I was not quite right

I had mentioned sometime back that RBI presents us with facts on different aspects of the economy and leaves the analysis to analysts like me. I was not quite right though.

Yesterday, RBI released one of its annual publication called ‘Report on Currency and Finance’. The title may sound boring but then that is just about it. Rest of the report is pretty interesting. Easily one of the best reports from the Central bank stable.

The report always has a central theme and the entire idea floats around the theme. In usual RBI style the report is divided into chapters and one can simply read on the chapter he/she is interested in.

Last year the theme was Central Banks and this year it is Financial Markets.  Just a quick glance through this year’s report provides a very interesting analysis on Financial Markets. The theme states:

What are then the key objectives of financial market development? From the viewpoint of an emerging economy like India, the basic aim of financial market development must be to aid economic growth and development. The primary role of financial markets, broadly interpreted, is to intermediate resources from savers to investors, and allocate them in an efficient manner among competing uses in the economy, thereby contributing to growth, both through increased investment and through enhanced efficiency in resource use.

Financial markets in India have existed for a long time. However, they remained relatively underdeveloped for a variety of reasons. India introduced financial sector reforms as a part of structural reforms in the early 1990s. Since then, momentous changes have taken place in the Indian financial sector, including financial markets. Reforms in the financial markets encompassed all segments -the money market, the credit market, the government securities market, the foreign exchange market, the equity market and the private corporate debt market.

What is more interesting is the very rich reference section the study provides. Excellent stuff.

2 Responses to “I was not quite right”

  1. G-Sec yield curve is a public good « Mostly Economics Says:

    […] yield curve is a public good I had mentioned about this interesting report from RBI that covers India’s Financial […]

  2. Understanding A to Z of Banking in India « Mostly Economics Says:

    […] in India I always wait for this report from RBI – The report on Currency and Finance. The previous one was on India’s financial markets. The previous report was for the year 2005-06 and it has […]

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