Published: 4th Sep, 2019
RBI has released annual report for FY19
Context
RBI has released annual report for FY19
About
- The report, which is released every year, analyses the working and operations of the RBI and suggests measures to improve the economic performance.
- Release of the new economic capital framework under which RBI will transfer ?1.76 trillion surplus to the government.
- Reviving consumption demand and private investment remains the top priority in the current fiscal.
- RBI, cautioned that a broad-based cyclical downturn is underway in several sectors—manufacturing, trade, hotels, transport, communication and broadcasting, construction, and agriculture.
- The delayed onset and skewed distribution of the south-west monsoon may pose downside risks to crop production and rural consumption demand.
- The central bank has forecast India’s GDP to grow at 6.9% for FY20—in the range of 5.8-6.6% during the first half of the year and 7.3-7.5% in the second half.
- The annual report pointed out that throughout the year, protectionist policy pronouncements and actions dominated the global political arena.
- Another conduit through which trade wars and other sources of global spillovers impacted India during 2018-19 is the intertwining of the finance and confidence channels.
- Viable external financing can become an additional consideration for holding adequate precautionary buffers.
- One of the recommendations of Bimal Jalan committee report is that the central bank should align its accounting year to the Arpil-March fiscal year for better understanding.
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Why the Jump in Income? According to RBI, its net income from domestic sources more than doubled to Rs 1,18,078 crore in 2018-19 from Rs 50,880 crore in 2017-18, mainly on account the following factors
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