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Home / Tag Archives: Indian Economy/Financial Markets

Tag Archives: Indian Economy/Financial Markets

RBI releases Board Minutes

After a long wait and requests, RBI has begun to release its Board Minutes: The Reserve Bank of India (RBI) has been, over the years, taking steps to enhance transparency with regard to its functioning. The minutes of the meetings of the RBI’s Central Board of Directors (Central Board) have evinced considerable public interest and some of these have been shared with persons who sought them under the Right to Information Act 2005 (RTI Act). As a measure of further enhancing public...

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Despite its limited success, RBI needs to persevere with Operation Twist

Aparna Iyer of Mint reviews RBI’s Operation Twist: The yield on the 10-year AAA-rated corporate bond has fallen by about 10 basis points, taking its cue from the sovereign bond market. Surely, the larger objective to bring down long-term costs for the industry seems to have been achieved to some extent. So, can Operation Twist be termed as a success? Yes and no. Borrowing costs have come down, but private companies hardly borrow from the 10-year and above maturity. More than 60% of the...

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Vijai Super — the scooter that became popular way before Hamara Bajaj

Bajaj Auto finally bit the scooter bullet and relaunched Chetak Scooter in a new avatar last week. Unnati Sharma in thus interesting piece writes on history of Vijai Super, the scooter that was popular before Chetak: Illustration by Soham Sen | ThePrint “The best deals on wheels” — ask any vintage automobile enthusiast and they will not deny this claim in advertisements of Vijai Super/Deluxe Scooter. When the Indian men’s cricket team won the World Cup for the first time in 1983, the...

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More on Govt’s usage of WMA..

Following my earlier posts on WMA: one, two, three. The above analysis basically used weekly data. We now have some daily data on WMA as well drawn from the quarterly Public Debt Management Report released by Finance Ministry and RBI’s Annual Report Earlier the PDM reports basically said whether WMA was used in the quarter or not. Since 2018 (or so), the reports also tells us how many days in the quarter WMA was used. This is how it looks: Year Quarter No of days WMA was used CMB...

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History of RBI’s Ways and Means Advances to Central Government: Old Wine in New Bottle?

Good friend Niranjan pointed to me how WMA was started as a way to bridge the “short-term gap” between Government’s receipts and expenses. This piece tracks the short history of WMA WMA was started from Apr-1997. Why 1997? Well, in 1997 the Government and RBI signed an agreement to get rid of automatic monetisation of government deficits. Before 1994, if the Government had a deficit, it just issued ad-hoc T-Bills which were held by RBI. In the 1996-97 Budget Speech, then FM P...

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RBI update: WMA declines from 130171 cr to 60605 cr..

Following from my last article, WMA for the week ended 10-Jan-2020 declined to Rs 60605 cr. It was at a record 130171 cr on the week ended 3-Jan-2020. WMA on asset side is usually linked with reverse repo (included in Deposits – Others) on liabilities side. This is because as WMA increases, liquidity in the system increases leading to rise in reverse repo. And the opposite happens in case of reversal. Thus, as WMA has declined on the Assets side, Reverse Repo on the Liabilities side has...

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The puzzle of inflation going up despite low demand in India

Prof Himanshu of JNU in this Mint piece: Why is inflation rising? Most commentators have highlighted the rise in onion prices, which did contribute to vegetable inflation. However, data also shows a sharp rise in inflation in almost all vegetables along with cereals (mainly wheat and coarse cereals), pulses and personal care items. Clearly, the inflation story is not just an onion story, and is far more widespread and serious. However, attributing this to seasonal factors would be...

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Efficacy of Credit Ratings in Assessing Asset Quality: An Analysis of Large Borrowers

RBI Bulletin Jan-2020 has an article by Sukhbir Singh and Pallavi Chavan: Using data on credit ratings from the Central Repository of Information on Large Credits (CRILC) mapped with Prowess, this article examines the efficacy of ratings in facilitating a sound and timely assessment of the asset quality of large borrowers. About one-fourth of the sampled Non-Performing Asset (NPA) exposure from CRILC was found to be in investment grade a quarter before slipping into the NPA category. The...

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Government under fiscal pressure: WMA trends suggest so

My new piece in moneycontrol: The frequency with which RBI is advancing loans to the Centre is a reminder that public finances need to be set right at the earliest This entry was posted on January 15, 2020 at 4:25 pm and is filed under Indian Economy/Financial Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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JNU violence: Indian university’s radical history has long scared country’s rulers

Shalini Sharma of Keele University in this piece tracks JNU’s history. She points how JNU’s policy has been to give admissions to those with deprived background: Set up in 1969, JNU was conceived at a unique moment in global academic history – something I’ve written about with JNU historian Rajat Datta for a forthcoming book about the radical campuses of the 1960s, edited by Jill Pellew and Miles Taylor, which grew out of series of conferences on the issue. In the 1960s and 1970s,...

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