The Reserve Bank of India recently released the June 2024 issue of its Monthly Bulletin. This issue includes three speeches, three articles and current statistics.
Articles in the June 2024 issue
The three articles included in the June 2024 issue of reserve bank The bulletins are as follows:
I. State of the economy
According to the Bulletin, global growth remained resilient in the first quarter of 2024. Many central banks have adjusted their monetary policy to be less restrictive in response to falling inflation in their respective economies. In India, high-frequency indicators suggest that real GDP growth in the first quarter of 2024-25 maintains a similar pace to that of the previous quarter.
The agricultural outlook is improving with the early arrival of the southwest monsoon. Overall inflation is gradually slowing, driven by a lasting slowdown in its main component, even though volatile and high food prices have interrupted the disinflation process.
II. Financial Stocks and Funds Flows of Indian Economy 2021-22
This article, authored by Suraj S, Ishu Thakur and Mousumi Priyadarshini, presents an analysis of financial stocks and flows (FSF) during the period 2021-2022 across different sectors of the Indian economy. The analysis provides insight into the interconnections between sectors by mapping the sources and uses of funds. The article also includes detailed unconsolidated statements based on the annual establishment cycle.
Here are some highlights from this article:
- Households and financial corporations remained surplus sectors, filling the deficit of public administrations and private non-financial corporations.
- With the recovery in domestic demand, the Indian economy returned to net borrower status in 2021-22, mainly due to a reduction in net resource flows from other depository corporations (ODCs) and other financial companies (OFCs), as well as a drop in financing. households and private non-financial corporations.
- Although the net financial wealth of the domestic sector moderated to 29.8% of GDP at the end of March 2022 compared to the previous year, it was still higher than the pre-pandemic situation in 2019-20.
- At the end of March 2022, household net financial wealth stood at 93.5% of GDP, lower than the previous year but higher than the pre-pandemic level in 2019-20.
III. Deposit insurance in India at age 60: retrospective and prospects
Authored by Ashutosh Yashwant Raravikar, Avijit Joarder and Anup Kumar, this article discusses the history, achievements and future agenda of the Indian deposit insurance system. The deposit insurance system, established with the aim of ensuring financial stability and protection of small depositors, has existed for sixty years.
THE article highlights achievements such as improved coverage limits, timely settlement of claims, premium reviews, a strong deposit insurance fund, prudent cash management and depositor awareness initiatives. The future program includes alignment with international standards, faster claims settlement, proactive cash management, infrastructure modernization, capacity building, adaptation to fintech innovations, emergency financing arrangements, periodic review of coverage and public awareness.
