RBI annual report

Posted on : 30 Nov 2019

• 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 BimalJalan committee report is that the central bank should align its accounting year to the Arpil-March fiscal year for better understanding.

Article Related Questions

1. Consider the following Statements regarding recently released RBI’s annual report
   1.The report, is released every 2 years
   2.The central bank has forecast India’s GDP to grow at 6.9% for FY20
   Which of the above statements is/are correct?

1.1 only

2.2 only

3.Both 1 and 2

4.Neither 1 nor 2

Right Ans : 2 only

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2. The 1857 Uprising was the culmination of the recurrent big and small local rebellions that occured in the preceding hundred years of British Rule. Elucidate (Answer in 150 words) - 2019 Mains

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