Reserve Bank of India

Central banks in emerging markets often grapple with understanding the monetary policy response to an inter-sectoral terms of trade shock. To address this, we develop a three sector closed economy NK-DSGE model calibrated to India. Our framework can be generalized to other emerging markets and developing countries. The model is characterized by a manufacturing sector and an agricultural sector. The agricultural sector is disaggregated into a food grain and vegetable sector. The government procures grain from the grain market and stores it. We show that the procurement of grain leads to higher in ‡ation, a change in the sectoral terms of trade, and a positive output gap because of a change in the sectoral allocation of labor. We compare the transmission of a single period positive procurement shock with a single period negative productivity shock and discuss what implications such shocks have for monetary policy setting. Our paper contributes to a growing literature on monetary policy in India and other emerging market economies.

Indian banking has helped in developing the vital sectors of the economy and user in a new dawn of progress on the Indian horizon. The sector has translated the hopes and aspirations of millions of people into reality. A cooperative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Cooperative banks are often created by person belonging to the small local or professional community or sharing a common interest. Cooperative Banking Institutions take deposit and lead money in most part of the words. It provides financial assistance to the people with small means to protect them from the debt trap of the money lender. Cooperative banks are organized and managed on the principal of cooperative, self-help & mutual help. Credit creation is the main income generating activity for the banks. But this activity involves huge risks to both the lender and the borrower. The risk of a trading partner not fulfilling his or her obligation as per the contract on due date or anytime thereafter can greatly jeopardize the smooth functioning of a bank's business. On the other hand, a bank with high credit risk has high bankruptcy risk that puts the depositors in jeopardy. The cooperative movement has been till now limited to agriculture and its allied sectors. In rural areas, there are many landless and agriculture as occupation. Either they will be agricultural labour or resort to allied activities. In the time period, the agriculture as an occupation has also shrunk and land holding became less because of population exposure. Thus, it is important to make more and more rural people understand that agriculture is not the only source of income for rural people. Need for the Study The cooperative structure stands on a strong economic foundation and a sound social base. The economic logic behind formation of a cooperative and the spread of cooperative movement lies in the existence of glaring inequalities in the distribution of wealth and income and the need of moderating them through the principles of cooperation. The necessity of liberating people from the tyranny of exploitative practices is the social justification for cooperatives.

Now a day the Urban Co-operative Banks (UCB) is performing a vital role within the financial system. Urban Co-operative Banks are love commercial banks in there operation. The term "Urban Co-operative Banks" has not been uniformly outlined. In most states, no clear definition of an urban co-operative bank has been created. In India, commercial banks and cooperative banks are the two necessary wings of the organized banking structure. The Co-operative Banks are a special form of banking within which people cooperative with each other with a view to promoting there mutual interest. Co-operative suggests that operating along. during this banking organization, people voluntarily co-operative with one another on equal terms to market there own economic interest. The profitability of a UCB will be evaluated on the basis of it's deposits, advances, and a lot of specifically by the distinction between it's total financial gain and expenses. The Indian banking sector could ...

Micro, Small, and Medium Enterprises (MSMEs) have been pivotal in driving the economy’s
development, not only in the local context but also globally. However, despite their significant contributions,
these enterprises often face obstacles that prevent them from fully leveraging their resources for further
economic development. Among these challenges, financial resources stand out as a predominant issue. As
a result, many MSMEs experience declining profits or struggle with increasing losses. Consequently, state
financial corporations, such as, the Karnataka State Financial Corporation, have emerged as a crucial
solution to the financial woes of MSMEs, offering substantial relief and support. In this background,
this study attempts to examine the performance of the corporation and its impact on the development of
MSMEs in the state. For this purpose, operational statistics of the corporation for a period of 10 years,
2013-14 to 2022-23, are collected and used.

The introduction of the Reserve Bank of India's Digital Rupee (Central Bank Digital Currency-CBDC) marks a pivotal shift in India's financial ecosystem, aiming to strengthen financial inclusion and accelerate the transition to a cashless economy. This study investigates the conceptual framework, design, and operational features of the Digital Rupee while critically examining the challenges and risks associated with its implementation. Adopting a descriptive and exploratory research design, the study collected primary data through surveys and supplemented it with secondary sources such as RBI reports, scholarly articles, and global case studies. The analysis reveals that although 72% of respondents are aware of CBDC, only 14.67% have a comprehensive understanding of its functionality. Awareness is mainly driven by news and social media, while trust in CBDC's safety remains moderate, with a mean perception score of 3.20 out of 5. Key challenges identified include limited digital literacy, fear of cyber threats, data privacy concerns, and technological dependency, particularly in rural and underbanked regions. Despite these barriers, the Digital Rupee holds substantial potential to bridge financial access gaps, reduce reliance on cash, and offer a secure, government-backed alternative to existing digital payment platforms. The study recommends targeted awareness campaigns, strong cybersecurity frameworks, legal safeguards, and inclusive access strategies to ensure the effective adoption of CBDC. These findings provide crucial insights for policymakers and financial institutions working towards a digitally inclusive and resilient Indian economy.

Around the world, 1.7 billion adults remain financially excluded and roughly 70% of the world poor lives in middle-income countries, including India. India regards 6th largest in terms of nominal GDP and 3rd in Purchasing power parity and one of the fastest growing economies in the world. Despite India boasting economic growth rates higher than most developed countries in recent years, a majority of the country's population are the part of financial exclusion. Towards faster financial inclusion, the financial institutions have to recognize and encourage taking up larger responsibilities on domestic and global levels. Finance and finance related institutions have a very crucial and a wider role to play in fostering financial inclusion. The policy makers will bring the possibilities and uplift the poor through the process of becoming stronger and more confident, especially in controlling one's life and claiming one's rights know as empowerment. The paper is organized in two sections, first presents the financial inclusion status of India with help of Global findex data, Crisil inclusix index and Reserve bank of India. Then the next section followed by the government initiated schemes such as Pradhan Mantri Jan Dhan Yojana, Insurance Schemes, Mudra Yojana, Make in India and Digital India, to boost up financial inclusion among the working-age population and integrate India with the world.

Indian economy is characterized as of unutilized or underutilized manpower. In the context of underutilized human resources, the nation took a long walk nearly 72 years of its independence to convert these resources into productive economic activities but still it is too far to reach out to the last mile problem. The policymakers formulated socio economic welfare programs in a view of tackle down the problems of basic amenities of the people. A vision focused on ensuring equitable economic growth and development is based on inclusiveness and socioeconomic justice for all. The very concept of inclusive development is characterized by equal opportunity and accessibility until the last mile both in financial and non-financial terms. Along with addressing the issue of inequality, economic inclusion creates productive livelihood opportunities for every citizen including the poorest and the most vulnerable. According to the NSSO survey (2013) reports that 4% of 57.7 million MSMEs are unable to get financial support from regular banks. Moreover, for start-ups, there is great difficulty in getting financial support from financial institutions. MSMEs need adequate and easy access to financial services. A critical step towards inclusive growth and development is facilitating financial inclusion through access to and delivery of financial services to one and all is the essence of economic inclusion and financial empowerment. Micro Units Development and Refinance Agency Bank (MUDRA Bank) has been created with the adage of "Funding the Informal by Funding the Unfunded", by making Micro, Small business units to be an instrument for GDP growth and also employment generation. It lends loans to non-form income-generating enterprises in the manufacture, trading, and services whose credit 1 Copyrighted material

Around the world, 1.7 billion adults remain financially excluded and roughly 70% of the world poor lives in middle-income countries, including India. India regards 6th largest in terms of nominal GDP and 3rd in Purchasing power parity and one of the fastest growing economies in the world. Despite India boasting economic growth rates higher than most developed countries in recent years, a majority of the country's population are the part of financial exclusion. Towards faster financial inclusion, the financial institutions have to recognize and encourage taking up larger responsibilities on domestic and global levels. Finance and finance related institutions have a very crucial and a wider role to play in fostering financial inclusion. The policy makers will bring the possibilities and uplift the poor through the process of becoming stronger and more confident, especially in controlling one's life and claiming one's rights know as empowerment. The paper is organized in two sections, first presents the financial inclusion status of India with help of Global findex data, Crisil inclusix index and Reserve bank of India. Then the next section followed by the government initiated schemes such as Pradhan Mantri Jan Dhan Yojana, Insurance Schemes, Mudra Yojana, Make in India and Digital India, to boost up financial inclusion among the working-age population and integrate India with the world.

This study examines the relationship between fiscal policy and economic growth in India over the period 1991 to 2024, using secondary data collected from reliable sources including the EPWRF, RBI State Finance, Handbooks of Indian Statistics, and RBI Reports. The primary aim is to understand how fiscal variables such as government expenditure, revenue, outstanding debt, and fiscal deficit influence the Gross Domestic Product (GDP) at constant prices. The study focuses on the GDP data based on the 2011-12 base year prices, while all other variables, including Total Expenditure, Total Receipts, Total Outstanding, and Fiscal Deficit, are expressed in crore. The data series is transformed into logarithmic form to address potential scale differences and ensure a more accurate modelling of the relationships. Using the Autoregressive Distributed Lag (ARDL) model, the study explores both short-term and long-term dynamics between these fiscal variables and economic growth. The findings suggest that government debt has a significant positive effect on economic growth, while fiscal expenditure and revenue do not show strong immediate impacts on GDP. Additionally, fiscal deficits and government receipts exhibit interrelated dynamics, with a notable influence on India's economic performance over time. The study provides valuable insights into the role of fiscal policies in shaping India's economic trajectory over the last few decades.

This research investigates the sustainable finance landscape in rural economies, focusing on the credit portfolio dynamics and risk management approaches employed by District Central Cooperative Banks (DCCBs) across India. Through a comprehensive analysis of 7 years' data spanning from 2014-15 to 2020-21, based on both quantitative and qualitative data, the study explores the evolving composition of credit portfolios, with a particular emphasis on the sustainable financial support provided to rural communities. The findings reveal nuanced patterns in the allocation of short-term and medium-term loans, emphasizing the strategic importance of supporting agricultural activities. The research also delves into the risk management practices adopted by DCCBs, examining elements such as credit scoring models, stress testing, and technology integration. The study concludes with actionable recommendations to enhance the sustainability and effectiveness of DCCBs in promoting financial inclusion and stability in rural India.

Linearized New Keynesian models and empirical no-arbitrage macro-finance models offer little insight regarding the implications of changes in bond term premiums for economic activity. This paper investigates these implications using both a structural model and a reduced-form framework. The authors show that there is no structural relationship running from the term premium to economic activity, but a reduced-form empirical analysis does suggest that a decline in the term premium has typically been associated with stimulus to real economic activity, which contradicts earlier results in the literature. (JEL E43, E44, E52, G12)

This paper advances the use of algebraic formulae in place of amortization schedules in calculating annual interest expenses. The formulae are of great value in alleviating computational burdens in mortgage refinancing analysis. The methodology presented here can be readily imparted to business undergraduates and MBA students taking managerial finance courses. The new formula approach also resolves computational difficulties which appear to have been one of the major reasons why the use of sensitivity analysis and simulation has not become popular in refinancing analysis.

In this research, we investigate the valuation effect on acquiring banks during different window of events. The research is conducted on the US and the European banks mergers and acquisition during the period of 2004 through 2010 with special focus on bank mergers during the financial crisis of this decade. During this crisis period when many big banks are also on the verge of bankruptcy, many mergers and acquisitions take place in the United States in Europe. Using traditional event study methodology, we investigate the wealth effect on acquiring banks to understand the market reaction in bank acquisitions announcements. We observe those acquisition announcements, on average; create a 0.3% and 0.8% gain in the United States and European countries, respectively to the acquiring bank. When we focus on banks with different size and location, we, however, find that, on average, American acquiring banks lose 18% who employ 10,000-100, 0000 and European banks lose 6% with same employment size. Furthermore, American acquiring banks lose 17% and 12% that are headquartered in the Western and Midwestern states respectively. Our results offer further evidence to the literature that, shareholders of acquiring banks face negative wealth effect even when they acquire other banks during crisis period.

This Country Note outlines the existing regulatory framework that governs the entry of FDI into India. In doing so, it provides a brief historical background the preceded FEMA; delineates the process akin to screening of FDI with specific references to official documents and regulations; provides a detailed account of the scope of judicial review in matters of foreign investment policy; and summarizes the most recent developments.
India’s regulatory approach towards foreign investments or ‘foreign exchange’ is to defer to the powers of the executive rather than the judiciary. While - the country’s consolidated foreign direct investment (FDI) policy prescribes the sectoral caps and two routes for entry of FDI into the country i.e., the automatic and the government approval route – depending on the segregation of the sectors thereunder. Additionally, the Central Government and the Reserve Bank of India (RBI) under the framework of the Foreign Exchange Management Act, 1999 (FEMA) – govern the specifics of permissibility and modalities. The Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade (DPIIT) has established a standard operating procedure to process FDI proposals submitted in furtherance of the consolidated FDI policy. The subsequent decisions on the FDI proposals are in principle, not subject to judicial review. However, constitutional remedies may be available under very limited circumstances where the judiciary may intervene in the operation of what otherwise constitutes an executive function of the Government. While the recent developments towards restriction of inbound FDI from the land-bordering countries may appear protectionist, the amendments of the RBI’s Master Direction on foreign investment liberalizes the entry modalities of FDI into India. To contribute to India’s pursuit of a balanced regulation in the age of economic lawfare – this document is the aims to appraise the starting line as of today.

In his Foreword to wrote: "I conclude with an unworthy hypothesis regarding past and present directions of economic research. Sherlock Holmes said, 'Cherchez la femme.' When asked why he robbed banks, Willie Sutton replied, 'That's where the money is.' We economists do primarily work for our peers' esteem, which figures in our own self-esteem. When post-depression Roosevelt's New Deal provided exciting job opportunities, first the junior academic faculties moved leftward. To get back ahead of their followers, subsequently the senior academic faculties shoved ahead of them. As post-Reagan, post-Thatcher electorate turned rightward, follow the money pointed, alas, in only one direction. So to speak, we eat our own cooking. We economists love to quote Keynes's final lines in his 1936 General Theory ---for the reason that they cater so well to our vanity and self-importance. But to admit the truth, madmen in authority can self-generate their own frenzies without needing help from either defunct or avant garde economists. What establishment economists brew up is as often what the Prince and the Public are already wanting to imbibe. We guys don't stay in the best club by proffering the views of some past academic crank or academic sage.

In his Foreword to wrote: "I conclude with an unworthy hypothesis regarding past and present directions of economic research. Sherlock Holmes said, 'Cherchez la femme.' When asked why he robbed banks, Willie Sutton replied, 'That's where the money is.' We economists do primarily work for our peers' esteem, which figures in our own self-esteem. When post-depression Roosevelt's New Deal provided exciting job opportunities, first the junior academic faculties moved leftward. To get back ahead of their followers, subsequently the senior academic faculties shoved ahead of them. As post-Reagan, post-Thatcher electorate turned rightward, follow the money pointed, alas, in only one direction. So to speak, we eat our own cooking. We economists love to quote Keynes's final lines in his 1936 General Theory ---for the reason that they cater so well to our vanity and self-importance. But to admit the truth, madmen in authority can self-generate their own frenzies without needing help from either defunct or avant garde economists. What establishment economists brew up is as often what the Prince and the Public are already wanting to imbibe. We guys don't stay in the best club by proffering the views of some past academic crank or academic sage.

This scholarly treatise undertakes a rigorous critique of the phenomenon of bank fraud within the Indian banking sector, with an emphasis on the regulatory framework delineated for fraud mitigation. The investigation delves into the intricate causes of bank fraud, highlighting the pivotal roles of deficient internal controls, inadequate employee training, and the onerous demands placed upon banking personnel. It meticulously evaluates the adherence of bank employees to established fraud prevention protocols, particularly those stipulated by the Reserve Bank of India (RBI). Furthermore, the research provides a sophisticated analysis of bank employees' perceptions of the efficacy of these preventive measures and their cognizance of varied fraud typologies. The findings elucidate substantial shortcomings in the implementation of internal control mechanisms and identify critical contributory factors to bank fraud, including insufficient training, employee overload, competitive pressures, and low compliance with RBI guidelines. The research underscores the necessity for banks to proactively strengthen internal controls and augment employee training programs. This comprehensive assessment proffers substantive recommendations to refine extant fraud prevention strategies, thereby mitigating financial losses and reinforcing the integrity of the Indian banking industry.

This research paper undertakes an exhaustive disquisition of the multifarious issue of banking fraud in India's
public sector banks since the Economic Reforms of the early 1990s to the present era. It elucidates high-profile cases
such as the Vijay Mallya, Nirav Modi, Yes Bank Scandal, and DHFL Fraud, illuminating systemic deficiencies including
regulatory lacunae, inadequate corporate governance, technological vulnerabilities, and the complicity of bank employees
with malefactors. The study meticulously investigates the economic repercussions, notably substantial pecuniary losses,
a diminution of public trust, augmented regulatory vigilance, and escalated compliance expenditures. Additionally, it
examines the socio-economic ramifications on stakeholders, encompassing depositors, employees, and policymakers.
The analysis propounds a series of well-founded recommendations for the establishment of rigorous regulatory
architectures, heightened accountability, cutting edge fraud detection technologies, and comprehensive training regimens
for banking personnel. The paper endeavours to discern the various types and frequencies of banking fraud, evaluate their
impact on the banking sector and broader economy, unearth root causes, and propose effective stratagems to ameliorate
fraud risks and fortify the resilience of public sector banks. Utilizing data from the RBI, the study accentuates the
indispensability of enhanced regulatory oversight, superior internal controls, and pioneering technological solutions to
safeguard the Indian banking ecosystem. The findings underscore the necessity for continuous surveillance, proactive
risk management, and the assimilation of best practices across the banking sector to foster a secure and trustworthy
financial environment.

This research paper undertakes an exhaustive disquisition of the multifarious issue of banking fraud in India's public sector banks since the Economic Reforms of the early 1990s to the present era. It elucidates high-profile cases such as the Vijay Mallya, Nirav Modi, Yes Bank Scandal, and DHFL Fraud, illuminating systemic deficiencies including regulatory lacunae, inadequate corporate governance, technological vulnerabilities, and the complicity of bank employees with malefactors. The study meticulously investigates the economic repercussions, notably substantial pecuniary losses, a diminution of public trust, augmented regulatory vigilance, and escalated compliance expenditures. Additionally, it examines the socioeconomic ramifications on stakeholders, encompassing depositors, employees, and policymakers. The analysis propounds a series of well-founded recommendations for the establishment of rigorous regulatory architectures, heightened accountability, cutting edge fraud detection technologies, and comprehensive training regimens for banking personnel. The paper endeavours to discern the various types and frequencies of banking fraud, evaluate their impact on the banking sector and broader economy, unearth root causes, and propose effective stratagems to ameliorate fraud risks and fortify the resilience of public sector banks. Utilizing data from the RBI, the study accentuates the indispensability of enhanced regulatory oversight, superior internal controls, and pioneering technological solutions to safeguard the Indian banking ecosystem. The findings underscore the necessity for continuous surveillance, proactive risk management, and the assimilation of best practices across the banking sector to foster a secure and trustworthy financial environment.

Unlike the usual, this April 2023, The Reserve Bank of India kept its repo rate at 6.5 %, this was right after making six hikes at a stretch, resisting market projections for a 25basis point rate hike. The effect of the recent financial turbulence was closely monitored by the body. It was stated by policymakers that they were still focused on accommodation withdrawal, thus more tightening was possible. Rate increases were put on hold only for this conference. From May 2022, the RBI increased rates by a total of 250 basis points, bringing borrowing costs up to levels seen in January 2019. The board also reduced its inflation forecast to 5.2% from 5.3% and increased its growth estimate to 6.5% from 6.4% for the fiscal year that begins in April. This article examines the Reserve Bank of India's recent interest rate increases in the perspective of reducing inflation.

Empirical estimates of the Reserve Bank of India's (RBI) intervention reaction function suggest that the central bank actively intervenes in the foreign exchange market to contain volatility but this intervention is neither continuous nor linear. It is better described by a nonlinear policy reaction function with a target range as opposed to a point target. It responds much more vigorously to appreciating or depreciating pressure outside the target range but the response is much more muted within the range. Moreover, the tolerance band is asymmetric i.e., the RBI responds much more strongly to appreciating pressure than depreciating pressure. Such a policy response in an era of continuous net capital inflows accounts for the large build-up in foreign exchange reserves witnessed in India in the recent past.

The purpose of this paper is to investigate the relationship between savings and investment. The results reveal that there is unidirectional causality from savings to investment. From variance decomposition method, we observe that with a lag of three periods, change in savings effects 85% of variance in investment (and 92%) by the end of ten periods. On the other hand, no significant part of variance of yield curve is caused by inflation (3% and 4% at the end of three periods and ten periods, respectively). The results also showed cointegration between savings, investment and yield spread. Yield spread and investment have not been found to Granger-cause savings indicating savings are independent of investment and yield spread.

The Interbank Money Market in India: Evidence on Volatility, Efficacy of Regulatory Initiatives and Implications for Interest Rate Targeting * The views expressed in the paper are solely those of the author and must not be ascribed to the institution to which he belongs. Himanshu ...

In this research work, the monsoon conditions of Ahmednagar district were studied. Rainfall data for all tehsils in the district was collected from respective stations. This long-term rainfall data was used to assess the rainfall and rainy days condition of Ahmednagar district. The daily rainfall data was used as an input file for Weather Cock-15 software, which was utilized to analyze the rainfall pattern of this region. The results of this study indicate that the mean annual rainfall for Ahmednagar district was 562.69 mm, which was received during 34 mean rainy days. The maximum monthly rainfall for Ahmednagar district was observed in September, while the minimum monthly rainfall was observed in the month of February.

The purpose of this paper is to investigate the relationship between savings and investment. The results reveal that there is unidirectional causality from savings to investment. From variance decomposition method, we observe that with a lag of three ...

Some Indian states have announced farm debt waivers recently, which bear ramifications for the fiscal burden of states over the medium term. Empirical estimates suggest that fiscal deficit can have an inflationary impact. In particular, impact is non-linear as fiscal deficit causes inflation to rise more at higher level of fiscal deficit and inflation. If the combined fiscal deficit for 2017-18 goes up by 40 bps on account of farm loan waivers (both actual and intended), with the budgeted combined fiscal deficit at around 5.9 percent for 2017-18 and inflationary momentum remaining benign, ceteris paribus, this may lead to around 20 bps permanent increase in inflation, starting 2017-18.

Income and Consumption Relationship in India: An ARDL Model Approach Income and Consumption Relationship in India: An ARDL Model Approach 1 Associate Professor, SVKM's NMIMS, Indore 2 Associate Professor in Economics, Prestige Institute of Management and Research, Indore Abstract The relation between income and consumption has been observed by economists for a long time. However, J K Keneys, for the first time, studied the theoretical level of the consumption behaviour and proposed Absolute Income Hypothesis (AIH) from The General Theory according to which the current consumption expenditure mainly depends on current income. India, being a country with diverse culture and socio economic conditions, is developing at a rapid pace with the introduction of economic reforms. A large private sector and functioning markets are subject to rigid state controls until the uncertain and gradual reforms of 1980s. In the political environments under which reforms are initiated and implemented...

United Nations Conference on Trade and Investment (UNCTAD) has confirmed India to be listed in the top 20 countries for outbound investment by the end of 2019.Infact in 2018, it was approx $11 billion that provides domestic enterprises a better admittance to global networks as well as markets, transfer of technology and skills and enables better outcomes. Being a positive determinant of such raising upward flows, exchange rate plays a crucial role for encouraging outward investment from the emerging economies like India. This paper uses real effective exchange rate as a proxy for raising OFDI from India and technique used is Engle granger co-integration test and verified both short run and long run causal relation. The paper's findings show that there is long term co integration between OFDI and REER. From the findings of this paper, it still has some limitations that can be corrected for further study. JEL classification: P45, F31, P62

Financial Planning is very essential in every walk of life. Financial Planning is not just Tax planning, but it is even more than that, but many of them are still not aware with the difference of Tax Planning and Financial Planning. Financial Planning is overall planning of ones needs, like child"s education, kids" marriage, medical emergencies, Vacations and Retirement Planning etc. Financial Planning needs to be done in a systematic way so that you achieve all your goals. A person who organizes Financial Planning must be Financial Literate. Financial Literate means who is aware and knows how where and when to Invest. Any decision of money impacts overall financial position and Financial Planning. So financial planning is decisive. Annamaria Lusardi Olivia S. Mitchell (2011) "Many respondents lack crucial knowledge of financial perceptions and fail to plan for retirement, even when retirement is very close of about 5-10 years." Hence a person who does Financial Planning must be Financial Literate. A person must prepare financial plan, set goals and also set required means to achieve them. Through an assessment of Financial Planning Strategies adopted by College Teachers from Non-Professional Colleges in Pune District researcher having major findings & suggestions on that.

Abstract
In this book, we bring out the performance of the Indian economy, and review the approach of macroeconomic policy especially demand management in the Indian economy, since the Global Financial Crisis. We also consider the COVID crisis and its impact, and the measures adopted to mitigate its effects by both the government and the central bank focusing on the macroeconomic dimensions of the various initiatives. We also cover the issues related to manufacturing performance in India. At end of November 2021, the economy showed a mixed response with the stock market rising sharply though the recovery was modest, and as on date is yet to go decisively over the levels reached in 2019 a year before the crisis.

There is much hope though that the capital investments cycle which had been depressed almost since 2012–13 would revive based on the government’s initiatives in manufacturing, and due to the positive effects (for India) from the vastly changed global economic environment, especially those related to China, and its relationship with Europe and US, especially the latter. The institution of GST has created disincentives against investment support on the part of regional governments, and the institutional mechanism also makes it difficult to quickly use tax cuts as countercyclical policy and puts an upward political bias to keep rates high.

We also lay out an enhanced macroeconomic framework that recognizes shocks that heighten uncertainty increasing the portfolio demand for money, as the role of “structural” policies on the capacity (full employment) output in macroeconomic management. We bring out the limitations in the CPI that is used by policymakers including in the core CPI. We also take into account the correction required in the new GDP11-12 series which had in the early years overestimated the growth in the Indian economy.

This chapter covers the conceptual enhancements to the standard macroeconomic framework and also provides a synopsis of the coverage and results brought in other chapters of the book.

The balance sheet of a central bank is a crucial document that is closely observed by analysts worldwide. The Reserve Bank of India (RBI) plays a vital role in managing the Indian economy through its monetary policy operations. The RBI's balance sheet consists of liabilities and assets, with the liabilities being the final means of settlement for all transactions in the economy. The RBI's balance sheet is impacted by its monetary policy operations, and any changes in the operations of the government's account maintained with the RBI also affect the balance sheet. This paper aims to study the monetary policy experiment of 2004 titled Market Stabilisation Scheme (MSS) and its impact on the management of liquidity in the economy and on the RBI balance sheet. The paper finds out that the monetary policy operation of the RBI was to absorb liquidity from the economy through MMS but it is also shows that MSS helped the economy by way of injecting liquidity by unwinding of government securities during the financial crisis of 2008. The paper also proves that MSS did impact the balance sheet of the RBI though not to a very great extent. Had RBI used Open Market Operation (OMO) to manage the excess inflow of capital in the economy the RBI balance sheet would have been distorted to a very great extent.

This paper provides an analytical abstract of various parameters of manufacturing competitiveness of the Indian economy. India's manufacturing exports have risen impressively in the past decade or so and found to be directly linked to the world GDP and inversely related to real ...

Banks and financial institutions provide refinancing facilities by disbursing loans to various sectors. This study mainly focuses on the performance of various categories of banks in providing refinance the agricultural sector. Since this primary sector has a high potential to contribute to the GDP of the nation, it has become a significant light on the disbursement of loans to farmers. The apex body NABARD will disburse funds routed through various categories of banks like SCARDBs, SCBs, CBs, RRBs and PUCBs were taken for this study. Friedman's test is used as a statistical tool to check the hypotheses framed. The goal of the study is to determine whether or not all bank types perform similarly when refinancing loans or if there are any performance differences. In order to boost the Indian economy, it is also important to know which types of banks are performing better and worse at disbursing loans to the agricultural sector.During the period of the study, the results show that SCBs are performing very well compared with other selected categories of banks in providing refinance to the agriculture sector.

India’s outward foreign direct investment has experienced a Dynamic change over last decade after the liberalisation and globalisation of Indian economy that further achieves economic expansion and development in recent years. Approximately seven percent growth rate is witness by India from 1993-2011.This period also witnessed upward trend of outbound investment from India. UNCTAD (2015) has also nailed India as one of the leading outward investing economies. But a very few works have been done for exploring the long run relationship between outward FDI and GDP in context of the emerging economies like India. With this backdrop, the present study empirically investigates the long run and short run co –integrating relationship between India’s GDP and OFDI. For empirical analysis various econometric tools like test of stationarity, Engle granger co-integration ( as we have consider only two macro variables) and ECM model is used to test the causal association between the selected vari...

The performance of banking sector make its countries economy strong. In India its banking sector growth rate is always almost high in every year except in recession of 2008. In 2008, there is an extreme change in all public, private and foreign sectors. The merger of banks and the foundation of new banks increment the opposition level of this division. This rise in competition also affects the productivity of banks. In this work we analyze the performance of a Public and Private bank of India i.e. SBI and HDFC bank from 2012-13 to 2020-21 with the help of Capital Adequacy Ratio, Net Profit, Total Income & Total Expenditure. At the end it is conclude that HDFC Bank performance is better than SBI Bank.

The performance of banking sector make its countries economy strong. In India its banking sector growth rate is always almost high in every year except in recession of 2008. In 2008, there is an extreme change in all public, private and foreign sectors. The merger of banks and the foundation of new banks increment the opposition level of this division. This rise in competition also affects the productivity of banks. In this work we analyze the performance of a Public and Private bank of India i.e. SBI and HDFC bank from 2012-13 to 2020-21 with the help of Capital Adequacy Ratio, Net Profit, Total Income & Total Expenditure. At the end it is conclude that HDFC Bank performance is better than SBI Bank.

The disequilibrium in the Indian economy as reflected by the growing deficits of the Central government of India both on the internal as well as external fronts have been the cause for concern over the last couple of decades. Such an unwarranted trend not only poses a challenge to the policy makers but also most importantly destabilizes the economy internally as well as externally. Thus, if India's objective is to achieve higher sable growth (which it is already achieving), the issue of both the government deficits and trade deficits must be addressed considerably and appropriate policy decisions need to be undertaken before it goes out of hand. The purpose of this study was to examine the validity of the Keynesian and the Ricardian views regarding the impact of GFD (as a measure of budget deficit) on the TD (or current account deficit) for India from 1971 to 2010. In order to examine the relationship between budget deficit and current account deficit in India, this study used the ARDL model and a new co-integration test called the bounds test to estimate the long-run dynamics between budget deficit and current account deficit. The empirical results support the Keynesian view that there is a strong linkage between budget deficit and the current account deficit in the case of India during the study period. It also shows that the direction of causality is unidirectional running from budget deficit to current account deficit. Thus, a higher budget deficit leads to a higher current account deficit. Therefore, the empirical results in this study suggest that any policy measures to reduce the budget deficit could assist in reducing the current account deficit in India.

The study examines the relationship between private and public investment in Zimbabwe utilizing yearly time series data for the period 1970 to 2007. Emphasis is placed on the direction of causality and the effect of the two types of investment on each other. The paper constructs empirical models for both private and public investment, based on the flexible accelerator theory. Private investment is found to be cointegrated with public investment. A cointergration approach and VEC model are employed to assess the short run relationship existing between public and private investment. The relationship between private and public investment is found to be insignificant and the direction of causality found to be unidirectional. The results support the notion that private investment precedes public investment.

The Government of Haryana (GoH) has been successful in keeping the budgetary deficits under tight control. Interestingly, whenever deficits breach certain limits, the GoH generally takes corrective measures to bring the situation under control. In this article, our endeavour has been to examine the process employed by the GoH to maintain fiscal balance in its account. We examined the interdependence between revenue and expenditure of GoH. The results show that GoH proceeds with revenue plans and then adjusts expenditure accordingly. This is not an optimum strategy as this might cause compression in certain useful expenditure. In fact, the fiscal policy of the GoH is arbitrary and lack strategic vision. It is suggested that GoH should identify and prioritise critical expenditure first, and then the resource mobilisation can be planned to achieve well-defined, important milestones in a time bound manner.

Events like merger and acquisition affect the value of merging firms and also generate a positive or negative wealth effect for shareholders of firms involved. The purpose of this study is to investigate whether a merger announcement has generated wealth effects for the shareholders of bidding and target firms as well as it has aimed to assess the impact on overall banking sector. Two models; mean adjusted model and market risk adjusted model has been used in the study employing the ‘event study’ methodology to examine whether there is presence of abnormal return associated with merger announcement. In this method, 50 days premerger and 30 days post merger period is assumed as estimation period and (-15 and +15) days are taken as the window period. Fifteen financial institutions which entered into merger between years 2010 to 2012 are selected as sample. The findings of this study demonstrated that surrounding the announcement of merger proposals, the premerger abnormal return of in...

The paper examines whether the Ghanaian Inflation Targeting (IT) framework has performed the role of the nominal anchor in the economy or not as well as the process through which the monetary authority determines the monetary instrument - interest rate, in the economy.Using the Generalized Method of Moments (GMM) estimators, the baseline and augmented forward looking monetary policy rules were estimated for the pre, post-IT adoption and full sample periods.The findings vary across regimes.The result prior to the adoption of the IT framework does not follow the IT principle, whereas that of the post IT adoption and full sample periods is characterized as a forward-looking IT framework.The paper further uses the augmented monetary policy rule to identify the factors that determine the monetary policy instrument in the economy.The result confirms that the Ghanaian monetary economy practice full pledge IT principle immediately after the adoption of the IT framework and that the monetary...

The inwards and outward FDI movement plays an important role in the economic development and growth of any economy. The OFDI have its impact on the home economy based on scale effect, competition effect and knowledge effect. It helps other domestic companies to expand their business and scale of firms by giving them technological and trade benefits. OFDI help the companies to improve efficiency and upgrade production processes. This paper is focusing on the Outward Foreign Direct investment (OFDI) and its linkage with the domestic growth in Indian perspective. It takes in to account various direct and indirect benefits which may spillover to domestic economy. This paper is examining the question whether OFDI is linked to production or it is regarded as a withdrawal of domestic capital. Further it has positive or negative impact on the GDP of the country. On the above question several studies have been conducted in developed countries but not in Indian context. So, this paper is attempting to answer the above question in Indian context. The research methodology for this paper is secondary in nature and the data collected for this paper is taken from the RBI sources. We have taken a period of 10 years from 2007 to 2016. For this paper, we used Augmented Dickey-Fuller (ADF) for testing the stationarity, Eigen value test, Trace test. Further we used the regression analysis in order to check the relationship of GDP and Outward Foreign Direct investment (OFDI). The results of the data analysis explain that there is no significant relationship between the OFDI and domestic economic growth in India. However, the results in case of some firms may not be the same.

The relationship of money good stocks and their rates of circulation under efficient monetary trade is used to rationalize the money stock and velocity aggregates in the equation of exchange. An index number pair is exhibited which is useful for empirical measurement of these aggregates. ' Depending on how o and 9 are defined, we may have the income or total transactions version of the equation. Throughout this letter, we shall confine our attention to the total transactions version. a This domain restriction is obviously violated for the velocity of a conventional simple sum aggregate with the consequence that this velocity can change without any change in o. ' See, in particular, Diewert (1976).

This article analyzes new trends of the Central Bank"s relationships with the State in the present context of sharp acceleration of the Central Bank Europeanization and in a different manner than classical analysis of the NCB independence and policy instruments. The paper proposes an alternative view through the lenses of two Central Bank functions (internationals relations function and public utility function) to identify better not only why and how (the mechanism) but also under which conditions (the scope) these two functions may work as a system of governance that slowly synchronizes with the whole Central Bank governance model. Is this approach a viable response to new challenges, paradigm shifts, uncertainties and dilemmas of the early 21st century? This paper suggests that a Central Bank can better face the 21st century economic and financial challenges only if it encourages innovation of its governance model, its specific functions and its policy instruments. Keywords: ...

This comprehensive study conducts a comparative analysis of priority sector credit to weaker sections, focusing on both public and private sector banks in India. The research delves into the historical context, policy framework, and literature reviews related to priority sector lending. The study is divided into two phases (2013-2017 and 2018-2022) and employs a robust research methodology, including compounded annual growth rate (CAGR), mean value analysis, and a test of hypothesis for mean values. The results reveal a discernible increase in advances made by both public and private sector banks to weaker sections, reflecting a commitment to inclusive growth. Public sector banks exhibit a higher CAGR during both study phases and consistently meet prescribed targets. Private sector banks show impressive growth rates, overcoming challenges in meeting targets. Hypothesis testing confirms significant differences in mean values between public and private sector banks, emphasizing their distinct approaches. Detailed bank-wise analyses for both sectors provide insights into their contributions, growth rates, and compliance with targets. The study concludes with recommendations for policymakers and regulators to refine and monitor priority sector lending policies. Collaboration and knowledge sharing initiatives are suggested for private sector banks to enhance their performance. Overall, the study underscores the importance of sustained efforts by both sectors in aligning lending practices with priority sector goals for inclusive economic growth in India.

Within the banking system, the role of public and private sector banks has taken on a new significance in light of changing economic conditions in India. The priority sector, in which includes areas such as agriculture, small scale industries, and other priority sector. The priority sector yet to be and will continue to be an important area of focus for all banks over the next decade due to tough socioeconomic realities faced by Indian banks. The objective of this research paper is to analyze lending levels and structure within the priority sector over the past ten years. The entire study of this paper is based upon secondary data, collected from the various relevant issues published by RBI and from other reliable sources of 12 public sector banks and 21 private sector banks. The entire study is stretched over the period 2013 to 2022, with a view to analyze the growth of various components of priority sector lending with the help of compound annual rate of growth. The behavior of inter-year disparities in priority sector lending is explained with the help of percentage, coefficient of variation and the performance of these two banks group in priority sector lending has been computed with the help of ttest. The study highlighted that, although, on an average, the prescribed target of priority sector lending has not been achieved in many years, but, one important issue of concern is that the shrinking share of priority sector credit in net bank credit over a period of time by both banks group, which required immediate attention of the policy makers. The public and private sector banks could not deploy 18.00 per cent of net bank credit in agriculture sector and thus, they are failed to achieve the stipulated target of agricultural lending.