RBI released June 2024 bulletin [Download PDF] – Finance and Banking Blog

The Reserve Bank of India recently released the June 2024 issue of its Monthly Bulletin. The issue features three speeches, three articles, and the latest statistics.

June 2024 issue article

The three articles published in the June 2024 issue of Central Bank Bulletin are:

I. Current Economic Situation

Preliminary data showed that global economic growth remained robust in the first quarter of 2024. Many central banks adjusted their monetary policy stance to ease in response to declining inflation in their respective economies. In India, high-frequency indicators suggest that real GDP growth in the first quarter of 2024-25 is maintaining a similar pace to the previous quarter.

The early arrival of the southwest monsoon has improved the agricultural outlook. Headline inflation is gradually easing due to a sustained softening in core inflation, although volatility and high food prices have hampered the de-inflationary path.

II. Financial Stocks and Flows in the Indian Economy 2021-22

This article, authored by Suraj S, Ishu Thakur and Mousumi Priyadarshini, presents an analysis of Financial Stocks and Flows (FSF) across various sectors of the Indian economy for the period 2021-22. The analysis provides insights into inter-sector linkages by mapping the sources and uses of funds. The article also includes detailed unconsolidated statements based on annual aggregation cycles.

Highlights of this article include:

• Households and financial corporations continue to run in the black, offsetting the deficits of general government and private non-financial corporations.
• The Indian economy returned to net borrower status in FY2021-22 on the back of recovery in domestic demand, mainly due to lower net resource flows from other deposit-taking corporations (ODCs) and other financial institutions (OFCs) as well as lower funding from households and private non-financial corporates.
• The domestic sector’s net financial assets fell 29.8% year-on-year at end-March 2022, but remained higher than the situation in 2019-20, before the pandemic.
• Household net financial assets stood at 93.5% of GDP at the end of March 2022, down from the previous year but higher than the pre-pandemic level in 2019-20.

III. 60 Years of India’s Deposit Insurance Scheme: Retrospective and Prospects

This article by Ashutosh Yashwant Raravikar, Avijit Joarder and Anup Kumar discusses the history, achievements and future challenges of India’s Deposit Insurance Scheme. Established with the objective of ensuring financial stability and protecting small depositors, the Deposit Insurance Scheme is now 60 years old.

of article It highlights achievements such as increased coverage limits, faster claims settlement, revised premiums, a strong deposit insurance fund, prudent financial management, and public awareness campaigns. Future challenges include compliance with international standards, faster claims settlement, proactive financial management, infrastructure modernization, capacity building, adapting to fintech innovations, arranging for back-up funds, regular coverage reviews, and public awareness campaigns.

download