BUSINESS
A large chunk of RBI's forex reserves is funded by less durable flows
The build-up in reversible flows over the past few years suggests a possible vulnerability in our currency market positioning, which merits monitoring
BUSINESS
Should banks 'raise more deposits'?
While individual banks might worry about raising deposits before making out loans, at a system level, every loan asset is self-funded by the deposit that it creates
BUSINESS
A relook at RBI's extraordinary steps in 2013 to stabilise rupee
While there is no need today for expensive schemes such as the FCNR (B) swap window, it is always prudent to review contingency plans
BUSINESS
Why India needs retail participation in fixed income markets, and how
As things stand, no taxpaying investor should consider saving via direct investments in any fixed income instrument, including in government securities. Instead, she would be much better off investing via a debt mutual fund that undertakes identical investments, notwithstanding the added fund management fee
BUSINESS
RBI can afford to let rupee depreciate a bit
While RBI does have ample foreign exchange buffers for now, a gentle depreciation of the Rupee may well be called for – both to correct INR overvaluation, and to prepare for possible stress scenarios
BUSINESS
Can RBI quell India’s inflation?
Much of the current inflation is directly caused by factors outside monetary control. A rapid increase in short-term rates and a speedy withdrawal of banking liquidity might do little to alleviate inflation, while impacting investment and job creation
BUSINESS
Economy, foreign exchange, and bonds – A balancing act
Much of our prospects around inflation — and around the strength and sustainability of our economic revival — depends on how the real economy responds over time with more domestic output and jobs through Aatmanirbhar Bharat
BUSINESS
The money cycle and India’s road to prosperity
Money creation alone is unlikely to solve our many problems. We crucially need domestic output and domestic jobs alongside that at least matches domestic demand
BUSINESS
A relief and recovery blueprint for India’s economy
The pace, nature and extent of economic transformation has to now step up many notches, and this requires an execution team well beyond a well-functioning bureaucracy
