181557
3 Gross Fiscal Deficit [ 1 - ( 2.1 + 2.2 ) ] 1064704 997097 1102729 1449230 2634928 2277532
3A Sources of Financing: Institution-wise ----- ----- ----- ----- ----- -----
3A.1 Domestic Financing 1046708 989167 1097210 1440548 2580406 2276017
3A.1.1 Net Bank Credit to Government 617123 144792 387091 571872 890012 -----
3A.1.1.1 Net RBI Credit to Government 195816 -144847 325987 190241 107494 -----
3A.1.2 Non-Bank Credit to Government 429585 844375 710119 868676 1690394 -----
3A.2 External Financing 17997 7931 5519 8682 54522 1514
3B Sources of Financing: Instrument-wise ----- 997097 ----- ----- ----- -----
3B.1 Domestic Financing 1046708 989167 1097210 1440548 2580406 2276017
3B.1.1 Market Borrowings (net) 689821 794856 795845 971378 1778062 1620936
3B.1.2 Small Savings (net) 35038 71222 88961 209232 455724 367863
3B.1.3 State Provident Funds (net) 45688 42351 51004 38280 47300 45504
3B.1.4 Reserve Funds -6436 18423 -18298 10411 -3450 5051
3B.1.5 Deposits and Advances 17792 25138 66289 -14227 29050 28868
3B.1.6 Cash Balances -22463 -12476 17395 -323279 34179 121663
3B.1.7 Others 287268 49653 96014 548753 239540 86132
3B.2 External Financing 17997 7931 5519 8682 54522 1514
4 Total Disbursements as per cent of GDP 27.7 26.4 26.7 26.6 33.0 32.1
5 Total Receipts as per cent of GDP 27.9 26.5 26.6 28.2 32.9 31.6
6 Revenue Receipts as per cent of GDP 20.3 19.8 20.1 18.9 19.4 21.0
7 Tax Receipts as per cent of GDP 17.0 17.4 17.4 15.9 16.1 17.2
8 Gross Fiscal Deficit as per cent of GDP 6.9 5.8 5.8 7.1 13.3 10.2
…: Not available. RE: Revised Estimates; BE: Budget Estimates
Source : Budget Documents of Central and State Governments.
Note : GDP data is based on 2011-12 base. GDP data from 2020-21 pertains to the Provisional Estimates of National Income released by National
Statistical Office on May 31, 2021. GDP for 2021-22 is from Union Budget 2021-22.
134 Data pertains to all States and Union Territories. RBI Bulletin February 2022
Total receipts and total expenditure exclude National Calamity Contingency Fund expenditure.
1 & 2: Data are net of repayments of the Central Government (including repayments to the NSSF) and State Governments.
CURRENT STATISTICS
No.
No.47:47:
Financial
FinancialAccommodation
AccommodationAvailed
Availed by State Governments
Governmentsunder
undervarious
variousFacilities
Facilities
(` Crore)
During December-2021
Sr. State/Union Territory Special Drawing Ways and Means Overdraft (OD)
No Facility (SDF) Advances (WMA)
Average Number Average Number Average Number
amount of days amount of days amount of days
availed availed availed availed availed availed
1 2 3 4 5 6 7
1 Andhra Pradesh 615 29 1996 29 1493 19
2 Arunachal Pradesh - - - - - -
3 Assam - - - - - -
4 Bihar - - - - - -
5 Chhattisgarh - - - - - -
6 Goa 107 13 75 12 - -
7 Gujarat - - - - - -
8 Haryana - - - - - -
9 Himachal Pradesh - - - - - -
10 Jammu & Kashmir UT - - 1316 23 1013 17
11 Jharkhand - - - - - -
12 Karnataka - - - - - -
13 Kerala - - - - - -
14 Madhya Pradesh - - - - - -
15 Maharashtra - - - - - -
16 Manipur - - 307 31 202 28
17 Meghalaya 118 9 280 9 197 9
18 Mizoram - - 139 23 - -
19 Nagaland 103 23 252 18 79 8
20 Odisha - - - - - -
21 Puducherry - - - - - -
22 Punjab 198 1 - - - -
23 Rajasthan 1274 28 - - - -
24 Tamil Nadu - - - - - -
25 Telangana 560 28 759 24 - -
26 Tripura - - - - - -
27 Uttar Pradesh - - - - - -
28 Uttarakhand - - - - - -
29 West Bengal - - - - - -
Note:
Notes:The1.StateSDFofis J&K hasbyceased
availed to exist constitutionally
State Governments against thefrom October
collateral 31, 2019 andSinking
of Consolidated the liabilities of the Guarantee
Fund (CSF), State continue to remain as
Redemption
liabilities of the new
Fund UT of& Jammu
(GRF) Auctionand Kashmir.
Treasury Bills (ATBs) balances and other investments in government securities.
Source: Reserve
2. WMA Bank of India.by Reserve Bank of India to State Governments for meeting temporary cash mismatches.
is advance
3. OD is advanced to State Governments beyond their WMA limits.
4. Average Availed is the total accommodation (SDF/WMA/OD) availed divided by number of days for which
accommodation was extended during the month.
5. February
RBI Bulletin - : Nil. 2022 135
6. The State of J&K has ceased to exist constitutionally from October 31, 2019 and the liabilities of the State continue to
remain as liabilities of the new UT of Jammu and Kashmir.
Source: Reserve Bank of India.
CURRENT STATISTICS
No. 48:
No. Investments by State
48: Investments Governments
by State Governments
(` Crore)
As on end of December 2021
Sr. Consolidated Guarantee
Government Auction Treasury
No State/Union Territory Sinking Fund Redemption Fund
Securities Bills (ATBs)
(CSF) (GRF)
1 2 3 4 5
1 Andhra Pradesh 9131 899 -- -
2 Arunachal Pradesh 1959 3 -- -
3 Assam 3971 60 -- -
4 Bihar 6168 -- -- -
5 Chhattisgarh 5307 -- 1 4300
6 Goa 674 341 -- -
7 Gujarat 6926 528 -- 2000
8 Haryana 856 1335 -- -
9 Himachal Pradesh -- -- -- 2500
10 Jammu & Kashmir UT -- -- -- -
11 Jharkhand 496 -- -- -
12 Karnataka 7378 -- -- 38500
13 Kerala 2362 -- -- -
14 Madhya Pradesh -- 1011 -- -
15 Maharashtra 48889 909 -- 25000
16 Manipur 170 111 -- -
17 Meghalaya 799 46 9 -
18 Mizoram 387 52 -- -
19 Nagaland 1816 37 -- -
20 Odisha 12367 1605 93 36273
21 Puducherry 338 -- -- 1280
22 Punjab 2017 -- 8 -
23 Rajasthan -- -- 129 5200
24 Tamilnadu 7323 -- 40 15165
25 Telangana 6250 1359 -- -
26 Tripura 573 10 -- 900
27 Uttar Pradesh 1020 -- 180 -
28 Uttarakhand 3798 150 -- -
29 West Bengal 9912 689 214 -
Total 140885 9143 673 131118
Note:
Note: The State of J&K has ceased to exist constitutionally from October 31, 2019 and the liabilities of the State continue to remain as
1. The State of J&K has ceased to exist constitutionally from October 31, 2019 and the liabilities of the State continue to
liabilitiesremain
of the as
newliabilities
UT of Jammu and UT
of the new Kashmir.
of Jammu and Kashmir.

CURRENT STATISTICS
No.
No. 49:
49: Market
Market Borrowings
Borrowings of
of State
State Governments
Governments
(` Crore)
2021-22
Total amount
2019-20 2020-21 raised, so far in
Sr. October November December 2021-22
State
No.
Gross Net Gross Net Gross Net Gross Net Gross Net
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Gross Net
Raised Raised Raised Raised Raised Raised Raised Raised Raised Raised
1 2 3 4 5 6 7 8 9 10 11 12 13
1 Andhra Pradesh 42415 33444 50896 41915 5000 3840 2000 840 3250 3250 36000 27989
2 Arunachal Pradesh 1366 1287 767 767 - - - - - - 400 400
3 Assam 12906 10996 15030 14230 1600 1600 1000 500 2800 1800 9300 7800
4 Bihar 25601 22601 27285 24685 4000 3000 4000 4000 3000 2281 23000 21281
5 Chhattisgarh 11680 10980 13000 10500 2000 1500 - -1000 - - 4000 2500
6 Goa 2600 2000 3354 3054 100 100 100 -100 400 300 1700 1200
7 Gujarat 38900 28600 44780 33280 5554 3554 - -1000 - -1500 17554 6054
8 Haryana 24677 20677 30000 25550 3000 2500 - -500 - - 16500 12200
9 Himachal Pradesh 6580 4460 6000 3755 - -100 2000 1795 1000 800 4000 3495
10 Jammu & Kashmir UT 7869 6760 9328 6020 - - 400 225 1800 1100 6400 4825
11 Jharkhand 7500 5656 9400 8900 1000 500 - - - - 1500 500
12 Karnataka 48500 42500 69000 61900 6000 6000 4000 2500 12000 9500 22000 18000
13 Kerala 18073 12617 28566 23066 2000 1000 - - 1000 -1000 20000 15000
14 Madhya Pradesh 22371 16550 45573 38773 2000 -1000 4000 4000 - - 14000 11000
15 Maharashtra 48498 32998 69000 50022 2500 -1000 3000 3000 3000 1000 54750 42750
16 Manipur 1757 1254 1302 1044 140 90 200 200 90 90 1177 1027
17 Meghalaya 1344 1070 1777 1587 200 140 - -50 328 328 1328 1118
18 Mizoram 900 745 944 677 104 104 - - - - 434 184
19 Nagaland 1000 423 1721 1366 89 89 - - 298 148 1287 1037
20 Odisha 7500 6500 3000 500 - -1000 - -500 - -473 - -3973
21 Puducherry 970 470 1390 790 - - 125 125 250 250 499 499
22 Punjab 27355 18470 32995 23467 1162 862 - -500 1500 1150 13782 3682
23 Rajasthan 39092 24686 57359 44273 5000 3730 1500 617 3669 2669 35769 28304
24 Sikkim 809 481 1292 1292 - - - - 177 137 928 888
25 Tamil Nadu 62425 49826 87977 76796 4000 2740 4000 2260 5000 5000 52000 45000
26 Telangana 37109 30697 43784 37365 1500 660 3000 2160 5500 5500 33500 27711
27 Tripura 2928 2578 1916 1631 - - - - - - 300 150
28 Uttar Pradesh 69703 52744 75500 59185 7500 5524 5000 2513 5000 2922 45000 29713
29 Uttarakhand 5100 4500 6200 5208 - - - - 500 350 1700 700
30 West Bengal 56992 40882 59680 50180 5000 3500 3500 2500 9500 6950 47500 28777
Grand Total 634521 487454 798816 651777 59449 37934 37825 23585 60062 42552 466308 339811
-- : Nil.
Nil.
Note:
Notes:The1.State of J&K
The State has
of J&K ceased
has ceasedtotoexist constitutionally
exist constitutionally from
from October
October 31, and
31, 2019 2019
theand the liabilities
liabilities of the Stateofcontinue
the State continue
to remain as to remain as
liabilities ofliabilities
the new of UT of Jammu
the new and Kashmir.
UT of Jammu and Kashmir.
Source: Reserve Bank of India.
Source : Reserve Bank of India.

CURRENT STATISTICS
Explanatory Notes to the Current Statistics
Table No. 1
1.2& 6: Annual data are average of months.
3.5 & 3.7: Relate to ratios of increments over financial year so far.
4.1 to 4.4, 4.8,4.9 &5: Relate to the last friday of the month/financial year.
4.5, 4.6 & 4.7: Relate to five major banks on the last Friday of the month/financial year.
4.10 to 4.12: Relate to the last auction day of the month/financial year.
4.13: Relate to last day of the month/ financial year
7.1&7.2: Relate to Foreign trade in US Dollar.
Table No. 2
2.1.2: Include paid-up capital, reserve fund and Long-Term Operations Funds.
2.2.2: Include cash, fixed deposits and short-term securities/bonds, e.g., issued by IIFC (UK).
Table No. 4
Maturity-wise position of outstanding forward contracts is available at http://nsdp.rbi.org.in under
‘‘Reserves Template’’.
Table No. 5
Special refinance facility to Others, i.e. to the EXIM Bank, is closed since March 31, 2013.
Table No. 6
For scheduled banks, March-end data pertain to the last reporting Friday.
2.2: Exclude balances held in IMF Account No.1, RBI employees’ provident fund, pension fund, gratuity and
superannuation fund.
Table Nos. 7 & 11

3.1 in Table 7 and 2.4 in Table 11: Include foreign currency denominated bonds issued by IIFC (UK).
Table No. 8
NM2 and NM3 do not include FCNR (B) deposits.
2.4: Consist of paid-up capital and reserves.
2.5: includes other demand and time liabilities of the banking system.
Table No. 9
Financial institutions comprise EXIM Bank, SIDBI, NABARD and NHB.
L1 and L2 are compiled monthly and L3 quarterly.
Wherever data are not available, the last available data have been repeated.
Table No. 13
Data against column Nos. (1), (2) & (3) are Final and for column Nos. (4) & (5) data are Provisional.

CURRENT STATISTICS
Table No. 14
Data in column Nos. (4) & (8) are Provisional.
Table No. 17
2.1.1: Exclude reserve fund maintained by co-operative societies with State Co-operative Banks
2.1.2: Exclude borrowings from RBI, SBI, IDBI, NABARD, notified banks and State Governments.
4: Include borrowings from IDBI and NABARD.
Table No. 24
Primary Dealers (PDs) include banks undertaking PD business.
Table No. 30
Exclude private placement and offer for sale.
1: Exclude bonus shares.
2: Include cumulative convertible preference shares and equi-preference shares.
Table No. 32
Exclude investment in foreign currency denominated bonds issued by IIFC (UK), SDRs transferred by Government
of India to RBI and foreign currency received under SAARC SWAP arrangement. Foreign currency assets in
US dollar take into account appreciation/depreciation of non-US currencies (such as Euro, Sterling, Yen and
Australian Dollar) held in reserves. Foreign exchange holdings are converted into rupees at rupee-US dollar RBI
holding rates.
Table No. 34
1.1.1.1.2 & 1.1.1.1.1.4: Estimates.
1.1.1.2: Estimates for latest months.
‘Other capital’ pertains to debt transactions between parent and subsidiaries/branches of FDI enterprises.
Data may not tally with the BoP data due to lag in reporting.
Table No. 35
1.10: Include items such as subscription to journals, maintenance of investment abroad, student loan repayments
and credit card payments.
Table No. 36
Increase in indices indicates appreciation of rupee and vice versa. For 6-Currency index, base year 2018-19 is a
moving one, which gets updated every year. REER figures are based on Consumer Price Index (combined). The
details on methodology used for compilation of NEER/REER indices are available in December 2005, April 2014
and January 2021 issues of the RBI Bulletin.
Table No. 37
Based on applications for ECB/Foreign Currency Convertible Bonds (FCCBs) which have been allotted loan
registration number during the period.

CURRENT STATISTICS
Table Nos. 38, 39, 40 & 41

Explanatory notes on these tables are available in December issue of RBI Bulletin, 2012.
Table No. 43
Part I-A. Settlement systems
1.1.3: Tri- party Repo under the securities segment has been operationalised from November 05, 2018.
Part I-B. Payments systems
4.1.2: ‘Others’ includes e-commerce transactions and digital bill payments through ATMs, etc.
4.2.2: ‘Others’ includes e-commerce transactions, card to card transfers and digital bill payments through
ATMs, etc.
5: Available from December 2010.
5.1: includes purchase of goods and services and fund transfer through wallets.
5.2.2: includes usage of PPI Cards for online transactions and other transactions.
6.1: Pertain to three grids – Mumbai, New Delhi and Chennai.
6.2: ‘Others’ comprises of Non-MICR transactions which pertains to clearing houses managed by 21 banks.
Part II-A. Other payment channels
1: Mobile Payments –
o Include transactions done through mobile apps of banks and UPI apps.
o The data from July 2017 includes only individual payments and corporate payments initiated,
processed, and authorised using mobile device. Other corporate payments which are not initiated,
processed, and authorised using mobile device are excluded.
2: Internet Payments – includes only e-commerce transactions through ‘netbanking’ and any financial
transaction using internet banking website of the bank.
Part II-B. ATMs
3.3 and 4.2: only relates to transactions using bank issued PPIs.
Part III. Payment systems infrastructure
3: Includes ATMs deployed by Scheduled Commercial Banks (SCBs) and White Label ATM Operators
(WLAOs). WLAs are included from April 2014 onwards.
Table No. 45
(-): represents nil or negligible
The revised table format since June 2016, incorporates the ownership pattern of State Governments Securities
and Treasury Bills along with the Central Government Securities.
State Government Securities include special bonds issued under Ujwal DISCOM Assurance Yojana (UDAY) scheme.
Bank PDs are clubbed under Commercial Banks. However, they form very small fraction of total outstanding
securities.
The category ‘Others’ comprises State Governments, Pension Funds, PSUs, Trusts, HUF/Individuals etc.

CURRENT STATISTICS
Table No. 46
GDP data is based on 2011-12 base. GDP data from 2019-20 pertains to the Provisional Estimates of National
Income released by National Statistics Office on 29th May 2020. GDP for 2020-21 is from Union Budget 2020-21.
Data pertains to all States and Union Territories.
Total receipts and total expenditure exclude National Calamity Contingency Fund expenditure.
1 & 2: Data are net of repayments of the Central Government (including repayments to the NSSF) and State
Governments.
1.3: Represents compensation and assignments by States to local bodies and Panchayati Raj institutions.
2: Data are net of variation in cash balances of the Central and State Governments and includes borrowing
receipts of the Central and State Governments.
3A.1.1: Data as per RBI records.
3B.1.1: Borrowings through dated securities.
3B.1.2: Represent net investment in Central and State Governments’ special securities by the National Small
Savings Fund (NSSF).
This data may vary from previous publications due to adjustments across components with availability of new
data.
3B.1.6: Include Ways and Means Advances by the Centre to the State Governments.
3B.1.7: Include Treasury Bills, loans from financial institutions, insurance and pension funds, remittances, cash
balance investment account.
Table No. 47
SDF is availed by State Governments against the collateral of Consolidated Sinking Fund (CSF), Guarantee
Redemption Fund (GRF) & Auction Treasury Bills (ATBs) balances and other investments in government
securities.
WMA is advance by Reserve Bank of India to State Governments for meeting temporary cash mismatches.
OD is advanced to State Governments beyond their WMA limits.
Average amount Availed is the total accommodation (SDF/WMA/OD) availed divided by number of days for
which accommodation was extended during the month.
- : Nil.
Table No. 48
CSF and GRF are reserve funds maintained by some State Governments with the Reserve Bank of India.
ATBs include Treasury bills of 91 days, 182 days and 364 days invested by State Governments in the primary
market.
--: Not Applicable (not a member of the scheme).
The concepts and methodologies for Current Statistics are available in Comprehensive Guide for Current
Statistics of the RBI Monthly Bulletin (https://rbi.org.in/Scripts/PublicationsView.aspx?id=17618)
Time series data of ‘Current Statistics’ is available at https://dbie.rbi.org.in.

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.

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3. The Reserve Bank of India History 1935-1997 (4 Volumes), Challenges to Central Banking in the Context of Financial Crisis and the Regional
Economy of India: Growth and Finance are available at leading book stores in India.
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RBI Bulletin - Feb 2022

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FEBRUARY 2022

VOLUME LXXVI NUMBER 2

The Reserve Bank of India Bulletin is issued

© Reserve Bank of India 2022

All rights reserved.

For subscription to Bulletin, please refer to

The Reserve Bank of India Bulletin can be

Monetary Policy Statement for 2021-22

Statement on Developmental and Regulatory Policies

Recent Publications 142

Governor’s Statement* complemented by increased adoption of technology

RBI Bulletin February 2022 1

2 RBI Bulletin February 2022

RBI Bulletin February 2022 3

4 RBI Bulletin February 2022

RBI Bulletin February 2022 5

6 RBI Bulletin February 2022

Resolution of the Monetary Policy Committee (MPC)

Monetary Policy Statement, global economic activity. The global composite

RBI Bulletin February 2022 7

8 RBI Bulletin February 2022

RBI Bulletin February 2022 9

10 RBI Bulletin February 2022

Statement on Developmental and Regulatory Policies

Statement on Developmental surplus liquidity up to the size of the COVID-19 loan

RBI Bulletin February 2022 11

12 RBI Bulletin February 2022

RBI Bulletin February 2022 13

RBI’s Pandemic Response: Stepping out of Oblivion

RBI’s Pandemic Response: industry, namely, the Industrial Finance Corporation

RBI Bulletin February 2022 15

16 RBI Bulletin February 2022

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18 RBI Bulletin February 2022

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20 RBI Bulletin February 2022

RBI Bulletin February 2022 21

22 RBI Bulletin February 2022

State of the Economy

RBI Bulletin February 2022 23

measures resurface in several jurisdictions. Its Table 1: GDP Growth Projections –

(EMEs), the pace of the global recovery is at risk.

update, released on January 25, 2022, the

The IMF regards escalating energy prices and supply

24 RBI Bulletin February 2022

Chart 1: Global High Frequency Indicators

Sources: IHS Markit; and Barclays.

Sources: CPB Netherlands; and IMF.

RBI Bulletin February 2022 25

oil prices (Chart 5b). Gold prices faced safe haven

Inflation has soared to multi-decadal highs

Chart 4: Analysis of Sea Freight Prices

26 RBI Bulletin February 2022

Chart 5. Commodity and Food Prices

c: Gold d: Food Prices

Sources: Bloomberg; World Bank Pink Sheet; and FAO.

RBI Bulletin February 2022 27

Chart 7: Financial Markets

c: Currency Indices d: Portfolio Flows to EMEs