RBI said in its Annual Report for 2020-21 that while the economy has not moderated to the extent during the first wave, the surrounding uncertainties can act as a deterrent in the immediate period.
GS-III: Indian Economy (Growth and Development of Indian Economy)
Dimensions of the Article:
- Highlights of the RBI’s Annual Report for 2020-21
Highlights of the RBI’s Annual Report for 2020-21
- Gain from foreign exchange transactions rose from just under 30,000 Crore Rs. to more than Rs 50,000 crore in 2020-21
- The RBI transferred almost Rs. 100,000 crores to the government which is likely to boost the government’s finances
- RBI has been able to transfer a higher amount to the government as surplus this year following a sharp fall in provisions (drop in expenditure was on account of a lower provision) and gains from foreign exchange transactions during the year ended March 2021.
- The rupee strengthened by 3.5% against the US dollar (at end-March 2021 over end-March 2020) but underperformed vis-a-vis other Asian countries during 2020-21.
- Bank frauds of Rs.1 lakh and more fell by 25% in value to Rs.1.38 trillion in the year 2020-21 with the number of such cases also seeing a decline of 15% during the year.
- The Covid-19 pandemic increased the proliferation of digital modes of payments.
- Various initiatives such as an innovation hub, a regulatory sandbox and offline payment solutions are underway to ensure that in the digital ecosystem, India maintains its position as a leader.
- The RBI is also in the process of extending the geo-tagging framework put in place to capture location of bank branches and ATMs to cover payment system touch points, enabling accurate capture of their location across the country.
- The RBI will ensure a comfortable level of liquidity in the system during 2021- 22 in alignment with the stance of monetary policy.
- Monetary transmission refers to the process by which a central bank’s monetary policy signals (like repo rate) are passed on, through the financial system to influence the businesses and households.
- As the vaccination drive picks up and cases of infections fall, a sharp turnaround in growth is likely, supported by strong favourable base effects.
-Source: Indian Express