A guide to RBI’s weekly statistical supplement

This has taken a long long time. Each time I decided to do something on RBI’s weekly stats supplement (WSS), I got lost.

Finally, I have managed to understand some portions of it and have put them in this paper. This analysis will be in two parts. In the first part I have looked at WSS tables related to RBI’s monetary operations. There are three main tables I look at:

Table 1: RBI’s balance sheet
Table 2: Forex reserves
Table 8: Reserve Money

The other tables are related to banks and financial intermediaries and will be covered in a future report.

I hope this helps the visitors understand a bit about RBI’s operations and ofcourse the WSS..

This entry was posted on 27/01/2012 at 3:59 pm and is filed under Academic research & research papers, Indian Economy/Financial Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “A guide to RBI’s weekly statistical supplement”

Neha Arora Says:
29/01/2012 at 7:40 pm | Reply
Sir, I have few ques..

1) The borrowing announced by RBI for a f.y. is gross amount ehich is net of OMO’s or redepmtion of bonds??

2) From where is this money of OMO comes ? If OMO are included in gross borrowing then why does RBI go for omo as it wud increase the fiscal deficit only?

3) what is the significance of bank rate?? in what scenario does rbi change d bank rate??
- Amol Agrawal Says:
  30/01/2012 at 11:55 am | Reply
  1) Borrowing is announced by Government which is then managed by RBI. Gross borrowing is the total borrowing and net is minus the redemptions in the year.
  2) I have explained in the WSS guide paper on the source of financing OMOs. It is simply via increase in bank reserves at RBI. Read the paper for details
  3) OMO does not add to fiscal deficit. RBI purchases the existing bonds from the market. It is just trasnfer of ownership of bonds from banks etc to RBI. It is like any other financial transaction
  4)Bank rate was a rate used earlier when RBI refinanced Bills of purchase etc to banks. Now this refinancing/discounting of bills has stopped as you have money markets/CBLO/LAF etc for borrowing. Usage of bank rate for liquidity has become sort of outdated now. No clue as to why RBI still keeps it as a policy rate.
Neha Arora Says:
30/01/2012 at 3:37 pm | Reply
If i am not wrong.. is reserve money M0?? and i am seeing various WSS on rbi website.. not able to find the M0 figure .. can see only M3 which is table 7 .. so shall i come to figure of M0 by deducting time and demand deposits from M3??

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