ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by K G K Subba RaoSubscribe to K G K Subba Rao

Interest Rates in Informal Credit Markets and Their Impact on National Accounts

Informal credit markets cater to households and unincorporated enterprises. Despite charging high rates of interest compared to formal financial institutions, they add significant value. In this article, the structure of interest rates charged by moneylenders is examined, based on the results of the All India Debt and Investment Survey 2019, which provides information on households’ outstanding cash loans, classified by interest rate ranges and each credit agency. Similar data collection is necessary for unincorporated enterprises.

All India Rural Financial Inclusion Survey

Demand-side information on the economic profiles of households is available from the All-India Debt and Investment Survey and Situation Assessment Survey of Agricultural Households. However, there have been no surveys of rural households during the intervening years with an emphasis on financial inclusion and financial accessibility, as perceived by them. To bridge this gap, the National Bank for Agriculture and Rural Development launched the All India Rural Financial Inclusion Survey for the reference year July 2015–June 2016.

Non-performing Assets of Commercial Banks

The restructuring of loans of commercial banks permitted by the Reserve Bank of India under the corporate debt restructuring scheme enabled the banks to upgrade the loans of some of the potentially viable units from the substandard to the standard category. In view of the recent directives of the RBI—realistic assessment of the restructured assets and standardisation of the asset classification—there is a reversal of entries in some cases, which attracted higher provisioning, resulting in losses or a dip in profits of the commercial banks.

Discrepancies between Flow of Funds Accounts and National Accounts Statistics

The Reserve Bank of India revamped the flow of funds compilations to be in conformity with the sectoral classification recommended in the System of National
Accounts 2008, which has also been adopted in the revised series of National Accounts Statistics, brought out by the Central Statistics Office. Though the revisions made in the compilations of the two organisations are expected to bring about refinements, wide discrepancies have been noticed between the financial
resources gap emanating from the flow of funds accounts and the investment–saving gap derivable from the National Accounts Statistics. The revisions inducted
into the respective accounts emphasise the need to reduce the discrepancies between the two sets of accounts to an acceptable level.

A Critique of RBI’s Trend and Progress of Banking in India

Over the last three years, the scope of the Reserve Bank of India’s Report on Trend and Progress of Banking in India has drastically come down. Information on important aspects of the operations of commercial banks and other financial institutions is now not presented in the report. A plea is made to restore the contents of the erstwhile reports and enhance the utility of the publication with additional data fromRBI’s existing database.

Mystery of Private Corporate Sector Saving

In the revised series of National Accounts (base year 2011-12), the sectoral coverage of the private corporate sector has been widened to include quasi-corporations, while the Central Statistics Office has begun compiling an estimate of the private corporate sector using the Ministry of Corporate Affairs' MCA-21 database. This is a radical departure from the practice followed so far, and the MCA-21 database and the other sources of data as also the methodological details are examined here to suggest improvements for refining the estimates.

Critique of 2009 Committee on Savings and Investment

The High Level Committee on the Estimation of Savings and Investment that was constituted in 2007 and submitted its report in 2009 was the third such group to be formed to recommend improvement in the quality of the estimates of these important economic variables. This article discusses and critiques the report of the Committee.

Inconsistencies in Patterns of Wealth Disparities

This article critiques Arjun Jayadev et al's 'Patterns of Wealth Disparities in India during the Liberalisation Era', detailing problems with the data used as also the means of deflation of the stock of physical and financial assets held by households.

Financial Inclusion: An Introspection

The impact of the credit policies and financial innovations implemented from time to time with reference to priority sectors is reflected in the decennial household surveys on debt and investment conducted by the National Sample Survey Organisation and also the periodical surveys on small borrowal accounts conducted by the RBI. This article highlights the salient features of these surveys which, inter alia, throw light on the reliance of these groups on institutional and non-institutional sources of finance.

Indebtedness of Cultivator Households

Two important surveys, viz, the Situation Assessment Survey and the All-India Debt and Investment Survey were conducted in the 59th round of the National Sample Survey Organisation in 2003. A common topic was the indebtedness of farmer/cultivator households. The estimates of incidence of debt, extent of indebtedness and also the pattern of debt owed to institutional and non-institutional agencies, showed wide variations among different states and also at the all-India level in the two surveys, mainly because of the differences in concepts, definitions, methods of data collection, sample design, etc.

A Financial System for India's Poor

one year. Thus, it would appear that some A Financial System of the households operating land less than the cut off point of 0.002 hectares classified as non-cultivator households in for India

RBI Database on Indian Economy

The new website launched by the Reserve Bank of India on macroeconomic indicators of the Indian economy, is aimed at providing useful and relevant information to researchers, analysts and general users. It includes significant data on the financial and real sectors, markets, and public and corporate finance. There are certain gaps that can be observed, but once filled, the website promises to be one of its kind.


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