- Highlights of the Report:
- As per RBI, there is a need of creating a future path of growth that would be accustomed by addressing supply-side bottlenecks, calibrating monetary policy to bring down inflation, and enhancing capital spending.
- The surplus of Rs 30,307.45 crore in 2021-22 compared to Rs 99,122 transferred to the government was due to a sharp increase in the Contingency Fund.
- As per the report, the frauds reported by banks and other financial institutions in FY22 saw more bank frauds but the value decreased by half.
- Over the last three years it shows that while private sector banks reported the maximum number of frauds, public sector banks contributed the maximum to the fraud amount.
- In this report, it has also been discussed about shadow banking and red-flagged non-banking financial companies (NBFCs) by observing that the balance sheets of shadow banks expanded even as the asset quality deteriorated. This will pose a potential threat to financial stability as their size increases due to higher risk appetite.
- RBI's Monetary Policy Committee had revised downwards real GDP growth for 2022-23 to 7.2%.
- Apart from that supply-side policy interventions such as removing customs duty on import of raw cotton, prohibiting wheat exports, reducing taxes on petrol by Rs 8 per liter and diesel by Rs 6 per liter, etc. provide some offset reliefs.
Question:
Q.1 According to the RBI Annual Report, which sectors of banks contributed to a maximum number of frauds, not in terms of the amount?a. Private Sector
b. Public Sector
c. NBFC’s
d. Small Finance Banks
