Cash transactions up by 17%, says RBI report

Marco Green
Августа 30, 2019

This week, the RBI had announ-ced the highest ever dividend transfer of Rs 1.76 lakh crore to the government.

In the past couple of years, the bank fraud cases which have grabbed the nation's attention involve former liquor baron Vijay Mallya, who fled the nation in 2016 after a consortium of 17 lenders moved the court after declaring him a wilful defaulter. The transfer from its surplus reserves followed recommendation from a panel named by the RBI.

During the year, the central bank also made gains of ₹29,143 crore from foreign exchange transactions, of which ₹21,464 crore was due to the impact of using the weighted average cost method of computing the exchange gain.

"CPI inflation averaged 3.4 per cent in 2018-19; 4.3 per cent in the first half and 2.5 per cent in the second half".

"As indicated in the Statement on Developmental and Regulatory Policies of June 6, 2018, the Reserve Bank has embarked upon exploring alternative technological solutions to help the visually impaired in identifying the denomination of banknotes", the report read. The staggering figure rose by 73.8 per cent as compared to its previous annual data. Net interest income from liquidity adjustment facility (LAF) and marginal standing facility (MSF) operations-two monetary policy tools-stood at ₹1,181 crore in 2018-19.

"During 2019-20, the focus will be on refining the liquidity forecasting framework, sharpening the estimation of currency in circulation at various frequencies (such as yearly, quarterly, monthly, fortnightly and weekly) and an overall reviewing of operational aspects of the liquidity management framework, including aspects relating to structural liquidity balance and distributional asymmetry in liquidity", the RBI report said.

The RBI in its report, also noted that India's external sector outlook is "vulnerable to downside risks from global developments, especially the possibility of the global downturn deepening, the uncertainty surrounding worldwide crude oil prices and the volatility of capital flows". On the liability side, the increase was due to rise in notes issued, other liabilities and provisions, and deposits. It now accounts for 31% of the value of the total currency in circulation.

In the annual report, the central bank, however, makes it clear that as of June 30, 2019, it "stands as a central bank with one of the highest levels of financial resilience globally".

Domestic assets constituted 28.03 per cent while the foreign currency assets and gold (including gold held in India) constituted 71.97 per cent of total assets as on June 30, 2019 as against 23.18 per cent and 76.82 per cent, respectively as on June 30, 2018.

The frauds reported by private banks for 2018-19 was Rs 5,515 crore, up 7.7% from the year before.

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