Monetary Management and Financial Intermediation
- Monetary Policy
- Remained accommodative in 2019-20.
- Repo rate was cut by 110 basis points in four consecutive MPC meetings in the financial year due to slower growth and lower inflation.
- However, it was kept unchanged in the fifth meeting held in December 2019.
- In 2019-20, liquidity conditions were tight for initial two months; but subsequently it remained comfortable.
- The Gross Non Performing Advances Ratio
- Remained unchanged for Scheduled Commercial banks at 9.3% between March and September 2019
- Increased slightly for the Non-Banking Financial Corporations (NBFCs) from 6.1% in March 2019 to 6.3% in September 2019.
- Credit Growth
- The financial flows to the economy remained constrained as credit growth declined ....
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- 1 Chapter 9: Agriculture and Food Management – Plenty of Upside Left If We Get It Right
- 2 Chapter 10: Industry - Small and Medium Matters
- 3 Chapter 11: Services - Fuelling Growth Opportunities
- 4 Chapter 12: Infrastructure – Lifting Potential Growth
- 5 Chapter 13: Climate Change and India: Why We Must Look at the Problem through Our Lens
- 6 Chapter 1: State of the Economy – Steady as She Goes
- 7 Chapter 2: Monetary Management and Financial Intermediation- Stability is the Watchword
- 8 Chapter 3: Prices and Inflation - Under Control
- 9 Chapter 4: External Sector - Stability amid Plenty
- 10 Chapter 5: Medium-Term Outlook – A Growth Strategy for New India
