Podcast
Questions and Answers
What was the primary focus of the RBI in the 2023-24 period regarding banknotes?
What was the primary focus of the RBI in the 2023-24 period regarding banknotes?
Which payment system saw the highest growth in transaction volume in 2023-24?
Which payment system saw the highest growth in transaction volume in 2023-24?
What was the percentage growth in digital transaction volume as a part of non-cash retail payments in 2023-24?
What was the percentage growth in digital transaction volume as a part of non-cash retail payments in 2023-24?
How much did the overall transaction volume in payment systems grow in 2023-24?
How much did the overall transaction volume in payment systems grow in 2023-24?
Signup and view all the answers
What kind of features were added to the UPI payment system during 2023-24?
What kind of features were added to the UPI payment system during 2023-24?
Signup and view all the answers
What growth rate did RTGS experience in transaction value during 2023-24?
What growth rate did RTGS experience in transaction value during 2023-24?
Signup and view all the answers
Which program supported the growth of digital payments with subsidies for deployment?
Which program supported the growth of digital payments with subsidies for deployment?
Signup and view all the answers
How many online Payment Aggregators did the RBI authorize in 2023-24?
How many online Payment Aggregators did the RBI authorize in 2023-24?
Signup and view all the answers
What was the growth percentage of retail transactions in terms of volume during 2023-24?
What was the growth percentage of retail transactions in terms of volume during 2023-24?
Signup and view all the answers
Regarding the modernization and self-sufficiency of banknote production, what did the RBI plan to continue?
Regarding the modernization and self-sufficiency of banknote production, what did the RBI plan to continue?
Signup and view all the answers
Study Notes
Fiscal Performance
- Central government's fiscal deficit reduced to 5.9% of GDP.
- Revenue spending grew by 2.5%, while capital expenditure saw significant increases.
- State governments demonstrated fiscal discipline with enhanced capital spending.
Financial Sector
- Scheduled Commercial Banks (SCBs) remained well-capitalized with improved asset quality and robust credit growth.
- Non-Banking Financial Companies (NBFCs) exhibited strong capital adequacy and profitability.
External Sector
- Merchandise exports fell by 3.1%, imports decreased by 5.7%, narrowing the trade deficit.
- Current account deficit (CAD) moderated to 1.2% of GDP.
- Foreign exchange reserves reached an all-time high of $648.7 billion.
Global Economic Outlook
- Global growth projected at 3.2% for 2024 and 2025.
- Global inflation expected to decrease to 5.9% in 2024 and 4.5% in 2025.
- Recovery in global trade volumes anticipated with 3.0% growth in 2024.
- High public debt levels in major economies pose financial stability concerns.
Domestic Economic Outlook
- India's GDP projected to grow by 7.0% in 2024-25, driven by investment and consumption demand.
- Favorable agricultural prospects and government initiatives in renewable energy and semiconductors expected to boost growth.
- Inflation projected at 4.5% for 2024-25, with supply chain improvements and normal monsoon expected to ease pressures.
Price Situation: Inflation in India
- Average headline inflation moderated to 5.4% in 2023-24, down from 6.7% the previous year.
- Increased inflation volatility due to extreme weather events impacting food prices.
Global Inflation Developments
- Global inflation decreased from 8.7% in 2022 to 6.8% in 2023.
- Factors contributing included aggressive monetary policy tightening and normalization of supply chains.
- Energy prices decreased by 28%, metal prices by 8%, and international food prices fell by 10%.
Inflation Dynamics in India
- Headline inflation peaked at 7.4% in July 2023 and eased to 4.9% by March 2024.
- Core inflation tempered by monetary tightening and improved global supply chains.
Corporate Debt Market
- Corporate bond yields reflected government securities (G-sec) yields, softening first half then hardening in the second.
- Primary corporate bond issuances increased by 12.2% to ₹8.6 lakh crore.
- Foreign portfolio investments in corporate bonds showed a slight increase.
Equity Market
- Indian equity market thrived; BSE Sensex gained 24.9%, closing at 73,651 by March 2024.
- Resource mobilization via IPOs, FPOs, and rights issues increased significantly.
Foreign Exchange Market
- Indian rupee remained stable, depreciating by 1.4% during the year.
- Nominal effective exchange rate (NEER) and real effective exchange rate (REER) showed minor depreciation and appreciation, respectively.
Fiscal Developments
- Central government's gross fiscal deficit budgeted lower than the previous year.
- Combined gross market borrowings by central and state governments rose by 17% to ₹25.5 lakh crore.
Key Initiatives for 2023-24
- Debt consolidation through auction-based operations and reissuance of securities.
- Development of mobile application for retail investors under the RBI Retail Direct Scheme.
- Expansion of data warehouse to include government debt statistics.
Payment and Settlement Systems
- Payment systems saw a growth of 44% in transaction volume and 15.8% in value in 2023-24.
- Digital payments accounted for 99.8% of non-cash retail payments; UPI became the largest retail payment system by volume.
- RBI authorized multiple Payment Aggregators and a Trade Receivables Discounting System platform operator to enhance payment infrastructure.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers key aspects of the central government's fiscal performance, including the reduction of the fiscal deficit and changes in revenue spending. It also examines the stability and growth of scheduled commercial banks and non-banking financial companies in the financial sector. Test your knowledge on these important fiscal and financial dynamics.
