EDITORIAL COMMITTEE

A. M. Pedgaonkar
Balwant Singh
Janak Raj
K. U. B. Rao
Brajamohan Misra

EDITOR
Gunjeet Kaur

The Reserve Bank of India Bulletin is issued

monthly by the Department of
Economic Analysis and Policy,
Reserve Bank of India, under the direction of
the Editorial Committee.
The Central Board of the Bank is not
responsible for interpretations and
opinions expressed. In the case of signed
articles, the responsibility is that of the
author.

© Reserve Bank of India 2009

All rights reserved.

Reproduction is permitted provided an
acknowledgement of the source is made.

For the subscriptions of Bulletin, please refer

Section “Important Recent Publications of the
Reserve Bank of India”.

The Reserve Bank of India Bulletin can also be

accessed through Internet at
http://www.bulletin.rbi.org.in
Contents
Monetary Policy Statement 2009-10
Second Quarter Review of Monetary Policy 2009-10 2021
by Dr. Duvvuri Subbarao, Governor, Reserve Bank of India
Macroeconomic and Monetary Developments 2069
Second Quarter Review 2009-10

Speeches
Emerging Market Concerns: An Indian Perspective 2173
by Duvvuri Subbarao
Changing Dynamics of Legal Risks in Financial Sector 2179
by Shyamala Gopinath
Learning from Crises 2187
by Usha Thorat

Articles
India's Foreign Trade: 2009-10 (April-August) 2197
South-West Monsoon 2009 : A Review 2211
(June 1 to September 30, 2009)
Composition and Ownership Pattern of Deposits 2221
with Scheduled Commercial Banks: March 2008
International Banking Statistics of India – 2245
March 31, 2009
International Trade in Banking Services, 2007-08 2275

Other Items
Press Releases 2301
Regulatory and Other Measures 2307
Foreign Exchange Developments 2315

Current Statistics
Publications
RBI Websites
Supplement
Report on Trend and Progress of Banking in India 2008-09

Supplement II
Report of the Working Group on Benchmark Prime
Lending Rate (BPLR)

RBI
Monthly Bulletin
November 2009
Monetary Policy Statement 2009-10
Second Quarter Review of Monetary Policy 2009-10
by Dr. Duvvuri Subbarao, Governor, Reserve Bank of India

Macroeconomic and Monetary Developments

Second Quarter Review 2009-10

RBI
Monthly Bulletin
November 2009

Second Quarter Review of
Monetary Policy 2009-10*
* Announced by Dr. Duvvuri Subbarao, Governor, Reserve
Bank of India on October 27, 2009 in Mumbai.
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
The global economy has begun to
recover from the deep recession set off by
the financial crisis. This recover y is
underpinned by output expansion in
emerging market economies (EMEs),
particularly those in Asia. The pace and
shape of recover y, however, remain
uncertain.
2. In fact, the global economic outlook
presents a mixed picture. On the positive
side, world output, as per the International
Monetar y Fund (IMF) estimates, has
expanded by 3 per cent in the second
quarter (quarter-on-quarter, annualised),
manufacturing activity has picked up, trade
is recovering, financial market conditions
are improving, and risk appetite is
returning. A sharp recover y in equity
markets has enabled banks to raise capital
to repair their balance sheets. In the US,
home prices appear to be stabilising. Capital
flows to EMEs have resumed. Most
importantly, the anxiety and nervousness
that pervaded the financial markets during
the height of the crisis are being replaced
by a sense of calm.
3. On the negative side, there are
concerns that the recovery is fragile. The
second quarter improvement is essentially
the outcome of policy-induced stimulus.
Going forward, the impact of the stimulus
will fade away and inventory rebuilding may
lose momentum. In advanced economies,
private consumption remains constrained
by continuing job losses, sluggish income
growth and dented confidence. Even as
output is recovering, unemployment is
expected to increase to over 10 per cent in
the US and the Euro area. Investment is also
expected to remain weak due to ruptured
balances sheets, excess capacity and
RBI
Monthly Bulletin
November 2009 2021
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
financing constraints. Bank collapses are
continuing. World trade remains below its
year ago level, notwithstanding recent
quarter-on-quarter improvement.
4. Reflecting this mixed trend which
has a small bias towards the positive, the
IMF projected, in its October 2009 World
Economic Outlook (WEO), that the rate of
contraction of the world economy in 2009
will be 1.1 per cent, an upward revision
from its projection of a contraction of 1.4
per cent made in its July 2009 WEO.
However, the IMF expects the ensuing
global recovery to be slow. In its latest
Economic Outlook (September 2009), the
Organisation for Economic Co-operation
and Development (OECD) projects the pace
of activity to remain weak well into 2010
on account of numerous headwinds. On
balance, while global economic prospects
have improved since the First Quarter
Review in July 2009, uncertainties remain
about the pace and sustainability of
economic recovery.
5. The Indian economy, which slowed
down significantly during the second half
of 2008-09, largely due to the knock-on
effect of the global financial crisis, has
begun to stabilise. This is despite the
continuing contraction in exports and the
worst drought since 1972. Performance of
the industrial sector has improved markedly
in recent months. Both domestic and
external financing conditions are on the
upturn. Capital inflows have revived.
Activity in the primary capital market has
picked up and funding from non-bank
domestic sources has eased. Liquidity
conditions have remained easy and interest
RBI
Monthly Bulletin
2022 November 2009
rates have softened in the money and credit
markets.
6. At the same time, there are several
negative indications. Private consumption
demand is yet to pick up. Agricultural
production is expected to decline due to
lower Kharif foodgrain production. Services
sector growth remains below trend. Bank
credit growth continues to be sluggish.
There are also clear signs of rising inflation
stemming largely from the supply side,
particularly from food prices.
7. This Second Quarter Review of
Monetary Policy for 2009-10 is thus set
against the backdrop of incipient signs of
recover y in the global economy and
improving prospects for the domestic
economy. The Review is organised in two
parts. Part A covers Monetary Policy and is
divided into three sections: Section I
provides an assessment of the
Macroeconomic and Monetar y
Developments; Section II defines the
Stance of Monetary Policy; and Section III
sets out Monetary Measures. Part B covers
the Developmental and Regulatory Policies
and is organised into seven sections:
Financial Stability (Section I), Interest Rate
Policy (Section II), Financial Markets
(Section III), Credit Delivery Mechanism
and other Banking Services (Section IV),
Financial Inclusion (Section V), Regulatory
Measures for Commercial Banks (Section
VI) and Institutional Developments
(Section VII). Part A of this Statement
should be read and understood together
with the detailed review in Macroeconomic
and Monetar y Developments released
yesterday.
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

Part A. Monetary Policy unemployment rate rose to 9.8 per cent in

September 2009 and is expected to rise
I. Macroeconomic and Monetary further. Consumer sentiment dipped on
Developments apprehensions about the economy, job and
Global Outlook income prospects.

Real GDP 10. Economic indicators in the euro area

8. Global economic performance
improved during the second quarter of 2009
prompting the IMF to reduce the projected
rate of economic contraction in 2009 from
1.4 per cent made in July 2009 to 1.1 per
cent in its latest World Economic Outlook
(WEO) released in early October 2009. The
IMF has also revised upwards the projection
of global growth for 2010 to 3.1 per cent
against the earlier projection of 2.5 per cent
in its July Update (Table 1).
9. In the US, the macroeconomic signals
are mixed. Real GDP in Q2 of 2009
contracted by 0.7 per cent, a significant
improvement over the contraction of 6.4 per
cent in Q1 of 2009, largely due to positive
contribution from government spending.
Home prices have shown signs of
stabilisation. On the negative side, the
continue to be weak. Real GDP contracted
by 4.9 per cent in Q1 and by 4.8 per cent in
Q2 of 2009. Unemployment rose to 9.6 per
cent in August 2009 and retail sales dipped
further. Although consumer and business
confidence improved in Q3 of 2009, these
are yet to move into positive territory. Real
GDP in the UK contracted by 5.5 per cent in
Q2 of 2009 and by 5.2 per cent in Q3 of 2009.
Unemployment in the UK rose to 7.9 per
cent in July-August 2009. Real GDP in Japan
expanded by 2.3 per cent in Q2 2009 after
negative growth for almost a year. Though
output is stabilising and consumer and
business confidence are improving,
industrial outlook remains uncertain with
big companies planning to cut capital
outlays. Overall, OECD’s Composite Leading
Indicators for August 2009 show signs of
recover y in most of the economies,
especially in France and Italy.

Table 1: Projected Global GDP Growth (%) Inflation

Country/Region 2009 2010 11. Global commodity prices have
1 2 3 rebounded ahead of global recovery. The
US (-) 2.7 1.5 Food and Agriculture Organisation (FAO)
UK (-) 4.4 0.9
Food Price Index rose in August-September
Euro Area (-) 4.2 0.3
Japan (-) 5.4 1.7
2009. Along with volatile food prices,
China 8.5 9.0 industrial metal and gold prices have firmed
India 5.4 6.4 up in Q3 of 2009. Gold prices have reached
Emerging and record levels on account of significant
Developing weakening of the US dollar during the
Economies 1.7 5.1
quarter. Crude oil prices have been steady
World (-) 1.1 3.1
with a firm undertone during the quarter
Source: World Economic Outlook, IMF, October 2009.
reflecting the balance of expectations of an

RBI
Monthly Bulletin
November 2009 2023
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

economic recover y and higher oil the narrowing of corporate bond spreads.
consumption in the future against weak Share prices have rebounded in all major
current demand and high inventories. markets. Most major banks in the US and
Despite these trends, consumer price Europe have reported profits recently after
inflation in most developed and emerging the large losses incurred during 2008. On
market economies (other than India) the negative side, credit offtake has fallen
remains negative/low due mostly to large in 2009 in a number of advanced economies
output gaps. The WEO of October 2009 as corporates reduced debt levels in an
projects consumer price inflation in environment of tighter credit standards by
advanced countries to remain low, rising lenders. There are concerns, as highlighted
from 0.1 per cent in 2009 to 1.1 per cent in by the Global Financial Stability Report
2010. Consumer price inflation in emerging (GFSR) of the IMF, that the transfer of
and developing economies is projected to financial risks to fiscal authorities could
decline from 5.5 per cent in 2009 to 4.9 per crowd out the private sector and undermine
cent in 2010. In sharp contrast, in India, CPI the sustainability of public sector finances.
inflation has not only remained elevated,
but has indeed hardened in recent months Monetary Policy Measures
reflecting higher food prices (Table 2). 13. Central banks in all the major
developed economies, barring Australia,
Financial Markets
continued with easy monetary policy and
12. The wide array of supportive central have held policy rates steady in recent
bank actions and pronouncements have months. They have also continued with
aided in the easing of money markets and measures to provide liquidity and other
support to alleviate stress in the financial
Table 2: Cross-country CPI Inflation: markets following the crisis. In the current
Year-on-Year (%) cycle, the Reserve Bank of Australia has been
September March September the first G-20 central bank to raise its policy
Country 2008 2009 2009 rate (Cash Rate) by 25 basis points to 3.25
1 2 3 4 per cent on October 6 on the back of
US 4.9 (-) 0.4 (-) 1.3 diminished risk of serious economic
UK 5.2 2.9 1.1 contraction. The Reserve Bank of New
Euro Area 3.6 0.6 (-) 0.3
Zealand has withdrawn some temporary
Australia 5.0 2.5 1.5 @
emergency liquidity facilities put in place
Japan 2.1 (-) 0.3 (-) 2.2 #
China 4.6 (-) 1.2 (-) 0.8 # during the financial crisis of 2008.
India* 9.8 8.0 11.7 #
Korea 5.1 3.9 2.2 Emerging Market Economies
Brazil 6.3 5.6 4.3
Russia 15.0 14.0 10.7 14. In its October WEO, the IMF projects
* : CPI for industrial workers. the real GDP growth of emerging and
@ : June 2009. # : August 2009. developing economies to decelerate to 1.7
Source: Official websites of respective countries and per cent in 2009 (1.5 per cent projected in
Bloomberg.
the July Update) from 6.0 per cent in 2008,

RBI
Monthly Bulletin
2024 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

before rebounding to 5.1 per cent in 2010.
The IMF does not expect the rebound to be
evenly spread across the EMEs; there will
be a divergence between Asian and non-
Asian EMEs as the rebound would be driven
by China, India and other emerging Asian
economies. Emerging markets that had little
direct exposure to the financial meltdown
have displayed significant economic
momentum in Q3 of 2009, albeit slower
than the rapid pace of Q2. China’s export
volumes have been growing, including
recently to the US and Europe, leading to
improvement in China’s trade surplus.
Growth in industrial production and fixed
asset investment in China is estimated to
have improved and its longer-term
prospects have remained strong. In contrast,
Latin America, Eastern Europe and
Commonwealth of Independent States (CIS)
are all expected to face contraction in 2009
and sluggish growth in 2010, while the
Middle East is projected to grow moderately.
Domestic Outlook
15. The Indian economy posted a growth
of 6.1 per cent for Q1 of 2009-10. This is
higher than the expansion of 5.8 per cent in
Q4 of 2008-09, but lower than the expansion
of 7.8 per cent in the corresponding first
quarter of 2008-09. The year-on-year (y-o-y)
deceleration in growth was broad-based
covering all the three major sectors, viz.,
agriculture, industry and services (Table 3).
Agriculture
16. The south-west monsoon rainfall this
year (June 1- September 30) was 23 per cent
lower than the long-period average, the
weakest since 1972. Twenty three of the 36
meteorological sub-divisions recorded
deficient rainfall. The entire central and
northern India received deficient rainfall.
The Reserve Bank’s production-weighted
rainfall index for 2009 was 73, significantly
lower than the index number 104 for 2008.
According to the latest information of
progress of Kharif sowing, the acreage under
paddy declined by 15.7 per cent and that
under oilseeds by 5.2 per cent.
17. The share of agriculture in GDP has
been declining over time, and as of 2008-
09, it was 17.0 per cent. However,
experience shows that a deficient rainfall
can have a disproportionate impact on
overall economic prospects and on the sense
of well-being. Poor output will push up
prices and depress rural labour incomes.

Table 3: Real GDP Growth (%)

Financial Year Quarterly Growth Rates (y-o-y)
Sector 2007-08 2008-09 2008-09 2009-10
Q1 Q4 Q1
1 2 3 4 5 6
Agriculture 4.9 1.6 3.0 2.7 2.4
Industry 7.4 2.6 5.1 (-) 0.5 4.2
Services 10.8 9.4 10.0 8.4 7.7
Overall GDP 9.0 6.7 7.8 5.8 6.1
Source: Central Statistical Organisation (CSO).

RBI
Monthly Bulletin
November 2009 2025
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Given the inter-sectoral supply-demand
linkages, the knock-on impact on the
industrial and services sectors can also be
significant. The large stock of foodgrains of
44.3 million tonnes with public agencies,
improved supply management, and the
social safety net programmes could mitigate
the adverse effects to an extent.
Industry
18. The industrial sector has shown clear
signs of revival in recent months. The index
of industrial production (IIP) increased at a
higher rate of 5.8 per cent during April-
August 2009 as compared with a growth of
4.8 per cent in the corresponding period of
the previous year and 0.6 per cent growth
in the second half of 2008-09. While the
basic, intermediate and consumer durable
goods sectors witnessed higher growth, the
performance of the capital goods and
consumer non-durable sectors was relatively
modest. The core infrastructure sector, with
a weight of 26.7 per cent in the IIP, posted a
growth of 4.8 per cent during April-August
2009, up from 3.3 per cent in the
corresponding period of the previous year.
The leading indicators of industrial
production, both quantitative and
qualitative, also point to revival of industrial
activity in the months ahead.
Services
19. The performance of the ser vices
sector during April-July 2009 continued to
follow the pattern witnessed in Q4 of 2008-
09. Trade-related services such as cargo
handled at major sea and airports continued
to show deceleration/negative growth
reflecting contraction of trade. The number
of passengers handled at international
RBI
Monthly Bulletin
2026 November 2009
terminals increased, albeit marginally, while
the number of passengers handled at
domestic terminals declined. Other
domestic activity related services such as
communication and construction have
begun to show signs of upturn. The railway
revenue-earning freight traffic recorded
good growth.
Demand Components of GDP
20. Continuing the trend witnessed since
Q2 of 2008-09, the two major components of
demand, viz., private final consumption
expenditure and gross fixed capital
formation (with a combined weight of
around 88 per cent) decelerated further in
Q1 of 2009-10. Government consumption,
which had increased sharply in Q3 and Q4
of 2008-09 due to the fiscal stimulus
measures and the Sixth Pay Commission
payouts, also decelerated in Q1 of 2009-10.
While the direct impact of fiscal stimulus is
waning, its indirect impact on private
consumption and investment will persist for
some more time. External demand continues
to remain weak, whereas net exports turned
positive in Q1 of 2009-10 because of a sharper
decline in imports than in exports as
compared with Q1 of 2008-09 (Table 4).
Corporate Performance
21. Sales of the private non-financial
corporate sector declined marginally (0.9 per
cent) in Q1 of 2009-10 on a year-on-year
basis as also in comparison with Q4 of
2008-09 (1.7 per cent). In the wake of the
downturn, firms responded quickly to the
changed cyclical conditions by reducing
their inventories around Q2 of 2008-09.
Now, with the onset of recovery in Q1 of
2009-10, the upturn is characterised by an
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

Table 4: Demand Components of GDP

Financial Year Q1 Q4 Q1
Item
2007-08 2008-09 2008-09 2009-10
1 2 3 4 5 6
Year-on-Year Growth Rate (%)
Private Final Consumption Expenditure 8.5 2.9 4.5 2.7 1.6
Government Final Consumption Expenditure 7.4 20.2 (-) 0.2 21.5 10.2
Gross Fixed Capital Formation 12.9 8.2 9.2 6.4 4.2
Net Exports (-) 36.7 (-) 41.2 (-) 75.9 (-) 30.8 231.8
Share in GDP (%)
Private Final Consumption Expenditure 57.2 55.5 58.0 51.4 55.6
Government Final Consumption Expenditure 9.8 11.1 9.6 13.4 9.9
Gross Fixed Capital Formation 31.6 32.2 32.2 31.6 31.6
Net Exports (-) 4.3 (-) 5.8 (-) 1.3 (-) 2.9 1.6
Source: Central Statistical Organisation (CSO).

increase in the stocks to sales ratio. Year-
on-year growth in net profits also witnessed
a turnaround in Q1 of 2009-10 after
registering negative growth in the preceding
three quarters (Table 5).
Business Confidence
22. The Reser ve Bank has been
conducting a quarterly Industrial Outlook
Survey of manufacturing companies since
1998. The sur vey tracks business
expectations for the current quarter and
business outlook for the following quarter.
The latest round of the survey conducted
during July-August 2009 showed a
turnaround in the business sentiment. The
assessment for Q2 of 2009-10 showed
continuing upturn with a 7.8 per cent
increase in the Business Expectations Index
(BEI) over the previous quarter.

Table 5: Performance of the Private Corporate Sector

Full Year Q1 Q4 Q1
Item
2007-08 2008-09 2008-09 2009-10
1 2 3 4 5 6
Growth Rate (%)
Sales 18.6 17.2 29.3 1.9 (-) 0.9
Expenditure 19.4 19.5 33.5 (-) 0.5 (-) 4.4
Consumption of Raw Materials 18.4 18.5 36.1 (-) 7.4 (-) 13.4
Staff Cost 22.4 19.5 23.2 11.0 8.2
Gross Profits 24.9 (-) 4.2 11.9 (-) 8.8 5.8
Net Profits 26.0 (-) 18.4 6.9 (-) 19.9 5.5
Ratio (%)
Interest to Sales 2.5 3.1 2.4 3.2 2.8
Gross Profit to Sales 14.9 13.3 14.5 13.7 15.7
Net Profit to Sales 9.8 8.1 9.7 8.1 10.2

RBI
Monthly Bulletin
November 2009 2027
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Considerable improvement was noted in
key indicators such as production, order
books and capacity utilisation. The
financing conditions were also reported to
be better.
23. The outlook of manufacturing
companies for Q3 of 2009-10 maintains its
upward trend, with the BEI moving up to
116.4 from 109.9 in the previous quarter.
The respondents expect production and
capacity utilisation to improve further,
working capital finance requirement to
grow, the cost of raw materials to rise and
pricing power to return to them. On the
back of improved demand conditions, the
manufacturing companies also expect
further improvement in their employment
situation. The findings of the Reserve
Bank’s Industrial Outlook Sur vey are
broadly consistent with business confidence
surveys conducted by other agencies such
as FICCI, NCAER, HSBC-Markit and Dun and
Bradstreet.
Inflation
24. The headline inflation, as measured
by year-on-year variations in the wholesale
price index (WPI), which remained negative
during June-August 2009 due to the base
effect, returned to positive territory in
September 2009. WPI inflation was 1.21 per
cent on October 10, 2009 as compared with
11.30 per cent a year ago, and 0.84 per cent
at end-March 2009. During the current
financial year (up to October 10, 2009), WPI
has increased by 5.95 per cent reflecting
higher food price inflation aggravated by
deficient monsoon.
25. The upside risk of deficient monsoon
rainfall projected in the First Quarter Review
RBI
Monthly Bulletin
2028 November 2009
of July 2009 has since materialised and
prices of primar y food items and
manufactured food products have risen due
to short supply. During the current financial
year (up to October 10, 2009), the increases
in prices of wheat (3.5 per cent) and rice
(5.9 per cent) were relatively low as supply
side pressures were mitigated by the
comfortable levels of foodgrain stocks with
public agencies which stood at 44.3 million
tonnes as on October 1, 2009 as against the
minimum stock norm of 16.2 million
tonnes. However, large increases were
recorded in prices of vegetables (59.3 per
cent), tea (30.7 per cent), sugar, khandsari
and gur (28.7 per cent), egg, meat and fish
(25.3 per cent), pulses (19.2 per cent), jowar
(14.9 per cent), condiments and spices (14.2
per cent), milk (7.0 per cent) and fruits (5.2
per cent).
26. The current inflationary pressures, as
WPI moves from negative to positive
territory, are quite different from the
inflationary pressures witnessed in April-
October 2008. Although both inflation
episodes are driven by supply side
pressures, the inflation in 2008 was
triggered largely by a sharp increase in the
prices of basic metals and mineral oils. In
contrast, during the current episode, price
pressures are emanating from domestic
sources reflecting increase in prices of food
articles and food products (Chart 1).
27. At a disaggregated level, WPI inflation
rates of food articles, essential commodities
and manufactured food products are
currently in double digits and are ruling
much above their trend levels (Table 6).
28. The recent contrarian movements in
the WPI and CPI inflation rates have raised
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

questions about the correlation between
them. In the short-term, inflation rates
based on WPI and CPIs could be different
due to differences in coverage and weights.
However, these differences even out over
time as wholesale price changes are
followed by changes in the retail prices. For
example, in the five year period 2003-08, the
average inflation based on consumer price
index for industrial workers (CPI-IW) of 4.83
per cent was not very different from the
average WPI inflation of 4.99 per cent.

Table 6: Annual Inflation Rate (Y-o-Y) (%)

Wholesale Price Index (WPI) October 11, 2008 October 10, 2009
1 2 3
WPI - All Commodities 11.30 1.21
WPI - Primary Articles 12.56 8.62
WPI - Food Articles 10.17 13.34
WPI - Fuel Group 14.49 (-) 6.80
WPI - Manufactured Products 9.53 1.26
WPI - Manufactured Food Products 8.82 16.06
WPI - Essential Commodities* 8.66 17.82
WPI - Excluding Fuel 10.43 3.48
WPI - Excluding Food Articles and Fuel 10.50 0.96
Consumer Price Indices (CPIs) September 2008 September 2009
CPI - Industrial Workers # 9.02 11.72
CPI - Urban Non-manual Employees # 8.54 12.88
CPI - Agricultural Labourers 10.98 13.19
CPI - Rural Labourers 10.98 12.97

* Essential commodities (weight in WPI: 17.8 per cent) include rice, wheat, jowar, bajra, pulses, potatoes, onions, milk,
fish-inland, mutton, chillies (dry), tea, coking coal, kerosene, atta, sugar, gur, salt, hydrogenated vanaspati, rape &
mustard oil, coconut oil, groundnut oil, long cloth/sheeting, dhoties, sarees & voiles, household laundry soap and
safety matches.
# Pertains to August.

RBI
Monthly Bulletin
November 2009 2029
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
29. The first occasion in the recent past
when CPI inflation diverged significantly
from WPI inflation was in mid-2004. The
divergence between the two inflation rates
persisted thereafter but remained within a
relatively narrow range. However, the
divergence has widened in the recent period
with WPI inflation turning negative even as
CPI inflation crossed double digits (Chart 2).
Several factors account for this
phenomenon. One, food prices, which have
higher weightage (in the range of 46-69 per
cent) in the CPI measures than in WPI (26
per cent), have risen sharply in the recent
period. Two, miscellaneous group
(representing services) in various CPIs
(weights in the range of 12-24 per cent) have
also exhibited significant price pressures;
these services are not included in WPI.
Three, prices of metals, which do not form
part of the CPI group, have declined sharply,
thereby accentuating the divergence
between CPI and WPI inflation rates. Four,
while a strong base effect pushed WPI
inflation into negative territory during June-
August 2009, there was no base effect in play
for CPI inflation.
RBI
Monthly Bulletin
2030 November 2009
30. Inflation based on the CPI for
industrial workers (IW) and urban non-
manual employees (UNME) has also
witnessed a one-time step-up reflecting
significant upward revision in imputed
prices of rent-free houses emanating from
the Sixth Pay Commission Award.
Notwithstanding the current wide
divergence between the two sets of price
indices, CPI inflation tracks the essential
commodities component of WPI inflation
quite closely indicating that current CPI
inflation is essentially driven by food prices
(Chart 3).
Asset Price Inflation
31. Asset prices have risen sharply in the
recent period. Stock prices have increased
by more than 70 per cent during the
current financial year to date. A fter
showing some correction in the latter part
of 2008 and early part of 2009, real estate
prices have risen significantly in major
cities. Commodity prices in India have also
hardened in recent months. Reflecting the
firm trend in the global market, gold prices
in India surged, especially after August
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

2009, and reached a level of Rs.16,035 per
10 grams on October 23, 2009, up from Rs.
15,105 at end-March 2009.
Fiscal Scenario
32. In the first five months of 2009-10
(April-August), the revenue deficit of the
Central Government was 54.9 per cent of
the budget estimate, while the fiscal deficit
was 45.5 per cent (Table 7).
33. As per budget estimates, the
combined net borrowing requirements of
the Central and State Governments for
2009-10 will be 34 per cent higher than the
already elevated level of actual borrowings
during 2008-09 (Table 8).
34. A major challenge for the Reserve
Bank, as indicated in the First Quarter
Review of July 2009, has been the
management of the large government
market borrowing programme in a non-
disruptive manner. For this purpose, the
Reserve Bank initiated several measures,
some of which were unconventional. First,
the Reser ve Bank front-loaded the
borrowing programme for 2009-10 as credit
offtake by the private sector is usually low
in the first half. Second, MSS securities of

Table 7: Fiscal Position of the Central Government

% of GDP Actual during April-August
Item 2008-09 2009-10 2008-09 2009-10
(RE) (BE) (% of RE) (% of BE)
1 2 3 4 5
1. Gross Tax Revenue 11.8 10.9 30.3 26.2
2. Total Expenditure 16.9 17.4 31.0 33.6
3. Fiscal Deficit 6.2* 6.8 35.8 45.5
4. Revenue Deficit 4.6* 4.8 40.6 54.9
5. Primary Deficit 2.6* 3.0 38.1 62.8
* As per provisional accounts released by the Controller General of Accounts.
BE – Budget Estimate RE – Revised Estimate

RBI
Monthly Bulletin
November 2009 2031
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

Table 8: Borrowings of the Central and State Governments

(Rs. crore)
2007-08 2008-09 2009-10
Item Actual Actual Budget Estimates
1 2 3 4
Central Government
Gross Market Borrowings $ 1,88,215 3,18,550 4,91,044
Net Market Borrowings 1,08,998 2,98,536 3,97,957
State Governments
Net Market Borrowings 56,224 1,03,766 1,40,000*
Total Net Market Borrowings 1,65,222 4,02,302 5,37,957
$ Pertain to dated securities and 364-day Treasury Bills.
* Estimated. The State Governments have been allowed to borrow an additional 0.5 per cent of gross state domestic
product (GSDP) as part of the fiscal stimulus package in 2008-09 and another 0.5 per cent of GSDP in the Union
Budget 2009-10, raising their budgeted borrowings in 2009-10 to 4.0 per cent of GSDP.

the order of Rs.28,000 crore were de-
sequestered. Third, the Reser ve Bank
resorted to active liquidity management by
way of unwinding of MSS securities and
purchase of securities through pre-
announced calendar of open market
operations (OMO). The unwinding of MSS
securities through redemption was of the
order of Rs.42,000 crore during the first half
of the year. Besides, as against the OMO
announcement of an indicative amount of
Rs.80,000 crore through the auction route
for the first half of 2009-10, the actual
purchases were Rs.57,487 crore, the
shortfall from projection being on account
of easy liquidity conditions. Feedback from
the market participants indicates that the
OMO provided considerable comfort.
35. The Central Government has already
completed net market borrowing of Rs.
3,19,911 crore (as much as 80.4 per cent of
the budget estimate) through dated
securities during 2009-10 (up to October 26,
2009) (Table 9). In addition, the State
Governments also mobilised Rs.58,683 crore
(net) through the market borrowing
programme. Because of the front-loading of
the market borrowing programme, net
issuances under the Central Government
borrowing programme in the remaining
period of 2009-10 will be Rs.62,464 crore
(Table 9). Given the current level of liquidity,
it should be possible to complete this
borrowing programme smoothly.
36. Despite the large government
borrowing programme, the weighted average
yield of dated securities issued under the
Central Government borrowing programme
in 2009-10 (up to October 26, 2009) at 7.14
per cent was lower than the yield of 8.81 per
cent averaged for the corresponding period
of the previous year. However, the yield on
the 10-year government securities rose from
7.01 per cent at end-March to 7.47 per cent
in early-September 2009 with increased
volatility. Subsequently, it stabilised around
7.35 per cent by mid-October 2009. The
Reserve Bank also varied the maturity profile
of debt issuances tailored to market appetite.
The weighted average maturity of securities
issued during 2009-10 (up to October 26,
2009) was 11.0 years as compared with the

RBI
Monthly Bulletin
2032 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

Table 9: Central Government Borrowings during 2009-10: Dated Securities

(Rs. crore)
Full Year First half Second Half
(Planned) (Actual)
Item Planned Actual Balance
(up to Oct.
26, 2009)
1 2 3 4 5 6
Gross Market Borrowings** 4,18,000 2,95,000 1,23,000 30,000 93,000
Less: Repayment 53,136 33,089 19,500 0 19,500
Net Market Borrowings** 3,64,864 2,61,911 1,03,500 30,000 73,500
Less: OMO Purchases 57,487* 57,487 * 0 *
Add: MSS (Net) ** (-) 53,036 (-) 42,000 (-) 11,036 0 (-) 11,036
Net Supply of Fresh Securities 2,54,341 1,62,424 92,464 30,000 62,464
* Rs. 80,000 crore of OMO purchases were planned for the first half of 2009-10. The Reserve Bank would conduct
open market operations during the second half of the current fiscal year as and when considered necessary.
** Excluding the amount raised through MSS de-sequestering.

average maturity of 15.5 years in the
corresponding period of the previous year.
Market participants indicate that had there
not been active liquidity and maturity profile
management by the Reserve Bank, the yield
perhaps would have been significantly
higher.
Monetary Conditions
year-on-year growth in reserve money (RM)
turned negative reflecting the 400 basis
points reduction in the cash reserve ratio
(CRR) of banks during October–January
2008-09, which reduced the banks’ balances
with the Reserve Bank. Adjusted for the first
round impact of changes in the CRR, reserve
money growth was positive, but lower than
in the previous year (Table 10).

37. Growth in monetary aggregates during 38. The money supply (M3) growth on a
2009-10 (up to October 9, 2009) has evolved year-on-year basis at 18.9 per cent as on
broadly in line with the projections. The October 9, 2009 remained above the

Table 10: Annual Variations in Monetary Aggregates (%)

2008-09 2009-10
Item
(October 10, 2008) (October 9, 2009)
1 2 3
Reserve Money 28.8 (-) 4.0
Reserve Money (adjusted for CRR changes) 20.6 14.3
Currency in Circulation 21.4 15.4
Money Supply (M3) 20.9 18.9
M3 (Policy Projection) 16.5-17.0 * 18.0 **
Money Multiplier 4.44 5.5
Ratio of Net Foreign Exchange Assets of RBI to Currency 210.6 175.9

* Projection as indicated in the Annual Policy Statement 2008-09 (April 2008).

* * Projection as indicated in the First Quarter Review of Monetary Policy 2009-10 (July 2009).

RBI
Monthly Bulletin
November 2009 2033
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

indicative projection of 18.0 per cent set out Financing Conditions

in the First Quarter Review of July 2009. The
main source of M3 expansion was bank credit
to the government reflecting large market
borrowings of the Government. This is in
contrast to what happened in 2008-09, when
bank credit to the commercial sector and net
foreign exchange assets of the banking sector
drove the expansion of M3 (Table 11).
39. Monetary management during 2009-
10 has been informed by the continued need
to provide liquidity to mitigate the adverse
impact of the global financial crisis and to
complete the large market borrowing
programme of the Government in a non-
disruptive manner. The phenomenon of
substitution of foreign assets by domestic
assets, which began in the second half of
2008-09, continued during the first two
months of the current year. This trend,
however, reversed after May 2009, when
capital inflows revived on a net basis.
Liquidity conditions have remained
comfortable since mid-November 2008.
During 2009-10 (up to October 23, 2009), the
average daily amount absorbed by the
Reserve Bank under the LAF window was
of the order of Rs.1,20,000 crore, indicating
a large surplus with the banking system,
equivalent to 2.7 per cent of the net demand
and time liabilities (NDTL).
Bank Credit
40. Non-food credit by scheduled
commercial banks (SCBs) decelerated
significantly, with the growth rate (y-o-y)
falling to 11.2 per cent this year (as on
October 9, 2009) from 29.4 per cent a year
ago. On a financial year basis (up to October
9, 2009) too, the growth in scheduled
commercial banks’ non-food credit at 4.3 per
cent is significantly lower than the growth
of 10.5 per cent in the corresponding period
of last year.
41. Several factors have contributed to the
slowdown in non-food bank credit. One,
overall credit demand from the
manufacturing sector slowed down
reflecting a decline in commodity prices and
drawdown of inventories. Two, corporates
were able to access non-bank domestic
sources of funds and external financing –
which had almost dried up during the crisis
– at lower costs. Three, unlike in the
previous year, oil marketing companies
reduced their borrowings from the banking
sector as oil prices moderated. Four, a
significant amount of bank finance has gone
to the corporate sector through banks’
investment in units of mutual funds. Five,
banks have also reined in credit to the retail

Table 11: Growth in Major Sources of Money Supply as of October (%)

Financial Year Year-on-Year
Item 2008-09 2009-10 2008-09 2009-10
(October 10) (October 9) (October 10) (October 9)
1 2 3 4 5
Money Supply (M3) 7.7 8.0 20.9 18.9
Net Bank Credit to Government 10.1 12.4 16.8 44.9
Bank Credit to Commercial Sector 9.8 4.1 27.4 10.7
Net Foreign Exchange Assets of the Banking Sector 4.2 (-) 1.4 30.0 (-) 1.2

RBI
Monthly Bulletin
2034 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

sector due to the perceived increased risk
on account of the general slowdown. This
credit retrenchment was more pronounced
in the case of foreign banks and private
banks. This is evident from bank group-wise
analysis, which shows that credit from
private banks slowed down sharply, while
that from foreign banks actually contracted
(Table 12). Thus, despite ample liquidity in
the system, non-food bank credit expansion
slowed down.
43. As per data at a disaggregated level
drawn from 49 banks accounting for 95 per
cent of total bank credit, the year-on-year
growth in bank credit to industry as of
August 2009 was lower than that in the
previous year. While the credit flow to
agriculture, real estate and NBFCs remained
high, it was lower for housing (Table 13).
Total Flow of Financial Resources to the
Commercial Sector

42. Banks used the ample liquidity
available with them to make large
investments in government securities and
also fairly sizeable investments (of the order
of Rs.92,000 crore during the current
financial year so far) in units of mutual
funds. Consequently, commercial banks’
investments in SLR securities (including
securities acquired under the LAF) increased
to 30.4 per cent of their NDTL as on October
9, 2009, up from 25.7 per cent a year ago.
Net of LAF collateral securities, banks’ SLR
investments were at 27.6 per cent of NDTL
as on October 9, 2009.
44. During the peak of the crisis (Third
Quarter Review of January, 2009), it was
noted that the flow of resources to the
commercial sector from both bank and non-
bank sources had contracted. While bank
credit continues to decelerate as indicated
earlier, there has been a turnaround in
financing from non-bank sources. The
resource flow from non-bank sources
increased in Q2 of 2009-10 with increase in
foreign direct investment, pick-up in primary
issues, increased support from insurance
companies, and large investment by mutual
funds in non-gilt debt instruments. While the

Table 12: Bank Group-wise Deposits and Credit Growth (Y-o-Y) as of October (%)
2008-09 2009-10
Bank Group (October 10, 2008) (October 9, 2009)
1 2 3
Deposits
Public Sector Banks 23.6 24.4
Foreign Bank Group 23.2 11.5
Private Bank Group 14.1 6.1
Scheduled Commercial Banks* 21.5 20.0
Credit

Public Sector Banks 32.7 15.3

Foreign Bank Group 32.9 (-) 15.9
Private Bank Group 19.7 2.5
Scheduled Commercial Banks* 29.5 10.8
* Including RRBs.

RBI
Monthly Bulletin
November 2009 2035
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

Table 13: Annual Sectoral Flow of Credit

As on August 29, 2008 (y-o-y) As on August 28, 2009 (y-o-y)
Sector Amount % share Variations Amount % share Variations
(Rs.crore) in total (%) (Rs.crore) in total (%)
1 2 3 4 5 6 7
Agriculture 41,185 8.5 18.6 67,228 21.8 25.6
Industry 2,30,229 47.5 32.9 1,66,121 53.8 17.9
of which:
Micro and Small 23,865 4.9 20.1 40,146 13.0 28.1
Real Estate 20,580 4.2 43.1 28,353 9.2 41.5
Housing 29,872 6.2 12.4 14,668 4.8 5.4
NBFCs 26,443 5.5 51.8 23,837 7.7 30.8
Overall Credit 4,84,805 100.0 26.5 3,08,718 100.0 13.3
Note: Data are provisional and relate to select banks which cover 95 per cent of total non-food credit extended by all
scheduled commercial banks.

resource flow from the non-bank sources was
marginally higher in 2009-10 (up to October 9),
the total flow of financial resources to the
commercial sector declined in comparison
with the corresponding period of 2008-09
due to slowdown in bank credit (Table 14).
Interest Rates
45. In response to the crisis, the Reserve
Bank has effected a substantial reduction in
policy rates beginning October 2008: the
repo rate by 425 basis points and the reverse
repo rate by 275 basis points. The CRR was
also reduced by 400 basis points of NDTL
of banks (Table 15).
46. Taking cues from the reduction in the
Reser ve Bank’s policy rates and easy
liquidity conditions, all public sector banks
and most private sector banks have reduced

Table 14: Total Flow of Financial Resources to the Commercial Sector

(Rs.crore)
Full Year Financial Year so far
Item (up to October 9)
2007-08 2008-09 2008-09 2009-10
1 2 3 4 5
From Banks 4,44,807 4,21,091 2,40,092 1,07,861
From Other Sources* 5,64,558 4,68,567 2,28,119 2,30,130
Total Resources 10,09,365 8,89,658 4,68,211 3,37,991
Memo Item:
Mutual Funds Investment in
Debt (non-Gilt) Instruments 88,457 (-) 32,168 19,896 1,01,956
* Includes borrowings from financial institutions (including LIC) and NBFCs as well as resources mobilised from the
capital market and by way of ECBs, FCCBs, ADRs/GDRs, FDI and short-term credit as per the latest available data,
adjusted for double counting.

RBI
Monthly Bulletin
2036 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

Table 15: Monetary Easing by private sector banks and 125-300 basis
the Reserve Bank since October 2008 points by five major foreign banks. The
As on (%) reduction in the range of BPLRs was 125-
Reduction
Item Early October (basis 275 basis points by public sector banks,
October 2009 points) followed by 100-125 basis points by private
2008
banks and 125 basis points by five major
1 2 3 4
foreign banks (Table 16).
Repo Rate 9.00 4.75 425
Reverse Repo Rate 6.00 3.25 275
Financial Markets
Cash Reserve Ratio
(% of NDTL) 9.00 5.00 400 Money and G-Sec Markets
their deposit and lending rates. The 47. As a result of the monetary easing and
reduction in the term deposit rates between policy rate reductions beginning September
October 2008 and October 1, 2009 has been 2008, interest rates have declined across the
in the range of 175-350 basis points by term structure in the domestic financial
public sector banks, 100-375 basis points by markets. The call money rates have

Table 16: Movements in Deposit and Lending Rates

(Per cent)
Interest Rates October March April 20, October 15, Variation as on
October 15, 2009
2008 2009 2009 2009
(basis points)
(%) (%) (%) (%)
Over Over
October April 20,
2008 2009
1 2 3 4 5 6 7
Term Deposit Rates
Public Sector Banks
a) Up to 1 year 2.75-10.25 2.75-8.25 2.75-8.00 1.00-6.75 175-350 125-175
b) 1 year up to 3 years 9.50-10.75 8.00 -9.25 7.00-8.75 6.25-7.50 325 75-125
c) Over 3 years 8.50-9.75 7.50-9.00 7.25-8.50 6.50-8.00 175-200 50-75
Private Sector Banks
a) Up to 1 year 3.00-10.50 3.00-8.75 3.00-8.50 2.00-7.00 100-350 100-150
b) 1 year up to 3 years 9.00-11.00 7.50-10.25 7.50-9.50 5.25-8.00 300-375 150-225
c) Over 3 years 8.25-11.00 7.50-9.75 7.50-9.25 5.75-8.25 250-275 100-175
Five Major Foreign Banks
a) Up to 1 year 3.50-9.50 2.50-8.00 2.50-8.00 2.25-6.50 125-300 25-150
b) 1 year up to 3 years 3.60-10.00 2.50-8.00 2.50-8.00 2.25-7.50 135-250 25-50
c) Over 3 years 3.60-10.00 2.50-8.00 2.50-8.00 2.25-7.50 135-250 25-50
BPLR
Public Sector Banks 13.75-14.75 11.50-14.00 11.50-13.50 11.00-13.50 125-275 50
Private Sector Banks 13.75-17.75 12.75-16.75 12.50-16.75 12.50-16.75 100-125 0
Five Major Foreign Banks 14.25-16.75 14.25-15.75 14.25-15.75 14.25-15.50 125 25

RBI
Monthly Bulletin
November 2009 2037
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

Table 17: Interest Rates - Monthly Average (%)

October March July October
Instrument/Segment
2008 2009 2009 2009 *
1 2 3 4 5
Call Money 9.90 4.17 3.21 3.18
CBLO 7.73 3.60 2.78 2.51
Market Repo 8.40 3.90 2.81 2.67
Certificates of Deposit (CDs) 10.00 7.53 4.96 3.60
Commercial Papers (CPs) 14.17 9.79 4.71 4.29
91-day Treasury Bills 8.13 4.77 3.22 3.23
10-year Govt. Security 7.80 6.57 7.00 7.33
Modal BPLR of PSBs 14.00 12.50 12.00 12.00
* Average up to October 23, 2009.

remained near or below the lower bound of
the LAF corridor since November 2008.
Primary yields on Treasury Bills have also
moderated (Table 17).
48. The yield on government securities
moved up with increased volatility during
the early part of the year in the face of a
large borrowing programme of the Central
and State Governments. There was a sudden
surge in bond yields in late August due to
change in market sentiment with the yield
on 10-year Government security moving up
by 42 basis points during August 13 -
September 3, 2009. However, the yield
stabilised subsequently on assurances by
the Reserve Bank that it would manage
liquidity conditions and market borrowing
programme of the Government in a non-
disruptive manner (Chart 4).
49. Presently, banks are permitted to hold
statutory liquidity ratio (SLR) securities up
to 25 per cent of their demand and time
liabilities (DTL) in the ‘held to maturity’
(HTM) category of investments. Recently,
there has been some debate on the need to
raise this limit on the ground that such a

RBI
Monthly Bulletin
2038 November 2009

relaxation will mitigate the upward pressure
on G-Sec yields, and consequently on the
overall interest rate regime. The Reserve
Bank considered the advisability of raising
the HTM limit. It may be recalled that in
2004-05 banks were allowed to shift SLR
securities to the HTM category as a one-time
measure subject to the total SLR securities
held in the HTM category capped at 25 per
cent of their DTL. This limit was kept
unchanged even as the SLR was reduced
from 25 per cent to 24 per cent in November
2008. As the HTM ratio is already higher
than the prescribed SLR, it is not considered
desirable to further raise the HTM ratio.
Transmission Mechanism
50. The changes in the Reserve Bank’s
policy rates were quickly transmitted to the
money and debt markets. However,
transmission to the credit market was slow
due to several structural rigidities in the
system, especially fixed interest rate deposit
liabilities. As bank deposits, contracted in
the past at high rates, have started to mature
and banks have significantly reduced their
term deposit rates, the transmission of
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
lower policy rates to the credit market has
improved. In this context, it should be
recognised that the movement in the
benchmark prime lending rates (BPLRs)
does not fully and accurately reflect the
changes in effective lending rates as nearly
two-thirds of banks’ lending takes place at
sub-BPLR rates. As such, the true
movements in lending rates of banks are
better captured in the weighted average
lending rates of banks. Rough estimates
show that the effective average lending rate
for scheduled commercial banks declined
from 12.3 per cent in March 2008 to 11.1
per cent by March 2009 – the latest period
for which data are available (Chart 5).
Further, data from select banks, as a proxy
measure for effective lending rates, suggest
that weighted average yield on advances
declined from 10.6 per cent in March 2009
to 10.3 per cent in June 2009.
51. The analysis by the Working Group on
BPLR (Chairman: Shri Deepak Mohanty),
which submitted its Report on October 20,
2009, has demonstrated that though there
was considerable divergence in weighted
average lending rates in 2004 among the
RBI
Monthly Bulletin
November 2009 2039
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
various bank-groups, these have tended to
converge in the recent period. The Group
has recommended the introduction of a
Base Rate system.
Foreign Exchange Market
52. The foreign exchange market
remained orderly during 2009-10 (up to
October 23, 2009) with the rupee exhibiting
a two-way movement against major
currencies. During the current financial
year, the rupee appreciated by 9.7 per cent
against the US dollar and 2.6 per cent against
the Japanese yen, whereas it depreciated by
5.7 per cent against the pound sterling and
3.2 per cent against the euro (Chart 6). In
terms of the real exchange rate, the six-
RBI
Monthly Bulletin
2040 November 2009
currency trade-based real effective exchange
rate (REER) (1993-94=100) moved up from
96.3 at end-March 2009 to 104.2 by October
23, 2009.
Equity Market
53. During the current financial year (up
to October 23, 2009), the secondar y
segment of the domestic capital market has
remained buoyant. The stock market
staged a smart recovery reflecting large net
FII inflows due to the optimistic outlook
for the Indian economy. FIIs made net
purchases of US$ 13.8 billion in 2009-10
(up to October 21, 2009) in the Indian
equity market as against net sales of US$
8.6 billion in the corresponding period of
 MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10

2008-09. The BSE Sensex rose from 9,709 account showed a turnaround from a
at end-March 2009 to 16,811 on October 23, negative balance in the last two quarters of
2009, showing an increase of 73.1 per cent 2008-09 to a positive balance of US$ 6.7
during 2009-10 to date. billion during Q1 of 2009-10.

External Sector 55. In 2009-10 to date, foreign exchange

reserves have increased by US$ 32.9 billion,
54. India’s external account has remained including allocation of SDRs (US$ 5.2 billion)
comfortable during the current financial by the IMF, and were at US$ 284.8 billion as
year. Merchandise trade contracted due to on October 16, 2009 (Table 19).
depressed external demand and slowdown
of the domestic economy, with imports
Table 19: Variation in Foreign
declining more than exports. The trade
Exchange Reserves
deficit narrowed down to US$ 26.0 billion
Period Variation (US$ billion)
in Q1 of 2009-10 from US$ 31.4 billion in
1 2
Q1 of 2008-09. However, trade deficit in Q1
Full Year
of 2009-10 was higher than US$ 14.6 billion
2004-05 28.6
in Q4 of 2008-09 partly due to a rise in crude
2005-06 10.1
oil prices (Table 18). The current account 2006-07 47.6
deficit at US$ 5.8 billion in Q1 of 2009-10 2007-08 110.5
was also lower compared to the deficit of 2008-09 (-) 57.7
US$ 9.0 billion in Q1 of 2008-09; a current Financial Year (up to October 16)
account surplus of US$ 4.7 billion was 2008-09 (-) 35.8
recorded in Q4 of 2008-09. The capital 2009-10 32.9

Table 18: India’s Balance of Payments

(US$ billion)

Item Full Year 2008-09 2009-10

2007-08 2008-09 Q1 Q4 Q1
1 2 3 4 5 6
Exports 166.2 175.2 49.1 39.8 38.8
Imports 257.8 294.6 80.5 54.4 64.8
Trade Balance (-) 91.6 (-) 119.4 (-) 31.4 (-) 14.6 (-) 26.0
Invisibles, net 74.6 89.6 22.4 19.3 20.2
Current Account Balance (-) 17.0 (-) 29.8 (-) 9.0 4.7 (-) 5.8
Net Capital Account 108.0 9.1 11.1 (-) 5.3 6.7
Overall Balance # 92.2 (-) 20.1 2.2 0.3 0.1
Memo:
As percentage of GDP
Trade Balance (-) 7.8 (-) 10.3
Current Account Balance (-) 1.5 (-) 2.6
Net Capital Inflows 9.2 0.8

# Overall balance includes current account balance, net capital account and errors and omissions.

RBI
Monthly Bulletin
November 2009 2041
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
56. The management of foreign exchange
reser ves is guided by the changing
composition of the balance of payments and
endeavours to reflect the ‘liquidity risks’
associated with different types of flows.
II. Stance of Monetary Policy
57. As a part of the accommodative
monetar y policy followed since mid-
September 2008, the Reserve Bank has
provided ample rupee and dollar liquidity
and maintained a market environment
conducive for the continued flow of credit
to productive sectors at lower cost. The
important measures initiated include
reduction of the policy rates under the LAF
to their historically low levels, lowering of
reserve requirements, institution of sector-
specific liquidity facilities and a forex swap
facility, relaxation in the ECB guidelines,
countercyclical prudential measures of
adjustment in risk weights and
provisioning, and conditional special
regulatory treatment for restructured assets.
Liquidity Impact
58. Consistent with its accommodative
monetar y stance, the Reser ve Bank
expanded its domestic assets through open
market operations (OMO) and unwinding
of market stabilisation scheme (MSS)
securities to provide primary liquidity to
support the required monetary expansion.
Several measures taken by the Reserve Bank
since mid-September 2008 have augmented
actual/potential liquidity in the system on
the aggregate by Rs.5,85,000 crore.
59. As a result of the extraordinar y
monetary easing by the Reserve Bank, the
RBI
Monthly Bulletin
2042 November 2009
banking system has been awash with
liquidity since November 2008. This is
reflected most prominently in the
absorption under the LAF window of a daily
average of almost Rs.1,20,000 crore. The
utilisation of the several refinance facilities
instituted by the Reserve Bank too has been
low, further evidencing the ample liquidity
situation. Interest rates in all the markets
have declined significantly over the last one
year as detailed before. The transmission of
lower policy rates to the credit market has
materialised with a lag. With most
commercial banks reducing their deposit
rates, the cost of funds has declined
enabling banks to reduce their BPLRs. The
effective lending rates have also come down
as nearly three-fourths of bank lending takes
place at rates below their BPLRs as alluded
to before.
Growth Projection
60. During the first quarter of 2009-10,
real GDP recorded a growth of 6.1 per cent,
lower than the growth of 7.8 per cent in the
corresponding quarter of 2008-09, but
marginally higher than the 5.8 per cent
growth in the second half of 2008-09. The
south-west monsoon rainfall this year has
been the weakest since 1972 affecting both
yield and acreage of agricultural crops. This
will impact Kharif production and the
performance of agricultural production
during the Rabi season will be critical for
supply management. On the whole,
agricultural production in 2009-10 is
expected to be lower than in last year.
61. While external demand has continued
to contract, large fiscal and monetar y
stimulus measures have bolstered domestic

consumption and helped the recovery in the
industrial sector. The prospects of the
industrial sector have become more
promising than they were at the time of the
First Quarter Review. With the recovery in
the stock market, the primary segment of
the capital market has also witnessed
increased activity in the recent period. This,
combined with the easing of international
financing conditions, augurs well for a pick-
up in investment activity. The business
confidence surveys also point to further
improvement in outlook despite weak
perception of export demand.
62. Various services sector activities,
which have slowed down significantly in the
recent period, should also catch up, albeit
with a lag, in tandem with improved
industrial growth. Assuming a modest
decline in agricultural production and a
faster recovery in industrial production, the
baseline projection for GDP growth for 2009-
10 is placed at 6.0 per cent with an upside
bias (Chart 7). Thus, the GDP projection for
2009-10 for policy purposes remains
unaltered from that made in the First
Quarter Review of July 2009.
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Inflation Projection
63. Headline WPI inflation turned
negative during June-August 2009 due to the
large statistical base effect. As anticipated
in the First Quarter Review, WPI inflation
has returned to positive territory, albeit a
few weeks sooner than expected, in the
wake of large increase in prices of food items
and increase in global crude oil prices.
64. The upside risks on account of
deficiency in monsoon rainfall indicated in
First Quarter Review of July 2009 have now
materialised as prices of food items have
risen sharply. Going forward, Rabi crop
prospects would be critical in shaping the
path of food inflation. The large stock of
foodgrains with public agencies should help
mitigate any significant adverse impact due
to supply constraints. The improved terms
of trade for agriculture in recent years
should provide an incentive to the sector.
65. Global commodity prices, which had
bottomed out in early-2009, rebounded
ahead of global recovery. The global oil
prices present a mixed picture. Crude oil
prices, which increased from their low
RBI
Monthly Bulletin
November 2009 2043
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
levels of Januar y-March 2009, have
remained range-bound since June 2009.
Large global liquidity due to easy monetary
policy followed by major central banks has
led to sizeable financialisation of the
commodities market, especially for those
products that are prone to demand supply
gaps. These developments may induce
greater volatility in commodity prices in
the coming years.
66. Inflation assessment has become
increasingly complex in recent times with
the WPI inflation rate remaining negative
or low and the various CPI inflation
measures remaining close to or above the
double digits for an extended period. CPI
inflation has remained at an elevated level
since March 2008 and did not decline as
expected in line with fall in WPI inflation.
Indeed, it hardened due to sharp increase
in essential commodity prices. The
situation was aggravated by the deficient
monsoon rainfall and drought condition in
several parts of the country. The Reserve
Bank monitors an array of measures of
inflation, both overall and disaggregated
components, in conjunction with other
economic and financial indicators, to
assess the underlying inflationar y
pressures and articulates its policy stance
in terms of WPI. The Government took a
decision on October 19, 2009 to reduce the
frequency of the current series of
Wholesale Price Index (base:1993-94) from
weekly to monthly. The available indices,
WPI and the four measures of CPI, fail to
adequately capture the underlying
inflationar y conditions because of
inadequate coverage and also because the
respective base years do not capture the
changed production and consumption
RBI
Monthly Bulletin
2044 November 2009
patterns. This underscores the need to
expedite the revision of coverage and
updating of the base year for the WPI series
as also the proposed two consumer price
indices, i.e., CPI-Urban and CPI-Rural.
67. The First Quarter Review of July 2009
projected WPI inflation for end-March 2010
at around 5.0 per cent. The July Review
indicated that the risk to this projection was
on the upside. Though the year-on-year WPI
inflation was 1.21 per cent as on October
10, 2009, it has already increased by 5.95
per cent on a financial year basis though
some of the increase is seasonal and is likely
to soften. However, the base effect, which
resulted in negative WPI inflation during
June-August 2009, is now expected to work
in the reverse direction accentuated by high
food prices. The Reserve Bank’s quarterly
inflation expectations sur vey for
households indicates that while inflationary
expectations remain contained, a majority
of the respondents expect inflation rate to
increase over the next three months as also
over the next year.
68. Keeping in view the global trend in
commodity prices and the domestic
demand-supply balance, the baseline
projection for WPI inflation at end-March
2010 is placed at 6.5 per cent with an upside
bias (Chart 8). This is higher than the 5.0
per cent WPI inflation projected in the First
Quarter Review of July 2009 as the upside
risks have materialised.
69. As always, the Reserve Bank will
endeavour to ensure price stability and
anchor inflation expectations. The conduct
of monetar y policy will continue to
condition and contain perception of
inflation in the range of 4.0-4.5 per cent.

This will be in line with the medium-term
objective of 3.0 per cent inflation consistent
with India’s broader integration with the
global economy.
Monetary Projection
70. The year-on-year growth in money
supply (M3) increased from 18.6 per cent
in end-March 2009 to 18.9 per cent by
October 9, 2009. A major source of M 3
expansion this year has been the banking
system’s financing of the large market
borrowing of the Government, including
OMO purchases by the Reserve Bank. The
growth in bank credit to the commercial
sector has moderated significantly to 10.7
per cent from the high level of 27.4 per cent
a year ago.
71. The First Quarter Review of July 2009
raised the indicative trajectory of M3 growth
to 18.0 per cent from 17.0 per cent envisaged
in the Annual Policy Statement of April 2009
to ensure that the increased government
market borrowing programme did not crowd
out the credit flow to the private sector.
Over 80 per cent of the market borrowing
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
programme for 2009-10 is now completed.
In 2009-10 (up to October 9, 2009), credit
has expanded by Rs.1,14,800 crore. Thus, to
attain the projected growth of 20 per cent,
banks will need to expand credit by
Rs.4,40,000 crore in the remaining part of
the year, which will be difficult unless
demand for retail credit accelerates. Also,
access of corporates to non-bank sources of
financing, both domestic and international,
has eased, which could lead to substitution
of bank credit. While credit demand is
expected to pick up during the second-half
of 2009-10, attaining the projected growth
of 20 per cent is unlikely.
72. Keeping in view the borrowing
requirement of the government and of the
commercial sector in the remaining period
of 2009-10, the indicative projection of
money supply growth of 18.0 per cent set
out in July 2009 is revised downwards to
17.0 per cent. Consistent with this,
aggregate deposits of scheduled commercial
banks are projected to grow by 18.0 per cent.
The growth in adjusted non-food credit,
including investment in bonds/debentures/
RBI
Monthly Bulletin
November 2009 2045
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
shares of public sector undertakings and
private corporate sector and CPs, is also
revised downwards to 18.0 per cent from
20.0 per cent set out in the Annual Policy
Statement and the First Quarter Review.
Banks are urged once again to step up their
efforts towards credit expansion while
preserving credit quality which is critical for
revival of growth.
Overall Assessment
73. There has been a discernible
improvement in the global economic
outlook since the First Quarter Review in
July 2009. In India too, there are definitive
indications of the economy reverting to the
growth track. Accordingly, attention around
the world, as also in India, has shifted from
managing the crisis to managing the
recovery.
74. The policy dilemma for India is
different in some important respects from
that of advanced economies as also other
emerging market economies. First, most of
these countries do not face an immediate
risk of inflation. Indeed, in several advanced
economies, the concerns were about a
possible deflation, which are just about
waning. On the other hand, India is actively
confronted with an upturn in inflation – a
rising WPI inflation and stubbornly elevated
CPI inflation.
75. Second, advanced economies are
faced with households, firms and financial
institutions still struggling with their
impaired balance sheets. Fortunately, we
do not have this problem in India, but we
still have the challenge of reviving
domestic consumption and investment
RBI
Monthly Bulletin
2046 November 2009
demand, the traditional, dominant drivers
of our growth.
76. Third, somewhat related to the point
above, India has traditionally been a supply
constrained economy in contrast to
advanced economies which are demand
starved. We need, in particular, to expand
the supply of infrastructure – power, roads,
urban infrastructure and social
infrastructure. The supply constraints
which remained subdued during the crisis
period owing to weak demand, will re-
emerge and may indeed become binding.
77. Fourth and importantly, India is one
of the few large emerging economies with
twin deficits – fiscal and current account
deficits. While our current account deficit
is modest, and may even be benign given
the investment requirements of the
economy, there can be no two views about
the need to make a responsible, credible and
time-bound fiscal adjustment. The
arguments for fiscal consolidation and
rectitude are compelling and widely known,
and need not be repeated here. But an issue
of some immediate relevance is the critical
need to downsize the government
borrowing programme so as to help sustain
a moderate interest rate regime. This is
crucial for investment demand to pick up
on which hinge our long-term economic
prospects.
78. Around the world, there is an active,
and at times animated debate on the timing
and sequencing of exit from the
expansionary monetary stance. ‘Exit’ is a
central issue in our policy matrix too. As
the Reserve Bank has indicated in several
public statements, our current monetary
stance is not the steady state and we need

to reverse the expansionary stance. It is
important to recognise though that the exit
debate in India is qualitatively different
from that in other advanced and emerging
economies because of the unique features
of our macroeconomic context indicated
above.
79. The precise challenge for the Reserve
Bank is to support the recovery process
without compromising on price stability.
This calls for a careful management of trade-
offs. Growth drivers warrant a delayed exit,
while inflation concerns call for an early
exit. Premature exit will derail the fragile
growth, but a delayed exit can potentially
engender inflation expectations.
80. The Reserve Bank has consulted a
wide array of stakeholders in the run up
to this policy review. Based on these
consultations, the arguments for and
against reversal of the expansionar y
monetary policy stance can be summarised
as follows.
Arguments for Beginning Reversal of
Monetary Easing
81. The most dominant argument for
reversing monetary policy easing stems
from the concern about inflation. WPI
inflation has turned positive, the base effect
which has kept WPI low so far is now gone
and CPI inflation has remained stubbornly
elevated. On a financial year basis, WPI has
already increased by 5.95 per cent.
Inasmuch as monetary policy acts with a lag,
there is need to act now.
82. It is further argued that even though
the current inflationary pressures are driven
by food prices, they can strengthen
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
expectations of higher inflation and lead to
generalised inflation. The Reserve Bank’s
inflation expectations survey shows that
households expect inflation to increase over
the next three months as also one year. The
lag with which monetary policy operates
suggests that there is a case for tightening
sooner rather than later.
83. Forceful arguments for early reversal
of monetary policy also arise from liquidity
concerns. The L AF window has been
absorbing over Rs.100,000 crore on a daily
basis since May 2009, save for a few days
on account of temporar y increases in
government balances. This evidences the
large amount of liquidity in the system
which could potentially result in an
unsustainable asset price build-up. There is
already some evidence of excess liquidity
feeding through asset prices with potential
financial stability concerns. Further, capital
flows have resumed. Given the limitations
of the economy’s current absorptive
capacity, these flows will add to the overall
domestic liquidity, further fuelling the asset
price build-up. Large capital inflows and
asset price inflation have the potential to
feed on each other. From the liquidity
dimension, it is further argued that the
current large overhang of liquidity could
engender inflation expectation even if credit
demand remains subdued.
Arguments for Deferring Reversal of
Monetary Easing
84. The dominant argument for continuing
with the current monetary stance is that the
recovery is as yet fragile. Exports are still on
the decline and the recent improvement in
industrial production overstates the recovery
as part of it is due to the base effect and the
RBI
Monthly Bulletin
November 2009 2047
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
one time impact of restocking inventory.
Premature tightening will hurt the growth
impulses. On the other hand, it is imperative
to continue with the accommodative stance
to compensate for the decline in agricultural
output and till there is firm evidence of
sustained global recovery.
85. The second argument against an
immediate reversal of monetary easing is
that the current inflationary pressures are
driven by supply side constraints,
particularly food prices. Monetary policy
is typically not an efficient instrument for
reining in food price inflation. There could,
of course, be concerns that rising food
prices could spark inflationar y
expectations. But the probability of that is
low as food prices are likely to ease in the
coming months following the seasonal
trend. The promising Rabi crop prospects
also will reduce food price pressures.
Under these circumstances, the downside
risks to any tightening now are high with
virtually no upside.
86. The third argument for maintaining
the accommodative monetary stance for
now is that any reversal at this stage will
harden yields on government bonds putting
upward pressure on interest rates and
dampening both consumption and
investment demand. This could seriously
unravel the incipient recovery.
87. Finally, capital flows have resumed on
the promise of India’s growth prospects. It
is argued that if we tighten ahead of other
economies, the wider interest rate
differential will become a per verse
incentive for even larger capital flows. In
managing capital flows in excess of the
current account deficit, the economy will
RBI
Monthly Bulletin
2048 November 2009
have to pay a cost which will be a
combination of exchange rate appreciation,
larger systemic liquidity and fiscal costs of
sterilisation.
88. The Reserve Bank has studied these
arguments. Some of the arguments are
persuasive and some less so. The balance
of judgment at the current juncture is that
it may be appropriate to sequence the ‘exit’
in a calibrated way so that while the
recovery process is not hampered, inflation
expectations remain anchored. The ‘exit’
process can begin with the closure of some
special liquidity support measures.
89. It will be recalled that in response to
the crisis, like most other central banks, the
Reser ve Bank too instituted both
conventional measures and unconventional
measures. While reversing of conventional
measures is not considered appropriate for
now, many of the unconventional measures
can be reversed immediately. The following
measures constitute the first phase of ‘exit’.
90. The statutory liquidity ratio (SLR),
which was reduced from 25 per cent of
demand and time liabilities to 24 per cent, is
being restored to 25 per cent. The limit for
export credit refinance facility [(under
section 17(3A) of the RBI Act], which was
raised to 50 per cent of eligible outstanding
export credit, is being returned to the pre-
crisis level of 15 per cent. The two non-
standard refinance facilities: (i) special
refinance facility for scheduled commercial
banks under section 17(3B) of the RBI Act
(available up to March 31, 2010), and (ii)
special term repo facility for scheduled
commercial banks (for funding to MFs,
NBFCs, and HFCs) (available up to March 31,
2010) are being discontinued with immediate

effect. Details in this regard are indicated in
the subsequent sections of this Statement.
Policy Stance
91. On the basis of the above overall
assessment, the stance of monetary policy
for the remaining period of 2009-10 will be
as follows:
• Keep a vigil on the trends in inflation
and be prepared to respond swiftly and
effectively through policy adjustments
to stabilise inflation expectations.
• Monitor the liquidity situation closely
and manage it actively to ensure that
credit demands of productive sectors are
adequately met while also securing price
stability and financial stability.
• Maintain a monetary and interest rate
regime consistent with price stability
and financial stability, and supportive
of the growth process.
92. In conclusion, it bears emphasis that
the Reserve Bank is mindful of its
fundamental commitment to price stability.
It will continue to monitor the price situation
in its entirety and will take measures as
warranted by the evolving macroeconomic
conditions swiftly and effectively.
III. Monetary Measures
Bank Rate
93. The Bank Rate has been retained
unchanged at 6.0 per cent.
Repo Rate
94. The repo rate under the Liquidity
Adjustment Facility (LAF) has been retained
unchanged at 4.75 per cent.
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Reverse Repo Rate
95. The reverse repo rate under the LAF
has been retained unchanged at 3.25
per cent.
96. The Reserve Bank has the flexibility
to conduct repo/reverse repo auctions at a
fixed rate or at variable rates as
circumstances warrant.
97. The Reserve Bank retains the option
to conduct overnight or longer term repo/
reverse repo under the LAF depending on
market conditions and other relevant
factors. The Reserve Bank will continue to
use this flexibly including the right to
accept or reject tender(s) under the LAF,
wholly or partially, so as to make efficient
use of the L AF in daily liquidity
management.
Cash Reserve Ratio
98. The cash reser ve ratio (CRR) of
scheduled banks has been retained
unchanged at 5.0 per cent of their net
demand and time liabilities (NDTL).
99. The collateralised borrowing and
lending obligation (CBLO) liabilities of
scheduled banks were exempted from CRR
prescription in order to develop CBLO as a
money market instrument. Volumes in the
CBLO segment have increased over the
years, especially after the phasing out of the
non-banks from the inter-bank market. The
daily average volume in the CBLO segment,
which was only Rs.6 crore in January 2003,
is now over Rs.60,000 crore. Since the
objective of developing CBLO as a money
market instrument has been broadly
achieved, it is proposed that:
RBI
Monthly Bulletin
November 2009 2049
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
• liabilities of scheduled banks arising
from transactions in CBLO with Clearing
Corporation of India Ltd. (CCIL) will be
subject to maintenance of CRR with
effect from the fortnight beginning
November 21, 2009.
Statutory Liquidity Ratio
100. In view of difficult macroeconomic
situation and liquidity conditions in the
global and domestic financial markets after
the collapse of Lehman Brothers, the
statutory liquidity ratio (SLR) of scheduled
commercial banks (SCBs) was reduced from
25 per cent to 24 per cent of their NDTL
with effect from November 8, 2008. The
liquidity situation has remained
comfortable since mid-November 2008 as
reflected in the surplus funds being placed
by banks daily in the LAF window of the
Reserve Bank. Accordingly, it has been
decided to:
• restore the SLR for scheduled
commercial banks to 25 per cent of their
NDTL with effect from the fortnight
beginning November 7, 2009.
101. SCBs are currently maintaining SLR
investments at 27.6 per cent of their NDTL,
net of LAF collateral securities, and 30.4 per
cent of NDTL, inclusive of LAF collateral
securities. As such, the increase in the SLR
will not impact the liquidity position of the
banking system and credit to the private
sector.
Third Quarter Review
102. The Third Quarter Review of
Monetar y Policy for 2009-10 will be
undertaken on January 29, 2010.
RBI
Monthly Bulletin
2050 November 2009
Part B. Developmental and
Regulatory Policies
103. The global financial crisis raised
issues that we thought were settled and
reopened questions that we thought had
been answered. It also pointed to the
egregious policies and practices in financial
sector regulation and super vision.
Reflecting the lessons of the crisis, there is
now active debate and discussion at the
global level on reforming the regulatory
structures and supervisory processes. This
is expected to be a continuous process with
reform packages being agreed upon and
finalised in a modular fashion on a regular
basis over the next couple of years.
104. India has been less affected by the
crisis than most other countries because of
our relatively cautious policies, prudent
regulation and effective super vision.
Nonetheless, there are lessons from the
crisis for India too, which include:
(i) further strengthening regulation at the
systemic and institutional levels; (ii) making
our supervision more effective and value
adding; and (iii) improving our skills in risk
management. India has been an active
participant at the global discussions. The
task for us will be to reflect our point of
view in the global debate and adapt the
global policies and guidelines to the Indian
situation on a dynamic basis. A task that the
Reserve Bank has all along been performing
but is now explicitly defined is monitoring
and ensuring financial stability.
Furthermore, we need to actively pursue the
challenge of financial inclusion.
105. Reform is a continuous process. Over
the last several years, the Reserve Bank has
endeavoured to make reforms a consultative

and participative endeavour. It is now
standard practice for the Reserve Bank to
consult stakeholders before policy reviews,
seek comments from experts, place draft
policy proposals on its website for feedback
and to disseminate policies widely. We will
continue to improve these practices.
106. A synopsis of the action taken and
status of past policy announcements
together with a listing of fresh policies is
set out below.
I. Financial Stability
107. At the recently held G-20 Summit
during September 24-25, 2009 in Pittsburgh,
it was decided, among others, to make sure
that the global regulatory system for banks
and other financial firms reins in the excesses
that led to the crisis and as such committed
to:(i) raise capital standards; (ii) implement
strong international compensation standards
aimed at ending practices that led to excessive
risk-taking; (iii) improve the over-the-counter
(OTC) derivatives market; (iv) create more
powerful tools to hold large global firms to
account for the risks they take; and (v) ensure
that standards for large global financial firms
are commensurate with the cost of their
failure. It was also agreed to reform the global
architecture to meet the needs of the 21st
century.
108. Keeping in view both international and
domestic initiatives in the financial sector,
the Annual Policy Statement of April 2009
indicated setting up of a Financial Stability
Unit (FSU) in the Reserve Bank. Accordingly,
the FSU was constituted in July 2009 drawing
upon inter-disciplinary expertise from the
regulatory, supervisory, statistics, economics
and financial markets departments of the
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Reserve Bank. The FSU will: (i) conduct
macro-prudential sur veillance of the
financial system on an ongoing basis; (ii)
prepare financial stability reports; (iii)
develop database of key variables which
could impact financial stability and a time
series of a core set of financial indicators; (iv)
conduct systemic stress tests to assess
resilience; and (v) develop models for
assessing financial stability. The FSU also
provides the secretariat to the Reserve Bank’s
representative in the Financial Stability Board
(FSB). The FSU is expected to bring out the
first Financial Stability Report by end-
December 2009.
II. Interest Rate Policy
BPLR System: Review
109. The Annual Policy Statement of April
2009 proposed constituting a Working
Group to review the present benchmark
prime lending rate (BPLR) system and
suggest changes to make credit pricing more
transparent. Accordingly, a Working Group
(Chairman: Shri Deepak Mohanty) was
constituted in June 2009 and the Group
submitted its Report on October 20, 2009.
The Report of the Working Group was also
placed on the Reserve Bank’s website on the
same day for comments and suggestions.
The Reser ve Bank will consider the
recommendations after taking into account
the feedback received on the Report.
III. Financial Markets
Financial Market Products
Interest Rate Futures
110. The Annual Policy Statement of April
2009 had indicated launching of exchange
RBI
Monthly Bulletin
November 2009 2051
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
traded interest rate futures (IRFs) contracts
on the 10-year notional coupon bearing
Government of India bond. Accordingly, in
consultation with the Securities and
Exchange Board of India (SEBI), IRFs were
introduced and the directions covering the
framework for trading of IRFs on recognised
exchanges were placed on the Reserve
Bank’s website in August 2009. The National
Stock Exchange (NSE) commenced trading
in IRFs on August 31, 2009.
Introduction of Repo in Corporate Bonds
111. The Reserve Bank had placed on its
website, on September 17, 2009, the draft
guidelines on repo in corporate bonds for
comments/feedback. The draft guidelines
were also deliberated by the Technical
Advisory Committee (TAC) on Money,
Foreign Exchange and Government
Securities Markets at its meeting held on
September 23, 2009. With DvP-I (trade-by-
trade) based clearing and settlement system
for OTC trades in corporate bonds being
operationalised by the clearing houses of the
exchanges, repo in corporate bonds can now
be introduced. Accordingly:
• final guidelines on repo in corporate
bonds will be issued by end-November
2009.
Regulation of Non-Convertible
Debentures (NCDs) of Maturity of
Less than One Year
112. At present, issuance of non-
convertible debentures (NCDs) with
maturity of less than one year is not
subjected to regulation by the SEBI or the
Government of India. It was decided in the
High Level Coordination Committee on
Financial Markets (HLCCFM) that such
RBI
Monthly Bulletin
2052 November 2009
instruments being ‘money market
instruments’ needed to be brought under
the regulation of the Reserve Bank. A
Working Group with representation from
the Reser ve Bank and the SEBI was,
therefore, set up to examine the issue. The
Working Group, which has since submitted
its Report, has recommended that the
Reserve Bank may frame regulations on
issuance of NCDs with maturity of less than
one year, as they fall under the definition
of ‘money market instruments’ of Chapter
IIID of the Reser ve Bank of India
(Amendment) Act, 2006. The
recommendations of the Working Group
were discussed in the meeting of the TAC
on Money, Foreign Exchange and
Government Securities Markets on
September 23, 2009 and it was agreed that
the Reserve Bank may frame regulations on
the lines of the guidelines for issuance of
commercial paper (CP). Accordingly:
draft guidelines are being formulated
•
which will be placed on the Reserve
Bank’s website by end-November 2009
for comments/suggestions.
Introduction of Credit Default
Swaps (CDS)
113. In 2007, the Reserve Bank had issued
draft guidelines for introduction of credit
default swaps (CDS) in India. However, the
issuance of final guidelines was kept in
abeyance keeping in view the role of credit
derivatives in the recent financial crisis. It
was considered appropriate to proceed with
caution reflecting the lessons from the
financial crisis in this regard. In order to
align with the international work already
conducted/underway in the area of credit
derivatives, and keeping in view the

specifics of the Indian markets, it is
proposed:
• to introduce plain vanilla OTC single-
name CDS for corporate bonds for
resident entities subject to appropriate
safeguards. To begin with, all CDS trades
will be required to be reported to a
centralised trade reporting platform and
in due course they will be brought on a
central clearing platform.
114. The Reserve Bank is setting up an
internal Group to finalise the operational
framework in consultation with market
participants.
Separate Trading for Registered Interest
and Principal of Securities (STRIPS)
115. As indicated in the Annual Policy
Statement of April 2009, the draft guidelines
on stripping/reconstitution of government
securities were placed on the Reserve Bank’s
website on May 1, 2009 inviting comments/
suggestions from market participants by May
29, 2009. Based on the feedback/suggestions
received from the market participants, the
guidelines have been finalised. Banks will be
permitted to strip/reconstitute eligible
securities held in their held to maturity
(HTM)/available for sale (AFS)/held for trade
(HFT) portfolios. Accordingly:
• STRIPS will be launched, as scheduled,
during the current financial year.
Floating Rate Bonds (FRBs)
116. As announced in the Annual Policy
Statement of April 2009, the issuance
structure of floating rate bonds (FRBs) has
been revised, addressing issues relating to
product design. The FRBs will henceforth
be issued by way of ‘price-based’ auction as
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
against the earlier ‘spread-based’ auction.
The revised issuance structure of FRBs
has been built into the negotiated dealing
system (NDS) auction platform, which
was operationalised on May 11, 2009.
Accordingly:
• floating rate bonds will be issued during
the current financial year depending
upon the market conditions and market
appetite.
Expansion of Currency Pairs of Currency
Futures Contracts
117. Currently, persons resident in India are
permitted to trade in US dollar-Indian rupee
(INR) currency futures contracts in three
recognised stock exchanges. The combined
average daily turnover of the contracts in all
the three exchanges increased from US$ 1.1
billion in March 2009 to US$ 2.5 billion in
September 2009. Market participants have
been representing that trading of currency
future contracts in other major currency pairs
may also be permitted to facilitate direct
hedging of their risk in such currencies.
Accordingly, it is proposed:
• to permit the recognised stock
exchanges to offer currency futures
contracts in currency pairs of Euro-INR,
Japanese Yen-INR and Pound Sterling-
INR, in addition to US dollar-rupee
contracts which are already permitted.
118. Necessary amendments to Currency
Futures (Reserve Bank) Directions, 2008 are
being made separately.
Guidelines on Forex, Commodity
and Freight Derivatives
119. In light of the developments in the
domestic and international financial
RBI
Monthly Bulletin
November 2009 2053
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
markets and based on the feedback received
from banks, market participants, industry
associations and others, the existing
guidelines on foreign exchange and
commodity and freight derivatives overseas
have been reviewed by an internal Group.
The draft proposals were discussed in the
meeting of the TAC on Money, Foreign
Exchange and Government Securities
Markets. Accordingly:
• the draft guidelines are being placed on
the Reserve Bank’s website by end-
November 2009 for wider dissemination
and comments/views.
Financial Market Infrastructure
Revision of Repo Accounting
120. The Annual Policy Statement of April
2009 had indicated issuance of revised
guidelines on repo accounting taking into
account comments on the draft guidelines
earlier placed on the Reserve Bank’s website
for implementation from April 1, 2010.
Accordingly:
• the final guidelines are under
consideration and will be issued by end-
November 2009.
Clearing and Settlement of OTC Trades in
Corporate Bonds: Status
121. As announced in the Annual Policy
Statement of April 2009, the clearing houses
of the exchanges, viz., National Securities
Clearing Corporation Limited (NSCCL) and
Indian Clearing Corporation Limited (ICCL)
have been permitted to maintain transitory
pooling accounts with the Reserve Bank for
facilitating settlement of OTC transactions
in corporate bonds in the real time gross
RBI
Monthly Bulletin
2054 November 2009
settlement (RTGS) system on a DvP-I basis
(i.e., on a trade-by-trade basis). The Reserve
Bank and SEBI have issued necessar y
instructions requiring specified regulated
entities to clear and settle all OTC trades in
corporate bonds through the NSCCL or ICCL
with effect from December 1, 2009.
Money Market
Refinance/Special Liquidity Facilities
122. As indicated in the Annual Policy
Statement of April 2009, the following
liquidity facilities provided by the Reserve
Bank to banks and financial institutions are
available up to March 31, 2010: (i) the export
credit refinance (ECR) facility (limit up to
50 per cent of eligible outstanding rupee
export credit) under Section 17(3A) of the
Reserve Bank of India Act (RBI); (ii) the
special refinance facility for scheduled
commercial banks [limit up to one per cent
of net demand and time liabilities (NDTL)
as on October 24, 2008] under Section 17(3B)
of the RBI Act; (iii) special term repo facility
to scheduled commercial banks for funding
to mutual funds (MFs), non-banking
financial companies (NBFCs) and housing
finance companies (HFCs) [limit is in terms
of relaxation in the statutory liquidity ratio
(SLR) up to 1.5 per cent of NDTL]; (iv)
refinance facility to Small Industries
Development Bank of India (SIDBI),
National Housing Bank (NHB) and Export-
Import Bank of India (EXIM Bank) [under
Section 17(4H), Section 17(4DD) and Section
17(4J), respectively, of the RBI Act]; and (v)
the forex swap facility to banks for tenor
up to three months.
123. A review of these facilities, indicated
that the utilisation of these facilities has

been low. Keeping this in view and taking
into account the current liquidity conditions
in the markets, it is proposed to take the
following actions with immediate effect:
to reduce the limit of export credit
•
refinance facility from 50 per cent to 15
per cent of eligible outstanding rupee
export credit extended under Section
17(3A) of the RBI Act;
• to discontinue the special refinance
facility for scheduled commercial banks
instituted under Section 17(3B) of the
RBI Act;
• to discontinue the special term repo
facility for scheduled commercial banks
for funding to mutual funds, non-
banking financial companies and
housing finance companies; and
• to discontinue the forex swap facility of
banks.
124. The refinance facility to SIDBI, NHB
and EXIM Bank [under Section 17(4H),
Section 17(4DD) and Section 17(4J),
respectively, of the RBI Act] will continue
to be in operation till the pre-announced
date of March 31, 2010. However, these
three financial institutions (FIs) will have
to ensure that all outstandings are repaid
by the close of business on March 31, 2010.
Government Securities Market
Auction Process of Government of
India Securities: Status
125. As indicated in the Annual Policy
Statement of April 2009, the specific
notification for auction for sale of
government securities along with the
scheme for non-competitive bidding facility
has been amended by the Government of
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
India in consultation with the Reserve Bank.
Accordingly, the remaining recommendations
of the internal Working Group (Chairman:
H.R. Khan) pertaining to the Reserve Bank
such as: (i) withdrawal of the facility of
bidding in physical form and submission of
competitive bids only through the NDS; and
(ii) submission of a single consolidated bid
on behalf of all its constituents by the bank/
primary dealer (PD) in respect of non-
competitive bids, have been implemented
with effect from May 22, 2009. The
implementation of the recommendations of
the Working Group has improved the
efficiency of the auction process by reducing
the time taken for announcement of the
auction results, thereby enhancing the time
available for trading in the auctioned
securities.
Non-Competitive Bidding in the Auction
of State Development Loans (SDLs):
Status
126. In order to widen the investor base
and enhance the liquidity for State
Development Loans (SDLs), a scheme for
non-competitive bidding in the auction of
SDLs was notified by all State Governments
on July 20, 2007. In pursuance of the
announcement made in the Annual Policy
Statement of April 2009, the scheme for
non-competitive bidding in SDLs has been
operationalised with effect from August 25,
2009. Under the scheme, up to 10 per cent
of the notified amount of SDLs will be
allotted to eligible individuals and
institutions, subject to a maximum of one
per cent of the notified amount for single
bid per stock. An investor can submit only
a single bid in an auction of SDL through a
bank or PD.
RBI
Monthly Bulletin
November 2009 2055
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
IV. Credit Delivery Mechanism
and Other Banking Services
Credit Flow to the MSE Sector
127. As indicated in the Annual Policy
Statement of April 2009, the guidelines
based on the Working Group on
Rehabilitation of Sick SMEs (Chairman: Dr.
K.C. Chakrabarty) were issued to scheduled
commercial banks in May 2009. In
pursuance of the guidelines, banks were
advised to review/put in place policies for
the micro and small enterprises (MSEs),
duly approved by their respective Boards
with regard to: (i) loan policy governing
extension of credit facilities; (ii)
restructuring/rehabilitation policy for
revival of potentially viable sick units/
enterprises; and (iii) non-discretionary one-
time settlement scheme for recovery of non-
performing loans. Other recommendations
pertaining to the Government of India/State
Governments/State Level Bankers’
Committee (SLBC) convener banks were
forwarded to them for necessary action. The
regional offices of the Reserve Bank were
advised to monitor the actions initiated by
the State Governments/SLBC convener
banks and discuss the progress in this regard
in the SLBC meetings.
128. The Annual Policy Statement of April
2009 also proposed that the Standing
Advisor y Committee on MSEs would
review the credit guarantee scheme.
Accordingly, a Working Group (Chairman:
Shri V. K. Sharma) was constituted to
review the credit guarantee scheme of the
Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGFTMSE) and also
examine the feasibility of a ‘whole
turnover guarantee’ for the MSE portfolio.
RBI
Monthly Bulletin
2056 November 2009
The Working Group is expected to submit
its report by end-December 2009.
Agricultural Debt Waiver and Debt
Relief Scheme, 2008: Status
129. A scheme of agricultural debt waiver
and debt relief for farmers with the total
value of overdue loans being waived
estimated at Rs.50,000 crore and a one-time
settlement (OTS) relief on the overdue loans
estimated at Rs.10,000 crore was announced
in the Union Budget 2008-09. Out of this,
Rs.28,000 crore was passed on to the
National Bank for Agriculture and Rural
Development (NABARD) for reimbursing the
claims of regional rural banks (RRBs) and co-
operatives and the remaining amount was
earmarked for reimbursing the claims of
scheduled commercial banks (SCBs), local
area banks (LABs) and urban co-operative
banks (UCBs). Till date, SCBs and UCBs have
been reimbursed to the extent of 64.7 per
cent of their ‘debt waiver’ claims.
Rural Co-operative Banks
Licensing of Co-operatives: Status
130. The Committee on Financial Sector
Assessment (Chairman: Dr. Rakesh Mohan
and Co-Chairman: Shri Ashok Chawla) had
recommended that rural co-operative
banks which fail to obtain a license by 2012
should not be allowed to continue to
operate. Accordingly, it was proposed, in
the Annual Policy Statement of April 2009,
to work out a roadmap for achieving this
objective in a non-disruptive manner. The
criteria for licensing of these banks have
been drafted in consultation with the
NABARD and action with regard to issuance
of licenses has been initiated. At present,

17 out of 31 state co-operative banks, and
296 out of 371 central co-operative banks
are unlicensed.
Revival of Rural Co-operative Credit
Structure: Status
131. Based on the recommendations of the
Task Force on Revival of Rural Co-operative
Credit Institutions (Chairman: Prof. A.
Vaidyanathan) and in consultation with the
State Governments, the Government of
India had approved a package for revival of
the short-term rural co-operative credit
structure. So far, as envisaged under the
package, 25 States have entered into
Memorandum of Understanding (MoU)
with the Government of India and the
NABARD. Twelve States have made
amendments to their respective Co-
operative Societies Acts. As on July 31, 2009,
an aggregate amount of Rs.6,639 crore has
been released by the NABARD as
Government of India’s share under the
package to primary agricultural credit
societies (PACS) in 10 States. The National
Implementing and Monitoring Committee
(NIMC) set up by the Government of India
is monitoring the implementation of the
revival package.
132. Furthermore, a study of the long-term
co-operative credit structure was entrusted
by the Government of India to the same
Task Force. The Task Force submitted its
report in August 2006. It was announced in
the Union Budget 2008-09 that the
Government of India and the State
Governments have reached an agreement
on the content of the package for the revival
of the long-term co-operative credit
structure. The cost of the package has been
estimated at Rs.3,074 crore, of which the
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Central Government’s share will be Rs.2,642
crore. The Government of India has
constituted a Task Force (Chairman: Shri G.
C. Chaturvedi) in September 2009 with
representatives from the Reserve Bank and
the NABARD to look into the various aspects
of the long-term co-operative credit
structure with regard to viability, relevance
of a separate package and strategy for
implementation.
Regional Rural Banks
Capital to Risk-weighted Assets Ratio
(CRAR) for RRBs: Status
133. On the basis of the recommendations
of the Committee on Financial Sector
Assessment (Chairman: Dr. Rakesh Mohan
and Co-Chairman: Shri Ashok Chawla), the
Annual Policy Statement of April 2009
proposed to introduce CRAR for RRBs in a
phased manner, taking into account the
status of recapitalisation and amalgamation.
The Government of India has constituted a
Committee (Chairman: Dr. K.C.
Chakrabarty) with representatives from the
Government, sponsor banks, RRBs and the
NABARD to examine the financials of the
RRBs and suggest a roadmap to raise the
CRAR of RRBs to nine per cent by March
2012. The Committee is expected to submit
its report by end-January 2010.
Amalgamation of RRBs: Status
134. Of the total number of 196 RRBs, 159
RRBs have been amalgamated into 46 new
RRBs (sponsored by 27 banks and located
in 26 States including one Union Territory).
Since then one new RRB has also been
established in the Union Territor y of
Puducherry. Accordingly, the total number
of RRBs now functioning is 84.
RBI
Monthly Bulletin
November 2009 2057
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Recapitalisation of RRBs: Status
135 The Union Budget 2007-08 announced
that RRBs which have a negative net worth
will be recapitalised in a phased manner.
The process of recapitalisation has since
been completed with 27 RRBs having been
fully recapitalised with an amount of
Rs.1,796 crore as on July 31, 2009.
Technology Upgradation of RRBs: Status
136. With a view to enabling RRBs to adopt
information technology (IT)-based solutions
for financial inclusion, it was proposed in the
Annual Policy Statement of April 2009 to work
out, in consultation with the NABARD, the
manner of providing assistance to RRBs for
adopting information and communication
technology (ICT) solutions for financial
inclusion in districts identified as having high
level of exclusion by the Committee on
Financial Inclusion (Chairman: Dr. C.
Rangarajan). To facilitate ICT implementation,
there is a need to implement core banking
solutions (CBS). In this context, the Report of
the internal Working Group (Chairman: Shri
G. Srinivasan) constituted by the Reserve Bank
to prepare a roadmap for migration to CBS by
RRBs was forwarded to all sponsor banks in
October 2008 with an advice to implement the
recommendations in respect of RRBs
sponsored by them. The issue of sharing the
funding cost of CBS project among the owners
of RRBs, viz., the Government of India, the
State Governments and sponsor banks, is
under examination by the NABARD.
Urban Co-operative Banks
Review of Regulatory and Supervisory
Framework for UCBs: Status
137. The Annual Policy Statement of April
2009 proposed a review of the existing
RBI
Monthly Bulletin
2058 November 2009
instructions on internal control, risk
management system, asset-liability
management (ALM) and disclosure norms
as appropriate to UCBs as also to apply
capital charge for market risk in respect of
large-sized and systemically important
UCBs. The review is underway.
Information Technology Support to
UCBs: Status
138. Based on the recommendations of the
Working Group (Chairman: Shri R. Gandhi),
which looked into ways of supporting IT
initiatives of the UCBs, a tentative action plan
has been worked out. Taking into account a
large number of small and unit UCBs and the
lack of uniformity in the level of
computerisation, the action plan envisages
the minimum level of IT infrastructure to
include computerised management
information system (MIS) reporting and
automated regulatory reporting (ARR). After
a series of discussions with service providers,
it has been decided to adopt the application
service provider (ASP) model for providing
IT support to UCBs. The modalities are being
worked out in consultation with the Institute
for Development and Research in Banking
Technology (IDRBT).
Creation of Umbrella Organisation and
Revival Fund for UCBs: Status
139. As indicated in the Annual Policy
Statement of April 2008, a Working Group
(Chairman: Shri V. S. Das) was constituted
to suggest measures, including the
appropriate regulatory and supervisory
framework, to facilitate emergence of
umbrella organisation(s) for the UCB sector
in the respective States. The Group has since
submitted its Report.

DICGC-Supported Transfer of Assets
and Liabilities of UCBs to Commercial
Banks in Legacy Cases
140. As a part of the measures to
strengthen the urban co-operative banking
system, a scheme of amalgamation of weak
UCBs with strong UCBs, with support from
the Deposit Insurance and Credit Guarantee
Corporation (DICGC), is considered by the
Reserve Bank in cases involving UCBs having
negative net worth as on March 31, 2007.
However, in those cases, where proposals
for amalgamation within the UCB sector are
not forthcoming, it is proposed:
• to provide DICGC support to the scheme
involving transfer of assets and liabilities
(including branches) of legacy cases of
urban co-operative banks to domestic
scheduled commercial banks, provided
the scheme ensures 100 per cent
protection to depositors and DICGC
support is restricted to the amount as
provided under Section 16 (2) of the
DICGC Act, 1961.
141. Detailed guidelines in this regard will
be issued separately.
V. Financial Inclusion
Business Correspondent (BC) Model
142. As proposed in the Annual Policy
Statement of April 2009, a Working Group
(Chairman: Shri P. Vijaya Bhaskar) was
constituted to examine the experience
gained to date with the business
correspondent (BC) model and to suggest
measures to enlarge the category of persons
that can act as BCs, keeping in view the
regulatory and supervisory framework and
consumer protection issues. The Group’s
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Report has been placed on the Reserve
Bank’s website. Based on the Group’s
recommendations, it is proposed:
• to allow banks to appoint the following
entities as BCs in addition to those
permitted already: (i) individual kirana/
medical/fair price shop owners; (ii)
individual public call office (PCO)
operators; (iii) agents of small savings
schemes of Government of India/
insurance companies; (iv) individuals
who own petrol pumps; (v) retired
teachers; and (vi) authorised
functionaries of well-run self-help
groups (SHGs) linked to banks; and
• to allow banks to collect reasonable
service charges from the customer in a
transparent manner under their Board-
approved policy for delivering the
services through BC. This should be
clearly explained to the customer.
143. Based on the experience gained, the
working of the scheme will be reviewed
after one year.
Pilot Project of SLBCs for 100 per
cent Financial Inclusion
144. Of the total of 623 districts in the
country, 431 districts have so far been
identified for 100 per cent financial inclusion.
Of these, 204 districts in 18 States and six
Union Territories have reported having
achieved the target. All districts of Haryana,
Himachal Pradesh, K arnataka, Kerala,
Uttarakhand, Goa, Chandigarh, Puducherry,
Daman & Diu, Dadra & Nagar Haveli and
Lakshdweep have reported having achieved
100 per cent financial inclusion. The Reserve
Bank had undertaken an evaluation study
through external agencies in 26 districts of
RBI
Monthly Bulletin
November 2009 2059
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
eight States claiming 100 per cent financial
inclusion, to draw lessons for further action.
The study reports had, inter alia, revealed that
although the SLBCs had declared several
districts as 100 per cent financially included,
the actual financial inclusion was short of that.
A large number of no-frills accounts are
dormant, the number of transactions is small
and ICT-based financial services are yet to
reach many villages. The findings of the study
were communicated to banks in January 2009
with an advice to take appropriate action.
Special Task Force in North-Eastern
Region
145. The Annual Policy Statement of April
2009 had indicated the formulation of a
scheme of providing financial support to
banks by the Reserve Bank for setting up
banking facilities at centres in the North-
Eastern region which were found to be
commercially viable by banks, provided the
State Governments made available necessary
premises and other infrastructural support.
As its contribution, the Reserve Bank would
bear one-time capital cost and recurring
expenses for a limited period of five years as
per the lowest bid offered by a bank. The
Government of Meghalaya has since agreed
to the proposal of providing premises and
security. Accordingly, eight centres have been
allotted to three public sector banks. Action
has also been initiated in respect of other
States in the region.
Quicker Adoption of Electronic
Benefit Transfer (EBT) for
Government Schemes
146. To encourage banks to adopt ICT
solutions for enhancing their outreach, the
Reserve Bank formulated a scheme to
RBI
Monthly Bulletin
2060 November 2009
quicken the pace of adoption of the smart
card-based electronic benefit transfer (EBT)
mechanism by banks and rolled out the EBT
system in the States that are ready to adopt
the scheme. As per the scheme, the Reserve
Bank would reimburse the banks a part of
the cost of opening accounts with bio-metric
access/smart cards at the rate of Rs.50 per
account through which payment of social
security benefits, National Rural
Employment Guarantee Act (NREGA)
payments and payments under other
Government benefit programmes would be
routed to persons belonging to below poverty
line (BPL) families. The scheme is currently
being implemented in Andhra Pradesh. So
far, seven banks have been paid Rs.1.8 crore
for smart cards issued by banks in Andhra
Pradesh during July-December 2008. The
process is at different stages of
implementation in other States such as
Karnataka and Uttarakhand and the scheme
of partial reimbursement by the Reserve
Bank has been extended by one year up to
June 30, 2010. Banks are advised to work in
co-ordination with the respective
government departments at the Central and
State levels to ensure that all State benefits
are delivered to individuals only through
bank accounts within a specific timeframe.
High Level Committee on
Lead Bank Scheme
147. The High Level Committee on Lead
Bank Scheme (Chairperson: Smt. Usha Thorat)
submitted its draft report on May 21, 2009.
The Report was placed on the Reserve Bank’s
website inviting comments from public and
other stakeholders. Based on the feedback
received, the Committee submitted its final
report to the Reserve Bank on August 20, 2009

and the report was placed on the Reserve
Bank’s website on August 24, 2009. While the
recommendations of the Committee are
under consideration, it is proposed:
• to advise the lead banks to constitute
a Sub- Committee of the District
Consultative Committees (DCCs) to
draw up a roadmap by March 2010 to
provide banking services through a
banking outlet in every village having a
population of over 2,000, by March
2011. Such banking services may not
necessarily be extended through a brick
and mortar branch but can be provided
through any of the various forms of ICT-
based models, including through BCs.
Micro-finance: Status
148. The self-help group (SHG)-bank linkage
programme has emerged as the major micro-
finance programme in the country and is
being implemented by commercial banks,
RRBs and co-operative banks. As on March
31, 2009, 4.2 million SHGs were operating
with an outstanding bank credit of Rs.22,680
crore, up by 34 per cent over March 31, 2008.
During 2008-09, banks financed 1.6 million
SHGs, including repeat loans to existing
SHGs, to the tune of Rs.12,254 crore. There
were 6.1 million savings accounts of SHGs
with banks as on March 31, 2009 with total
deposits amounting to Rs.5,546 crore.
149. The role of micro-finance institutions
(MFIs) in providing financial services to the
poor is growing in importance. The banking
sector has been extending loans to MFIs for
on-lending to SHGs. During 2008-09, bank
loans amounting to Rs.3,732 crore were
disbursed to 581 MFIs, increasing the total
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
outstanding loans to Rs.5,009 crore to 1,915
MFIs as on March 31, 2009.
Priority Sector Lending Certificates
(PSLCs): Working Group
150. The Committee on Financial Sector
Reforms (Chairman: Dr. Raghuram G. Rajan),
inter alia, recommended introduction of
priority sector lending certificates (PSLCs) for
purchase by banks for achieving the priority
sector lending target. According to the
Committee’s recommendation, PSLCs would
be issued by registered lenders such as MFIs,
NBFCs, co-operatives, and registered money
lenders for the amount of loans granted by
them to the priority sector, and also by banks
for the amounts in excess of their stipulated
priority sector lending requirements. These
certificates could be traded in the open
market, and banks having shortfall in
meeting the priority sector lending targets
could buy such certificates and thus meet the
priority sector lending norms. The
Committee further recommended that in the
trading of PSLCs, the actual loans would
continue to remain on the books of the
original lender unlike in outright purchase
of loan assets. However, the buyer bank
would show the amount in its priority sector
lending requirements. The seller of PSLC, if
it is a bank, will take it off its priority sector
lending requirements even though it will
continue to carry the loan on its books.
151. Preliminary discussions indicated that
there are both merits and demerits of the
proposal. Therefore, it is proposed:
• to constitute a Working Group to
examine the issues involved in the
introduction of priority sector lending
certificates and make suitable
recommendations.
RBI
Monthly Bulletin
November 2009 2061
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
VI. Regulatory Measures for
Commercial Banks
Relaxations in Branch Authorisation
Policy
152. As announced in the Annual Policy
Statement of April 2009, a Working Group
(Chairman: Shri P. Vijaya Bhaskar) was
constituted to review the extant branch
authorisation policy with a view to
providing greater flexibility to banks for
opening branches to enhance banking
penetration and promote financial
inclusion. The Group has since submitted
its report. Taking into consideration the
Group’s recommendations, it is proposed to
liberalise the extant branch authorisation
policy for domestic scheduled commercial
banks (other than RRBs) as under:
• Domestic scheduled commercial banks
(other than RRBs) will now be free to
open branches in Tier 3 to Tier 6 centres
as identified in the Census 2001 (with
population up to 50,000) under general
permission.
• Opening of branches by domestic
scheduled commercial banks (other
than RRBs) in Tier 1 and Tier 2 centres
(with population over 50,000) will
continue to require prior authorisation.
Banks may plan their branch expansion
•
in Tier 3 to Tier 6 centres in such a manner
that at least one-third of such branches
are in the underbanked districts of
underbanked States as will be notified
separately by the Reserve Bank. This
would be one of the criteria in the Reserve
Bank’s consideration of proposals by
domestic scheduled commercial banks
(other than RRBs) to open branches in Tier
1 and Tier 2 centres. In considering such
RBI
Monthly Bulletin
2062 November 2009
proposals, the Reserve Bank would, in
addition, take into account banks’
performance in financial inclusion,
priority sector lending and level of
customer service, among others.
Enhancements to the Basel II
Framework
153. In July 2009, the Basel Committee on
Banking Supervision (BCBS) had finalised
enhancements and revisions in certain areas
of the Basel II framework. The enhanced/
revised guidance of BCBS is contained in their
three documents, viz., Enhancements to the
Basel II Framework; Revisions to the Basel II
Market Risk Framework; and Guidelines for
Computing Capital Charge for Incremental
Risk in the Trading Book. These
enhancements and revisions are intended to
strengthen the framework and respond to
lessons learnt from the financial crisis.
154. The enhancements and revisions now
stipulated by BCBS are, however, mostly
applicable to advanced approaches of the
Basel II framework. Banks in India have
implemented standardised/basic
approaches contained in the framework.
However, wherever those enhancements
and revisions are applicable to standardised/
basic approaches, it is proposed:
• to issue detailed guidelines as appropriate
for implementation by banks operating in
India by end-November 2009.
Introduction of Duration Gap
Analysis for Asset Liability
Management
155. The Reser ve Bank had issued
guidelines on asset liability management in

February 1999, which, inter alia, covered
aspects relating to interest rate risk
measurement. These guidelines to banks
approached interest rate risk measurement
from the ‘earnings perspective’ using the
traditional gap analysis (TGA). To begin
with, the TGA was considered as a suitable
method to measure interest rate risk. The
Reserve Bank had, however, indicated its
intention to shift to modern techniques of
interest rate risk measurement such as
duration gap analysis (DGA), simulation and
value-at-risk over a period of time, when
banks acquire sufficient expertise and
sophistication in this regard. Since banks
have gained considerable experience in
implementation of the TGA and have
become familiar with the application of the
concept of duration/modified duration
while applying standardised duration
method for measurement of interest rate
risk in the trading book, this is an opportune
time for banks to adopt the DGA for
management of their interest rate risk. With
this move, banks would migrate to the
application of the ‘economic value
perspective’ to interest rate risk
management. Accordingly, it is proposed:
• to issue detailed guidelines on the use
of DGA for management of interest rate
risk by end-November 2009 .
Review of Capital Adequacy Norms
for Take-out Financing
156. At present, the credit conversion
factor (CCF) for off-balance sheet exposure
of the take-out financing institution, which
captures that institution’s unconditional
commitment during the period up to the
take-out event, is 100 per cent. The CCF for
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
conditional take-out has been fixed at a
lower level of 50 per cent reflecting the
uncertainty regarding the take-out event due
to the conditional nature of the agreement.
The existing capital adequacy treatment of
take-out financing is in conformity with the
capital adequacy treatment of forward asset
purchases under both Basel I and Basel II.
The issue has been reconsidered and it is
proposed:
• to allow banks to build up capital for
take-out exposures in a phased manner.
157. Detailed guidelines in this regard are
being issued separately.
Commercial Real Estate Exposures
158. In view of large increase in credit to
the commercial real estate sector over the
last one year and the extent of restructured
advances in this sector, it would be prudent
to build cushion against likely non-
performing assets (NPAs). Accordingly, it is
proposed:
• to increase the provisioning requirement
for advances to the commercial real
estate sector classified as ‘standard
assets’ from the present level of 0.40 per
cent to 1 per cent.
Review of Adequacy of Loan Loss
Provisions
159. At present, the provisioning
requirements for NPAs range between 10
per cent and 100 per cent of the outstanding
amount, depending on the age of the NPAs,
the security available and the internal policy
of the bank. Since the rates of provisioning
stipulated by the Reserve Bank for NPAs are
the minimum and banks can make
RBI
Monthly Bulletin
November 2009 2063
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
additional provisions subject to a consistent
policy based on riskiness of their credit
portfolios, it has been observed that there
is a wide heterogeneity and variance in the
level of provisioning coverage ratio across
different banks. With a view to improving
the provisioning cover and enhancing the
soundness of individual banks, it is
proposed:
• to advise banks to augment their
provisioning cushions consisting of
specific provisions against NPAs as well
as floating provisions, and ensure that
their total provisioning coverage ratio,
including floating provisions, is not less
than 70 per cent. Banks should achieve
this norm not later than end-September
2010.
Banks’ Exposure to NBFCs Engaged
in Infrastructure Financing: Review
of Risk Weights
160. At present, the risk weight for banks’
exposure to systemically important non-
deposit taking NBFCs (NBFCs-ND-SI) is 100
per cent. However, asset finance companies
(AFCs) within the NBFCs-ND-SI category
carry a risk weight based on credit ratings.
As indicated in para 178 in Section VII of
this part, NBFCs engaged in financing of
infrastructure would henceforth be
classified in a new categor y called
infrastructure NBFCs. Since financing by
such NBFCs would essentially result in the
creation of physical infrastructure, it is
proposed:
• to link the risk weights of banks’
exposure to such NBFCs to the credit
rating assigned to the NBFC by external
credit assessment institutions (ECAIs).
RBI
Monthly Bulletin
2064 November 2009
Lock-in Period and Minimum
Retention for Securitisation
Exposures
161. To ensure that the originators do not
compromise on due diligence of assets
generated for the purpose of securitisation,
it was proposed in the Annual Policy
Statement of April 2009 to stipulate a
minimum lock-in period for bank loans
before these were securitised. It was also
proposed to lay down minimum retention
criteria for the originators as another
measure to achieve the same objective.
Accordingly, it is proposed:
• that the minimum lock-in period for all
types of loans would be one year before
these can be securitised; and
• that the minimum retention by the
originators will be 10 per cent of the
pool of assets being securitised.
162. The international work, especially in
the European Union and the US regarding
the minimum retention criteria, is still
underway. The Reserve Bank will issue
detailed guidelines on the manner of
computation of the one year lock-in period
and other operational details keeping in
view the international norms being
developed.
Compensation Practices
163. Compensation practices, especially of
large financial institutions, were one of the
factors which contributed to the recent
global financial crisis. The FSB has brought
out certain principles for sound
compensation practices. The principles call
for effective governance of compensation,
and for compensation to be adjusted for all

types of risk, to be symmetric with risk
outcomes, and to be sensitive to the time
horizon of risks. These principles, which
have been endorsed by the G-20, should be
the guiding tenets for devising
compensation schemes for all employees in
a financial institution. The Reserve Bank is
working on the FSB principles for sound
compensation and it is proposed:
• to issue suitable guidelines to private
sector and foreign banks with regard to
sound compensation policies.
Liquidity Risk
164. The Annual Policy Statement of April
2009 proposed to place the draft circular on
liquidity risk management, as also the
guidance note on “Liquidity Risk
Management” on the Reser ve Bank’s
website by mid-June 2009. This was
deferred. Keeping in view active discussions
underway at the global level on liquidity risk
management as the BCBS is also in the
process of enhancing the modalities for
adopting the integrating risk management
system, it is now proposed:
• to issue a draft circular reflecting these
changes by end-December 2009.
Stress Testing
165. The Annual Policy Statement of April
2009 proposed upgradation of the stress
testing guidelines once BCBS finalises the
paper on ‘Principles for Sound Stress Testing
Practices and Supervision’. In this context,
the guidelines issued to banks in June 2007
are required to be enhanced in the light of
the final paper issued by BCBS and taking
into account international work/initiatives
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
in the area of stress testing, particularly that
being done by the IMF and the FSB. It is
proposed:
• to issue guidelines to banks on stress
testing by end-January 2010.
Credit Rating Agencies: Status
166. It was indicated in the Annual Policy
Statement of April 2009 that the Reserve
Bank will liaise with the SEBI on the issue
of rating agencies’ adherence to Code of
Conduct Fundamentals of the International
Organisation of Securities Commissions
(IOSCO). Accordingly, in order to review
rating agencies’ continued accreditation
under Basel II, the Reserve Bank conducted
meetings with Credit Rating Information
Services of India Ltd. (CRISIL), ICRA Ltd.,
Credit Analysis and Research Ltd. (CARE)
and Fitch. The Reserve Bank has also
initiated discussions with the SEBI to assess
the rating agencies’ compliance with the
enhanced Code of Conduct Fundamentals
of the IOSCO.
VII. Institutional Developments
Payment and Settlement Systems
Guidelines for Pre-paid Payment
Instruments in India
167. As indicated in the Annual Policy
Statement of April 2009, SCBs and non-bank
entities, which complied with the eligibility
criteria, were permitted to issue pre-paid
payment instruments. Furthermore, in
August 2009, other entities were also
permitted to issue mobile phone based
semi-closed system pre-paid instruments
for a maximum value of Rs.5,000.
RBI
Monthly Bulletin
November 2009 2065
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Electronic Payment Systems
168. Between end-March 2009 and end-
September 2009, the branch network of
national electronic funds transfer (NEFT)
enabled banks increased from 54,200 to
60,839 and the RTGS enabled branches
increased from 55,000 to 60,144. The
average number of daily transactions
handled by the RTGS network increased
from 80,000 to 90,000.
National Electronic Clearing Service
169. As indicated in the Annual Policy
Statement of April 2009, the volume of
transactions through national electronic
clearing service (NECS), introduced in
September 2008, is gradually increasing. As
at end-September 2009, 114 banks with
30,780 branches have been participating in
NECS.
Customer Service at ATMs
170. The Reserve Bank received a number
of complaints from bank customers
regarding debit of their accounts even
though ATMs had not disbursed cash for
various reasons. In order to improve
customer service, the Reserve Bank advised
all banks to reimburse to the customers the
amount wrongfully debited on account of
failed ATM transactions within a maximum
period of 12 days from the date of receipt
of customer complaint. In case a bank fails
to re-credit the customer’s account, it is
required to pay compensation of Rs.100 per
day to the aggrieved customer. The amount
of compensation is credited to the
customer’s account on the same day the
bank credits the amount of the failed ATM
transaction.
RBI
Monthly Bulletin
2066 November 2009
Facility to Use ATMs of other Banks:
Rationalisation
171. The Reserve Bank had advised that
customers could use the ATMs of other
banks for cash withdrawal free of charge
with effect from April 1, 2009. This led to a
quantum increase in ATM transactions,
especially small value cash withdrawal
transactions, which tended to impair the
viability of operations. The Indian Banks’
Association (IBA), therefore, approached the
Reserve Bank with suggestions to rationalise
the facility in order to achieve a balance
between optimising customer convenience
and mitigating operational difficulties.
Taking into account all the relevant issues,
the Reser ve Bank agreed to the IBA’s
suggestions of: (i) extending the access of
ATMs of other banks to only customers
having savings bank accounts; (ii) pegging
a cap of Rs.10,000 per withdrawal at ATMs
of other banks; and (iii) permitting only five
free transactions per month at ATMs of
other banks. These instructions came into
effect from October 15, 2009.
Mobile Payments
172. With the issuance of the operative
guidelines for mobile payments on October
8, 2008, the Reserve Bank has so far granted
approval to 32 banks to provide mobile
banking facilities to their customers.
Cheque Truncation System
173. The Annual Policy Statement of April
2009 indicated that the Reserve Bank will
continue to take steps towards extending
the cheque truncation system (CTS) across
the country. In pursuance of this, effective
July 1, 2009, all cheque volumes at New
Delhi migrated to CTS and accordingly

magnetic ink character recognition (MICR)
clearing (both at SBI and the Reserve Bank)
was discontinued. Furthermore, action to
roll-out CTS at Chennai has been initiated
and it is proposed that New Delhi and
Chennai would act as backup for each other.
With effect from July 1, 2009, a fee of Rs.0.50
per instrument each from the presenting
bank and from the paying bank in the CTS
has been introduced. Presently, CTS is
handling around 6,00,000 instruments
every day.
Cash Withdrawal at Point-of-Sale (POS)
174. Cash is predominantly used for small
value payments and as such there is always
a need for availability of currency. The use
of debit cards at point-of-sale (POS)
terminals at different merchant
establishments has been steadily on the
rise. The number of POS terminals in the
country at the end of August 2009 was
4,87,024. As a further step towards
enhancing customer convenience in using
plastic cards, cash withdrawals up to
Rs.1,000 per day at POS terminals have been
allowed for all debit cards issued in India.
The Payment and Settlement Systems
Act, 2007
175. As indicated in the Annual Policy
Statement of April 2009, all payment system
providers/operators, including credit card
issuing companies and entities engaged in
money transfer activity, require
authorisation as per the Payment and
Settlement Systems Act, 2007. Accordingly,
30 payment system ser vice providers
providing service in India have been granted
certificate of authorisation by the Reserve
Bank by end-September 2009.
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
Currency Management
176. The High Level Group on Currency
Management (Chairperson: Smt Usha
Thorat) constituted by the Reserve Bank
submitted its Report in August 2009. The
Group has, inter alia, emphasised the
importance of using modern technology and
security systems for stocking, processing
and distribution of currency to ensure
adequate availability of genuine and clean
notes to the public. With a view to
encouraging banks for giving due priority
to the above objective, it is proposed:
• to mandate banks to install note sorting
machines in all their branches in a
phased manner in terms of a roadmap
to be approved by the Reserve Bank; and
• to have the responsibility of currency
management entrusted to a nodal official
in each bank, who shall be a senior
functionary at a level not less than that
of a General Manager and who will be
accountable for the obligations cast upon
currency chests by the Reserve Bank.
177. Detailed guidelines based on the
report of the Working Group are being
issued separately.
Non-Banking Financial Companies
Classification of NBFCs-ND-SI:
Infrastructure Companies
178. NBFCs-ND-SI engaged predominantly
in the infrastructure financing have
represented to the Reserve Bank that there
should be a separate categor y of
infrastructure financing NBFCs in view of
the critical role played by them in providing
credit to the infrastructure sector. Currently,
RBI
Monthly Bulletin
November 2009 2067
MONETARY POLICY
STATEMENT 2009-10
Second Quarter Review of
Monetary Policy 2009-10
the Reserve Bank classifies NBFCs under
three categories, viz., asset finance
companies, loan companies and investment
companies. It has now been decided to:
• introduce a fourth category of NBFCs as
‘infrastructure NBFCs’, defined as
entities which hold minimum of 75 per
cent of their total assets for financing
infrastructure projects.
179. Detailed instructions, including
eligibility criteria, are being issued
separately.
Repossession of Vehicles by NBFCs
180. The Annual Policy Statement of April
2009 had emphasised that NBFCs should
have a built-in repossession clause (in respect
of repossession of vehicles) and also detailed
provisions with regard to terms and
conditions for ensuring transparency in the
contract/loan agreement with the borrower
which will be legally enforceable. Accordingly,
NBFCs were advised the broad framework in
respect of terms and conditions of the
contract/loan agreement, viz., (i) notice
period before taking possession; (ii)
circumstances under which the notice
period can be waived; (iii) the procedure for
RBI
Monthly Bulletin
2068 November 2009
taking possession of the security; (iv) a
provision regarding final chance to be given
to the borrower for repayment of loan before
the sale/auction of the property; (v) the
procedure for giving repossession to the
borrower; and (vi) the procedure for sale/
auction of the property. Furthermore, NBFCs
were urged to make available a copy of such
terms and conditions to the borrowers at the
time of sanction/disbursement of loans,
which may form a key component of such
contracts/loan agreements.
Special Liquidity Facility for Eligible
NBFCs-ND-SI
181. The special liquidity facility for
eligible NBFCs-ND-SI for meeting the
temporary liquidity mismatches through
the Industrial Development Bank of India
Stressed Asset Stabilisation Fund (IDBI
SASF) Trust, which was notified as a special
purpose vehicle (SPV) for undertaking the
operation, was extended for eligible papers
issued by NBFCs up to September 30, 2009.
The SPV will cease to make fresh purchases
after December 31, 2009 and will recover
all dues by March 31, 2010. The facility was
availed of to the extent of Rs.750 crore and
was repaid fully by July 7, 2009.
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Macroeconomic and Global Economic Conditions

Monetary Developments 1. The global economy is showing

tentative signs of recovery signalling, albeit
Second Quarter Review hesitantly, the winding down of the global
2009-10 recession. For several advanced economies
the pace of contraction in output has
declined in the second quarter of 2009. The
emerging outlook for recover y is still
Overview dependent on sustained policy stimulus
that has spurred aggregate demand while
also reducing overall uncertainty. The
recovery is widely perceived to remain slow
and gradual, with receding but significant
downside risks.

2. The downside risks could arise from

premature withdrawal of policy stimulus,
the possibility of some permanent loss in
output in the advanced economies owing
to the crisis, need for improving domestic
savings in several advanced economies to
make growth less dependent on global
imbalances, unfinished financial and
corporate restructuring that would involve
further deleveraging and tight credit market
conditions, current level of high excess
capacity, large and rising unemployment
and the associated pressures on both
aggregate demand and protectionism,
anaemic private consumption and
investment demand, and the costs of
sustained large fiscal stimulus.

3. These possibilities point to the risks of

a job-less recovery, and a W-shaped double-
dip recession where another mild phase of
recession may intervene before a durable
recovery. The timing of the exit from the
policy stimulus will, thus, be critical to the
recovery path of the global economy; both
premature exit as well as delayed exit would
have concomitant costs. In September 2009

RBI
Monthly Bulletin
November 2009 2069
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
the G-20 highlighted the importance of
continuing the stimulus till the recovery is
secured, consistent though with the other
important objectives of price stability and
fiscal sustainability.
4. After a series of successive and
frequent downward revisions to the growth
outlook of the world economy for 2009 from
(+) 3.9 per cent in July 2008 to (-) 1.4 per
cent in July 2009, the IMF, for the first time,
revised the projected growth outlook
upwards in October 2009, recognising the
emerging signs of recovery. The latest
forecast is for a contraction in the world
output by (-) 1.1 per cent. The recovery is
expected to be led by emerging market
economies (EMEs), particularly from Asia.
According to the WTO, world merchandise
exports increased by about 8.0 per cent in
the second quarter of 2009 over the
preceding quarter, even though year-on-year
growth continued to decline by 33.0 per
cent. The outlook of the Institute of
International Finance (IIF) for October 2009
suggests that net private capital flows to the
EMEs which had recovered in the second
quarter of 2009 gained pace in the third
quarter; 30 EMEs are projected to receive
US$ 349 billion in 2009, which will still be
only about one fourth of the peak level of
net flows received in 2007.
Outlook - Indian Economy
Output
5. In India, economic growth in the first
quarter of 2009-10 at 6.1 per cent represents
a mild recovery over the 5.8 per cent growth
recorded during the preceding two quarters
in the second half of 2008-09. In comparison
RBI
Monthly Bulletin
2070 November 2009
to the high average growth of 8.8 per cent
recorded during the five-year period 2003-
08, however, the first quarter growth in
2009-10 still points to persistence of the
slowdown. Information available on various
lead indicators of economic activity in the
second quarter of 2009-10 suggests that
because of the deficient monsoon, kharif
output may be adversely affected. The
industrial sector has started exhibiting
recovery, with 10.4 per cent growth in
August 2009 and 5.8 per cent growth during
April-August 2009, as against 1.7 per cent
and 4.8 per cent during the corresponding
periods of the previous year, respectively.
Growth in core infrastructure witnessed
notable acceleration in August 2009, and the
growth over April-August 2009 was higher
at 4.8 per cent as against 3.3 per cent during
the corresponding period of the previous
year. Lead indicators for services suggest
pick up in activities relating to construction
and telecommunications, even though
external demand dependent services, such
as tourism and cargo handled at ports,
continue to be depressed.
Aggregate Demand
6. The deceleration in aggregate demand
that was witnessed in the second half of
2008-09 continued during 2009-10. Growth
in private consumption demand fell to as
low as 1.6 per cent in the first quarter of
2009-10. Investment demand also
decelerated further, and the high growth in
government consumption demand that was
witnessed in the last two quarters of 2008-
09 also moderated. Corporate performance
data indicate that growth in sales, which had
decelerated significantly in the second half
of 2008-09, exhibited negative growth in the

first quarter of 2009-10, notwithstanding
improvement in profitability. The deficient
monsoon and the associated drought like
conditions in several parts of the country,
and the more recent floods could also
dampen rural demand. Given the
predominant role of domestic demand in
conditioning the growth outlook in India,
weak private consumption and investment
demand, thus, continue to be a key drag on
faster recovery.
External Economy
7. Weak external demand conditions
persisted, as reflected in the sustained
decline in India’s exports. In the first
quarter of 2009-10, exports continued to
decline while imports increased, primarily
reflecting higher oil prices, resulting in a
higher trade deficit in the balance of
payments in relation to the preceding
quarter. The surplus in net invisibles, led
by buoyant remittance inflows, contributed
to finance close to 78 per cent of the trade
deficit. The current account, thus, remained
in deficit of about US$ 5.8 billion. Reflecting
India’s resilience to the crisis in 2008-09 and
the growth prospects of the economy,
capital flows, which had turned negative in
the last two quarters of 2008-09, reversed
in the first quarter to ensure financing of
the current account deficit without any
depletion of foreign exchange reserves. The
rebound in capital inflows has persisted
through the second quarter of 2009-10.
Including valuation gains on foreign
exchange reserves and the SDRs allocated
by the IMF to India, India’s foreign exchange
reserves increased by USD 32.8 billion
during 2009-10 (up to October 16, 2009) to
a level of USD 284.8 billion.
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
Monetary Conditions
8. The accommodative monetary policy
stance adopted by the Reserve Bank in
response to the global financial crisis,
particularly post-September 2008, continued
in 2009-10. The aim of this policy stance was
to maintain ample rupee liquidity,
comfortable dollar liquidity and ensure flow
of credit to productive areas of the economy.
Reflecting the accommodative policy stance,
the liquidity conditions remained in surplus
on a sustained basis, which was absorbed by
the Reserve Bank through reverse repo
operations under the LAF. Growth in broad
money (M3) also remained high at 18.9 per
cent (as on October 09, 2009), supported by
high growth in deposits (by 19.4 per cent).
On the sources side, monetary expansion
was driven by the large borrowing
programme of the Government, while bank
credit to the commercial sector continued to
decelerate (with a growth of 10.7 per cent).
Financial Markets
9. The financial markets in India which
functioned normally even at the height of
the crisis, posted further decline in risk
spreads and higher volume of activities. The
overnight call rate hovered around the floor
of the LAF corridor reflecting the abundant
liquidity in the system. In the collateralised
segments, namely market repo and
collateralised borrowing and lending
obligation (CBLO), the interest rates remained
below the inter-bank call rates while there was
increase in activities. Volumes in the CP and
CD markets also increased.
10. In the government securities market,
80.4 per cent of the net borrowing
requirement has been completed so far; weak
RBI
Monthly Bulletin
November 2009 2071
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
demand for credit in the private sector and
comfortable liquidity conditions helped in
containing the pressures on yield. Corporate
bond yields hardened somewhat but the risk
spread fell to the pre-Lehman levels.
11. In the credit market, the gradual
moderation in lending and deposit rates
continued through the second quarter of
2009-10, demonstrating the transmission of
lower policy rates, though with lags.
Despite some reduction in interest rates,
the flow of credit to the private sector
remained sluggish due to subdued overall
private consumption and investment
demand. Credit card and consumer durables
related credit exhibited negative growth,
corroborating the impact of significant
deceleration in private consumption
demand. The flow of resources from the
non-banking sources, however, increased
marginally in the first half of 2009-10.
12. In the foreign exchange market, the
rupee appreciated by about 10.0 per cent
against the US dollar over the end-March
level. The equity market sustained the
recover y seen since April 2009, and
outperformed most of the EMEs in terms
of the extent of recovery in stock prices. The
primary market activities also picked up
significantly, with higher funds mobilised
through public issues and private
placements, large oversubscription of
certain new issues indicating the return of
risk appetite in the market, and manifold
increase in mobilisation of resources by
mutual funds.
Inflation Situation
13. The sharp decline in headline WPI
inflation from the peak level of 12.9 per cent
RBI
Monthly Bulletin
2072 November 2009
in August 2008 yielded space for adoption of
growth-supportive accommodative monetary
policy to mitigate the impact of the crisis.
After remaining negative for 13 consecutive
weeks, WPI inflation turned modestly
positive in September 2009. Despite the low
headline (year on year) WPI inflation at 1.2
per cent (as on October 10, 2009), inflationary
pressures have started to emerge, with WPI
showing 5.9 per cent increase over March
2009 level and CPI inflation remaining
stubbornly elevated at double digit levels.
The changing inflation environment,
however, is being driven by strong escalation
in the prices of food articles, which have
increased by 14.4 per cent (year-on-year) so
far. Excluding food items, the WPI inflation
remains depressed at (-) 3.4 per cent. This
suggests both short supply as well as
inefficient distribution channels. From the
stand point of monetary policy, anchoring
inflation expectations in the face of
sustained high inflation in essential
commodities will be a key challenge.
Growth and Inflation Outlook
14. The growth and inflation mix could
change over time, creating conflicting
demands on the stance of monetary policy.
While premature reversal of the monetary
policy stance entails the risk of stifling
recovery, persistence of accommodative
stance could adversely impact inflation
expectations.
15. The current growth outlook for 2009-10
has both upside prospects as well as down
side risks. Upside prospects to growth
include the impact of the growth- supportive
policy stimulus, recovery in industrial
production and core infrastructure sector,
significant upturn in overall business

confidence as per different surveys, strong
recovery in the stock market with higher
mobilisation of resources, return of capital
inflows and the improving outlook for the
global economy which could boost the
sluggish consumer and investor confidence.
The downside risks include the unexpectedly
large deceleration in private consumption
demand and some decline in corporate sales
in the first quarter of 2009-10, impact of the
deficient monsoon and recent flood in certain
parts of the country on agricultural output and
rural demand, sustained deceleration in credit
growth and decline in exports. The Reserve
Bank’s professional forecasters survey points
to downward revision to the growth outlook
from 6.5 per cent to 6.0 per cent in 2009-10,
reflecting the drought situation in the
agriculture sector.
16. The inflation outlook is currently driven
by the emerging signs of inflationar y
pressures, even though certain developments
could neutralise these pressures. These
include sluggish aggregate demand and
negative output-gap, stabilisation of oil prices
in last few months – notwithstanding the
recent increase in October 2009, adequate
buffer stocks of foodgrains and the prospects
of a better rabi crop that could partly offset
the adverse impact of deficient kharif,
selective import of certain commodities and
the normal trend reversal seen in prices of
food articles over different crop seasons. On
the other hand, the visible inflationary
pressures may also persist and escalate
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
further on account of the fading away of the
base effect, cost push pressures through
wage-price revisions in the face of elevated
CPI inflation, challenges in improving the
supply situation in the short-run of essential
commodities, gradual pressure on global
commodity prices along with global recovery,
and rising inflation expectations on account
of elevated CPI inflation.
17. Financial conditions have improved
significantly in India, ahead of a stronger
recovery in growth. This is evident from the
return of capital flows, significant recovery
in the stock markets, and better transmission
from low policy rates to declining lending
rates. There also need be no concerns about
private credit getting crowded out since over
80.4 per cent of the government borrowing
programme has been completed so far as
there is adequate liquidity in the system. The
deceleration in private consumption and
investment demand needs to be reversed
from the low levels seen in the first quarter
of 2009-10 for ensuring a sustainable
recovery. Lead information in terms of
growth in non-oil imports and demand for
credit in the second quarter of 2009-10,
however, does not point to any major
recovery in demand from the private sector.
The overall economic outlook is, therefore,
a mixture of upside prospects of recovery and
downside risks. Managing this trade-off
between supporting growth and reining in
inflation expectations poses a complex policy
challenge.
RBI
Monthly Bulletin
November 2009 2073
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

I. Output India's GDP growth during the first

quarter of 2009-10 at 6.1 per cent
represents a modest recovery from the 5.8
per cent growth registered during the
preceding two quarters, though still lower
than 7.8 per cent growth that was achieved
in the first quarter of 2008-09 and the
8.8 per cent average growth experienced
during 2003-08. The sequential recovery
over the previous quarter was driven by
notable turnaround in industrial output.
During April to August 2009-10, both
industry and core infrastructure sectors
have shown accelerated growth and few lead
indicators of services sector activities also
suggest some pick up in growth momentum.
The deficient monsoon coupled with recent
floods in some States and their expected
adverse impact on the kharif agricultural
production, however, entail downside risk
for the overall growth prospects.

I.1 After a phase of distinct deceleration in

growth during the second half of 2008-09,
the Indian economy exhibited signs of
recovery with higher growth in GDP during
the first quarter of 2009-10 and acceleration
in the pace of recovery in industrial output
and core infrastructure activities. According
to the estimates released by the Central
Statistical Organisation (CSO) in August
2009, real GDP growth during the first
quarter of 2009-10 was placed at 6.1 per cent,
which is higher than 5.8 per cent recorded
during the preceding two quarters of 2008-
09. The growth during the first quarter of
2009-10 was supported by rebound in
industrial activity, particularly the
turnaround in manufacturing sector (from
the negative growth in the previous quarter)

RBI
Monthly Bulletin
2074 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

and relative resilience of growth in services,
notwithstanding the recent deceleration. The
real GDP growth during the first quarter of
2009-10, however, was lower than 7.8 per
cent recorded in the first quarter of 2008-09,
which reflects the persistence of the impact
of the synchronised global recession,
notwithstanding the emerging signs of
recovery. (Table 1.1).
Agricultural Situation
I.2 Deficient monsoon has emerged as the
key factor in dampening the pace of
recovery in India’s growth in the near-term.
The South-West Monsoon had arrived in
Kerala on May 23, 2009, i.e., one week ahead
of the normal schedule. The progress of
monsoon, however, got delayed
significantly and with every delay, the
rainfall deficiency and the prospects of
drought like conditions also increased. The
cumulative rainfall during the season (up
to September 30, 2009) over the entire
country has been 23 per cent below normal
as against 1 per cent below normal during
the corresponding period of the previous
year. The shortfall in rainfall as per the
foodgrains production weighted index of
the Reserve Bank has been higher (27 per cent
below normal) as compared to the
corresponding period of the previous year

Table 1.1: Growth Rates of Real GDP@

(Per cent)
Sector 2007-08* 2008-09# 2008-09 2009-10
Q1 Q2 Q3 Q4 Q1
1 2 3 4 5 6 7 8
1. Agriculture and Allied Activities 4.9 1.6 3.0 2.7 -0.8 2.7 2.4
(17.8) (17.0)
2. Industry 7.4 2.6 5.1 4.8 1.6 -0.5 4.2
(19.2) (18.5)
2.1 Mining and Quarrying 3.3 3.6 4.6 3.7 4.9 1.6 7.9
2.2 Manufacturing 8.2 2.4 5.5 5.1 0.9 -1.4 3.4
2.3 Electricity, Gas and Water Supply 5.3 3.4 2.7 3.8 3.5 3.6 6.2
3. Services 10.8 9.4 10.0 9.8 9.5 8.4 7.7
(63.0) (64.5)
3.1 Trade, Hotels, Restaurants,
Transport, Storage and
Communication 12.4 9.0 13.0 12.1 5.9 6.3 8.1
3.2 Financing, Insurance, Real Estate
and Business Services 11.7 7.8 6.9 6.4 8.3 9.5 8.1
3.3 Community, Social and
Personal Services 6.8 13.1 8.2 9.0 22.5 12.5 6.8
3.4 Construction 10.1 7.2 8.4 9.6 4.2 6.8 7.1
Real GDP at Factor Cost 9.0 6.7 7.8 7.7 5.8 5.8 6.1
(100) (100)
Memo: (Amount in Rupees crore)
Real GDP at Factor Cost (1999-2000) 31,29,717 33,39,375
GDP at current market prices 47,23,400 53,21,753
@: At 1999-2000 Prices *: Quick Estimates. #: Revised Estimates.
Note : Figures in parenthesis indicate shares in real GDP.
Source : Central Statistical Organisation.

RBI
Monthly Bulletin
November 2009 2075
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

(4 per cent above normal). The deficiency
in rainfall during the South-West monsoon
season has exceeded the revised forecast of
the India Meteorological Department (IMD)
issued in August, according to which rainfall
during the season (June to September, 2009)
was likely to be below normal at 93 per cent
of the Long Period Average (with a model
error of ± 4.0 per cent). The temporal
distribution of the rainfall activity shows
that the initial concerns about shortfall in
June rainfall receded somewhat in July,
which helped to improve the sowing
position. The rainfall turned deficient again
during the first half of August 2009, before
picking up subsequently since the middle
of the month (Chart I.1).
I.3 The spatial distribution of rainfall
reveals that of the 36 meteorological sub-
divisions, cumulative rainfall has been
excess/normal in 13 sub-divisions (32 sub-
divisions last year) (Chart I.2). The pick up
in rainfall activity since mid-August 2009
has resulted in substantial improvement in
the country’s water reservoir level, though
it continues to remain below last year’s
level. As on October 22, 2009, the total live

RBI
Monthly Bulletin
2076 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

water storage in the 81 major reservoirs of
the country was 64.0 per cent of the Full
Reservoir Level (FRL) (72.0 per cent during
the corresponding period last year).
I.4 As on September 30, 2009, around 300
districts have been declared drought hit,
partially or wholly, in 12 States. During the
season, flood incidents were also reported
in some States, viz., Karnataka, Assam,
Meghalaya, Arunachal Pradesh, West Bengal,
Orissa, Bihar, Jharkhand, Uttar Pradesh,
Uttarakhand, Haryana, Punjab, Himachal
Pradesh, Gujarat, Maharashtra, Madhya
Pradesh, Kerala and Andhra Pradesh.
I.5 The deficient South-West monsoon has
impacted the kharif sowing, which is about
5.4 per cent below that of the last year.
Latest sowing position indicates that sowing
of all crops during the current kharif season
as on October 16, 2009 was 92 per cent of
the normal level (Table 1.2). Sowing of most
pulses and cotton are higher than last year
levels, while the sowing of coarse cereals
and jute remained the same as last year,
though paddy sowing has been substantially
affected (16 per cent below last year’s level).
Other crops whose sowing has been affected
somewhat include oilseeds and sugarcane.
Considering that Kharif paddy is an
important crop accounting for about 86 per
cent of total rice production and 36 per cent
of total foodgrains production in India, the
shortfall in its sowing could be expected to
depress the overall foodgrains production
during 2009-10.
I.6 The impact of the overall deficiency in
rainfall during South-West monsoon season
has to be assessed in the context of the pick
up in monsoon in the later part of August
and in September that could help standing
crops in improving their yield. Besides,
rainfall has been more deficient in the
irrigated belt of the country like Punjab and

Table 1.2: Progress of Area Sown under Kharif Crops: 2009-10

(Million hectares)
Crop Normal Area Area Coverage (as on October 16, 2009)
2008 2009 Absolute Percentage
variation change
1 2 3 4 5 6
Rice 39.2 38.8 32.7 -6.1 -15.7
Coarse Cereals 23.0 20.6 20.7 0.1 0.3
of which:
Bajra 9.7 8.5 8.5 0.0 0.2
Jowar 3.9 2.9 3.1 0.2 6.6
Maize 6.8 7.1 7.1 0.1 0.9
Total Pulses 11.2 9.6 10.1 0.5 5.6
Total Oilseeds 16.9 18.4 17.5 -1.0 -5.2
of which:
Groundnut 5.4 5.3 4.4 0.9 -16.6
Soyabean 7.8 9.6 9.6 0.0 -0.2
Sugarcane 4.4 4.4 4.3 -0.1 -2.9
Cotton 8.7 8.5 9.6 1.1 13.4
Jute 0.8 0.7 0.7 0.0 -2.0
All Crops 104.2 101.1 95.7 -5.4 -5.4
Source : Ministry of Agriculture, Government of India.

RBI
Monthly Bulletin
November 2009 2077
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
Haryana where availability of irrigation,
particularly in the snow fed Northern river
basin could offset some of the potential loss
in output. Shortfall in rice sowing during this
kharif is being partly compensated in some
parts of the country by sowing of short
duration Boro rice (post kharif) and shortfall
in groundnut sowing is being partly offset
by sowing of Toria that could be sown even
in the late kharif season. Moreover, delayed
withdrawal of South-West monsoon augurs
well for rabi crops, particularly winter wheat
and oilseeds on account of high moisture
retention in the soil. In addition, Indian
agriculture is substantially diversified now.
Kharif ‘cereals, pulses and oilseeds’
contribute only around 20 per cent to total
agricultural output. Rabi contributes another
20 per cent to the overall agricultural GDP.
The balance 60 per cent comes from allied
sector comprising of horticulture, livestock
and fisheries, which has been growing at
above 5 per cent during last few years.
I.7 Moreover, in recent years, the share of
rabi output in total foodgrains production has
been increasing and during 2008-09, the rabi
accounted for almost half of the overall
RBI
Monthly Bulletin
2078 November 2009
foodgrains production. During 2008-09,
despite shortfall in kharif sowing (-2.3 per
cent), the foodgrains production touched an
all-time peak, mainly because of higher rabi
sowing (2.9 per cent), which compensated for
the loss in kharif output (Chart I.3). In view
of the drought like situation prevailing in
some of the States, the Government of India
has initiated several timely measures to
overcome the shortfall in kharif production,
which include provision of incentives for
supplemental irrigation facilities via the
diesel subsidy in States having more than 50
per cent deficiency in rainfall; planned
efforts to increase rabi production through
ensuring availability of seeds, fertilisers and
other inputs to farmers and issuing several
policies/advisories with regard to water
conservation techniques and providing
flexibility to States in the use of funds under
various central schemes. In view of the
above, there is a possibility of rabi production
compensating somewhat for the loss in
kharif output as in the previous year,
provided that North-East monsoon and
climatic conditions remain favourable during
the rabi season of 2009-10.
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

I.8 According to IMD, during the Post be mainly attributed to increase in the
Monsoon Season (October-December) output of rice and wheat.
cumulative rainfall for the period October
1 to 21, 2009 was 12 per cent above normal Food Management
as compared with 40 per cent below normal
during the corresponding period of the I.10 The procurement of rice and wheat
previous year. The spatial distribution of during 2009-10 (up to October 20, 2009) was
rainfall reveals that of the 36 meteorological higher than that in the corresponding period
sub-divisions, cumulative rainfall was of the previous year (Table 1.4). As a result,
excess/normal in 26 sub-divisions (5 sub- the total stock of foodgrains with the Food
divisions last year). Corporation of India (FCI) and other
Government agencies reached a peak of 54.8
I.9 According to the Fourth Advance million tonnes as on June 1, 2009. Since
Estimates, the total foodgrains production then, the stocks have declined on account
during 2008-09 reached to a record level of of off-take being higher than the
233.9 million tonnes, about 3 million tonnes procurement and were at 44.3 million
higher than the previous year (Table 1.3). tonnes as on October 1, 2009. The stocks of
The increase in foodgrains production could both rice and wheat are, however, much
higher than their norms.
Table 1.3: Agricultural Production
(Million tonnes)
Industrial Performance
Crop 2007-08 2008-09@
1 2 3 I.11 During the current financial year,
Rice 96.7 99.2 industrial production has exhibited
Kharif 82.7 84.6 recover y from the loss of growth
Rabi 14.0 14.6 momentum witnessed during the second
Wheat 78.6 80.6
Coarse Cereals 40.8 39.5
half of 2008-09. After a short phase of
Kharif 31.9 28.3 deceleration, the industrial growth turned
Rabi 8.9 11.1 negative in December 2008 and thereafter
Pulses 14.8 14.7
turned positive, but remained depressed till
Kharif 6.4 4.8
Rabi 8.4 9.9 the end of 2008-09. Since April 2009, the
Total Foodgrains 230.8 233.9 recover y has been more visible and
Kharif 121.0 117.7 industrial output clocked double digit
Rabi 109.8 116.2
growth in August 2009, which is the highest
Total Oilseeds 29.8 28.2
Kharif 20.7 17.9 recorded since November 2007. The growth
Rabi 9.0 10.3 in industrial production at 5.8 per cent
Sugarcane 348.2 271.3 during the current financial year 2009-10
Cotton # 25.9 23.2
Jute and Mesta ## 11.2 10.4
(April-August) exceeded the growth
recorded during the corresponding period
@ : Fourth Advance Estimates.
# : Million bales of 170 kgs. each. of previous year (4.8 per cent) on account of
##: Million bales of 180 kgs. each. higher growth in June-August 2009 (Chart I.4
Source : Ministry of Agriculture, Government of India. and Table 1.5). The recovery in industrial

RBI
Monthly Bulletin
November 2009 2079
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 1.4: Management of Food Stocks

(Million tonnes)
Month Opening Stock of Procurement of Foodgrains Off-take Clos- Norms
Foodgrains Foodgrains ing
Rice Wheat Total Rice Wheat Total PDS OWS OMS- Expo- Total Stock
Dome- rts
stic
1 2 3 4 5 6 7 8 9 10 11 12 13 14
2008-09 13.8 5.8 19.8 32.8 22.7 55.5 34.9 3.4 1.2 0.0 39.5 35.6
2009-10@ 21.6 13.4 35.6 11.1 25.4 36.5 14.3 0.9 0.0 0.0 15.2 N.A.
(13.8) (5.8) (19.8) (11.3) (22.7) (33.9) (11.2) (0.9) (0.0) (0.0) (12.1) N.A.
2008
January 11.5 7.7 19.2 4.5 0.0 4.5 2.9 0.3 0.0 0.0 3.2 21.4 20.0
April 13.8 5.8 19.8 1.1 14.2 15.3 2.7 0.0 0.0 0.0 2.8 30.7 16.2
2009
January 17.6 18.2 36.2 4.8 0.0 4.8 3.0 0.2 0.3 0.0 3.4 37.4 20.0
February 20.2 16.8 37.4 3.7 0.0 3.7 3.0 0.3 0.2 0.0 3.6 37.1
March 21.3 15.3 37.1 2.3 0.0 2.3 2.9 0.4 0.0 0.0 3.9 35.6
April 21.6 13.4 35.6 1.4 19.4 20.8 3.3 0.2 0.0 0.0 3.5 51.8 16.2
May 21.4 29.8 51.8 1.9 4.4 6.4 3.6 0.2 0.0 0.0 3.9 54.8
June 20.4 33.1 54.8 1.3 1.1 2.4 3.3 0.4 0.0 0.0 3.7 53.2
July 19.6 32.9 53.2 1.4 0.4 1.8 N.A. N.A. N.A. N.A. N.A. 51.0 26.9
August 18.8 31.6 51.0 0.8 0.0 0.8 N.A. N.A. N.A. N.A. N.A. 47.8
September 17.2 30.1 47.8 0.4 0.1 0.5 N.A. N.A. N.A. N.A. N.A. 44.3
October* 15.4 28.5 44.3 4.0 0.0 4.0 N.A. N.A. N.A. N.A. N.A. N.A. 16.2
PDS: Public Distribution System. OWS: Other Welfare Schemes. OMS : Open Market Sales. N.A.: Not Available.
@ : Procurement up to October 20, Off-take up to July 31. * : Procurement up to October 20.
Note : 1. Closing stock figures may differ from those arrived at by adding the opening stocks and procurement and
deducting off-take, as stocks include coarse grains also.
2. Figures in parenthesis indicate procurement/offtake of foodgrains during corresponding period of 2008-09.
Source : Ministry of Consumer Affairs, Food and Public Distribution, Government of India.

growth has been broad based with manufacturing. The acceleration in the
acceleration in growth of all the three manufacturing sector in April-August 2009
sectors, viz., mining, electricity and was on account of increase in the production

RBI
Monthly Bulletin
2080 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 1.5: Index of Industrial Production: Sectoral and Use-Based

Classification of Industries
(Per cent)
Industry Group Weight in Growth Rate Weighted Contribution #
the IIP April-March April-August April-March April-August
2008-09 2008-09 2009-10 P 2008-09 2008-09 2009-10 P
1 2 3 4 5 6 7 8
Sectoral
Mining 10.5 2.6 3.5 8.4 6.3 4.8 9.3
Manufacturing 79.4 2.7 5.1 5.5 85.3 91.1 81.2
Electricity 10.2 2.8 2.3 6.6 8.3 4.0 9.5
Use-Based
Basic Goods 35.6 2.6 3.7 6.7 28.4 23.0 34.5
Capital Goods 9.3 7.3 8.3 3.2 34.1 20.6 6.8
Intermediate Goods 26.5 -1.9 1.0 9.2 -18.4 5.5 41.5
Consumer Goods (a+b) 28.7 4.7 7.6 3.1 54.2 49.2 17.4
a) Consumer Durables 5.4 4.5 5.7 18.1 12.4 8.9 23.8
b) Consumer Non-durables 23.3 4.8 8.3 -1.5 41.7 40.3 -6.4
General 100.0 2.7 4.8 5.8 100.0 100.0 100.0
P : Provisional. # : Figures may not add up to 100 due to rounding off.
Source: Central Statistical Organisation.

of ‘rubber, plastic, petroleum products’, transport equipment’, ‘non-metallic mineral

‘textile products’, ‘wool, silk and man-made products’, ‘basic metal and alloy industries’,
fibre textiles’, ‘wood and wood products’, ‘leather and leather fur products’ and ‘other
‘machinery and equipment other than manufacturing industries’ (Table 1.6).

Table 1.6: Performance of Manufacturing Industry Groups (April-August 2009-10)

Negative Deceleration Acceleration
1 2 3 4
1. Food Products Transport equipment and parts Wood and wood products;
furnitures and fixtures
2. Jute and other vegetable fibre Chemicals and chemical products Non-metallic mineral products
textiles (except cotton)
3. Metal products and parts Paper and paper products Textile products
4. Beverages, tobacco and related Cotton textiles Rubber, plastic, petroleum and
products coal products
5. Other manufacturing industries
6. Wool, silk and man-made fibre
textiles;
7. Basic metal and alloy industries
8 Machinery and equipment
9. Leather and fur products
Combined 14.9 23.5 41.0
Weight in
the IIP

RBI
Monthly Bulletin
November 2009 2081
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
I.12 In terms of use-based classification,
while there was noticeable acceleration in
basic and intermediate goods segments, the
performance of capital and consumer goods
still remained sluggish during April-August
2009-10 over the corresponding period of
last year. The continuous rise in
intermediate goods production indicates
pick up in upstream industries and strength
in inventory investments. The growth in
the capital goods sector, which recovered
with robust growth in June 2009 from
negative territory during March-May 2009,
fell sharply in July 2009, before recouping
subsequently with buoyant growth in
August 2009. Despite robust growth in the
durables goods segment, the growth in the
consumer goods remained weak during
April-August 2009-10, reflecting mainly the
contraction in non-durables output. Non-
durables segment has, however, displayed
recovery with positive growth in June-
August 2009.
I.13 Out of 17 two-digit manufacturing
industry groups, eight industry groups
accounting for 38.4 per cent weight in the
IIP recorded decelerated/negative growth
during April-August 2009-10 (Table 1.7).
I.14 The basic goods sector has manifested
steady acceleration during April-August
2009-10, mainly on account of improved
performance in electricity, non-metallic
mineral products like cement and basic
metals. After decline in growth for seven
consecutive months (August 2008 to
February 2009), intermediate goods sector
has recovered strongly since March 2009
and showed a double digit growth in August
2009. Demand seems to have picked up in
2009-10 for intermediate products such as
RBI
Monthly Bulletin
2082 November 2009
‘wool, silk and man-made fibre textiles’,
‘wood and wood products’, ‘non metallic
mineral products’, ‘metal products and parts
except machiner y equipment’ and
‘machinery and equipment other than
transport equipment. On the contrary, the
sharp deceleration in the growth witnessed
in the capital goods sector in April-August
2009 as compared to the same period last
year has been on account of lower growth
in production of ‘machinery and equipment
other than transport equipment’ and
‘transport equipment and parts’. The trend
in production of capital goods has been
volatile, reflecting some uncertainty in
investment outlook and the competition
from imports.
I.15 The positive growth in consumer non-
durables during July and August 2009 was
on account of ‘cotton textiles’, ‘wool and
man-made fibre textiles’, ‘paper and paper
products’, ‘leather and fur products’,
‘rubber, plastic, petroleum and coal
products’ and ‘machinery and equipment
other than transport equipment’. The
trends in consumer durables show steady
rise in production since January 2009
driven by the production of giant tubes,
tractor tyres, window type air
conditioners, refrigerators, washing/
laundry machines, electric fans, telephone
instruments, TV receivers, passenger cars,
motor cycles, etc.
Infrastructure
I.16 During the current financial year 2009-
10 (April-August), the core infrastructure
sector recorded higher growth at 4.8 per
cent compared to 3.3 per cent during the
corresponding period of the previous year
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 1.7: Growth of Manufacturing Industry Groups

(Per cent)
Industry Group Weight in Growth Rate Weighted Contribution #
the IIP
April-March April-August April-March April-August
2008-09 2008-09
2008-09 2009-10 P 2008-09 2009-10 P
1 2 3 4 5 6 7 8
1. Food products 9.08 -9.7 -2.5 -12.6 -28.1 -3.1 -13.7
2. Beverages, tobacco and
related products 2.38 16.2 22.2 -3.3 30.7 22.7 -3.6
3. Cotton textiles 5.52 -1.9 1.2 0.7 -2.8 1.0 0.5
4. Wool, silk and man-made
fibre textiles 2.26 0.0 -1.2 11.9 0.0 -0.7 5.8
5. Jute and other vegetable
fibre textiles (except cotton) 0.59 -10.1 -6.5 -16.4 -1.1 -0.4 -0.9
6. Textile products
(including wearing apparel) 2.54 5.7 4.7 9.5 6.9 3.1 5.9
7. Wood and wood products,
furniture and fixtures 2.70 -9.6 -6.7 11.8 -5.3 -2.1 3.0
8. Paper and paper products
and printing, publishing and
allied Industries 2.65 1.9 3.1 2.7 2.0 1.9 1.5
9. Leather and leather and
fur products 1.14 -6.9 0.8 1.3 -2.1 0.1 0.2
10. Chemicals and chemical
products (except products of
petroleum and coal) 14.00 4.1 8.1 5.0 29.0 31.8 18.9
11. Rubber, plastic, petroleum and
coal products 5.73 -1.5 -4.2 13.2 -3.5 -5.3 14.1
12. Non-metallic mineral products 4.40 1.2 0.7 7.6 2.7 0.9 8.5
13. Basic metal and alloy industries 7.45 4.0 6.6 7.1 14.8 13.2 13.3
14. Metal products and parts
(except machinery and
equipment) 2.81 -4.0 -0.8 -0.2 -3.1 -0.3 -0.1
15. Machinery and equipment other
than transport equipment 9.57 8.8 8.3 9.5 53.2 26.1 28.7
16. Transport equipment and parts 3.98 2.5 11.2 9.1 6.1 14.1 11.3
17. Other manufacturing industries 2.56 0.4 -4.0 10.8 0.6 -2.9 6.6
Manufacturing – Total 79.36 2.7 5.1 5.5 100.0 100.0 100.0
P: Provisional. # : Figures may not add up to 100 due to rounding off.
Source: Central Statistical Organisation.

led by acceleration in coal, cement, and Services Sector

electricity (Chart I.5). The production of
crude oil and petroleum refinary products,
however, recorded a decline. The
production of finished steel witnessed
decelerated growth during the period
(Chart I.6).
I.17 The services sector recorded a lower
growth of 7.7 per cent during the first
quarter of 2009-10 compared with the
double digit growth of 10.0 per cent during
the corresponding period of last year. The

RBI
Monthly Bulletin
November 2009 2083
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

growth in sub-sectors such as ‘trade, hotels,
transport and communication’ and
‘construction’, exceeded the growth in the
preceding two quarters but remained lower
than the first quarter of 2008-09. However,
‘financing, insurance, real estate and
business services’ recorded acceleration in
growth compared to the first quarter of
2008-09, reflecting the improved conditions
in the financial markets (see Table 1.1).
I.18 The slowdown in the services sector is
reflected in its contribution to real GDP
growth, which receded to 4.9 per cent in the
first quarter of 2009-10 from 6.3 per cent
during the corresponding period of the
previous year (Table 1.8).
I.19 The lead indicators of services sector
activity for 2009-10, so far, suggest decline
in growth in respect of foreign tourist
arrivals and production of commercial
vehicles, while most of the other lead
indicators pertaining to transport services
also display a subdued outlook. The
production of cement has, however, shown

RBI
Monthly Bulletin
2084 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 1.8: Contribution of Services to Real GDP Growth

(Per cent)
Year/Quarter Construction Trade, Hotels, Financing, Insurance, Community, Social Total Services
Transport and Real Estate and and Personal
Communication Business Services Services
1 2 3 4 5 6
2005-06 1.1 3.0 1.5 1.0 6.7
2006-07 0.8 3.5 1.9 0.8 6.9
2007-08 0.7 3.4 1.7 0.9 6.7
2008-09 RE 0.5 2.5 1.1 1.7 5.9
2008-09 : Q1 0.6 3.5 1.0 1.0 6.3
: Q2 0.7 3.4 1.0 1.3 6.4
: Q3 0.3 1.6 1.2 2.7 5.7
: Q4 0.5 1.8 1.3 1.7 5.4
2009-10 : Q1 0.5 2.3 1.2 0.9 4.9
RE : Revised Estimates.
Source: Central Statistical Organisation.

a turnaround along with some buoyancy in handled at domestic terminals (Table 1.9).
steel output, indicating growing momentum Telecommunication ser vices remain
in construction activities. There is also pick buoyant on considerable growth in the cell
up in the growth in respect of passengers phone connections.

Table 1.9: Indicators of Services Sector Activity

(Growth in per cent)
April-September
2007-08 2008-09 2008-09 2009-10
1 2 3 4 5
Tourist arrivals 12.2 -2.5 8.9 -2.8
Commercial vehicles production# 4.8 -24.0 4.4 -7.4
Railway revenue earning freight traffic 9.0 4.9 18.9 7.5
Cell phone connections^ 38.3 44.8 24.9 62.3
Cargo handled at major ports^ 12.0 2.1 8.4 1.8
Civil aviation
Export cargo handled^ 7.5 3.4 7.7 1.5
Import cargo handled^ 19.7 -5.7 6.2 -9.3
Passengers handled at international terminals^ 11.9 3.8 7.8 1.8
Passengers handled at domestic terminals^ 20.6 -12.1 -5.1 2.4
Cement ## 7.8 7.5 5.0 13.5
Steel ## 6.8 0.6 3.5 2.6
# : Leading Indicator for Transportation.
^ : Data for 2009-10 pertains to April-August.
## : Leading Indicator for construction and data for 2009-10 pertains to April-August.
Source : Ministry of Tourism; Ministry of Commerce and Industry; Ministry of Statistics and Programme
Implementation; Reserve Bank of India; and Centre for Monitoring Indian Economy.

RBI
Monthly Bulletin
November 2009 2085
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
I.20 In sum, the aggregate supply conditions
as reflected in the growth of GDP indicate
that although there is a recovery from the
slowdown of the second half of 2008-09, the
pace of revival remains subdued. The
deficient and uneven precipitation during
the South-West monsoon season coupled
with recent floods in some States have
considerably increased the downside risks
for the kharif production during 2009-10.
Nonetheless, given the recent past
experience and the proactive measures
already initiated by the Government, the
rabi production may partly reverse the
shortfall in kharif production, if climatic
RBI
Monthly Bulletin
2086 November 2009
and North-East monsoon conditions remain
favourable during the rabi season. During
the current financial year 2009-10 (April-
August), the industrial production has
staged a recovery (5.8 per cent) from the loss
of growth momentum that it witnessed
during the second half of 2008-09. Similarly,
the core infrastructure sector during 2009-
10 (April-August) has also displayed higher
growth (4.8 per cent) over the comparable
period last year, underpinned by
considerable acceleration in coal, cement,
and electricity. Some of the lead indicators
for the services sector also show signs of
momentum in growth.
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

II. Aggregate Demand Aggregate demand, which had moderated

considerably in 2008-09, remained
sluggish during the first quarter of 2009-
10. Private consumption and investment
demand continued to decelerate during the
first quarter of 2009-10, with the former
registering the lowest quarterly growth in
recent years. Government consumption
expenditure growth, which had risen
sharply in the third and fourth quarters
of 2008-09, moderated during the first
quarter of 2009-10, but continued to
remain in double-digits. During April-
August, 2009 the key deficit indicators of
the Central Government, viz., revenue
deficit and fiscal deficit, were significantly
higher than during the corresponding
period of the previous year, reflecting the
combined impact of slowdown induced
decline in revenue receipts and increase in
public expenditure consistent with
expansionary fiscal stance. Corporate sector
data indicate modest decline in sales
growth during the first quarter of 2009-
10, although profit margins improved.

II.1 The contagion from the global crisis

operating through the confidence channel
has dampened the private consumption and
investment demand and the impact
persisted even in the first quarter of 2009-10,
when the growth in private consumption
demand fell to one of the lowest levels.
While the real GDP growth measured from
the demand side was higher during the first
quarter of 2009-10, at 6.0 per cent, than the
preceding two quarters, the improvement
largely resulted from a sharper contraction
in imports than in exports, which led to a

RBI
Monthly Bulletin
November 2009 2087
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
reversal in the share of net exports in GDP
from negative to positive. The domestic
component of demand continued to remain
weak during the first quarter of 2009-10.
Private consumption demand decelerated
sharply to 1.6 per cent, which is the lowest
growth in recent years. This deceleration is
significant in the context of the high share
of private consumption demand in the
aggregate demand (i.e., 55.6 per cent during
the first quarter of 2009-10). The growth in
investment demand, as could be inferred
from the behavior of gross fixed capital
formation, was less than half of that
registered in the corresponding period of
the preceding year. Growth in government
consumption expenditure continued to
remain in double digits, but was
substantially lower than the high growth
that was witnessed in the third and fourth
quarters of 2008-09. In view of its lower
share in aggregate demand, government
final consumption expenditure could not
fully compensate for the adverse impact of
private consumption and investment
demand on the overall consumption
expenditure. Key deficit indicators of the
Central Government, viz., the revenue
deficit and the gross fiscal deficit during
April-August 2009 were lower, as
proportions to budget estimates, than in the
corresponding period of the previous year.
Corporate performance remained subdued,
and the impact of moderation in demand
was visible in the decline in sales growth in
the first quarter of 2009-10. Gross profits,
however, increased after two consecutive
quarters of decline, mainly due to lower
input and operating costs and higher non-
core income. Net exports turned positive
despite the continued decline in exports,
RBI
Monthly Bulletin
2088 November 2009
mainly on account of the sharper
contraction in imports1.
Domestic Demand
II.2 Domestic demand in the form of private
consumption expenditure and investment,
which had moderated in 2008-09, continued
to decelerate in the first quarter of 2009-10,
reflecting weak domestic demand as a
constraint to faster recovery. According to the
data released by the Central Statistical
Organisation (CSO) for the first quarter of
2009-10, private final consumption
expenditure (PFCE) and gross fixed capital
formation (GFCF) witnessed sharp
deceleration in growth as compared with the
corresponding period in 2008-09 (Table 2.1
and Chart II.1). The deficient monsoon could
have further weakened private consumption
demand since the first quarter of 2009-10,
through the adverse effect on rural demand.
The decline in credit card and consumer
durables related credit also point to
persistence of weak consumption demand.
II.3 Growth in government final
consumption expenditure which had
increased considerably in response to policy
driven fiscal stimulus aimed at cushioning
the impact of contraction in other sectors
in 2008-09, registered a double digit growth
in the first quarter of 2009-10, which though
represents a deceleration over the previous
two quarters.
1
Net exports data reported in the GDP for the first
quarter of 2009-10 (at constant prices) differ from net
exports in the balance of payments (BoP) data for the first
quarter because of : (a) release of BoP data after the GDP
data and hence use of estimates of services in the GDP
data and (b) use of deflators for arriving at net exports at
constant prices, as at current prices the differences are
primarily because of (a).
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 2.1: Demand side of GDP (1999-2000 Prices)

(Per cent)
Item 2007-08* 2008-09# 2008-09 2009-10
Q1 Q2 Q3 Q4 Q1
1 2 3 4 5 6 7 8
Growth Rates
Real GDP at market prices 9.1 6.1 8.2 7.8 4.8 4.1 6.0
Total Consumption Expenditure 8.3 5.4 3.8 2.1 9.0 6.1 2.8
(i) Private 8.5 2.9 4.5 2.1 2.3 2.7 1.6
(ii) Government 7.4 20.2 -0.2 2.2 56.6 21.5 10.2
Gross Fixed Capital Formation 12.9 8.2 9.2 12.5 5.1 6.4 4.2
Change in Stocks 51.7 2.9 6.0 5.6 1.4 -0.9 3.2
Exports 2.1 12.8 25.6 24.3 7.1 -0.8 -10.9
Less Imports 6.9 17.9 27.4 35.3 21.7 -5.7 -21.2

Relative shares
Total Consumption Expenditure 66.9 66.5 67.5 63.7 69.9 64.8 65.5
(i) Private 57.2 55.5 58.0 55.5 57.4 51.4 55.6
(ii) Government 9.8 11.1 9.6 8.3 12.5 13.4 9.9
Gross Fixed Capital Formation 31.6 32.2 32.2 34.5 30.9 31.6 31.6
Change in Stocks 3.1 3 3.2 3.2 2.9 2.9 3.1
Net Exports -4.3 -5.8 -1.3 -10.5 -8.5 -2.9 1.6
Memo: (Rupees crore)
Real GDP at market prices 34,02,716 36,09,425 8,33,631 8,49,247 9,45,121 9,81,427 8,83,489
* : Quick Estimates # : Revised Estimates.
Note : As only major items are included in the table, data will not add up to 100.
Source : Central Statistical Organisation.

II.4 In terms of share, the private final Combined Budgeted Finances: 2009-10
consumption expenditure decreased to 55.6 II.5 An overview of the combined finances
per cent from 58.0 per cent during the of the Central and State Governments
corresponding period of 2008-09 (Table 2.1). budgeted for 2009-10 indicates that the key

RBI
Monthly Bulletin
November 2009 2089
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

deficit indicators as per cent of GDP would
remain at the elevated levels as in 2008-09
(Table 2.2). This increase in the combined
deficits reflects the continuation of
expansionary fiscal stance adopted by both
the Central and State Governments to
contain economic slowdown. Though the
growth in total expenditure would moderate
somewhat from the previous year, the non-
developmental component is budgeted to
increase substantially. The total
expenditure as a per cent of GDP is thus
slated to increase further. Growth in tax
collections, on the other hand, would
decelerate further on account of indirect tax
cuts and the continued moderation in
economic growth. As a result, the combined
revenue receipts as a per cent of GDP is
budgeted to decline in 2009-10 over 2008-09,
even though the non-tax receipts as a
percentage of GDP would increase to 4.2 per
cent from 3.8 per cent. Consequently, the
combined revenue deficit and fiscal deficit
as percent of GDP in 2009-10 would increase
by 1.1 and 1.3 percentage points to 5.5 per
cent and 10.2 per cent, respectively.
Central Government Finances
II.6 Available information on Central
Government finances for the first five
months of 2009-10 (April-August) from the
Controller General of Accounts indicates
that both revenue deficit and gross fiscal
deficit (GFD) were substantially higher, in
absolute terms, than the corresponding
period of previous year, but were lower as
proportions of budget estimates (Chart II.2a
and b and Table 2.3).

Table 2.2: Key Fiscal Indicators

(Per cent to GDP)
Year Primary Deficit Revenue Deficit Gross Fiscal Deficit Outstanding Liabilities*
1 2 3 4 5
Centre
2007-08 -0.9 1.1 2.7 60.1
2008-09 RE 2.5 4.4 6.0 58.9
(2.6) (4.6) (6.2)
2009-10 BE 3.0 4.8 6.8 59.7
States
2007-08 # -0.6 -0.9 1.5 27.8
2008-09 # RE 0.7 -0.1 2.7 27.1
2009-10 # BE 1.4 0.6 3.4 27.5
Combined
2007-08 -1.3 0.2 4.2 75.1
2008-09 RE 3.5 4.4 8.9 74.7
2009-10 BE 4.5 5.5 10.2 76.6
RE : Revised Estimates. BE : Budget Estimates.
* : Includes external liabilities at historical exchange rates.
# : Data pertain to 27 State Governments of which two are Vote-on-Accounts.
Note: 1. Negative sign indicates surplus.
2. Figures in parentheses relate to provisional accounts.
3. Excludes issuances of special bonds to oil/FCI/fertiliser companies amounting to 0.8 per cent in 2007-08,
1.8 per cent of GDP in 2008-09 and 0.2 per cent in 2009-10.

RBI
Monthly Bulletin
2090 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

II.7 The pattern of Central Government against an increase in the corresponding

finances during April-August 2009 showed
that net tax revenue as a proportion of
budget estimates was lower than in April-
August 2008, due to a sharp decline in gross
tax revenue in each of the five months, as
period of the previous year. Reflecting the
impact of economic slowdown, collections
under direct taxes such as corporation tax
and income tax decelerated to single digit
growth in April-August 2009 as compared

Table 2.3: Central Government Finances during April-August 2009

Item April-August Percentages to Growth Rate
(Rupees crore) Budget Estimates for (Per cent)
2008 2009 2008-09 2009-10 2008-09 2009-10
1 2 3 4 5 6 7
1. Revenue Receipts 1,61,511 1,57,198 26.8 25.6 24.5 -2.7
i) Tax Revenue (Net) 1,25,436 1,06,837 24.7 22.5 26.2 -14.8
ii) Non-Tax Revenue 36,075 50,361 37.7 35.9 18.6 39.6
2. Non-Debt Capital Receipts 1,203 3,835 8.2 71.7 -69.5 –
3. Non-Plan Expenditure 1,92,962 2,45,275 38.0 35.3 18.0* 27.1
of which :
(i) Interest Payments 65,841 72,133 34.5 32.0 4.4 9.6
(ii) Defence 24,811 41,129 23.5 29.0 6.1 65.8
(iii) Major Subsidies 51,780 54,193 77.2 51.1 72.4 4.7
4. Plan Expenditure 86,642 98,048 35.6 30.2 19.8 13.2
5. Total Expenditure 2,79,604 3,43,323 37.2 33.6 18.6 * 22.8
6. Revenue Expenditure 2,59,390 3,12,283 39.4 34.8 19.2 20.4
7. Capital Expenditure 20,214 31,040 21.8 25.1 10.8 * 53.6
8. Revenue Deficit 97,879 1,55,085 177.4 54.9 11.4 58.4
9. Fiscal Deficit 1,16,890 1,82,290 87.7 45.5 14.5 56.0
10. Gross Primary Deficit 51,049 1,10,157 -88.8 62.8 30.6 –
* : Growth rate is worked out after netting out acquisition cost of Reserve Bank’s Stake in SBI in June 2007.
Source: Controller General of Accounts, Ministry of Finance, Government of India.

RBI
Monthly Bulletin
November 2009 2091
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
with significantly high growth registered
during April-August 2008. While revenue
from customs declined over the same period
due to the sharp fall in imports, revenue from
excise duties declined due to tax cuts and
fall in domestic sales. Non-tax revenue
registered a growth of nearly 40 per cent over
the corresponding period of the previous
year, with the transfer of surplus from the
Reserve Bank accounting for about 50 per
cent of the total non-tax revenue. Despite the
substantial increase in the growth of non-tax
revenue, revenue receipts recorded a decline
in April-August 2009 over the corresponding
period of the preceding year.
II.8 Revenue expenditure increased at a
higher rate during April-August 2009 than
during April-August 2008, mainly on
account of higher expenditure on interest
payments, food subsidies, defence revenue
expenditure and pensions (Chart II.3a).
While higher interest payments were
mainly due to the large borrowing
undertaken in 2008-09, increased salary
payout under the Sixth Pay Commission
Award raised the expenditure under
defence and pensions. Total revenue
RBI
Monthly Bulletin
2092 November 2009
expenditure as a proportion of budget
estimates was, however, lower than the
corresponding period of the previous year.
Thus, revenue deficit during the first five
months of 2009-10 was substantially lower
at 54.9 per cent of budget estimates as
compared with 177.4 per cent during the
corresponding period of the previous year.
II.9 During April-August 2009, capital
expenditure registered a high double-digit
growth (Chart II.3b). While defence capital
expenditure registered nearly a three-fold
increase, non-defence capital outlay was
high in railways. Aggregate expenditure
during April-August 2009 accelerated over
April-August 2008 but accounted for a lower
share of budget estimates. GFD during the
same period was 45.5 per cent of the budget
estimates as compared with 87.7 per cent
during April-August 2008. The Centre
recorded a large gross primary deficit of 62.8
per cent of budget estimates during the first
five months of 2009-10.
II.10 According to the latest available data,
direct tax collections during the current
financial year (up to end-September 2009)

registered a growth of 3.7 per cent over the
same period of last fiscal year. While
corporate tax collections grew by 5.6 per
cent, collections under personal income tax
(including security transaction tax)
increased by 0.38 per cent. Advance tax
collections were reported to have been
higher during the second quarter of 2009-
10 than the preceding quarter of the year.
State Finances: 2009-102
II.11 The fiscal correction and consolidation
witnessed till 2007-08 reversed somewhat
during 2008-09 on account of the economic
slowdown. The consolidated revenue
account of the State Governments is
budgeted to turn into deficit of 0.6 per cent
of GDP during 2009-10, after being in
surplus in the previous three years, due to
the sluggishness in own tax collections and
devolution from the Centre along with
higher expenditure commitment to
implement recommendations of the Sixth
Pay Commission by many of the State
Governments. As a result, GFD is budgeted
to be higher at 3.4 per cent of GDP as
compared with 2.7 per cent in 2008-09 (RE).
The consolidated primar y deficit is
budgeted to increase to 1.4 per cent of GDP
in 2009-10 from 0.7 per cent in 2008-09 (RE)
(Table 2.2).
II.12 Keeping in view the need for spurring
aggregate demand in the economy, the
Central Government allowed the States to
raise additional market borrowings of 0.5 per
cent of Gross State Domestic Product (GSDP),
thus increasing the limit of GFD to 4.0 per
cent of GSDP during 2009-10 (3.5 per cent of
2
Based on the budget documents of 27 State
Governments, of which two are vote on account.
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
GSDP during 2008-09). However, the
aggregate expenditure of States at
consolidated level is budgeted to rise by 12.2
per cent in 2009-10 (BE) as compared with
26.0 per cent during 2008-09 (RE).
Corporate Performance
II.13 An analysis of the performance of
select non-financial non-government
companies showed that the sales growth,
that had been substantial in the first and
second quarters of 2008-09, witnessed sharp
deceleration post-September 2008 on
account of falling demand and confidence.
Sluggishness in demand and lower
commodity prices affected sales growth,
which turned negative in the first quarter
of 2009-10 (Table 2.4). Despite a fall in
revenues, corporates on an aggregate were
able to improve their performance largely
on account of higher profit margins, which,
in turn, were driven primarily by lower
input costs, significant deceleration in
interest payments, lower foreign exchange
related losses and high growth in non-core
other income. Improved margins in the first
quarter of 2009-10 also reflected the
corporate sector’s cost reduction initiatives
in response to the slowdown in economic
conditions that helped in controlling
operating expenses. The subdued sales and
improved profit performance in first quarter
was also partly on account of base effects,
as private corporate sector had posted
around 7 per cent profit growth during the
corresponding period last year, on the back
of 29.3 per cent growth in sales.
II.14 In terms of sectoral breakdown, the
slowdown in sales and profits performance
for companies in manufacturing sector was
more evident vis-à-vis those in information
RBI
Monthly Bulletin
November 2009 2093
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 2.4: Corporate Sector - Financial Performance

(Growth Rate/Ratios in per cent)
Item 2007-08 2008-09 2008-09 2009-10
Q1 Q2 Q3 Q4 Q1
1 2 3 4 5 6 7 8
Sales 18.6 17.2 29.3 31.8 9.5 1.9 -0.9
Other Income* 62.2 6.6 -8.4 -0.6 -4.8 39.4 50.2
Expenditure 19.4 19.5 33.5 37.5 12.6 -0.5 -4.4
Depreciation provision 15.7 17.4 15.3 16.5 16.8 19.6 21.5
Gross profits 24.9 -4.2 11.9 8.7 -26.7 -8.8 5.8
Interest payments 29.4 57.3 58.1 85.3 62.9 36.5 3.7
Profits after tax 26.0 -18.4 6.9 -2.6 -53.4 -19.9 5.5
Select Ratios
Change in Stock-in-trade to Sales 1.9 0.4 2.9 2.2 -1.7 -1.8 0.6
Gross Profits to Sales 14.9 13.3 14.5 13.5 11.0 13.7 15.7
Profits After Tax to Sales 9.8 8.1 9.7 8.6 5.3 8.1 10.2
Interest to Sales 2.5 3.1 2.4 2.9 3.8 3.2 2.8
Interest to Gross Profits 16.8 23.6 16.8 21.5 34.6 23.3 18.0
Interest coverage (Times) 5.8 4.2 6.0 4.6 2.9 4.3 5.6
* : Excludes extraordinary income/expenditure if reported explicitly.
Notes: 1. Data for 2007-08 is based on audited financial accounts; data for 2008-09 and 2009-10 are based on
abridged financial results of the select non-government non-financial public limited companies.
2. Growth rates are percentage changes in the level for the period under reference over the corresponding
period of the previous year for common set of companies.

technology and other services sectors. The
aggregate sales of manufacturing companies
that had decelerated sharply in third quarter
of 2008-09 in relation to increases in sales
in first two quarters, witnessed a modest
fall in the first quarter of 2009-10, reflecting
sluggishness in product prices and subdued
demand growth. The net profit margin,
measured as net income to sales ratio, which
was the lowest for manufacturing sector and
had declined to less than 5.0 per cent in the
third quarter of 2008-09, recovered to 9.2
per cent in the first quarter of 2009-10, as
operating conditions improved and interest
outflow decelerated considerably. In
comparison, companies in services sector
more or less maintained profit margins
despite the sales deceleration in the first
quarter of 2009-10.
II.15 Select non-financial listed government
(oil and non-oil) companies recorded 20.1 per
cent rise in net profits despite 24.3 per cent
decline in sales in the first quarter of 2009-
10. The overall performance was driven by
the performance of oil companies, for which
the net profit margin improved considerably
due to fall in interest payments, raw material
and staff costs, on the one hand and sizeable
rise in other income, on the other. The
operating margin for non-oil government
companies, however, declined as
expenditure outpaced sales.
External Demand
II.16 External demand continued to remain
adverse on account of the global recession
and decline in world trade volume,

RBI
Monthly Bulletin
2094 November 2009

notwithstanding the recent signs of
recovery. In the first quarter of 2009-10,
India’s imports of goods and services
contracted faster than exports, and as a
result net exports, which had negative
contribution to GDP in the previous
quarters, turned positive (Table 2.1).
Information on net exports beyond the first
quarter of 2009-10 could be partially
inferred from the behavior of merchandise
trade. Merchandise trade deficit during
April-August 2009 stood at US $ 38.2 billion,
which was lower by 37.1 per cent than US $
60.7 billion in April-August 2008, due to
relatively larger year-on-year decline in
imports than exports during the period. A
detailed discussion on the external demand
conditions is set out in Chapter III.
II.17 On balance, aggregate demand
continues to remain weak, notwithstanding
the role of policy stimulus in providing
support to private demand. Growth in
private consumption demand decelerated
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
so sharply during the first quarter of 2009-
10 that it could be reasonable to expect
considerable revival from that level in
subsequent quarters. Consumption could
also be expected to improve in the current
fiscal year on account of continuation of the
expansionary fiscal policy, particularly
higher expenditure under the National Rural
Employment Guarantee Scheme (NREGS)
and disbursement of remaining arrears of
Sixth Pay Commission award which could
stimulate private consumption. The drought
could adversely affect agricultural income
and hence rural spending but higher
minimum support price announced by the
Government in August 2009 could help in
moderating any deceleration in rural
demand. Investment demand could pick up
in the near term with a lag, in line with the
improved domestic business sentiments,
favourable domestic capital market
conditions, signs of revival in global capital
markets and reduced risk premia.
RBI
Monthly Bulletin
November 2009 2095
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

III. The External Economy The adverse impact of the global crisis
operating through the trade channel
continued to depress India’s trade
transactions in 2009-10. In the first five
months of 2009-10, merchandise exports
and imports declined by 31.0 per cent and
33.4 per cent (year-on-year), respectively.
In India’s balance of payments for the first
quarter of 2009-10, while exports declined,
imports increased over the preceding
quarter, reflecting the increase in oil prices.
As a result, the balance of payments
witnessed a higher trade deficit over the
preceding quarter. Surplus in net invisibles,
led by buoyant remittances, financed about
78 per cent of the trade deficit. The current
account, as a result, remained in deficit of
US$ 5.8 billion. Return of capital inflows
after the phase of net outflows experienced
during the last two quarters of 2008-09,
however, ensured the financing of the
deficit without any loss of reserves.
Including valuation gains and the SDRs
allocated to India by the IMF, India’s
foreign exchange reserves increased by US$
32.8 billion during 2009-10 to US$ 284.8
billion as on October 16, 2009.

III.1 The external economic environment

improved in the recent months with
emerging signs of recovery from the global
recession, though recession like conditions
still persist and the outlook for the global
economy points to a slow paced recovery.
The balance of payments transactions of the
countries, which were severely disrupted by
the crisis induced shocks to every important
channel of globalisation, are yet to recover
to normal levels. India’s balance of payments
had exhibited resilience to the channels of

RBI
Monthly Bulletin
2096 November 2009

contagion, which is evident from a current
account deficit of 2.6 per cent of GDP and a
reserve loss (net of valuation) of US$ 20.1
billion during 2008-09. In 2009-10, while the
year-on-year decline in exports and imports
continued, remittance related inflows
remained buoyant and return of capital
inflows has also reversed the pattern that was
experienced in the capital account during the
last two quarters of 2008-09.
International Developments
III.2 The global economy exhibited early
signs of end of the recession with several
advanced economies recording modest
positive growth in the second quarter of
2008-09, while the pace of contraction in
output declining significantly in others. The
pace of global recovery, however, continues
to be uncertain, given the fact that the
recovery is still gaining support from the
unprecedented stimulus measures amidst
persisting stress in the financial systems of
advanced economies. After successive
rounds of downward revisions to the 2009
growth outlook from 3.9 per cent in July
2008 to -1.4 per cent in July 2009, the IMF
for the first time, revised the growth outlook
upwards to -1.1 per cent in October 2009.
China and India are expected to lead the
global recovery.
III.3 Following a contraction in the last
quarter of 2008 and the first quarter of 2009,
global growth turned positive in the second
quarter of 2009 bolstered by the strong
performance of the Asian economies and
stabilisation in other regions. Different
economies are at differing points of the
cycle. Although advanced economies
continue to be in recession with a growth
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
forecast of -3.4 per cent, the emerging and
developing economies are forecast to grow
by 1.7 per cent during 2009 (Table 3.1).
Emerging Asia is leading the global rebound,
with significant acceleration in growth in
the second quarter in China, Hong Kong,
Singapore and South Korea. In China, GDP
growth is estimated to have further
accelerated to 8.9 per cent in the third
quarter, supported by the substantial fiscal
stimulus and rapid increase in bank lending.
GDP growth in other Asian emerging-market
economies has also strongly recovered,
partly in response to policy stimulus.
III.4 Going forward, the global economy is
expected to make a modest recovery in
2010. In October 2009, the IMF revised its
growth forecast for world output for 2010
upwards to 3.1 per cent from 2.9 per cent
forecast in July 2009. The recovery is,
however, expected to be slow and there are
concerns about the prospect of long-term
damage to the potential growth path of the
world economy.
III.5 Although global economic prospects
continue to be uncertain, the risks to global
activity are overall viewed to be broadly
balanced. On the positive side, inventories
appear to be leaner, world trade seems to
be stabilising and capital flows are returning
to the emerging world. There are, however,
many challenges on the road to a sustained
global recovery. An important concern is
rising unemployment and associated
sluggish consumer spending.
III.6 A critical and complex issue that will
have a bearing on the global recovery relates
to appropriate timing and pace of exit from
the current unprecedented levels of
expansionary macroeconomic policies.
RBI
Monthly Bulletin
November 2009 2097
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.1: Select Economic Indicators - World

Item 2007 2008 2009P 2010P
1 2 3 4 5
I. World Output (Per cent change) # 5.2 3.0 -1.1 3.1
(3.8) (1.8) (-2.3) (2.3)
i) Advanced Economies 2.7 0.6 -3.4 1.3
ii) Other Emerging Market and Developing Countries 8.3 6.0 1.7 5.1
of which: Developing Asia 10.6 7.6 6.2 7.3
India 9.4 7.3 5.4 6.4
II. Consumer Price Inflation (Per cent)
i) Advanced Economies 2.2 3.4 0.1 1.1
ii) Other Emerging Market and Developing Countries 6.4 9.3 5.5 4.9
of which: Developing Asia 5.4 7.5 3.0 3.4
III. Net Capital Flows* (US$ billion)
i) Net Private Capital Flows (a+b+c)** 696.5 129.5 -52.5 28.3
a) Net Private Direct Investment 411.2 425.0 279.0 269.5
b) Net Private Portfolio Investment 88.1 -85.4 -99.8 -110.4
c) Net Other Private Capital Flows 197.1 -210.1 -231.6 -130.8
ii) Net Official Flows -69.5 -105.7 50.3 -14.2
IV. World Trade @
i) Trade Volume 7.3 3.0 -11.9 2.5
ii) Export Volume 7.4 2.8 -11.4 2.6
iii) Trade Price Deflator 8.1 11.2 -12.2 5.4
V. Current Account Balance (Per cent to GDP)
i) US -5.2 -4.9 -2.6 -2.2
ii) China 11.0 9.8 7.8 8.6
iii) India -1.0 -2.2 -2.2 -2.5
iv) Middle East 18.1 18.3 2.6 7.9
P : IMF Projections.
# : Growth rates are based on exchange rates at purchasing power parities. Figures in parentheses are growth rates at
market exchange rates.
* : Net capital flows to emerging market and developing countries.
** : On account of data limitations, flows listed under ‘Net private capital flows’ may include some official flows.
@ : Average of annual percentage change for world exports and imports of goods and services.
Source : World Economic Outlook, October 2009, International Monetary Fund.

While early reversal of easy monetary policy
may thwart the incipient recovery, delaying
the exit can potentially fuel inflation and
inflationary expectations. That, in turn,
would push up interest rates, which would
militate against sustained growth. Different
timings of the exit from accommodative
monetary policy in different countries
would result in interest rate differentials,
with the resultant effects on capital flows
and exchange rates, which may have to be
managed prudently in emerging markets to
contain the adverse implications for growth
and inflation.
III.7 The OECD Economic Outlook
(September 2009) points to a recovery
earlier than what was envisaged a few
months ago. There has been a marked
improvement in the overall financial
conditions, though bank lending continues
to decline and concerns about the health of

RBI
Monthly Bulletin
2098 November 2009

the banking system remain. The inventory
adjustment underway appears to have
progressed and augurs well for the growth
in the near-term. Similarly, decline in global
trade appears to have reached a trough, with
exports in the second quarter showing
positive growth over the first quarter of
2009. The pace of the recovery, however, is
likely to remain modest for some time to
come as ample spare capacity, low levels of
profitability, high and rising unemployment,
anaemic growth in labour income and
ongoing housing market corrections will
dampen any upturn in private demand.
III.8 The global financial crisis had
affected the world economy through various
channels. In addition to the growth
slowdown and trade contraction worldwide,
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
which was a common shock for all the
countries, the advanced economies were
affected by rising unemployment, which
lowered the demand, while the emerging
market economies (EMEs) experienced
significant reversal in capital flows that
affected their markets and the growth
outlook. Unemployment rates in advanced
economies continue to be high, even though
EMEs have started to experience return of
capital flows (Chart III.1).
III.9 World merchandise exports started
declining from November 2008 as a result
of depressed world economic activity
under the impact of global economic crisis.
The decline in world exports accelerated
over successive months during 2009.
Subsequently, however, world exports
RBI
Monthly Bulletin
November 2009 2099
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

came to show an improvement in June Merchandise Trade

2009, with the year-on-year decline being
the smallest (26.9 per cent) in 2009 so far. Exports
According to the IMF’s International III.10 In India, the decline in exports,
Financial Statistics, world merchandise which began in October 2008 as an impact
exports (in dollar terms) showed a sharp of the global economic crisis through the
decline of 29.5 per cent during January- trade channel, continued in 2009-10. The
June 2009, as against a growth of 25.9 per rate of decline in exports peaked in April
cent a year ago (Table 3.2). During the same 2009, before moderating somewhat during
period, exports of advanced economies the subsequent months (Chart III.2).
witnessed an even sharper negative growth Overall, India’s merchandise exports during
of 31.1 per cent in contrast with a growth the first five months of 2009-10 (April-
of 21.6 per cent a year back. According to August 2009) posted a decline of 31.0 per
the WTO, world merchandise exports cent, as against a high growth of 52.3 per
increased by about 8 per cent in the second cent during the same period last year.
quarter of 2009 over the preceding quarter,
though year-on-year growth continued to III.11 The composition of India’s export
decline by 33.0 per cent. basket during 2008-09 suggests that the
manufactured goods account for the largest
share in total exports at 67.2 per cent,
Table 3.2: Growth in Exports - Global Scenario
followed by petroleum and primar y
(Per cent)
products. During 2008-09, the exports of
Region/Country 2007 2008 2008 2009
major commodity groups slowed down, that
January-December January-June
1 2 3 4 5
of gems and jewellery exhibited substantial
acceleration, while engineering goods
World 14.1 16.2 25.9 -29.5
Advanced
displayed a marginal improvement in
Economies 13.5 11.0 21.6 -31.1 growth (Table 3.3).
US 12.0 11.9 18.0 -23.8
France 12.8 10.0 22.5 -32.0 III.12 Destination-wise, developing and
Germany 18.0 10.6 23.6 -33.4 OECD countries were the major markets for
Japan 7.8 12.3 23.2 -37.9
India’s exports during 2008-09 with each
Emerging and
Developing group accounting for over 37.0 per cent of
Economies 15.1 25.6 34.1 -27.6 share in total exports followed by the OPEC
Singapore 10.1 13.0 23.8 -31.7
(21.2 per cent). Country-wise, the UAE
China 25.6 17.3 21.8 -21.7
India 23.3 20.0 39.8 * -25.6 *
became the single largest export destination
Indonesia 14.7 24.4 27.8 -28.3 for India in 2008-09, replacing thereby the
Korea 14.1 13.6 20.4 -22.7 US, which had remained India’s largest
Malaysia 9.6 19.1 24.2 -31.2 export market for a number of years.
Thailand 17.0 12.9 25.0 -23.4
Overall, the direction of India’s exports
*: Pertains to January-August over the corresponding period
of previous year.
during 2008-09 indicated that the exports
Source: 1. IMF (www.imfstatistics.org) to Asian developing countries declined;
2. DGCI&S for India. exports growth to EU and North America

RBI
Monthly Bulletin
2100 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

decelerated, while exports to OPEC showed progressively increasing and reaching a

accelerated growth (Table 3.4).
Imports
III.13 The phase of deceleration in
imports, which prevailed during October-
November 2008, turned negative thereafter
with the rate of fall in imports
peak in May 2009 (39.2 per cent). Although
the rate of fall in imports moderated
considerably during June 2009, it again
accelerated in July 2009. The decline in
imports, however, during August 2009 was
lower than that in July 2009. During April-
August 2009, imports registered a decline

Table 3.3: Exports of Principal Commodities

Commodity/Group US $ billion Variation (Per cent)
2006-07 2007-08R 2008-09P 2007-08 2008-09
April-March April-March
1 2 3 4 5 6
1. Primary Products 19.7 27.6 25.3 40.0 -8.1
of which:
a) Agriculture and Allied Products 12.7 18.4 17.5 45.3 -4.9
b) Ores and Minerals 7.0 9.1 7.8 30.2 -14.5
2. Manufactured Goods 84.9 103.0 122.8 21.3 19.3
of which:
a) Chemicals and Related Products 17.3 21.2 22.6 22.3 6.8
b) Engineering Goods 29.6 37.4 47.3 26.4 26.5
c) Textiles and Textile Products 17.4 19.4 20.0 11.8 3.0
d) Gems and Jewellery 16.0 19.7 27.7 23.2 40.8
3. Petroleum Products 18.6 28.4 26.8 52.2 -5.4
4. Total Exports 126.4 162.9 182.6 28.9 12.1
Memo:
Non-oil Exports 107.8 134.5 155.8 24.8 15.8
R : Revised. P : Provisional.
Source : DGCI&S.

RBI
Monthly Bulletin
November 2009 2101
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.4: Direction of India's Exports

Group/Country US $ billion Variation (Per cent)
2006-07 2007-08R 2008-09P 2007-08 2008-09
April-March April-March
1 2 3 4 5 6
1. OECD Countries 53.1 64.3 68.3 21.1 6.2
of which:
a) EU 26.8 34.5 39.0 28.7 12.9
b) North America 20.0 22.0 22.2 10.0 0.9
US 18.9 20.7 20.8 9.8 0.5
2. OPEC 21.0 27.0 38.8 28.8 43.8
of which:
UAE 12.0 15.6 23.9 29.9 53.1
3. Developing Countries 50.4 69.2 68.6 37.2 -0.8
of which:
Asia 37.6 51.5 51.4 36.9 -0.2
People’s Republic of China 8.3 10.8 9.3 30.6 -14.3
Singapore 6.1 7.4 8.2 21.4 11.4
4. Total Exports 126.4 162.9 182.6 28.9 12.1
R: Revised. P: Provisional.
Source: DGCI&S.

of 33.4 per cent in contrast with a growth
of 52.1 per cent a year ago and the decline
was seen in both POL and non-POL imports.
The decline in imports witnessed in the last
nine consecutive months was mainly an
outcome of lower international crude oil
prices and slowdown in domestic economic
activity, apart from the high base effect.
III.14 Commodity-wise imports indicated
that growth of POL imports showed a
deceleration (14.6 per cent) during 2008-09
from the level a year ago (39.9 per cent),
mainly due to sharp reduction in
international crude oil prices since August
2008, as also due to slowdown in the growth
of volume of POL imports (Chart III.3).

RBI
Monthly Bulletin
2102 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Growth in non-POL imports also witnessed
moderation (16.5 per cent) from the
previous year’s level (33.4 per cent), with
deceleration mainly emanating from the
imports of capital goods, gold and silver, and
iron and steel. Imports of pearls, precious
and semi-precious stones, however, grew
considerably during the year (Table 3.5).
III.15 Source-wise, developing countries
occupied the highest share in India’s
imports (32.9 per cent), followed by OPEC
and OECD countries during 2008-09. This
was in contrast with 2007-08 when OECD
countries had the highest share in India’s
imports. Country-wise, China continued to
be the single largest source of imports
followed by the UAE, Saudi Arabia, the US,
Iran and Germany.
III.16 India’s merchandise trade deficit
witnessed an increase from 7.5 per cent of
GDP in 2007-08 to 9.4 per cent in 2008-09.
During April-August 2009, merchandise
trade deficit declined over the
corresponding period of previous year,
reflecting relatively larger decline in imports
than exports (Table 3.6).
Balance of Payments (BoP)
Current Account
III.17 The combined impact of synchronised
global economic recession and deceleration
in world trade witnessed since the second
half of 2008-09 continued to affect the
transactions in India’s current account
during the first quarter of 2009-10. The
decline in exports observed since October
2008 persisted during the first quarter of
2009-10. On a BoP basis, India’s merchandise
exports recorded a decline of 21.0 per cent
during April-June 2009 as against a high

Table 3.5: Imports of Principal Commodities

Commodity/Group US $ billion Variation (Per cent)
2006-07 2007-08R 2008-09P 2007-08 2008-09
April-March April-March
1 2 3 4 5 6
Petroleum, Petroleum Products and
Related Material 56.9 79.6 91.3 39.9 14.6
Edible Oil 2.1 2.6 3.4 21.4 34.4
Iron and Steel 6.4 8.7 9.4 35.2 7.8
Capital Goods 47.1 70.1 70.5 49.0 0.6
Pearls, Precious and Semi-Precious Stones 7.5 8.0 14.4 6.5 81.1
Chemicals 7.8 9.9 12.2 26.4 22.8
Gold and Silver 14.6 17.9 18.7 22.0 4.6
Total Imports 185.7 251.4 291.5 35.4 15.9
Memo:
Non-oil Imports 128.8 171.8 200.2 33.4 16.5
Non-oil Imports excluding Gold and Silver 114.1 153.9 181.5 34.9 17.9
Mainly Industrial Inputs* 104.8 140.9 160.3 34.4 13.8
R: Revised. P: Provisional.
*: Non-oil imports net of gold and silver, bulk consumption goods, manufactured fertilisers and professional instruments.
Source : DGCI&S.

RBI
Monthly Bulletin
November 2009 2103
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.6: India's Merchandise Trade Invisibles

(US $ billion)
III.18 Manifesting the impact of
Item 2008-09R 2008-09R 2009-10P
continuing global recession, the gross
April-August
invisibles receipts registered a marginal
1 2 3 4
decline, while invisibles payments
Exports 182.6 93.0 64.1
recorded a positive growth during the first
Oil 26.8 16.0 ..
Non-oil 155.8 77.0 ..
quarter of 2009-10 (Table 3.8). The decline
Imports 291.5 153.7 102.3 in invisibles receipts during the quarter
Oil 91.3 53.7 28.3 was on account of a decline in almost all
Non-oil 200.2 99.9 74.0 the categories of services except insurance
Trade Balance -108.8 -60.7 -38.2 and financial services, and a sharp decline
Non-Oil Trade in investment income receipts (20.3 per
Balance -44.4 -23.0 ..
cent) mainly due to lower interest rates
Variation (per cent)
prevailing in other countries. Although
Exports 12.1 52.3 -31.0
Oil -5.4 50.8 ..
exports of software services registered a
Non-oil 15.8 52.6 .. decline during the first quarter, they are
Imports 15.9 52.1 -33.4 projected (by NASSCOM) to grow by 4 to 7
Oil 14.6 86.6 -47.4 per cent during the financial year 2009-10.
Non-oil 16.5 38.4 -25.9
Private transfer receipts, comprising
R: Revised. P: Provisional.
.. : Not Available. mainly remittances from Indians working
Source: DGCI&S. overseas and local withdrawals from NRI
Rupee deposits increased during the first
growth of 43.0 per cent during April-June quarter of 2009-10. A positive growth
2008. Similarly, the trend of negative import observed in invisibles payments during the
growth that surfaced during the fourth quarter was mainly due to a higher growth
quarter of 2008-09 after a gap of almost seven in payments under non-software services
years, continued in the first quarter of 2009- such as business and financial services and
10. Imports declined by 19.6 per cent during the income account. Investment income
the first quarter of 2009-10 as against a payments increased marginally owing to
positive growth of 42.9 per cent during the increased reinvested earnings of FDI
corresponding period a year ago – mainly due companies in India.
to lower oil import bill. However, as
compared to the last quarter of 2008-09, III.19 Although, net invisibles (invisibles
exports during the first quarter of 2009-10 receipts minus invisibles payments) were
declined, while imports recorded an increase marginally lower during the first quarter
reflecting the increase in oil prices. As a of 2009-10 than that in the corresponding
result, there was a higher trade deficit (US$ period of the previous year, the invisibles
26.0 billion) during the first quarter of 2009- surplus financed about 77.7 per cent of the
10 over the preceding quarter, although it trade deficit during the first quarter of
was lower than the deficit observed during 2009-10 (71.3 per cent during the first
the first quarter of 2008-09 (Table 3.7). quarter of 2008-09). Despite net invisibles

RBI
Monthly Bulletin
2104 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.7: India's Balance of Payments

(US $ billion)
Item April-March 2008-09 2009-10
Apr-Jun P
2007-08 PR 2008-09 P Apr-Jun PR Jul-Sep PR Oct-Dec PR Jan-Mar P
1 2 3 4 5 6 7 8
1. Exports 166.2 175.2 49.1 49.0 37.3 39.8 38.8
2. Imports 257.8 294.6 80.5 87.7 72.0 54.4 64.8
3. Trade Balance (1-2) -91.6 -119.4 -31.4 -38.7 -34.7 -14.6 -26.0
4. Net Invisibles 74.6 89.6 22.4 26.2 21.7 19.3 20.2
5. Current Account Balance (3+4) -17.0 -29.8 -9.0 -12.5 -13.0 4.7 -5.8
6. Gross Capital Inflows 433.0 302.5 90.9 85.0 69.5 57.1 78.5
7. Gross Capital Outflows 325.0 293.3 79.7 77.5 73.7 62.4 71.8
8. Net Capital Account (6-7) 108.0 9.1 11.1 7.6 -4.3 -5.3 6.7
9. Overall Balance (5+8)# 92.2 -20.1 2.2 -4.7 -17.9 0.3 0.1

Memo:

i. Export growth (%) 28.9 5.4 43.0 28.0 -9.1 -24.2 -21.0
ii. Import growth (%) 35.2 14.3 42.9 47.3 7.3 -27.3 -19.6
iii. Trade balance (as a % of GDP) -7.8 -10.3
iv. Invisible receipts growth (%) 29.7 9.4 30.3 34.3 1.8 -16.6 -0.7
v. Invisibles payments growth (%) 18.7 -1.4 13.5 14.4 3.1 -24.7 11.9
vi. CAD as a % of GDP 1.5 2.6
vii. Foreign Exchange Reserves
(as at end of the period) 309.7 252.0 312.1 286.3 256.0 252.0 265.1

#: Overall balance also includes errors and omissions apart from items 5 and 8.
PR: Partially Revised. P: Preliminary.

surplus, the large trade deficit mainly on
account of decline in exports and increase
in imports over the preceding quarter led
to a current account deficit of US$ 5.8
billion during the first quarter of 2009-10
as against US$ 9.0 billion during the first
quarter of 2008-09. During 2008-09, current
account deficit as a per cent of GDP stood
at 2.6 per cent, higher than 1.5 per cent a
year ago (Chart III.4).
Capital Account
III.20 During the first quarter of 2009-10,
capital account witnessed a revival after
undergoing a sustained pressure since the
third quarter of 2008-09, on the back of
massive deleveraging in the advanced
financial markets. With the revival in capital
inflows to India, particularly foreign
investments, the capital account showed a
turnaround from a negative balance in the
last two quarters of 2008-09 to a positive
balance of US$ 6.7 billion during the first
quarter of 2009-10 (Table 3.9).
III.21 Component-wise, net inward FDI
into India remained buoyant during April-
June of 2009-10, reflecting relatively better
investment climate in India and the
continuing liberalisation measures to attract
FDI. During the first quarter of 2009-10,
manufacturing sector continued to attract
most part of FDI (19.2 per cent), followed
by real estate activities (15.6 per cent) and
financial services (15.4 per cent).

RBI
Monthly Bulletin
November 2009 2105
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.8: Invisibles Gross Receipts and Payments

(US $ billion)

Item Invisibles Receipts Invisibles Payments

April-March April-June April-March April-June
2008-09(P) 2008-09(PR) 2009-10 (P) 2008-09(P) 2008-09(PR) 2009-10(P)
1 2 3 4 5 6 7
1. Travel 10.9 2.5 2.3 9.4 2.2 2.0
2. Transportation 11.1 2.6 2.5 12.8 3.3 2.8
3. Insurance 1.4 0.4 0.4 1.1 0.2 0.3
4. Govt. not included elsewhere 0.4 0.1 0.1 0.8 0.1 0.1
5. Miscellaneous 77.5 17.5 17.1 27.3 5.6 8.2
Of which:
Software 47.0 12.2 10.8 2.8 0.9 0.4
Non-Software 30.5 5.3 6.4 24.5 4.8 7.8
6. Transfers 47.0 12.3 13.3 2.7 0.7 0.5
Of which
Private Transfers 46.4 12.2 13.3 2.3 0.5 0.4
7. Income 14.3 3.6 3.0 18.8 4.4 4.7
Investment Income 13.5 3.4 2.7 17.5 4.1 4.4
Compensation of Employees 0.8 0.2 0.2 1.3 0.3 0.3
Total (1 to 7) 162.6 38.9 38.7 73.0 16.5 18.5

P : Preliminary. PR : Partially Revised.

III.22 Portfolio investment, primarily
comprising foreign institutional investors’
(FIIs) investments and American Depository
Receipts (ADRs)/Global Depository Receipts
(GDRs) witnessed a sharp turnaround from
net outflows in the fourth quarter of 2008-09
to net inflows during the first quarter of 2009-
10. During 2009-10, the sharp increase in FII
inflows could be attributed mainly to the
recovery in domestic stock markets following

RBI
Monthly Bulletin
2106 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.9: Net Capital Flows

(US $ billion)
Item 2008-09 2008-09 2009-10
April- Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun
March P PR PR PR P P
1 2 3 4 5 6 7
1. Foreign Direct Investment (FDI) 17.5 9.0 4.9 0.4 3.2 6.8
Inward FDI 35.0 11.9 8.8 6.3 8.0 9.5
Outward FDI 17.5 2.9 3.9 5.9 4.8 2.6
2. Portfolio Investment -14.0 -4.2 -1.3 -5.8 -2.7 8.3
Of which:
FIIs -15.0 -5.2 -1.4 -5.8 -2.6 8.2
ADR/GDRs 1.2 1.0 0.1 0.0 0.02 0.04
3. External Assistance 2.6 0.4 0.5 1.0 0.8 0.08
4. External Commercial Borrowings 8.2 1.5 1.7 3.9 1.1 -0.4
5. NRI Deposits 4.3 0.8 0.3 1.0 2.2 1.8
6. Banking Capital excluding
NRI Deposits -7.7 1.9 1.9 -6.0 -5.4 -5.2
7. Short-term Trade Credit -5.8 2.4 1.3 -4.0 -5.5 -3.1
8. Rupee Debt Service -0.1 -0.03 - - -0.07 -0.02
9. Other Capital 4.1 -0.5 -1.6 5.2 1.1 -1.6
Total (1 to 9) 9.1 11.1 7.6 -4.3 -5.3 6.7

P: Preliminary. PR: Partially Revised.

the international trends and comparatively
better growth prospects in India. Net inflows
under ADRs/GDRs were significantly lower
during the first quarter of 2009-10 as
compared to the coresponding quarter of the
previous year, reflecting continued
tightness in liquidity in the overseas
markets. The net ECBs recorded an outflow
during the first quarter of 2009-10 as against
net inflows during the first quarter of 2008-
09. Banking capital mainly consists of
foreign assets and liabilities of commercial
banks. NRI deposits constitute major part
of the foreign liabilities. Net Banking capital,
including NRI deposits also were negative
during the first quarter of 2009-10 as against
a positive net inflow witnessed during the
first quarter of 2008-09.
III.23 During April-June 2009, the
disbursement under short-term trade credit
continued to remain steady on the back of
various policy measures undertaken such as
hike in the all-in-cost ceilings for trade credit
of various maturities that was necessary in
the context of hardening of cost of funds in
the international markets. The repayments
were, however, somewhat higher than the
comparable period of the previous year. It
is expected that the current trend in
disbursement of short-term trade credit will
continue.
III.24 The latest available information on
certain indicators of the capital account
indicates a revival in capital flows to India
(Table 3.10). This could be attributed to

RBI
Monthly Bulletin
November 2009 2107
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.10: Capital Flows in 2009-10 so far 2009-10 as compared with an increase of
(US $ billion) US$ 2.2 billion during the corresponding
Component Period 2008-09 2009-10 quarter of 2008-09. Taking into account the
1 2 3 4 valuation gain due to depreciation of the US
FDI to India April-August 16.5 16.2 dollar against the major currencies, the
FIIs (net) April-October * -9.5 18.4 foreign exchange reserves increased by US$
ADRs/GDRs April-September 1.1 2.6 13.2 billion during April-June 2009 as
ECB Approvals April-September 10.2 7.1
compared with an increase of US$ 2.4 billion
NRI Deposits (net) April-September 1.1 2.7
during April-June 2008 (Chart III.5).
* : Up to October 16, 2009.
FDI : Foreign Direct Investment. III.26 As on October 16, 2009, India’s
FII : Foreign Institutional Investors’ Investment.
foreign exchange reserves stood at US$
ECB : External Commercial Borrowings.
284.8 billion, which is higher by US$ 32.8
NRI : Non Resident Indians.
ADR : American Depository Receipts
billion over end-March 2009 level (US$ 252.0
GDR : Global Depository Receipts. billion). The increase in foreign exchange
reserves during this period also includes the
relatively better macroeconomic SDRs allocation made by the IMF in two
performance of India during 2008-09 and consecutive tranches on August 28, 2009 and
positive sentiments of global investors September 9, 2009, respectively (Table 3.11).
about the growth potential of EMEs,
including India. External Debt

Foreign Exchange Reserves
III.25 The foreign exchange reserves on BoP
basis (i.e., excluding valuation) increased by
US$ 0.1 billion during the first quarter of
III.27 India’s external debt was placed at US$
227.7 billion at the end of June 2009 as
compared to US$ 224.0 billion as at the end
of March 2009. The increase in the external
debt by 1.7 per cent during this period was

RBI
Monthly Bulletin
2108 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.11: India’s Foreign Exchange Reserves

(US $ million)
End of Month Gold SDR@ Foreign Reserve Total Memo:
Currency Position (2+3+ Outstanding Net
Assets* in the IMF 4+5) Forward Sales (-) /
Purchases (+) of US
dollar by the Reserve
Bank at the end
of the month
1 2 3 4 5 6 7
March 2000 2,974 4 35,058 658 38,694 (-) 675
March 2005 4,500 5 135,571 1,438 141,514 –
March 2006 5,755 3 145,108 756 151,622 –
March 2007 6,784 2 191,924 469 199,179 –
March 2008 10,039 18 299,230 436 309,723 (+) 14,735
March 2009 9,577 1 241,426 981 251,985 (-) 2,042
April 2009 9,231 1 241,487 983 251,702 (-) 1,071
May 2009 9,604 1 251,456 1,245 262,306 (+) 131
June 2009 9,800 1 254,093 1,248 265,142 (+) 745
July 2009 9,671 1 260,631 1,338 271,641 (+) 800
August 2009 9,828 4,828 261,247 1,349 277,252 (+) 619
September 2009 10,316 5,224 264,373 1,365 281,278 –
October 2009# 10,316 5,250 267,898 1,372 284,836 –

* : Exclude US$ 250 million invested in foreign currency denominated bonds issued by IIFC(UK) since March 20,
2009.
@ : Include SDRs 3,082.5 million allocated under general allocation and SDRs 214.6 million allocated under special
allocation by the IMF done on August 28, 2009 and September 9, 2009, respectively.
# : As on October 16, 2009. – : Not available.

mainly due to the increase in long term
external debt, particularly Non-Resident
Indian (NRI) deposits (Table 3.12). Short-term
debt, however, declined by US$ 3.0 billion
during the same period mainly on account
of decline in short-term trade credit (up to 6
months). Accordingly, the ratio of short-term
to total debt declined to 17.8 per cent from
19.5 per cent during the same period. The
ratio of external debt to GDP increased to
21.4 per cent as at end-March 2009 from 18.9
per cent as at end-March 2008. The debt
service ratio declined steadily during the last
three years and stood at 4.6 per cent as at
end-March 2009. The debt service ratio for
April-June 2009 worked out to 5.5 per cent.
III.28 Based on the measure of residual
maturity of the outstanding debt - an
indicator for assessing the debt service
liability in the short-run - the revised short-
term debt (below one year) as at end-March
2009 was estimated at around US$ 87.5
billion, which would become due for
repayment during 2009-10. This includes
short-term debt based on original maturity
at US$ 43.6 billion and long term external
debt due for payments within one year of
US$ 43.9 billion. Out of these US$ 43.9
billion, the NRI deposits constitute US$ 32.1
billion. The bulk of NRI deposits (around
70 per cent) are in rupee-terms and there
have been net accretions of around US$ 2.7

RBI
Monthly Bulletin
November 2009 2109
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 3.12: India's External Debt

(US $ billion)
Item End-March End-March End-June Variation
2008 2009 PR 2009 P
(June 2009 over
March 2009)
Amount Per cent
1 2 3 4 5 6
1. Multilateral 39.5 39.5 41.2 1.7 4.3
2. Bilateral 19.7 20.6 21.4 0.8 3.9
3. International Monetary Fund 0 0 0 0.0 0
4. Trade Credit (above 1 year) 10.4 14.6 15.1 0.4 2.9
5. External Commercial Borrowings 62.3 62.5 63.2 0.6 1.0
6. NRI Deposit 43.7 41.6 44.6 3.0 7.3
7. Rupee Debt 2.0 1.5 1.6 0.1 5.2
8. Long-term (1 to 7) 177.6 180.4 187.1 6.7 3.7
9. Short-term 45.7 43.6 40.6 -3.0 -6.8
Total (8+9) 223.3 224.0 227.7 3.7 1.7
Memo: (Per cent)
Total Debt /GDP 18.9 21.4 –
Short-term Debt/Total Debt 20.5 19.5 17.8
Short-term Debt/Reserves 14.8 17.3 15.3
Concessional Debt/Total Debt 19.8 18.7 19.0
Reserves/Total Debt 138.7 112.5 116.5
Debt Service Ratio 4.8 4.6 5.5
P: Provisional. PR: Partially Revised.

billion during 2009-10 so far (up to an increase in inward direct investment

September 30, 2009).
International Investment Position
III.29 India’s net international liabilities
were placed at US$ 82.5 billion as at end-
June 2009 as compared to US$ 59.4 billion
as at end-March 2009. The international
assets increased from US$ 350.0 billion at
end-March 2009 to US$ 360.2 billion at end-
June 2009 mainly on account of increase
in reserve assets during the quarter. The
increase in international liabilities from
US$ 409.4 billion to US$ 442.7 billion
during the same period was on account of
and portfolio equity investment in India
(Chart III.6).
III.30 During the first quarter of 2009-10
(April-June), exports declined and imports
increased over the preceding quarter, while
private transfer receipts remained buoyant.
Notwithstanding net invisibles surplus,
higher trade deficit on account of decline in
exports and increase in imports resulted in
a current account deficit during the first
quarter of 2009-10. Nevertheless, the
renewed confidence of international
investors in India has led to the revival in
capital inflows, turning the capital account

RBI
Monthly Bulletin
2110 November 2009

from a deficit in the last two quarters of
2008-09 into a surplus in the first quarter of
2009-10. Accordingly, there was a marginal
increase in foreign exchange reserves on BoP
basis (i.e., excluding valuation). Including
valuation effects, reserves showed a larger
increase during the first quarter of 2009-10
and reserve accretion continued in the
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
second quarter of 2009-10. Thus, the balance
of payments developments indicate that
concerns relating to the external sector have
receded with the revival in capital flows and
modest level of current account deficit. The
Indian rupee has exhibited some
appreciation in the recent period while the
country’s reserve levels have increased.
RBI
Monthly Bulletin
November 2009 2111
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

IV. Monetary Conditions The accommodative monetary policy

stance of the Reserve Bank has continued
during 2009-10 so far to support the
emerging recovery. While broad money
growth witnessed some moderation in
recent period, availability of surplus
liquidity in the system was evident in the
large daily absorption through reverse repo
by the Reserve Bank. With the persistence
of deceleration in bank credit to the
commercial sector, high deposit growth and
the Reserve Bank’s liquidity augmenting
measures created space for market
absorption of the large government
borrowing programme. Flow of resources
from non-bank sources to the commercial
sector during 2009-10 so far has been
marginally higher than the corresponding
period of the previous year.

IV.1 Monetary and liquidity conditions

during 2009-10 so far have been conditioned
by the continuation of accommodative
monetary policy stance of the Reserve Bank
to support a faster economic recovery. Broad
money growth (year-on-year) witnessed
some moderation during the second quarter
of 2009-10 but still remained above the
Reserve Bank’s projected trajectory of 18.0
per cent for 2009-10. On the sources side of
monetary expansion, banking system’s
credit to the Government continued to be the
major driver as bank credit to the commercial
sector continued to exhibit deceleration. On
the component side of monetary expansion,
the key driver was the high growth in
aggregate deposits. The movements in
reserve money reflected the changes in net
Reserve Bank credit to the Centre and net

RBI
Monthly Bulletin
2112 November 2009

foreign assets with the Reser ve Bank.
Expansion of net Reserve Bank credit to the
Centre through purchases under open
market operations and unwinding of MSS
was moderated significantly due to large
daily absorption of liquidity through reverse
repo window under LAF. Net foreign assets
(net of valuations) with the Reserve Bank
recorded an increase in the second quarter
of 2009-10, after witnessing decline in the
previous quarter.
IV.2 The thrust of the various policy
initiatives taken by the Reserve Bank since
mid-September 2008 has been on providing
ample rupee for the smooth functioning of
the financial market, ensuring comfortable
dollar liquidity and maintaining a market
environment conducive for the continued
flow of credit to productive sectors to revive
the economic growth in the midst of severe
global recession. The important measures
which reflect the accommodative monetary
policy stance include reduction of the repo
and reverse repo rates, reduction of the CRR
and the SLR, and institution of several
sector-specific liquidity facilities. Since
October 11, 2008, the Reserve Bank reduced
CRR by a cumulative 400 basis points to 5.0
per cent of net demand and time liabilities
(NDTL), repo rate by 425 basis points to 4.75
per cent and the reverse repo rate by 275
basis points to 3.25 per cent. The nature of
injection of liquidity through unwinding of
MSS and reduction of CRR ensured the
attainment of the Reserve Bank’s objective
of maintaining ample liquidity in the
system without expanding the balance sheet
of the Reserve Bank or compromising on the
quality of the assets in the balance sheet.
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
Monetary Survey
IV.3 On a year-on-year (y-o-y) basis, M3
growth was 18.9 per cent as on October 9,
2009 as compared with 20.9 per cent a year
ago. The growth in M3 mainly reflected the
sustained expansion in aggregate deposits
during this period. Within aggregate
deposits, time deposits registered a growth
(y-o-y) of 20.9 per cent as on October 9,
2009 as compared with 21.6 per cent a year
ago (Table 4.1 and Chart IV.1). Banks
mobilised large time deposits during the
third quarter of 2008-09, as investors
reallocated their portfolios in favour of
bank deposits with the intensification of
financial crisis and increase in risk
perception in the face of snowballing
uncertainty. This period also witnessed a
shift from demand deposits to time
deposits. Demand deposits that posted a
sharp decline in the last two quarters of
2008-09 and registered a growth of only 0.5
per cent at end-March 2009 witnessed a
turnaround. Demand deposits expanded
by 10.3 per cent (y-o-y) as on October 9,
2009 as compared with 17.7 per cent a year
ago. The net outflows from small savings
schemes that started in December 2007
continued up to July 2009 (the latest period
for which the data are available) (Chart
IV.2). Growth in currency with the public
moderated to 16.2 per cent (y-o-y) as on
October 9, 2009 as compared with 20.1 per
cent a year ago, mainly reflecting the
impact of moderation in economic activity
on currency demand.
IV.4 On a financial year basis, growth in
M3 during 2009-10 (up to October 9, 2009)
RBI
Monthly Bulletin
November 2009 2113
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 4.1: Monetary Indicators

(Amount in Rupees crore)
Item Outstand- Variation (year-on-year)
ing
October 10, 2008 October 9, 2009
as on
October Absolute Per cent Absolute Per cent
1 9, 2009
2 3 4 5 6
I. Reserve Money* 10,10,786 1,35,117 17.6 1,09,589 12.2
(Reserve Money Adjusted for CRR changes) (22.8) (19.5)
II. Narrow Money (M1) 12,96,628 1,81,395 18.8 1,52,610 13.3
III. Broad Money (M3) 51,46,157 7,47,558 20.9 8,17,802 18.9
a) Currency with the Public 7,01,417 1,01,095 20.1 97,846 16.2
b) Aggregate Deposits 44,40,318 6,46,568 21.0 7,20,413 19.4
i) Demand Deposits 5,90,788 80,405 17.7 55,221 10.3
ii) Time Deposits 38,49,530 5,66,162 21.6 6,65,192 20.9
VI. Major Sources of Broad Money
a) Net Bank Credit to the Government (i+ii) 14,35,356 1,42,385 16.8 4,44,655 44.9
i) Net Reserve Bank Credit to Government 5,365 1,05,435 – 36,641 –
of which: to the Centre 5,407 1,05,182 – 37,037 –
ii) Other Banks’ Credit to Government 14,29,991 36,950 3.8 4,08,014 39.9
b) Bank Credit to the Commercial Sector 31,35,885 6,08,888 27.4 3,04,381 10.7
c) Net Foreign Assets of the Banking Sector 13,33,575 3,11,273 30.0 -16,445 -1.2
d) Government Currency Liability to Public 10,504 975 11.2 849 8.8
e) Net Non-Monetary Liabilities of the Banking Sector 7,69,163 3,15,963 58.8 -84,362 -9.9

*: Data pertain to October 16, 2009.

Note: Data are provisional.

was 8.0 per cent as compared with 7.7 per IV.5 A quarter-wise analysis of growth in
cent during the corresponding period of bank credit shows that expansion in bank
the previous year (Table 4.2). credit recovered in the second quarter of 2009-

RBI
Monthly Bulletin
2114 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

10 from an absolute decline posted in the first remained much lower than the corresponding
quarter, although the expansion of credit quarter of the previous year (Chart IV.3).

Table 4.2: Monetary Aggregates - Variations

(Amount in Rupees crore)
Item 2008-09 2009-10 2008-09 2009-10
(up to (up to Q1 Q2 Q3 Q4 Q1 Q2
October October
10, 2008) 9, 2009)

1 2 3 4 5 6 7 8 9
M3 (1+2+3 = 4+5+6+7-8) 3,10,472 3,82,138 89,283 1,76,379 1,60,487 3,19,987 1,70,385 1,61,408
(7.7) (8.0)
Components
1. Currency with the Public 35,161 35,053 35,772 -18,037 40,405 39,813 24,400 2,682
(6.2) (5.3)
2. Aggregates Deposits with Banks 2,79,487 3,48,235 57,621 1,93,902 1,13,039 2,87,103 1,41,942 1,64,282
(8.1) (8.5)
2.1 Demand Deposits with Banks -42,805 9,540 -79,325 52,771 -62,157 91,586 -34,409 62,870
(-7.4) (1.6)
2.2 Time Deposits with Banks 3,22,292 3,38,695 1,36,946 1,41,131 1,75,195 1,95,517 1,76,350 1,01,412
(11.3) (9.6)
3. ‘Other’ Deposits with Banks -4,175 -1,150 -4,110 514 7,044 -6,930 4,044 -5,555
(-46.1) (-20.6)
Sources
4. Net Bank Credit to Government 91,183 1,58,157 36,124 31,654 1,29,335 1,80,568 1,19,062 63,346
(10.1) (12.4)
4.1 RBI’s Net Credit to Government 81,933 -56,214 -13 51,360 30,230 93,212 -11,145 -14,953
4.1.1 RBI’s Net credit to the Centre 83,006 -56,355 1,430 51,379 29,932 93,657 -11,497 -14,968
4.2 Other Banks’ Credit to Government 9,250 2,14,372 36,137 -19,706 99,106 87,356 1,30,207 78,299
5. Bank Credit to the Commercial Sector 2,52,515 1,22,548 30,811 1,63,138 90,616 1,49,783 -7,737 1,15,625
(9.8) (4.1)
6. NFA of Banking Sector 54,889 -18,609 66,858 7,271 -1,32,461 1,15,385 -37,923 50,120
6.1 NFA of the RBI 95,028 2,564 1,03,932 10,336 -1,56,330 86,048 -16,750 50,120
7. Government’s Currency
Liabilities to the Public 431 450 225 206 186 213 254 196
8. Net Non-Monetary liabilities
of the Banking Sector 88,546 -1,19,591 44,735 25,890 -72,811 1,25,961 -96,730 67,879
NFA: Net Foreign Assets.
Note: 1. Data are provisional.
2. Figures in parentheses are percentage variations.

RBI
Monthly Bulletin
November 2009 2115
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
IV.6 Much of the financial year expansion
in broad money (M3) during 2009-10 (up to
October 9, 2009) resulted from the increase
in commercial banks’ credit to the
Government. On the other hand, net
Reserve Bank credit to the Centre during
2009-10 (up to October 9, 2009) decreased,
reflecting large absorption under the LAF,
despite the sizeable decline in outstanding
balances under MSS with the Reserve Bank
and increase in purchases under OMOs.
IV.7 Non-food credit growth (y-o-y) of
scheduled commercial banks (SCBs) that
RBI
Monthly Bulletin
2116 November 2009
reached its peak in October 2008, witnessed
sustained deceleration thereafter, reflecting
moderation in economic activity. Non-food
credit by SCBs expanded by 11.2 per cent,
y-o-y, as on October 9, 2009, lower than 29.4
per cent a year ago and the Reserve Bank’s
indicative projected trajectory of 20.0 per
cent as set out in the First Quarter Review
for 2009-10. The lower expansion in credit
relative to the significant expansion in
deposits during 2009-10 has resulted in a
decline in the incremental credit-deposit
ratio (Chart IV.4).
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

IV.8 Though the moderation in credit
growth was witnessed across the banking
sector, credit growth decelerated sharply for
private banks while foreign banks registered
a decline (Table 4.3). The expansion of credit
from the public sector banks has also
moderated to some extent.
IV.9 Scheduled commercial banks’
investment in SLR securities expanded by
40.9 per cent (y-o-y) as on October 9, 2009,
as compared with 3.2 per cent a year ago,
driven by the higher market borrowing by
the Government (Table 4.4). This was
facilitated by low credit growth and ample
liquidity in the system. Commercial banks’
holdings of such securities as on October 9,
2009 at 30.4 per cent of their net demand
and time liabilities (NDTL) were higher than
28.1 per cent at end-March 2009 and 25.7
per cent a year ago. Excess SLR investments
of SCBs increased to Rs.2,91,279 crore as on
October 9, 2009 from Rs.1,69,846 crore at
end-March 2009 and Rs.26,933 crore a year
ago. SCB’s also increased their investment
in non-SLR securities substantially.
Simultaneously, SCBs reduced their
overseas foreign currency borrowings and
increased their holding of foreign currency
assets.
IV.10 Growth and inflation conditions
changed significantly during the course of
2008-09. In 2009-10 so far, while growth
impulses remained subdued, the divergence
between WPI and CPI inflation reached a
high level. Given such high variability in
growth and inflation, money growth may
have to be seen in relation to the recent trend
in income velocity of money (Chart IV.5).
IV.11 Disaggregated data on sectoral
deployment of gross bank credit available up
to August 28, 2009 show that 53.8 per cent
of incremental non-food credit (y-o-y) was
absorbed by industry as compared with 47.5
per cent in the corresponding period of the
previous year. The agricultural sector
absorbed 21.8 per cent of the incremental
non-food bank credit as compared with 8.5
per cent in the corresponding period of the
previous year. Personal loans that accounted
for 4.1 per cent of the incremental non-food
credit witnessed moderation; within
personal loans, housing loans decelerated to
a large extent. Growth in loans to commercial

Table 4.3: Credit Flow from Scheduled Commercial Banks

(Amount in Rupees crore)
Item Outstanding Variation (year-on-year)
as on
As on Oct. 10, 2008 As on Oct. 9, 2009
Oct. 9, 2009
Amount Per cent Amount Per cent
1 2 3 4 5 6

1. Public Sector Banks 21,44,697 4,58,297 32.7 2,84,513 15.3

2. Foreign Banks 1,57,601 46,421 32.9 -29,771 -15.9
3. Private Banks 5,15,474 82,704 19.7 12,402 2.5
4. All Scheduled Commercial Banks* 28,90,316 5,94,220 29.5 2,80,627 10.8
*: Including Regional Rural Banks
Note: Data are provisional.

RBI
Monthly Bulletin
November 2009 2117
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 4.4: Scheduled Commercial Bank Survey

(Amount in Rupees crore)
Item Outstanding Variation (year-on-year)
as on As on October As on October
October 10, 2008 09, 2009
09, 2009
Amount Per cent Amount Per cent
1 2 3 4 5 6
Sources of Funds
1. Aggregate Deposits 41,61,354 6,14,272 21.5 6,92,986 20.0
2. Call/Term Funding from Financial Institutions 98,432 29,097 33.3 -18,058 -15.5
3. Overseas Foreign Currency Borrowings 27,702 31,244 100.6 -34,586 -55.5
4. Capital 58,940 8,948 24.5 13,433 29.5
5. Reserves 3,24,335 60023 27.2 43,706 15.6
Uses of Funds
1. Bank Credit 28,90,316 5,94,220 29.5 2,80,627 10.8
of which: Non-food Credit 28,47,595 5,82,344 29.4 2,86,801 11.2
2. Investments in Government and
Other Approved Securities 13,77,910 30,131 3.2 4,00,027 40.9
a) Investments in Government Securities 13,62,250 31,501 3.4 3,96,844 41.1
b) Investments in Other Approved Securities 15,661 -1,370 -9.9 3,183 25.5
3. Investments in non-SLR Securities 2,82,655 -32,157 -17.6 1,31,868 87.5
4. Foreign Currency Assets 42,662 -6,406 -21.9 19,776 86.4
5. Balances with the RBI 1,88,727 99,638 45.6 -1,29,595 -40.7
Note: Data are provisional.

real estate, however, remained high. Credit consumption demand as per GDP data for
card and consumer durables segments the first quarter of 2009-10. Growth in
exhibited negative growth in credit, which incremental credit for services activities also
corroborates the sharp decline in private exhibited significant deceleration (Table 4.5).

RBI
Monthly Bulletin
2118 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 4.5: Deployment of Gross Bank Credit by Major Sectors

(Amount in Rs. crore)
Sector Outstanding Year-on-Year Variations
as on August 29, 2008 August 28, 2009
August 28, 2009
Absolute Per cent Absolute Per cent
1 2 3 4 5 6
Non-Food Gross Bank Credit (1 to 4) 26,23,551 4,84,805 26.5 3,08,718 13.3
1. Agriculture & Allied Activities 3,29,847 41,185 18.6 67,228 25.6
2. Industry 10,96,764 2,30,229 32.9 1,66,121 17.9
3. Personal Loans 5,64,689 69,763 14.5 12,594 2.3
Housing 2,84,721 29,872 12.4 14,668 5.4
Advances against Fixed Deposits 44,760 2,919 7.0 290 0.7
Credit Card Outstanding 24,889 7,173 32.8 -4,167 -14.3
Education 32,017 6,576 38.2 8,217 34.5
Consumer Durables 7,832 -304 -3.1 -1,571 -16.7
4. Services 6,32,251 1,43,628 33.7 62,775 11.0
Transport Operators 39,250 7,485 26.3 3,264 9.1
Professional Services 46,383 15,114 64.6 7,889 20.5
Trade 1,47,354 22,686 21.3 17,951 13.9
Real Estate Loans 96,701 20,580 43.1 28,353 41.5
Non-Banking Financial Companies 1,01,281 26,443 51.8 23,837 30.8
Memo
Priority Sector 9,27,322 1,46,145 22.7 1,37,965 17.5
Micro and Small Enterprises* 2,77,728 38,013 21.1 59,764 27.4
Industry 10,96,764 2,30,229 32.9 1,66,121 17.9
Food Processing 53,137 11,757 30.4 2,743 5.4
Textiles 1,06,033 17,402 21.9 9,036 9.3
Paper & Paper Products 15,795 3,037 26.6 1,342 9.3
Petroleum, Coal Products and Nuclear Fuels 60,273 29,713 90.7 -2,183 -3.5
Chemicals and Chemical Products 73,303 16,172 30.2 3,546 5.1
Rubber, Plastic & their Products 13,496 2,415 24.9 1,372 11.3
Iron and Steel. 1,08,758 21,177 31.6 20,490 23.2
Other Metal and Metal Products 31,271 5,403 25.7 4,844 18.3
Engineering 61,766 9,941 21.3 5,224 9.2
Vehicles, Vehicle Parts and Transport Equipments 35,850 7,244 27.9 2,657 8.0
Gems & Jewellery 29,141 3,693 15.7 1,890 6.9
Construction 37,421 10,020 47.6 6,354 20.5
Infrastructure 3,03,013 55,533 36.1 93,647 44.7
*: Micro and small enterprises include services sector enterprises also.
Note: Data are provisional and relate to select banks. Data also include the effects of mergers of Bharat Overseas Bank
with Indian Overseas Bank, American Express Bank with Standard Chartered Bank and State Bank of Saurashtra
with State Bank of India.

IV.12 Apart from banks, the commercial banking financial companies (NBFCs),
sector mobilised resources from a variety financial institutions, external commercial
of other sources such as capital markets, borrowings (ECBs), American Depository
issuance of commercial papers (CPs), non- Receipts (ADRs)/Global Depository Receipts

RBI
Monthly Bulletin
November 2009 2119
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

(GDRs) and foreign direct investment.
During the first half of 2009-10, flow of
resources from external sources was lower
as compared with the corresponding period
of the previous year, although they were
significantly higher as compared to the
second half of 2008-09. On the other hand,
resources mobilised through domestic non-
bank sources recorded an increase during
this period with significant increase in
issuance of CPs and private placements.
Thus, total flow of resources from non-bank
sources has recorded an increase during
2009-10 so far as compared with the
corresponding period of the previous year
(Table 4.6). The total flow of financial
resources to the commercial sector,
however, remained lower, reflecting
moderation in expansion in bank credit to
the commercial sector.

Table 4.6: Flow of Financial Resources to Commercial Sector

(Rupees crore)

Item Full Year April-September*

2007-08 2008-09 2008-09 2009-10
1 2 3 4 5

A. Adjusted non-food Bank Credit (NFC) 4,44,807 4,21,091 2,40,092 1,07,861 **

i) Non-Food Credit 4,32,846 4,11,824 2,43,280 1,18,257
of which petroleum and fertilizer credit 5,057 31,632 22,391 -9,179 ^
ii) Non-SLR Investment by SCBs 11,961 9,267 -3,188 -10,395

B. Flow from Non-banks (B1+B2) 5,64,558 4,68,567 2,28,119 2,30,130

B1. Domestic Sources 2,55,230 2,98,351 1,22,518 1,40,213
1. Public issues by non-financial entities 51,478 14,205 11,913 13,617
2. Gross private placements by non-financial entities 68,249. 77,856 17,847 34,790 #
3. Net issuance of CPs subscribed by non-banks 10,660 5,590 22,187 51,012
4. Net Credit by housing finance companies 41,841 26,634 14,893 8,124
5. Total gross accommodation by 4 RBI regulated
AIFIs - NABARD, NHB, SIDBI & EXIM Bank 22,267 31,423 7,248 -3,347
6. Systemically important non-deposit taking NBFCs
net of bank credit 36,460 76,828 37,744 17,990 ^
7. LIC’s gross investment in Corporate Debt,
Infrastructure and Social Sector 24,275 65,815 10,686 18,027 ^
B2. Foreign Sources 3,09,328 1,70,216 1,05,601 89,917
1. External Commercial Borrowings / FCCB 91,180 38,009 10,906 6,486
2. ADR/GDR Issues excluding banks and
financial institutions 11,836 4,788 4,652 12,645
3. Short-term Credit from abroad 68,878 -31,160 21,009 -8,133 ^
4. Foreign Direct Investment to India 1,37,434 1,58,579 69,034 78,919 ^

C. Total Flow of Resources (A+B) 10,09,365 8,89,658 4,68,211 3,37,991

Memo Item:
Mutual Funds Investments in Debt (non-Gilt) Instruments 88,457 -32,168 19,896 1,01,956
**: up to October 9, 2009. ^: Data pertain to April-August.
*: Comparable period for respective items. #: Data pertain to April-June.

RBI
Monthly Bulletin
2120 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Reserve Money Survey the Reserve Bank. The growth in reserve

money has to be seen along with policy
IV.13 Growth in reser ve money that
driven changes to the CRR , since the
remained low/negative during the 2009-10
combined impact gets reflected in the
up to the second week of October 2009
growth of broad money. A reduction in CRR
registered a growth of 12.2 per cent, y-o-y,
may lead to a corresponding fall in reserve
as on October 16, 2009 as compared with a
money in the first round; the higher money
growth of 17.6 per cent a year ago. The
multiplier resulting from lower CRR ,
significant acceleration in growth in reserve
however, will lead to higher growth in broad
money in the week ended October 16, 2009
money, though with a lag. When the
reflects the reduction in CRR by 250 basis
variation in reserve money reflects the
points by the Reserve Bank effective from
result of a policy driven change in CRR, for
the fortnight beginning October 11, 2008
the purpose of analytical comparison
and consequent decline in bankers' deposits
reserve money adjusted for CRR changes
with the Reserve Bank. The reserve money
becomes more relevant. Adjusted for the
growth as on October 16, 2009, therefore,
first round effect of the changes in CRR,
is over a lower base that resulted from the
reserve money growth (y-o-y) as on October
reduction in CRR a year ago. Reserve Bank
16, 2009 was 19.5 per cent as compared with
has reduced CRR by 400 basis points since
22.8 per cent a year ago. The CRR impact
October 2008 to augment domestic liquidity
explains the difference between 'reserve
in view of the intensification of global
money' and 'adjusted reser ve money'
financial crisis and its related impact on
(Chart IV.6).
domestic markets. The movement in
reserve money in the second quarter of IV.14 The money multiplier, which had
2009-10 was mainly driven by liquidity declined from 4.7 at end-March 2007 to 4.3
management operations of the Reserve at end-March 2008 in the wake of CRR hikes,
Bank and variation in bankers' deposits with increased to 4.8 as on March 31, 2009 and

RBI
Monthly Bulletin
November 2009 2121
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
5.4 by end-July 2009, reflecting subsequent
lowering of CRR by 400 basis points. The
money multiplier at end-September 2009
was 5.3 (Chart IV.7).
IV.15 Reserve money during the financial
year 2009-10 (up to October 16, 2009)
recorded a growth of 2.3 per cent as against
a decline of 2.9 per cent in the
corresponding period of the previous year
(Table 4.7). On the sources side, both net
Reserve Bank credit to the Centre and net
foreign assets (adjusted for valuation)
increased. Net Reserve Bank's credit to the
Centre increased by Rs. 24,123 crore (up to
October 16, 2009) as compared with an
increase of Rs.15,534 crore during the
corresponding period of the previous year.
The Reserve Bank's foreign currency assets
(adjusted for valuation) increased by
Rs.31,150 crore as against a decrease of
Rs.34,556 crore during the corresponding
period of the previous year (Chart IV.8).
Adjusted for the first round impact of the
changes in CRR (up to October 16, 2009),
reserve money expanded by 2.2 per cent as
compared with an increase of 1.8 per cent
RBI
Monthly Bulletin
2122 November 2009
during the corresponding period of the
previous year.
IV.16 Movements in the Reserve Bank's net
credit to the Central Government during
2009-10 (up to October 16, 2009) largely
reflected the liquidity management
operations of the Reserve Bank and changes
in Central Government deposits with the
Reserve Bank. Liquidity condition eased
from mid-November 2008, in response to
the liquidity augmenting measures of the
Reserve Bank and on an average, Reserve
Bank started absorbing large amount of
liquidity through reverse repo under the
LAF. Accordingly, Reserve Bank's holding of
government securities (up to October 16,
2009) declined on account of an increase in
absorption under the LAF (Rs.74,775 crore).
The Centre's surplus cash balances with the
Reserve Bank also increased (Rs.45,124
crore). On the other hand, unwinding of
MSS securities (Rs.69,304 crore) led to a
decline in Central Government deposits
with the Reserve Bank. Furthermore, net
open market purchases under OMO/special
market operations (SMO) led to higher
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 4.7: Reserve Money - Variations

(Amount in Rupees crore)
Item 2008-09 2008-09 2009-10 2008-09 2009-10
(April- (Up to (Up to Q1 Q2 Q3 Q4 Q1 Q2
March) Oct.17) Oct.16)
1 2 3 4 5 6 7 8 9 10

Reserve Money 59,698 -27,105 22,786 3,416 25,218 -70,453 1,01,517 -38,929 16,100
(-2.9) (2.3)
(Adjusted Reserve Money) (1.8) (2.2)
Components (1+2+3)
1. Currency in Circulation 1,00,352 43,226 53,369 36,859 -14,516 38,277 39,733 29,692 976
(7.3) (7.7)
2. Bankers’ Deposits with RBI -37,172 -66,793 -30,973 -29,333 39,219 -1,15,773 68,714 -72,664 20,680
(-20.3) (-10.6)
3. ‘Other’ Deposits with the RBI -3,482 -3,538 390 -4,110 514 7,044 -6,930 4,044 -5,555
( -39.1) (7.0)
Sources (1+2+3+4-5)
1. RBI’s net credit to Government 1,74,789 15,196 23,153 -13 51,360 30,230 93,212 -11,145 -14,953
of which: to Centre (i+ii+iii+iv-v) 1,76,397 15,534 24,123 1,430 51,379 29,932 93,657 -11,497 -14,968
2. RBI’s Credit to Banks and
Commercial Sector 17,799 5,886 -17,520 -3,358 4,963 5,032 11,163 -9,623 -3,747
3. Net Foreign Assets of RBI 43,986 93,402 10,144 1,03,932 10,336 -1,56,330 86,048 -16,750 50,120
(7.6) (0.8)
of which :
FCA, adjusted for valuation -1,00,308 -34,556 31,150 15,535 -31,641 -92,102 7,900 -6,245 33,441
4. Governments’ Currency Liabilities
to the Public 831 431 450 225 206 186 213 254 196
5. Net Non-Monetary liabilities of RBI 1,77,706 1,42,021 -6,558 97,369 41,648 -50,430 89,119 1,664 15,516

Memo:
Net Domestic assets 15,712 -1,20,507 12,641 -1,00,516 14,882 85,877 15,469 -22,178 -34,020
LAF- Repos (+) / Reverse Repos(-) -51,835 -41,710 -74,775 -45,350 51,480 -62,170 4,205 -1,32,800 28,170
Net Open Market Sales # * -94,548 -19,227 -74,068 -8,696 -10,535 -7,669 -67,649 -42,001 -31,591
Centre’s Surplus -60,367 -43,130 45,124 -42,427 6,199 -32,830 8,691 -13,156 77,713
Mobilisation under the MSS -80,315 1,103 -69,304 6,040 -628 -53,754 -31,973 -65,187 -4,117
Net Purchases(+)/Sales(-) from
Authorised Dealers -1,78,592 -73,331 -14,385^ 3,956 -52,761 -1,11,877 -17,910 -15,889 1,504^
NFA/Reserve Money @ 129.6 147.5 127.6 143.8 141.1 134.7 129.6 133.1 136.1
NFA/Currency @ 185.2 209.7 173.3 213.5 220.2 183.3 185.2 175.3 182.0
NFA: Net Foreign Assets. FCA: Foreign Currency Assets. LAF: Liquidity Adjustment Facility.
* : At face value. # : Excludes Treasury Bills. @ : Per cent; end of period. ^ : up to August 28, 2009.
Note: 1. Data are based on March 31 for Q4 and last reporting Friday for all other quarters.
2. Figures in parentheses are percentage variations during the fiscal year.

holding of Central Government securities/ developments, the Reserve Bank's net credit
bonds (Rs.74,068 crore) by the Reserve Bank. to the Centre increased during 2009-10 (up
Reflecting combined effect of these to October 16, 2009).

RBI
Monthly Bulletin
November 2009 2123
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

IV.17 To sum up, the growth-supportive system in government securities in the

accommodative monetary policy stance
was evident from sustained high growth
in broad money notwithstanding the
recent moderation, and also the daily
absorption of excess liquidity in excess of
Rs.1,00,000 crore on average throughout
the second quarter of 2009-10. High growth
in deposits on the component side and
high growth in investment of the banking
wake of large market borrowing
programme of the Government on the
sources side have been the major drivers
of growth in monetar y aggregates.
Moderation in non-food credit growth
continued. Momentum in capital inflows
and revival in demand for credit from the
private sector could, however, alter the
monetary conditions over time.

RBI
Monthly Bulletin
2124 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

V. Financial Markets The global financial markets witnessed

further easing of pressures on the back of
receding uncertainties and risk, and a strong
rebound in activity in various market
segments in Q3 of 2009, albeit, with
persistence of weakness in credit and
mortgage markets. The equity markets in
both advanced economies and EMEs
recovered a large part of losses incurred in
the aftermath of the global crisis; bond
markets turned to normalcy with pick up in
global issuances; sovereign and corporate -
financial and non-financial - credit spreads
declined further. The domestic financial
markets continued to function normally and
also witnessed further moderation in risk
premia in Q2 of 2009-10, besides significant
improvement in market activity. While the
money markets continued to reflect the
impact of ample liquidity and lower policy
rates, the long term government bond yields
reflected concerns about government
borrowing programme. The rupee witnessed
appreciating trend against the US dollar,
reflecting in part the impact of revival in
capital inflows and the general weakness of
the US dollar against major currencies.
While the secondary equity market continued
to outperform most other EMEs, the primary
market witnessed strong resumption of
activity in terms of primary issuances, private
placements and mobilisation of resources by
the mutual funds.

V.1 The global financial markets further

extended the steady improvement in Q3 of
2009 that had started in Q2, with significant
reduction in liquidity and credit risk across
asset classes, though some segments in the

RBI
Monthly Bulletin
November 2009 2125
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

credit and mortgage markets still remain
weak. Alongside easing of stress in the
global market conditions, the domestic
financial markets also witnessed further
decline of risk premia and significant
recovery in asset prices – extending the
pattern that had started in Q1 of 2009-10. A
combination of factors such as improving
market perception about the growth
outlook, ample liquidity in the system and
continuance of low policy rates facilitated
overall easing of the market conditions.
Notwithstanding the gradual moderation in
lending rates, indicating improved
transmission of monetary policy with a lag,
there was further moderation in credit
growth. The equity markets, apart from
recovery in prices, also exhibited substantial
improvement in activity in the primary
market with higher momentum in IPOs,
private placements and mobilisation of
resources by the mutual funds.
International Financial Markets
V.2 The global financial markets had
witnessed signs of stabilisation in Q2 of
2009, with strong rebound in activity in
some of the market segments on the back
of incipient signs of slowdown in the pace
of deterioration of economic conditions in
the advanced economies, better than
expected corporate performance and
confidence building measures taken by the
governments and central banks. The
financial markets showed further
improvement in Q3 of 2009 with increasing
risk tolerance and receding risk premia on
various asset classes. According to the BIS
Quarterly Review (September 2009), while
in interbank money markets key spreads
narrowed to levels not seen since the
beginning of 2008, improvements were also
evident in credit markets, although
important segments continued to rely on
central bank support.
V.3 The easing of pressures in money
markets in Q3 of 2009 was evident from the
significant and sustained moderation in
inter-bank rates from the peak seen during
the early phase of the global crisis (Chart V.1a).
The bonds market also mirrored the
receding liquidity premia and return of risk
appetite. However, government bond yields
witnessed some intermittent volatility due
to factors such as fluctuating perceptions
about the future path of global recovery and
the expected reversal in the stance of
monetar y policies. The long-term
government bond yields, which rose in the
first two quarters of 2009 on concerns of
rising fiscal deficits, did witness signs of
stabilisation in Q3 of 2009 upon changing
outlook regarding macroeconomic
conditions and fiscal and monetary policies
(Chart V.1b). Furthermore, the steepening
of yield curve witnessed in the first two
quarters was not so evident during Q3 of
2009. However, the long-term bond yield in
the US continued to reflect the
consequences of large government debt and
borrowing programme.
V.4 The equity markets in developed as
well as EMEs have witnessed perceptible
recovery and reduced volatility since March
2009, with intermittent corrections in
response to specific adverse news/
perceptions (Chart V.1c, d and e). In Q3 of
2009, the pace of recovery of global equity
prices accelerated further and displayed a
more firm pattern. Both Dow Jones and
NASDAQ equity indices recorded around 16
per cent rise during Q3 of 2009 over the

RBI
Monthly Bulletin
2126 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

RBI
Monthly Bulletin
November 2009 2127
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
preceding quarter. Thus, the markets have
been able to recoup a part of the household
wealth lost in the aftermath of the financial
crisis. Although equity markets rallied on
better than expected economic data and
corporate earnings results for Q2 of 2009
with financial sector showing significant
improvement, and upward shift in the
earnings expectations, there were episodes
of intermittent volatility caused by
investors’ reaction to any negative news
relating to the pace of economic recovery.
Furthermore, concerns on the quality and
sustainability of the financial sector
profitability continue to worry the markets,
as evident from the still relatively higher
credit default swap spreads for the banks
and the insurance sector (Chart V.1f).
V.5 Both sovereign and corporate
(financial and non-financial) credit spreads
narrowed further, indicating significant
drop in risk and liquidity premiums (Chart
V.1g, h and i). The improvement in credit
market conditions was also evident in the
high level of global corporate bond
issuances, although there was at the same
time deleveraging by the banks.
Furthermore, in the US, while there were
signs of recovery in the commercial paper
(CP) market, asset backed securities (ABS)
and commercial mortgage backed securities
(CMBS) markets continued to mirror weak
sentiments. Lower risk spread and
improved market liquidity helped in lifting
the pace of domestic as well as international
bond issuances by the corporates.
V.6 EME equity markets reflected
investors’ increasing risk tolerance
which continued to support asset prices
(Chart V.1d). The resumption of capital
RBI
Monthly Bulletin
2128 November 2009
flows to EMEs and return of investors’ risk
appetite, bolstered by the strong recovery
and rebound in domestic consumption
demand in Asia, incipient recovery in
commodity exporting countries in Latin
America and the Middle East, led to further
acceleration in growth of equity prices in
Q3 of 2009. The Morgan Stanley Capital
International (MSCI) index increased by
17.4 per cent during the Q3 of 2009,
although the pace of increase in equity
prices differed across EMEs depending on
the domestic factors (Table 5.1). Between
mid-September 2009 and end-March 2009,
MSCI increased by 56.9 per cent.
V.7 In the foreign exchange market, the
US dollar which depreciated in the first
quarter of 2009-10, continued to depreciate
during the second quarter on the back of
declining flows to the US, continuation of
easy monetary policy in the US and change
in market sentiment against the dollar
(Chart V.1j). Between end-March 2009 and
October 20, 2009, the US dollar depreciated
by 11.1 per cent against the euro, 12.6 per
cent against the pound sterling and 7.8 per
cent against the Japanese yen. The EME
currencies witnessed appreciating trend in
Q3 of 2009, reflecting in part their relative
attractiveness to foreign investors for
higher yields. Coming to Asian currencies,
the US dollar depreciated against Indian
rupee, Indonesian rupiah, Malaysian
ringgit, South Korean won and Thai Baht.
Among other emerging market currencies,
the US dollar registered significant
depreciation against South African Rand,
Brazilian real, Mexican peso, Turkish lira
and Russian ruble. However, it appreciated
against the Argentine peso during the
period (Table 5.1).
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 5.1: Currency and Stock Price Movement in EMEs

(Per cent)

Items End- End- October Items End- End- October

March 08 @ March 09 @ 20, 2009* March 08 @ March 09 @ 12, 2009*
1 2 3 4 1 5 6 7
Appreciation (+)/Depreciation (-) of the US Dollar Stock Price Variations
Japanese Yen -14.9 -2.0 -7.8 Indonesia 33.7 71.3 67.2
(Jakarta Composite)
Chinese Yuan -9.3 -2.6 -0.1
Brazil (Bovespa)** 33.1 56.6 47.5
Russian Ruble -9.7 44.3 -13.9 Thailand (SET
Turkish Lira -5.8 27.7 -13.3 Composite) 21.3 74.2 67.2
India (BSE Sensex) 19.7 75.4 71.9
Indian Rupee -8.3 27.5 -9.6
South Korea (KOSPI) 17.3 35.9 40.2
Indonesian Rupiah 1.1 25.6 -19.1 China 9.1 22.0 19.6
Malaysian Ringgit -7.8 14.4 -7.9 (Shanghai SE
Composite)
South Korea Won 5.5 38.9 -14.6 Taiwan (Taiwan
Thai Baht -10.2 12.9 -5.8 Index) 8.7 45.9 41.0
Russia (RTS) 6.1 107.1 77.7
Argentina 2.1 17.3 2.9 Malaysia (KLSE
Brazilian Real -17.0 31.2 -23.4 Composite) 0.1 41.9 39.5
Mexican Peso -3.5 32.9 -8.6 Singapore (Straits
Times) -4.9 57.7 56.6
@ : Year-on-year variation. * : Variation over end-March 2009. ** : Data as on October 09, 2009.
Source: Bloomberg and the IFS, IMF.

Domestic Financial Markets
V.8 All through the crisis, financial
markets in India continued to function
normally. However, financial market
conditions tightened in sympathy with the
international markets and this was reflected
in the large credit spreads and higher
liquidity premia. However, the financial
markets recovered from this sooner than
their counterparts elsewhere, with some
indications of risk perception and volumes
returning to the pre-Lehman levels. The
domestic markets recorded further
improvement in Q2 of 2009-10, with
external financial environment turning
more favourable. The call rate in the money
market remained within the informal LAF
corridor, while volumes increased,
indicating declining risk and liquidity
premia. In the foreign exchange market, the
Indian rupee generally appreciated against
major currencies as the appetite for EME
assets rose and capital flows gained further
momentum. In the credit market, the
lending rates of scheduled commercial
banks (SCBs) further softened, although
concerns remained regarding the pace of
pick up in bank credit. The activity in the
government securities market further
picked up in Q2 of 2009-10 as 69.3 per cent
of the Government’s gross market
borrowing programme was completed by
the end of September. Ample liquidity
conditions ensured by the Reserve Bank and
high growth in bank deposits in the face of
subdued growth in credit to private sector
continued to contain pressure on bond
yields. Indian equity markets outperformed
most of the EMEs.
Liquidity conditions
V.9 The Reserve Bank carried forward its
stance of maintaining ample liquidity in the
system in Q2 of 2009-10, which was

RBI
Monthly Bulletin
November 2009 2129
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

reflected in the average reverse repo in Q2, mainly reflecting market borrowings
balances on daily basis with the Reserve of the Central Government and surplus
Bank increasing to about Rs.1,26,811 crore transfer by the Reserve Bank (Chart V.2). The
in Q2 from Rs.1,16,993 crore in Q1 of 2009- Reserve Bank, as against its intention to
10 (Table 5.2). As against a steep decline in purchase government securities amounting
cash balances of the Central Government to Rs.80,000 crore under the Open Market
with the Reserve Bank in Q1 of 2009-10, Operation (OMO) programme for the first
there was a large build up of cash balances half of 2009-10, purchased securities

Table 5.2: Domestic Financial Markets at a Glance

Year/ Call Money Government Foreign Exchange Liquidity Equity
Month Securities Management
Average Average Average Average Average Average RBI’s Net Average Average Average Average Average Average
Daily Call Turnover 10-Year Daily Exchange Foreign MSS Daily Daily Daily BSE S&P
Turnover Rates* in Govt. Yield@ Inter- Rate Currency Out- Reverse BSE NSE Sensex** CNX
(Rs. (Per Securities (Per bank (Rs. per Sales (-)/ stand- Repo Turnover Turnover Nifty**
crore) cent) (Rs. cent) Turnover US$) Purchases ing# (Rs. (LAF) (Rs. (Rs.
crore)+ (US$ (+) crore) Out- crore) crore)
million) (US$ standing
million) (Rs.
crore)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
2006-07 21,725 7.22 4,863 7.78 18,540 45.28 26,824^ 37,698 21,973 3,866 7,812 12277 3572
2007-08 21,393 6.07 8,104 7.91 34,044 40.24 78,203^ 1,28,684 4,677 6,275 14,148 16569 4897
2008-09 22436 7.06 10,879 7.54 34,712 45.92 -2,910^ 1,48,889 2,885 4,498 11,272 12303 3713
2008
Apr 19,516 6.11 6,657 8.10 37,580 40.02 4,325 1,70,726 26,359 5,773 13,561 16291 4902
May 19,481 6.62 8,780 8.04 32,287 42.13 148 1,75,565 11,841 6,084 13,896 16946 5029
Jun 21,707 7.75 6,835 8.43 38,330 42.82 -5,229 1,74,433 -8,622 5,410 12,592 14997 4464
Jul 24,736 8.76 5,474 9.18 37,173 42.84 -6,320 1,72,169 -27,961 5,388 12,862 13716 4125
Aug 23,408 9.1 7,498 9.06 38,388 42.94 1,210 1,71,944 -22,560 4,996 11,713 14722 4417
Sep 23,379 10.52 10,418 8.45 44,700 45.56 -3,784 1,75,666 -42,591 5,147 12,489 13943 4207
Oct 28,995 9.9 8,641 7.85 36,999 48.66 -18,666 1,69,123 -45,612 3,911 10,810 10550 3210
Nov 21,812 7.57 11,732 7.41 31,322 49.00 -3,101 1,47,648 -8,017 3,539 9,618 9454 2835
Dec 21,641 5.92 22,903 5.88 34,874 48.63 -318 1,24,848 22,294 3,851 10,141 9514 2896
2009
Jan 18,496 4.18 19,136 5.84 27,895 48.83 -29 1,13,535 45,474 3,526 9,559 9350 2854
Feb 22,241 4.16 11,831 5.98 25,068 49.26 230 1,02,934 50,649 2,859 7,887 9188 2819
Mar 23,818 4.17 10,644 6.59 33,126 51.23 -3,388 88,077 33,360 3,489 10,140 8966 2802
Apr 21,820 3.28 15,997 6.55 27,796 50..06 -2,487 75,146 1,01,561 5,232 15,688 10911 3360
May 19,037 3.17 14,585 6.41 32,227 48.53 -1,437 45,955 1,25,728 6,427 19,128 13046 3958
Jun 17,921 3.21 14,575 6.83 32,431 47.77 1,044 27,140 1,23,400 7,236 21,928 14782 4436
Jul 14,394 3.21 17,739 7.01 30,396 48.48 -55 22,159 1,30,891 6,043 18,528 14635 4343
Aug 15,137 3.22 9,699 7.18 27,284 48.34 181 19,804 1,28,275 5,825 17,379 15415 4571
Sep 16,118 3.31 16,988 7.26 27,574 48.41 – 18,773 1,21,548 6,211 18,253 16338 4859

* : Average of daily weighted call money borrowing rates. + : Average of daily outright turnover in Central Government dated securities.
@ : Average of daily closing rates. # : Average of weekly outstanding MSS.
** : Average of daily closing indices. ^ : Cumulative for the financial year.
LAF : Liquidity Adjustment Facility. MSS : Market Stabilisation Scheme. BSE: Bombay Stock Exchange Limited.
NSE : National Stock Exchange of India Limited. – : Not available.
Note: In column 10, (-) indicates injection of liquidity, while (+) indicates absorption of liquidity.

RBI
Monthly Bulletin
2130 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

through the auction route amounting to Rs.91,410 crore as at end-September

Rs.57,487 crore up to end-September 2009. 2009,buoyed by the improvement in tax
revenue (direct as well as indirect)
Cash Management of the Government collections, increase in surplus transfer from
V.10 During Q1 of 2009-10, the Central the Reserve Bank and increased quantum of
Government took recourse to ways and market borrowings. The surplus cash balance
means advances (WMA) and overdrafts (OD) moderated to Rs.69,554 crore as on October
on several occasions (Table 5.3). The cash 20, 2009.
balances turned positive on June 16, 2009 on
account of the quarterly advance tax inflows
Liquidity Management
and remained so almost throughout Q2 of V.11 Liquidity conditions eased further
2009-10. The surplus cash balance increased during Q2 of 2009-10 with the average daily
from Rs.18,527 crore as at end-June 2009 to absorption under the LAF remaining high.
The daily absorption under LAF which had
Table 5.3: Cash Management of the
peaked on September 4, 2009, however,
Central Government moderated somewhat during the second-
Up to end-September half of September 2009, reflecting
2007-08 2008-09 2008-09 2009-10 significant outflows on account of advance
1 2 3 4 5 tax payments (Table 5.4). The easing of
Number of Days liquidity conditions in the banking system
WMA @ 91 109 16 76
OD 37 65 – 44
in Q2, despite an increase in the cash
Cash Deficit 91 109 16 76 balances of the Central Government,
Average Utilisation mainly reflected MSS unwinding (Rs.4,500
(Rupees crore)
WMA 3,605 2,077 371 6,194
crore) and OMO auction-based purchases
OD 645 1,823 – 2,309 (Rs.29,298 crore). During 2009-10 (up to
@ : Includes days of OD. September 2009), MSS unwinding at

RBI
Monthly Bulletin
November 2009 2131
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 5.4: Liquidity Position

(Rupees crore)
Outstanding LAF MSS Centre’s Total Outstanding LAF MSS Centre’s Total
as on Surplus (2 to 4) as on Surplus (2 to 4)
Last Friday with the Last Friday with the
RBI @ RBI @
1 2 3 4 5 1 6 7 8 9

2008 2009
January 985 1,66,739 70,657 2,38,381 January 54,605 1,08,764 -9,166 1,54,203
February 8,085 1,75,089 68,538 2,51,712 February 59,820 1,01,991 -9,603 1,52,208
March* -50,350 1,68,392 76,586 1,94,628 March* 1,485 88,077 16,219 1,05,781
April 32,765 1,72,444 36,549 2,41,758 April 1,08,430 70,216 -40,412 1,38,234
May -9,600 1,75,362 17,102 1,82,864 May 1,10,685 39,890 -6,114 1,44,461
June -32,090 1,74,433 36,513 1,78,856 June 1,31,505 22,890 12,837 1,67,232
July -43,260 1,71,327 15,043 1,43,110 July 1,39,690 21,063 26,440 1,87,193
August -7,600 1,73,658 17,393 1,83,451 August 1,53,795 18,773 45,127 2,17,695
September -56,480 1,73,804 40,358 1,57,682 September 1,06,115 18,773 80,775 2,05,663
October -73,590 1,65,187 14,383 1,05,980 October 16 76,260 18,773 61,343 1,56,376
November -9,880 1,32,531 7,981 1,30,632
December 14,630 1,20,050 3,804 1,38,484
@ : Excludes minimum cash balances with the Reserve Bank in case of surplus.
* : Data pertain to March 31.
Note : 1. Negative sign in column 2 indicates injection of liquidity through LAF.
2. The Second LAF, conducted on a daily basis from September 17, 2008 to May 5, 2009 is being conducted only on
reporting Fridays from May 8, 2009.
3. Negative sign in column 4 indicates injection of liquidity through WMA/OD.

Rs.70,000 crore (de-sequestering of V.12 The significantly reduced rupee

Rs.28,000crore) was used as a key liquidity needs of the banking system were
instrument of liquidity management also evident from the fact that the special
(Chart V.3). term repo facility has not been availed

RBI
Monthly Bulletin
2132 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

continuously since August 17, 2009. In Money Market

view of the ample liquidity conditions, the
term repo auctions which were being
conducted on a daily basis since October
14, 2008 are now being conducted on a
weekly basis since April 27, 2009.
Furthermore, the outstanding under the
forex swap facility, which was instituted
to provide forex liquidity to Indian banks
having foreign branches or subsidiaries,
also declined to Rs.240 crore at end-
September 2009 from Rs.595 crore as at
end-June 2009. The tenure of the term repo
and the forex swap facilities, which have
been extended from time to time, is up to
end-March 2010. The surplus cash balances
of the centre emerged as the key drivers
of liquidity conditions in Q2 of 2009-10
(Table 5.5).
V.13 The money market continued to
remain orderly during Q2 of 2009-10.
Reflecting the surplus liquidity conditions,
the call rate hovered around the lower
bound of the informal LAF corridor during
the Q2 of 2009-10 (Chart V.4). The call rate
averaged 3.25 per cent in Q2, which was
marginally higher than 3.22 per cent in Q1.
V.14 Interest rates in the collateralised
segments of the money market – the market
repo (outside the LAF) and the collateralised
borrowing and lending obligation (CBLO) –
moved in tandem with the call rate during
Q2 but remained below the call rate (Chart
V.5). The weighted average interest rate in
the collateralised segment of the money
market marginally increased to 2.7 per cent

Table 5.5: Reserve Bank’s Liquidity Management Operations

(Rupees crore)
Item 2008-09 2008-09 2009-10
Apr-Mar Q1 Q2 Q3 Q4 Q1 July Aug
1 2 3 4 5 6 7 8 9
A. Drivers of Liquidity (1+2+3+4) -1,67,708 6,061 -18,851 -1,01,278 -53,640 -44,599 1,237 -57
1. RBI’s net Purchase from Authorised Dealers -1,78,592 -8,555 -40,249 -1,12,168 -17,620 -15,874 1,665 -176
2. Currency with the Public -97,921 -30,063 12,360 -40,070 -40,147 -18,178 8,219 -3,197
3. a. Surplus Cash balances of the Centre
with the Reserve Bank 60,367 40,073 -3,845 36,554 -12,415 3,382 -13,603 -18,686
3. b. WMA and OD 0 0 0 0 0 0 0 0
4. Others (residual) 48,438 4,606 12,884 14,406 16,542 -13,929 4,956 22,003
B. Management of Liquidity (5+6+7+8) 2,35,209 -37,659 7,217 1,33,325 1,32,326 -21,674 -317 492
5. Liquidity impact of LAF Repos -51,835 -18,260 24,390 -71,110 13,145 -1,30,020 -8,185 -14,105
6. Liquidity impact of OMO (net) * 104,480 14,642 11,949 10,681 67,208 43,159 6,040 12,307
7. Liquidity impact of MSS 80,314 -6,041 628 53,754 31,973 65,187 1,827 2,290
8. First round liquidity impact due to
CRR change 1,02,250 -28,000 -29,750 1,40,000 20,000 – – –
C. Bank Reserves # (A+B) 67,501 -31,598 -11,634 32,047 78,686 -66,273 920 435

(+) : Indicates injection of liquidity into the banking system.

(-) : Indicates absorption of liquidity from the banking system.
* : Includes oil bonds but excludes purchases of government securities on behalf of State Governments.
# : Includes vault cash with banks and adjusted for first round liquidity impact due to CRR change.
Note : Data pertain to March 31 and last Friday for all other months.

RBI
Monthly Bulletin
November 2009 2133
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
during Q2 of 2009-10 from 2.4 per cent
during Q1. Transaction volumes in CBLO
and market repo segments continued to
remain high during Q2 of 2009-10 reflecting
the easy liquidity and active market
conditions (Table 5.6). Banks as a group are
the major borrowers in the collateralised
segment whereas mutual funds (MFs)
continue to remain the single largest lender
of funds in that segment. In fact, more than
75 per cent of the lending in the
collateralised segment was contributed by
RBI
Monthly Bulletin
2134 November 2009
the MFs in Q2, reflecting their continued
enhanced lending capacity. The
collateralised market remained the
predominant segment of the money market,
accounting for more than 80 per cent of the
total volume in the money market in Q2.
V.15 There has been some circularity in
the movement of funds between MFs and
banks. Banks invest a part of their resources
in MFs. The MFs also lend funds to banks
through CBLO and market repo. For
instance, in Q2 of 2009-10, almost over 50
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 5.6: Activity in Money Market Segments

(Rupees crore)
Year/Month Average Daily Volume (One Leg) Commercial Paper Certificates of Deposit
Call Market CBLO Total Money Term Outsta- WADR Outsta- WADR
Repo (2+3+4) Market Money nding (Per nding (Per
Rate* Market cent) cent)
(per cent)
1 2 3 4 5 6 7 8 9 10 11
2008-09
April 9,758 14,966 38,828 63,552 5.31 374 37,584 8.85 1,50,865 8.49
May 9,740 14,729 36,326 60,795 6.29 420 42,032 9.02 1,56,780 8.95
June 10,854 11,262 35,774 57,890 7.35 253 46,847 10.03 1,63,143 9.16
July 12,368 8,591 23,669 44,628 8.09 226 51,569 10.95 1,64,892 10.23
August 11,704 10,454 22,110 44,268 8.65 501 55,036 11.48 1,71,966 10.98
September 11,690 10,654 20,547 42,891 9.26 335 52,038 12.28 1,75,522 11.56
October 14,497 9,591 16,818 40,906 8.66 345 48,442 14.17 1,58,562 10.00
November 10,906 15,191 24,379 50,476 6.58 319 44,487 12.42 1,51,493 10.36
December 10,820 16,943 32,261 60,024 5.37 415 40,391 10.70 1,51,214 8.85
January 9,248 18,053 31,794 59,095 3.99 454 51,668 9.48 1,64,979 7.33
February 11,121 19,929 38,484 69,534 3.89 669 52,560 8.93 1,75,057 6.73
March 11,909 21,593 48,319 81,821 3.76 451 44,171 9.79 1,92,867 7.53
2009-10
April 10,910 20,545 43,958 75,413 2.41 332 52,881 6.29 2,10,954 6.48
May 9,518 22,449 48,505 80,472 2.34 338 60,740 5.75 2,18,437 6.20
June 8,960 21,694 53,553 84,207 2.69 335 68,721 5.00 2,21,491 4.90
July 7,197 20,254 46,501 73,952 2.83 389 79,582 4.71 2,40,395 4.96
August 7,569 23,305 57,099 87,973 2.62 461 83,026 5.05 2,32,522 4.91
September 8,059 27,978 62,388 98,425 2.73 381 88,161+ 4.96 + – –
* : Weighted average rate of call, market repo and CBLO. + : As on September 15, 2009.
WADR: Weighted average discount rate.

per cent of the banks’ investment in MFs
was in turn lent to banks by the MFs in the
collateralised segments (Table 5.7).
Certificates of Deposit
V.16 With the easing of liquidity
conditions, the fortnightly average
issuance of certificates of deposit (CD) has
picked up in 2009-10 so far. Most of the
CD issued were of more than six months
duration. The average interest rate on CD,
on the back of abundant liquidity, declined
between end-March 2009 and mid-June
2009 but has increased somewhat
thereafter (Table 5.6).
Commercial Paper
V.17 During 2009-10, the commercial
paper (CP) market also picked up with the
easing of liquidity conditions and the size
of fortnightly issuance has increased
significantly. Leasing and finance
companies continued to be the major
issuers of CPs (45 per cent), followed by
‘manufacturing and other companies’ (41
per cent) and financial institutions (14 per

RBI
Monthly Bulletin
November 2009 2135
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 5.7: Movement of Funds between Banks and Mutual Funds

(Rupees crore)
Reporting Friday MF Lending Banks’ MFs lending in the collateralised
Outstanding segment as % of Banks’
Investment Investment in MFs
CBLO Market repo in MFs CBLO Market Repo
1 2 3 4 5 6
03-Jul-09 28,320 28,846 89,472 32 32
17-Jul-09 34,851 33,984 1,29,998 27 26
31-Jul-09 42,485 26,724 1,39,619 30 19
14-Aug-09 55,540 43,203 1,56,910 35 28
28-Aug-09 58,725 33,596 1,51,136 39 22
11-Sep-09 59,899 46,754 1,56,573 38 30
25-Sep-09 29,504 29,328 66,687 44 44

cent) as at end-August 2009. The share of
‘manufacturing and other companies’ and
‘financial institutions’ in the total
outstanding CPs has increased in the recent
period (Table 5.8).
V.18 The significant easing of risk in the
commercial paper market was evident in the
secular decline in spread of CPs over 91-day
treasury bills from a peak of 604 basis points
in October 2008 to 161 basis points in
September 2009 (Chart V.6). During 2009-10
so far, the most preferred tenor for issuance
of CPs has been 60-180 days, as compared
with more than 180 days in the previous year.
Treasury Bills
V.19 The gross amount mobilised through
treasur y bills remained substantially
higher at Rs.2,23,210 crore during 2009-10
(up to October 23, 2009) as compared to
the same period last year, reflecting in part
the higher liquidity requirements of the
Government. On July 16, 2009, it was
decided to roll over the maturing amount

Table 5.8: Commercial Paper-Major Issuers

(Rupees crore)
Category of Issuer End of
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Aug-09
1 2 3 4 5 6 7
Leasing and Finance 34,957 39,123 27,965 27,183 34,437 36,926
(74.6) (75.0) (73.5) (61.5) (50.1) (44.5)
Manufacturing 8,150 9925 6,833 12,738 23,454 33,985
(17.4) (19.10) (18.0) (28.9) (34.1) (40.9)
Financial Institutions 3,740 3,060 3,257 4,250 10,830 12,115
(8.0) (5.9) (8.5) (9.6) (15.8) (14.6)
Total 46,847 52,108 38,055 44,171 68,721 83,026
Note: Figures in brackets are percentage share in total.

RBI
Monthly Bulletin
2136 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

of Treasury Bills till September 30, 2009. Treasur y Bills increased somewhat in
The implicit yield on 182-day and 364-day recent months (Table 5.9).

Table 5.9: Treasury Bills in the Primary Market

Year/Month Notified Average Implicit Yield at Average Bid-Cover Ratio
Amount Minimum Cut-off Price
(Rupees crore) (Per cent)
91-day 182-day 364-day 91-day 182-day 364-day
1 2 3 4 5 6 7 8
2007-08 2,24,500 @ 7.10 7.40 7.42 2.84 2.79 3.21
2008-09 2,99,000 @ 7.10 7.22 7.15 3.43 2.91 3.47
Apr 2008 22,000 7.28 7.41 7.53 1.70 1.36 2.36
May 2008 21,000 7.41 7.55 7.61 2.65 2.78 3.05
Jun 2008 11,500 8.01 8.42 7.93 2.00 2.76 2.80
Jul 2008 16,000 9.07 9.33 9.39 2.35 2.72 2.70
Aug 2008 23,500 9.15 9.31 9.24 2.99 2.86 4.35
Sept 2008 25,000 8.69 8.92 8.83 3.06 3.04 3.57
Oct 2008 35,000 8.13 8.36 7.92 1.95 2.42 4.00
Nov 2008 28,000 7.30 7.13 7.23 7.95 2.97 4.33
Dec 2008 16,500 5.69 5.35 5.07 5.36 4.67 5.14
Jan 2009 38,500 4.69 4.60 4.64 4.56 3.22 4.80
Feb 2009 32,000 4.78 4.71 4.62 2.81 1.86 2.62
March 2009 30,000 4.77 4.86 5.25 2.10 2.67 1.44
2009-10
April 2009 39,000 3.81 4.11 4.07 3.22 2.79 5.07
May 2009 29,000 3.26 3.54 3.58 3.18 2.25 3.14
June 2009 22,500 3.35 3.56 3.99 3.37 5.65 2.86
July 2009 40,000 3.23 3.45 3.77 3.92 2.86 3.90
Aug 2009 28,000 3.35 3.84 4.25 3.04 2.18 3.76
Sept 2009 32,000 3.35 3.94 4.47 3.67 4.17 4.05
@: Total for the financial year.
Note: 1. 182-day Treasury Bills were reintroduced with effect from April 2005.
2. Notified amounts are inclusive of issuances under the MSS.

RBI
Monthly Bulletin
November 2009 2137
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Government Securities Market interest rate on the State Government

Central Government Securities
V.20 The Central Government completed
a large part (74.0 percent) of the budgeted
gross market borrowing programme
(including amounts raised through de-
sequestering of MSS balances) during 2009-
10 (up to October 23, 2009). Ample liquidity
in the system facilitated borrowings,
although there was some impact on interest
rates arising from financing of higher fiscal
deficit (Table 5.10).
State Government Securities
V.21 The Annual Policy Statement for
2009-10 had projected States’ net market
borrowings at Rs.1,26,000 crore, which was
subsequently raised to Rs.1,40,000 crore.
Up to October 22, 2009, 21 states mobilised
Rs.72,216 crore (net Rs.58,683 crore) as
compared with Rs.17,896 crore (net
Rs.4,438 crore) raised by 12 states during
the corresponding period of the previous
year. Despite higher borrowings, the
securities moderated reflecting the market
liquidity, although there has been some
pressure on interest rates in recent
months (Table 5.10).
Secondary Market
V.22 The gradual increase in yield across
the maturity spectrum was evident during
Q2 of 2009-10. Between end-June 2009 and
end-September 2009, the yield on 1-30 year
maturity increased between 16-70 basis
points. The yield curve continued to reveal
moderation in rates towards the short end
on account of prevalence of abundant
liquidity in the financial system. However,
the medium to long-term yields hardened
on concerns of large fiscal deficit (Chart V.7).
The turnover in government securities
market started showing signs of pick up in
the current fiscal year so far (Chart V.8).
V.23 The yield on 5-year A A A-rated
corporate bonds started hardening in Q2 of
2009-10, in tandem with increase in

Table 5.10: Issuances of Central and State Government Dated Securities

2007-08 2008-09 2008-09# 2009-10#
1 2 3 4 5
Central Government
Gross amount raised (Rupees crore) 1,56,000 2,73,000 1,06,000 3,23,000
Re-issuances 34 52 20 64
New issues 1 4 1 5
Bid-cover ratio (Range) 1.6-4.8 1.7-4.5 1.4-3.5 1.4-3.6
Weighted average maturity (years) 14.9 13.8 15.5 10.9
Weighted average yield (per cent) 8.12 7.69 8.81 7.08
Devolvement on PDs (Rupees crore) 957 10,773 2,420 6050
State Governments
Gross amount raised (Rupees crore) 67,779 1,18,138 15,884 63,212
Cut-off yield 7.84-8.90 5.80-9.90 8.39-9.90 7.04-8.37
Weighted average yield (per cent) 8.25 7.87 9.05 7.90
# : Up to September 30.

RBI
Monthly Bulletin
2138 November 2009

government bond yields. The risk spread on
corporate bonds, however, continued to
narrow to broadly return to the pre-Lehman
level (Chart V.9).
Credit Market
V.24 In response to the prevailing ample
market liquidity and the lower policy
interest rate environment, the SCBs
continued to soften their deposit rates for
various maturities by 25-225 basis points
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
during Q2 2009-10 (Table 5.11). The impact
of the lower cost of funds for banks was
also transmitted to the interest rates on
bank loans with benchmark prime lending
rates (BPLRs) of SCBs declining by 25-100
basis points during the same period.
V.25 The weighted average BPLRs of public
sector and private sector banks exhibited
a secular decline after September 2008
(Chart V.10). The share of sub-BPLR lending
for all SCBs (excluding export credit and
RBI
Monthly Bulletin
November 2009 2139
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

small loans) declined from 75.8 per cent in lending and deposit rates continued,
March 2008 to 66.9 per cent in March 2009. contributing thereby to an improvement in
On the whole, gradual moderation in the monetary policy transmission.

Table 5.11: Deposit and Lending Rates

(Per cent)
March 2007 March 2008 March 2009 June 2009 October 2009#
1 2 3 4 5 6
1) Domestic Deposit Rate
Public Sector Banks
Up to 1 year 2.75-8.75 2.75-8.50 2.75-8.25 1.00-7.00 1.00-6.75
> 1year-3 years 7.25-9.50 8.25-9.25 8.00-9.25 6.50-8.00 6.25-7.50
> 3 years 7.50-9.50 8.00-9.00 7.50-9.00 7.00-8.50 6.50-8.00
Private Sector Banks
Up to 1 year 3.00-9.00 2.50-9.25 3.00-8.75 2.00-7.50 2.00-7.00
> 1year-3 years 6.75-9.75 7.25-9.25 7.50-10.25 6.00-8.75 5.25-8.00
> 3 years 7.75-9.60 7.25-9.75 7.50-9.75 6.00-9.00 5.75-8.25
Foreign Banks
Up to 1 year 3.00-9.50 2.25-9.25 2.50-8.50 1.80-8.00 1.25-8.00
> 1year-3 years 3.50-9.50 3.50-9.75 2.50-9.50 2.25-8.50 2.25-8.50
> 3 years 4.05-9.50 3.60-9.50 2.50-10.00 2.25-9.50 2.25-8.50
2) BPLR
1. Public Sector Banks 12.25-12.75 12.25-13.50 11.50-14.00 11.00-13.50 11.00-13.50
2. Private Sector Banks 12.00-16.50 13.00-16.50 12.75-16.75 12.50-16.75 12.50-16.75
3. Foreign Banks 10.00-15.50 10.00-15.50 10.00-17.00 10.50-16.00 10.50-16.00
3) Actual Lending Rate*
1. Public Sector Banks 4.00-17.00 4.00-17.75 3.50-18.00 3.50-17.50 –
2. Private Sector Banks 3.15-25.50 4.00-24.00 4.75-26.00 4.10-26.00 –
3. Foreign Banks 5.00-26.50 5.00-28.00 5.00-25.50 2.76-25.50 –
* : Interest rate on non-export demand and term loans above Rs. 2 lakh excluding lending rates at the extreme five
per cent on both sides.
# : As on October 15, 2009. –: Not available.

RBI
Monthly Bulletin
2140 November 2009

V.26 Despite lower interest rates on
lending, the growth of non-food bank credit
continued to decelerate in Q2 of 2009-10
(Chart V.11). This should be interpreted
though along with the increase in resources
mobilised from the non-banking sources,
particularly in the form of issuance of CPs
and private placements in equity market.
Nevertheless, credit cards and consumer
durables related credit have exhibited
negative growth so far suggesting persistent
slowdown in consumption demand.
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
Foreign Exchange Market
V.27 After exhibiting appreciating trend in
Q1 of 2009-10, the rupee exhibited greater
two-way movements during Q2 on the back
of return of capital inflows. The resilience
shown by the Indian economy in the face
of global economic crisis and continued
weakness of the US dollar in the
international markets also contributed to
the strength of the rupee (Chart V.12). The
rupee has strengthened against the US
RBI
Monthly Bulletin
November 2009 2141
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

dollar during October 2009 so far on the back Table 5.12: Nominal and Real Effective
of sustained dollar inflows and continued Exchange Rate of the Indian Rupee
weakness of the US dollar against the euro. (Trade Based Weights, Base : 1993-94
(April-March) = 100)
As on October 22, 2009, the rupee
Year/Month 6-Currency Weights 36-Currency Weights
appreciated by 9.2 per cent against the US NEER REER NEER REER
dollar and 1.7 per cent against the Japanese 1 2 3 4 5
yen over end-March 2009 level. The rupee, 2007-08 74.76 114.23 93.91 104.81
2008-09 (P) 64.87 104.47 86.15 94.62
however, depreciated by 5.9 per cent against Sep. 2008(P) 64.81 106.96 85.42 95.96
the pound sterling and 3.4 per cent against Oct 2008(P) 62.34 102.09 83.23 92.31
Nov 2008(P) 63.25 102.45 84.69 92.59
the euro. Dec 2008(P) 62.35 99.93 83.91 90.48
Jan 2009(P) 62.49 99.23 83.62 90.02
V.28 The average 6-currency trade-based Feb 2009(P) 62.97 99.43 85.20 91.02
Mar, 2009(P) 60.35 95.68 82.13 88.51
REER (base: 1993-94=100) appreciated by Apr 2009(P) 61.49 98.58 82.67 89.72
5.2 per cent between March and August May 2009(P) 62.31 101.37 83.41 91.76
June 2009(P) 62.43 101.11 83.71 92.19
2009, mainly on account of appreciation of July 2009(P) 61.36 99.93 82.33 91.54
the rupee against the US dollar and increase Aug 2009(P) 61.22 100.68 82.02 91.58
Per cent Change
in inflation differential between India and its
2007-08 2008-09 (P) 2008-09 2009-10
trading partners (Chart V.12 and Table 5.12). (Apr- (Apr-
The 6-currency REER stood at 104.2 on Aug) Aug)
36-REER 6.4 -9.7 -2.2 3.5
October 21, 2009. In relation to the base
36-NEER 9.3 -8.3 -1.6 -0.1
year, over a long-term, the REER exhibits 6-REER 8.2 -8.5 0.2 5.2
relative stability. 6-NEER 7.6 -13.2 -4.7 1.4
Rs/USD 12.5 -12.4 -14.8* 6.0 *

V.29 Reflecting the easing supply
conditions in the foreign exchange market
led by capital inflows, the forward premia
generally exhibited declining trend during
NEER : Nominal Effective Exchange Rate.
REER : Real Effective Exchange Rate.
P : Provisional. - : Not available. * : Up to end-September
Note: 1. Data from 2008-09 onwards are provisional.
2. Rise in indices indicates appreciation of the rupee and
vice versa.

RBI
Monthly Bulletin
2142 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

April-July 2009. However, the forward Equity Market

premia have exhibited both hardening as
well as softening trend since August 2009,
reflecting underlying demand and supply
conditions (Chart V.13). The daily average
turnover in the foreign exchange market,
which showed some signs of improvement
in May 2009, registered decline during the
period June-September 2009. The ratio of
inter-bank to merchant turnover increased
to 2.9 during April-September 2009 from 2.6
a year ago (Chart V.14).
V.30 During 2009-10 so far, the Indian
capital market outperformed most EMEs,
recovering a large part of the household
wealth that was eroded by the contagion
from global financial crisis. The secondary
markets continued to register
considerable gains on the back of credible
indications of pickup in the domestic
industrial activity and emerging signs of
recover y in the world economy. The

RBI
Monthly Bulletin
November 2009 2143
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

primar y market, which had remained Primary Market

subdued up to May 2009 also resumed
activity. Indeed, a few IPOs were
oversubscribed by more than 20 times.
Resource mobilisation by mutual funds
also increased substantially. The volatility
in the stock market during April-September
2009 was higher compared with the same
period of last year (Table 5.13) arising from
intermittent uncertainty regarding global
economy and the changing perception
about the real impact of domestic monsoon
situation. The turnover in cash segment
and market capitalisation increased during
April-September 2009 compared with April-
September 2008. The turnover in the
derivative segment at the NSE was also
higher during the period.
V.31 The activity in the primary market
segment of the domestic capital market
has displayed signs of revival since June 2009.
Cumulatively, resources raised through
public issues increased considerably during
April-September 2009 (Table 5.14). The
resources raised through Euro issues by the
Indian corporates also increased markedly.
V.32 Mobilisation of resources through
private placement increased by 28.7 per cent
during April-June 2009 (the latest data
available) as against decline of 15.7 per cent
during April-June 2008. Resource
mobilisation through financial
intermediaries (both public and private
sector) registered a decline of 19.1 per cent,

Table 5.13: Stock Market Indicators

Indicator BSE NSE

2007-08 2008-09 April-September 2007-08 2008-09 April-September
2008-09 2009-10 2008-09 2009-10
1 2 3 4 5 6 7 8 9
1. BSE Sensex / S&P CNX Nifty
(i) End-period 15644 9709 12860 17127 4735 3021 3921 5084
(ii) Average 16569 12366 15059 14298 4897 3731 4511 4284
2. Coefficient of Variation 13.7 24.2 8.7 12.5 14.5 23.2 8.3 11.6
3. Price-Earning Ratio
(end-period)* 20.1 13.7 16.2 22.2 20.6 14.3 16.9 22.9
4. Price-Book Value Ratio
(end-period)* 5.2 2.7 3.4 4.1 5.1 2.5 3.3 3.8
5. Yield* (per cent per annum)
(end-period) 1.1 1.8 1.4 1.1 1.1 1.9 1.5 1.0
6. Listed Companies 4,867 4,929 4,926 4,946 1,381 1,432 1,424 1,435
7. Cash Segment Turnover
(Rupees crore) 15,78,856 11,00,074 6,82,658 7,62,205 35,51,038 27,52,023 16,05,906 22,87,846
8. Derivative Segment
Turnover (Rupees crore) 2,42,308 12,268 11,983 1,007 1,30,90,478 1,10,10,482 59,63,895 83,38,128
9. Market Capitalisation
(Rupees crore) @ 51,38,015 30,86,076 41,65,388 57,08,338 48,58,122 28,96,194 39,00,185 53,53,880
10. Market Capitalisation to
GDP Ratio (per cent) 108.8 58.0 78.3 107.3 102.9 54.4 73.3 100.6
*: Based on 30 scrips included in the BSE Sensex and 50 scrips included in the S&P CNX Nifty. @: As at end-period.
Source: Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).

RBI
Monthly Bulletin
2144 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 5.14: Mobilisation of Resources from the Primary Market

(Amount in Rupees crore)
Item No. of Issues Amount No. of Issues Amount
2008-09 (April-September) 2009-10 (April-September)
1 2 3 4 5
A. Prospectus and Rights Issues*
1. Private Sector (a+b) 32 12,361 25 6,814
a) Financial 1 448 – –
b) Non-financial 31 11,913 25 6,814

2. Public Sector (a+b+c) – – 2 6,803

a) Public Sector Undertakings – – 1 4,026
b) Government Companies – – 1 2,777
c) Banks/Financial Institutions – – - –

3. Total (1+2) 32 12,361 27 13,617

of which:
(i) Equity 32 12,361 26 13,437
(ii) Debt – – 1 180
Memo:
B. Euro Issues 10 4,652 8 12,645
P : Provisional. * : Excluding offers for sale. – : Nil/Negligible.

while the non-financial intermediaries increased sharply with liquidity conditions

registered an increase of 94.6 per cent
during the same period.
V.33 During April-September 2009, net
resource mobilisation by mutual funds
remaining comfortable and the stock
markets witnessing considerable gains
(Table 5.15). Scheme-wise, during April-
September 2009, income/debt oriented
schemes witnessed a net inflow of

Table 5.15: Resource Mobilisation by Mutual Funds

(Rupees crore)
April-March April-September
Category 2008-09 2008-09 2009-10
Net Net Net Net Net Net
Mobilisation@ Assets # Mobilisation@ Assets # Mobilisation@ Assets #
1 2 3 4 5 6 7
Private Sector -34,017 3,35,527 -2,667 3,95,074 83,864 4,95,709
Public Sector * 5,721 81,772 5,141 88,205 28,563 1,32,290
Total -28,296 4,17,300 2,473 4,83,278 1,12,427 6,27,999

@ : Net of redemptions. # : End-period. * : Including UTI Mutual fund.

Note : Data exclude funds mobilised under Fund of Funds Schemes.
Source : Securities and Exchange Board of India.

RBI
Monthly Bulletin
November 2009 2145
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
Rs.1,07,012 crore, while growth/equity
oriented schemes registered a net inflow
Rs.5,721 crore.
Secondary Market
V.34 The market sentiments continued to
remain positive during Q2 of 2009-10. After
remaining subdued at the beginning of July
2009, the markets moved up subsequently
following the firm trend in the international
equity markets, better than expected
earnings result by some Indian corporates
and banks, besides the Reser ve Bank
allowing FIIs and NRIs to invest in Indian
Depository Receipts. The Indian stock
markets again witnessed some correction
beginning in the second week of August
2009 with negative feedback from the US
unemployment and retail data, concerns
over expected tightening of bank lending in
China, deficient monsoon and sustained
decline in India’s exports. The markets,
thereafter, recovered on better than
expected economic data from the US and
the Euro area, robust IIP growth in India for
June 2009 and higher GDP growth for Q1 of
2009-10. The positive sentiments continued
RBI
Monthly Bulletin
2146 November 2009
through September 2009 mainly on account
of strong global cues such as G-20 leaders
pledging to maintain stimulus measures,
Federal Reser ve’s sur vey reporting
economic activity stabilising or improving
in most regions of US in July-August 2009,
strong growth in Chinese industrial
production, the Bank of Japan upgrading its
economic outlook as well as positive
domestic developments such as higher
advance tax paid by major Indian banks and
corporates indicating robust quarterly
earnings. The Sensex crossed 17000 mark
by the end-September 2009 with strong
support from FII inflows and positive global
data. As at end-September 2009, the BSE
Sensex and the S&P CNX Nifty both
registered gains of about 18 per cent over
end-June 2009 (Chart V.15).
V.35 FIIs and mutual funds made net
purchases in the stock markets in Q2 of
2009-10. According to the data released by
the Securities and Exchange Board of India
(SEBI), FIIs made net purchases of US$ 7.4
billion in the Indian equity market during
Q2 of 2009-10 as against net sales of US $2.4
billion in the comparable period of the
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

previous year (Chart V.16). Mutual funds
purchases in stock markets, however,
decreased during Q2 of 2009-10 compared
with the comparable period of previous year.
V.36 The sectoral indices witnessed
buying pressure across the board during the
current financial (up to end-September
2009) with rising investor interest. This
resulted in significant gains in prices in
sectors such as realty, metal, banking, auto,
consumer durable, capital goods and
information technology sector stocks
(Table 5.16).

Table 5.16: BSE Sectoral Stock Indices

(Base: 1978-79=100)

Sector Variation (per cent)

End-March 2008@ End-March 2009@ End-September 2009#
1 2 3 4
Fast Moving Consumer Goods 31.7 -11.1 26.5
Public Sector Undertakings 25.4 -29.6 70.3
Information Technology -27.6 -35.6 100.0
Auto -7.1 -32.3 116.4
Oil and Gas 56.0 -29.6 48.5
Metal 65.2 -58.7 144.6
Health Care 5.4 -26.5 55.6
Bankex 18.0 -41.8 119.5
Realty 33.8 -79.3 188.9
Capital Goods 54.4 -53.8 112.8
Consumer Durables 8.8 -58.1 115.8
BSE 500 24.3 -42.8 86.0
BSE Sensex 19.7 -37.9 76.4
@ : Year-on-year variation. # : Variation over end-March 2009.
Source: Bombay Stock Exchange Limited.

RBI
Monthly Bulletin
November 2009 2147
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
V.37 During Q3 of 2009, international
financial markets exhibited higher
confidence, improved risk appetite,
narrowing of spreads and reduced volatility.
In the interbank money market, key spreads
narrowed to further low levels due to
receding risks and continuation of easing
policy stance by the major central banks;
improvements were also evident in credit
markets although still marked by
weaknesses in some segments of the
mortgage market. Despite deleveraging by
the international financial institutions, the
pace of corporate bond issuances picked up,
indicating momentum in the underlying
investment and real activity. The risk spread
on EME bonds significantly receded,
indicating rise in risk appetite towards EME
assets and improvement in their access to
international capital. The equity markets of
both advanced economies and EMEs staged
further recovery in Q3 of 2009.
V.38 The domestic financial markets
witnessed further reduction in risk and
liquidity premia in various segments
besides a pickup in transaction volumes
during Q2 of 2009-10. The prevalence of
easy liquidity conditions in money market
was evident in the large absorption through
the reverse repo operation. This ample
liquidity condition facilitated low interest
rates in money market with call rates
RBI
Monthly Bulletin
2148 November 2009
hovering within the L AF corridor.
Transaction volumes in CBLO and market
repo segments continued to remain high
during Q2 of 2009-10, reflecting easy
liquidity conditions. The CP issuances also
increased significantly. The longer-term
yield, however, witnessed some increase,
both for the government and corporate
bonds, reflecting the concerns regarding
government borrowing programme,
incipient inflationar y pressures and
possible increase in demand for credit with
expected recovery in the real activity.
Although the growth of bank credit to
private sector continued to be moderate,
improved transmission of policy rates to
lending rates was discernible. The equity
markets made substantial recovery on the
strength of improved domestic
fundamentals, on clearer signs of recovery
in the global economy and resumption of
capital flows. In the primary market there
was improvement in resource mobilisation
by corporates in Q2 of 2009-10. The net
resources mobilised by mutual funds
recorded substantial increase, with liquidity
conditions remaining comfortable. The
equity prices witnessed considerable gains
in sectors such as realty, metal, banking,
auto, consumer durables, capital goods and
information technology. Overall, the
domestic financial markets remained stable
and supportive of recovery in growth.
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

VI. Price Situation The decline in WPI inflation from a peak

of 12.9 per cent in August 2008 coincided
with the moderation in economic growth,
thereby creating space for the adoption of
an accommodative growth supportive
monetary policy stance, which has
continued in 2009-10 so far. The emerging
inflationary pressures are clearly visible in
terms of the increase in WPI by 5.9 per
cent over its end-March level as well as
high and rigid CPI inflation. The
changing inflation environment is being
driven by high order of price increases in
essential commodities, particularly in items
of mass consumption like vegetables, pulses
and sugar. The dominance of the food price
inflation is evident from the fact that
inflation in WPI (y-o-y) excluding the
food category remains significantly lower
at (-)3.4 per cent, as against the headline
inflation of 1.2 per cent as on October 10,
2009. Given the nature of the sources of
emerging inflation, sustained policy
emphasis on improving both supply
conditions and supply chain for
distribution would be necessary.

VI.1 The significant moderation in global

inflation that had started with the onset of
the global crisis in 2008-09, continued in
2009-10, with several advanced countries
experiencing negative inflation due to sharp
fall in commodity prices in the second half
of 2008-09 and the sustained recession in
aggregate demand. Prices of food, fuel and
metal prices had bottomed in December
2008 and have been firming up moderately
since then. Sluggish global demand and
presence of unutilised capacity have,
however, contained the risk of inflation,

RBI
Monthly Bulletin
November 2009 2149
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
2150
thereby allowing the central banks around
the world to sustain the accommodative
monetary policy stance to spur economic
growth.
VI.2 In India, inflation as measured by
year-on-year variations in the wholesale
price index (WPI), which had tracked the
global inflation in 2008-09, declined
sharply from 12.9 per cent in August 2008
to 0.8 per cent by end-March 2009. The
gradual moderation, thereafter, yielded
negative inflation for 13 consecutive weeks
beginning in June 2009, before WPI
inflation turned positive again since early
September 2009. The emerging inflationary
pressure is evident from the increase in
WPI inflation during the current financial
year over end-March 2009 by 5.9 per cent
(up to October 10, 2009) and high CPI
inflation in the range of 11.7-13.2 per cent
in August/September 2009. Given the weak
demand as well as slowdown in economic
activities, it is the supply constraints in a
limited number of commodities, led by
food, which have been driving the current
inflation pressures.
RBI
Monthly Bulletin
November 2009
Global Inflation
VI.3 After registering high levels of
inflation during the first half of 2008-09,
headline inflation in major advanced
economies steeply declined subsequently
and turned negative in 2009. Year-on-year
consumer price inflation in OECD
countries, which had consistently been
declining up to July 2009 from its peak of
4.9 per cent in July 2008, moved up
marginally in August 2009, but continued to
remain negative at (-) 0.3 per cent. The recent
decline in inflation in OECD countries was
led by a sharp decline in CPI for energy.
Amongst the major economies, headline
inflation in the US, Japan and Euro Area has
turned negative while in the UK, inflation
has been steadily declining (Chart VI.1).
Core inflation also moderated in major
economies. In OECD countries, inflation,
excluding food and energy, decelerated to
1.5 per cent in August 2009 from 2.4 per cent
in September 2008. Producer Price Index
(PPI) inflation declined sharply both in
advanced as well as emerging market
economies (EMEs). PPI inflation in the euro-

area, which firmed up to 9.9 per cent in July
2008, declined steadily during 2009; the
maximum decline of 8.4 per cent was
registered in July 2009. The rate of decline
was lower at (-) 7.5 per cent in August 2009,
with the index of euro-area manufacturing
posting the highest month-on-month
increase in the past 14 months.
VI.4 Even though the headline inflation
in most of the advanced countries have
declined significantly since mid-2008, the
earlier concerns over a possible deflationary
spiral created by the negative inflation in
the US, Japan and the Euro Area during the
first half of 2009, have moderated to some
extent, due to signs of policy induced
recover y in terms of a rebound in
manufacturing and a turn in the inventory
cycle. Major factors that contributed to the
disinflation process include the steep
decline in oil prices from the record level
in July 2008, large downward corrections in
food and metals prices, lower transportation
costs and the existence of significant
industrial slackness due to sub-optimal
capacity utilisation. According to the IMF
(October 2009), global inflation is expected
to remain subdued and vulnerable to mild
deflation. With inflationary expectations
remaining generally well-anchored, risks for
sustained deflation are, however, perceived
to be small. On the other hand, inflation
risk may be more in emerging economies
where output gaps are smaller and recovery
may be stronger. IMF projects the inflation
in advanced economies to be close to zero
in 2009, with modest increase to 1 per cent
in the following year; inflation in emerging
economies is expected to hover around 5
per cent in 2009-10. China, a few ASEAN
economies and most emerging European
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
economies are likely to experience inflation
of less than 5 per cent.
VI.5 Mitigating the adverse impact of the
financial crisis continued to be the focus of
monetary policy actions of most central
banks. Policy rates in advanced economies
such as US and Japan, which had reached
near zero levels in 2008, were left
unchanged during 2009. Policy rate cuts
were effected by central banks in other
advanced economies such as the U.K., Euro
Area and Canada between March-May 2009,
with no subsequent changes. Reserve Bank
of Australia had reduced its policy rate by
25 basis points on April 8, 2009 but reversed
it in October 7, 2009 on signs of economic
recovery and improvement in measures of
confidence (Table 6.1). Bank of Israel had
also reduced its policy rate by 25 basis
points effective from April 2009 but raised
it back by 25 basis points effective from
September 2009.
VI.6 In the emerging economies, inflation
eased significantly since July 2008, in line
with decreases in international commodity
prices and general slowdown in economic
activity brought about by the global financial
crisis. Among the major emerging economies,
consumer price inflation in China and
Thailand turned negative in early 2009, while
it turned negative in Malaysia in June 2009;
other major economies also witnessed
significant easing in price pressures. Most
central banks in emerging economies (except
China) reduced their policy rates in 2009 in
an effort to arrest the moderation in growth
and to counter the spillover effects of the
global financial crisis. The central banks of
Russia, Thailand, Indonesia and Philippines
continued to reduce their policy rates during
the July-September quarter of 2009.
RBI
Monthly Bulletin
November 2009 2151
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 6.1: Global Inflation Indicators

(Per cent)
Country/ Key Policy Policy Rate Changes in Policy CPI Inflation
Region Rate (As on October 22, 2009) Rates (basis points) (y-o-y)
Sept 08 - Since end- Sep. 2008 Sep. 2009
Mar 09 Mar 09
1 2 3 4 5 6 7
Developed economies
Australia Cash Rate 3.25 (Oct.7, 2009) (-) 400 0 4.5 ^ 1.5 ^
Canada Overnight Rate 0.25 (Apr.21,2009) (-) 250 (-) 25 3.4 -0.9
Euro area Interest Rate on Main
Refinancing Operations 1.00 (May 13,2009) (-) 275 (-) 50 3.6 -0.3
Japan Uncollateralised
Overnight Call Rate 0.10 (Dec.19,2008) (-) 40 0 2.1 * -2.2 *
UK Official Bank Rate 0.50 (Mar. 5,2009) (-) 450 0 5.2 1.1
US Federal Funds Rate 0.00 to 0.25 (Dec.16,2008) (-) 200 0 4.9 -1.3
Developing economies
Brazil Selic Rate 8.75 (July 22, 2009) (-) 250 (-) 250 6.3 4.3
India Reverse Repo Rate 3.25 (Apr. 21, 2009) (-) 250 (-) 25 9.0 * 11.7 *
Repo Rate 4.75 (Apr. 21, 2009) (-) 400 (-) 25
(-400) 0
China Benchmark 1-year 5.31 (Dec 23, 2008) (-) 216 0 4.6 -0.8
Lending Rate (-300) 0
Indonesia BI Rate 6.50 (Aug. 5, 2009) (-) 150 (-) 125 12.2 2.8
Israel Key Rate 0.75 (Sep. 1, 2009) (-) 350 0 5.5 2.8
Korea Base Rate 2.00 (Feb. 12, 2009) (-) 325 0 5.1 2.2
Philippines Reverse Repo Rate 4.00 (Jul. 9, 2009) (-) 125 (-) 75 11.9 0.7
Russia Refinancing Rate 10.00 (Sep 30, 2009) 200 (-) 300 15.1 10.7
South Africa Repo Rate 7.00 (Aug.14, 2009) (-) 250 (-) 250 13.7 * 6.4 *
Thailand 1-day Repurchase Rate 1.25 (Apr. 8, 2009) (-) 225 (-) 25 6.0 -1.0
^ : Q2. *: August.
Note : 1. The central banks of Australia and Israel had reduced their policy rates by 25 basis points, effective from April 2009
but increased them again by 25 basis points, effective from October 2009 and September 2009, respectively.
2. For India, data on inflation pertain to CPI for Industrial Workers.
3. Figures in parentheses in column (3) indicate the dates when the policy rates were last revised.
4. Figures in parentheses in column (4) indicate the variation in the cash reserve ratio during the period.
Source: International Monetary Fund, websites of respective central banks and The Economist.

Global Commodity Prices prices, however, remained substantially

VI.7 International commodity prices, after
sharply declining during the period July to
December 2008, witnessed increases in 2009
up to September 2009 on account of crude oil
and metal prices. Prices of foodgrains, such
as rice, wheat and maize, however, declined
both on a year-on-year basis as well as over
end-March 2009 (Table 6.2). Most commodity
below the very high levels recorded during
the first half of 2008, which contributed to
the negative year-on-year changes (Chart VI.2).
Expectations of global economic recovery and
weak supply prospects in major agricultural
products, such as sugar and tea have been the
major drivers of the recent increases in
international commodity prices.

RBI
Monthly Bulletin
2152 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 6.2: International Commodity Prices

Commodity Unit Market Index (2004=100) Variation
Price (Per cent)
(2004) 2006 2007 2008 2009 Sep-09 Sep-09
Mar Apr May Jun Jul Aug Sep over over
Sep-08 Mar 09
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Energy
Coal $/mt 53 93 124 240 115 120 122 135 139 137 128 -54.9 10.9
Crude oil (Average) $/bbl 38 170 188 257 124 133 154 183 171 190 181 -31.4 46.5
Non-Energy Commodities
Palm oil $/mt 471 101 165 201 127 149 170 154 136 153 143 -12.6 12.7
Soybean oil $/mt 616 97 143 204 118 130 145 145 136 144 137 -31.0 16.4
Soybeans $/mt 307 88 125 171 124 135 152 164 151 154 140 -15.5 13.5
Rice $/mt 238 128 137 274 247 231 224 242 241 221 218 -24.1 -11.8
Wheat $/mt 157 122 163 208 147 149 167 164 143 134 121 -35.6 -17.6
Maize $/mt 112 109 146 200 147 151 161 161 136 136 135 -35.7 -8.6
Sugar c/kg 16 206 141 178 187 190 224 229 257 313 322 70.4 72.1
Cotton A Index c/kg 137 93 102 115 83 92 100 99 105 104 103 -13.0 24.4
Aluminium $/mt 1716 150 154 150 78 83 85 92 97 113 107 -27.4 37.3
Copper $/mt 2866 235 248 243 131 154 159 175 182 215 216 -11.4 65.2
Gold $/toz 409 148 170 213 226 218 227 231 228 232 244 20.1 7.9
Silver c/toz 669 173 200 224 196 187 211 219 200 216 246 35.2 25.7
Steel cold-rolled coil sheet $/mt 607 114 107 159 148 115 115 115 115 115 115 -36.4 -22.2
Steel hot-rolled coil sheet $/mt 503 119 109 176 159 119 119 119 119 119 119 -40.0 -25.0
Tin c/kg 851 103 171 217 125 138 162 176 165 175 175 -19.1 39.3
Zinc c/kg 105 313 309 179 116 132 142 149 151 174 180 8.6 54.8
$: US dollar. c: US cent. bbl: Barrel. mt: metric tonne. kg:Kilogram. toz: troy oz.
Note: The year 2004 has been taken as the base to exhibit price trends over the relevant period.
Source: World Bank.

VI.8 After exhibiting the highest intra-year 2009, in response to expected global
volatility in 2008-09, international crude oil economic recover y and successive
prices have gradually firmed up since March production cuts by Oil Producing and

RBI
Monthly Bulletin
November 2009 2153
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
2154
Exporting Countries (OPEC) to support
prices. Crude oil prices breached the US $70
per barrel level in June 2009 and again in
August 2009. While crude oil prices
marginally declined in September 2009, they
started firming up in October 2009 and
crossed US $ 80 per barrel on October 21,
2009 due to the weakness of the US dollar
and expectations of a recovery in global oil
consumption in the face of sustained
economic growth in China and signs of a
turnaround in other Asian countries.
According to the US Energy Information
Association, the presence of high oil
inventories and expectation of increased
supplies by both OPEC and non-OPEC
members during the second half of 2009 may
prevent any sustained increase in oil prices.
VI.9 Metal prices, which had witnessed a
declining trend since the second quarter of
2008 due to recessionar y conditions
prevailing in major economies, registered
the sharpest decline in March 2009; prices
have rebounded since April 2009, led by
copper, lead and nickel. Improvement in
global economic prospects has impacted the
prices of cyclically sensitive base metals.
Supply cutbacks in response to the
prolonged decline in prices have impacted
on the prices of certain key metals such as
aluminium, tin and zinc. Increased demand
from China to build up inventories and
support domestic industrial revival has lent
impetus to the rebound in metal prices.
VI.10 Improved supplies, particularly in
foodgrains and oilseeds, and unwinding of
commodity investments by financial
markets participants had eased the pressure
on international food prices, which had
peaked in 2008. There is, however, wide
divergence in prices across various
RBI
Monthly Bulletin
November 2009
commodities due to commodity-specific
factors such as weather conditions and
acreage. International sugar prices, which
had remained high in 2008, increased
further in 2009. Price pressures mainly
emanate from reduced global output, with
India, the second major producer of sugar,
turning a net importer in 2009-10, following
a sharp decline in its sugar output in 2008-
09. Sugar output in India is expected to
decline further during 2009-10 due to
drought in some of the major sugarcane
growing States and unseasonal rains in
others, which are likely to affect sugarcane
output and sugar recover y rate from
sugarcane, respectively. Wet weather
conditions in Brazil, the largest producer of
sugar, has also hampered harvest, thereby
further reducing global supplies.
VI.11 Agricultural raw materials exhibited
greater volatility on account of changes in
rubber prices, which track the crude oil
prices. Strong demand and supply
disruptions caused by unfavourable weather
conditions exerted pressure on rubber price
in recent months. Global cotton prices,
which had slumped to a four-year low in
March 2009 due to weak demand, firmed
up in the subsequent months, particularly
in October 2009, on expectations of a
supply-demand mismatch due to a possible
rebound in consumption from textile
manufacturers and a shortfall in production.
The International Cotton Advisor y
Committee (ICAC) expects the world cotton
production to fall by 1 per cent in 2009-10
over the previous year.
Inflation Conditions in India
VI.12 The sharp decline in WPI inflation
from the peak of 12.9 per cent in August
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

2008 had created adequate space for the
Reserve Bank to adopt and sustain an
accommodative monetary policy stance
since mid-September 2008 so as to remove
uncertainty about the availability of
liquidity in the system and to contain the
moderation in growth.
VI.13 The Annual Policy Statement (APS) of
the Reserve Bank for the year 2009-10,
formulated against the backdrop of the
slump in global demand and the resultant
abatement of global commodity prices and
the collapse of WPI inflation to near zero
level in March 2009, continued to
emphasise on the need to support the
revival of economic growth while ensuring
price stability and anchoring inflationary
expectations. Accordingly, the policy rates
were further reduced by 25 basis points as
part of the monetary stimulus measures
(Table 6.3). The APS projected WPI inflation
at around 4.0 per cent by end-March 2010,
keeping in view the global trends in
commodity prices and domestic demand-
supply balance.

Table 6.3: Movements in Key Policy Rates in India

(Per cent)
Effective since Reverse Repo Rate Cash Reserve WPI CPI (IW)
Repo Rate Ratio Inflation Inflation
1 2 3 4 5 6
April 14, 2007 6.00 7.75 6.25 (+0.25) 6.3 6.7
April 28, 2007 6.00 7.75 6.50 (+0.25) 6.0 6.7
August 4, 2007 6.00 7.75 7.00 (+0.50) 4.4 7.3
November 10, 2007 6.00 7.75 7.50 (+0.50) 3.2 5.5
April 26, 2008 6.00 7.75 7.75 (+0.25) 8.3 7.8
May 10,2008 6.00 7.75 8.00 (+0.25) 8.6 7.8
May 24,2008 6.00 7.75 8.25 (+0.25) 8.9 7.8
June 12, 2008 6.00 8.00 (+0.25) 8.25 11.7 7.7
June 25, 2008 6.00 8.50 (+0.50) 8.25 11.9 7.7
July 5, 2008 6.00 8.50 8.50 (+0.25) 12.2 8.3
July 19, 2008 6.00 8.50 8.75 (+0.25) 12.5 8.3
July 30, 2008 6.00 9.00 (+0.50) 8.75 12.5 8.3
August 30, 2008 6.00 9.00 9.00 (+0.25) 12.4 9.0
October 11, 2008 6.00 9.00 6.50 (–2.50) 11.3 10.4
October 20, 2008 6.00 8.00 (–1.00) 6.50 10.8 10.4
October 25, 2008 6.00 8.00 6.00 (–0.50) 10.7 10.4
November 3, 2008 6.00 7.50 (–0.50) 6.00 8.7 10.4
November 8, 2008 6.00 7.50 5.50 (–0.50) 8.7 10.4
December 8, 2008 5.00 (–1.00) 6.50 (–1.00) 5.50 6.6 9.7
January 5, 2009 4.00 (–1.00) 5.50 (–1.00) 5.50 5.3 10.4
January 17, 2009 4.00 5.50 5.00 (–0.50) 4.9 10.4
March 4, 2009 3.50 (-0.50) 5.00 (-0.50) 5.00 0.9 8.0
April 21, 2009 3.25 (-0.25) 4.75 (-0.25) 5.00 1.6 8.7
Note: 1. Reverse repo indicates absorption of liquidity and repo signifies injection of liquidity.
2. Figures in parentheses indicate change in policy rates.

RBI
Monthly Bulletin
November 2009 2155
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
2156
VI.14 The First Quarter Review of Monetary
Policy 2009-10 (FQR) (July 2009) noted that
the negative WPI inflation in June 2009 was
due to the base effect and was not indicative
of a contraction of demand. It also observed
that the sharp decline in WPI had not
brought about a commensurate decline in
inflationar y expectations. The FQR ,
therefore, revised the WPI inflation
projection upward to 5.0 per cent.
VI.15 The WPI inflation, which had turned
negative by the first week of June 2009,
remained so for 13 consecutive weeks
before moving up to above zero in
September 2009. Unlike the volatile pattern
in WPI inflation, CPI inflation continues to
remain high in the range of 11.7 per cent to
13.2 per cent during August/September
2009. The divergence between the WPI and
CPI inflation was highlighted both in the
APS and the FQR. The FQR stated that the
immediate challenge for the Reserve Bank
was to manage the balance between the
short-term compulsions of providing ample
liquidity and the potential build-up of
inflationary pressure on the way forward.
The inflationary pressures have increased
since the presentation of FQR, as evident
from the recent trends in WPI, CPIs and
inflation expectations.
Wholesale Price Inflation
VI.16 WPI inflation in India declined
steadily since August 2008 and reached near
zero levels by end-March 2009, driven by the
reduction in the administered prices of
petroleum products and electricity as well
as decline in prices of freely priced minerals
oil items, iron and steel, oilseeds, edible
oils, oil cakes and raw cotton. Significant
part of the decline in WPI inflation during
RBI
Monthly Bulletin
November 2009
this period was also on account of the base
effect.
VI.17 Year-on-year WPI inflation declined
further during 2009-10 and turned negative
on June 6, 2009. WPI inflation turned
positive on September 5, 2009 and has
remained marginally above zero since then
(1.2 per cent as on October 10, 2009), with
the petering out of the strong base effect of
the significant increase in administered
prices of petroleum products in June 2008.
Freely priced products such as iron and
steel, non-ferrous metals, chemicals and
edible oils also recorded year-on-year
declines during this period.
VI.18 During the current financial year so
far, WPI has already increased by 5.9 per
cent in October 10, 2009 over the end-
March-2009 level. The recent increase in the
WPI was largely on account of the upward
revision of prices of petrol and diesel
(effective July 2, 2009), increase in prices of
freely priced products under the fuel group
in line with hardening of international
crude oil prices, and higher prices of sugar,
vegetables and drugs and medicines. Most
non-food commodity prices moved in line
with the international commodity prices
(Table 6.4).
VI.19 In terms of contribution to overall
inflation by the major groups, the
contribution of the fuel group declined
sharply and is negative at present (Chart VI.3).
The contribution of manufactured products
group which had turned negative,
coincidental to the negative phase of WPI
inflation during June-August 2009, moved up
subsequently and is marginally above zero.
The contribution of primary article group
continues to remain positive and strong.
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 6.4: Key Commodity Prices - VI.20 At a disaggregated level, the y-o-y WPI
Global vis-à-vis Domestic inflation excluding fuel was lower at 3.5 per
(Per cent) cent as on October 10, 2009 as compared
Item Annual Inflation Recent trends with 10.4 per cent a year ago. This was on
(y-o-y, Sep. Sep. 2009 over account of the substantially high WPI fuel
2009) end-Mar. 2009
group inflation during the period June-
Global India* Global India*
1 2 3 4 5
October 2008. WPI inflation excluding food
and fuel was, however, negative at (-) 1.9 per
1. Rice -24.1 17.2 -11.8 2.9
2. Wheat -35.6 4.2 -17.6 3.0
cent as on October 10, 2009. The annual
3. Milk – 8.7 – 5.8
average WPI inflation rate (average of 52
4. Raw Cotton -13.0 -13.3 24.4 5.2 weeks) also declined to 2.5 per cent as on
5. Oilseeds -15.5 2.0 13.5 6.5 October 10, 2009 from 8.3 per cent at end-
6. Iron Ore -28.2 -5.8 -28.2 -18.8 March 2009. Essential commodities group
7. Coal mining -54.9 -1.0 10.9 0.0 increased by 17.8 per cent, y-o-y, as on
8. Minerals Oil -31.4 -13.2 46.5 10.6 October 10, 2009, driven mainly by prices of
9. Edible Oils -21.8 -7.2 14.5 -1.9 sugar (45.1 per cent), pulses (22.8 per cent)
10. Oil Cakes 4.4 0.0 23.5 0.0 and vegetables (19.6 per cent) (Chart VI.4a).
11. Sugar 70.4 42.7 72.1 28.0
11. Basic Heavy VI.21 Amongst the major groups, primary
Inorganic Chemicals – -26.8 – -4.2 articles inflation, y-o-y, was higher at 8.6 per
12. Basic Metals, Alloys cent as on October 10, 2009 from 5.2 per
and Products# -17.8 -12.7 39.7 1.7
cent at end-March 2009, mainly on account
13. Iron and Steel -37.8 -17.2 -17.5 3.4
of food articles which registered double-digit
* : Based on WPI as on September 26, 2009.
inflation (Table 6.5 and Chart VI.4b). The
# : Represented by IMF metals price index, which covers
copper, aluminium, iron ore, tin, nickel, zinc, lead and sharp upward revision in the minimum
uranium. support prices (MSP) for most of the
Note: Global price increases are based on the World Bank
agricultural crops during the 2008-09 crop
and IMF primary commodity prices data.
season partly accounts for the increase in

RBI
Monthly Bulletin
November 2009 2157
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
2158
the prices of foodgrain prices, particularly
for rice and pulses (Chart VI.5). Rice price
increase, y-o-y, has been in double digits
since mid-October 2008, despite a record
harvest and increase in public stocks.
Supply constraints and increases in MSP
affected the prices of pulses. Tea prices
which had increased sharply in 2008-09,
moderated to some extent in April 2009,
only to rise steeply again since May 2009,
with global tea production forecast to
decline. Estimated production of tea up to
August 2009 by the Tea Board of India
showed a decline over the previous year.
Price increases, though, have significantly
decelerated since June 2009, largely on
account of the base effect.
VI.22 Among the non-food articles, y-o-y
inflation in raw cotton declined steadily
since end-May 2009 although there has been
some moderation in the decline in recent
weeks. With the acreage under cotton
increasing in the current financial year so
far, cotton output is estimated to be higher
than the previous year. Oilseed prices which
had declined since June 2009, marginally
increased since September 2009 with
RBI
Monthly Bulletin
November 2009
output likely to fall due to delayed and
deficient monsoon.
VI.23 Year-on-year fuel group inflation,
which turned negative in December 2008 in
line with the international crude oil prices,
continued to decline during the current
financial year, dragging down the overall
WPI inflation. Despite the increase in
international crude prices to around US$ 70
per barrel by end-June 2009 and the
corresponding increase in freely priced
products, the disinflation in the fuel group
moved to double digit level in June 2009,
weighed by the base effect of upward
revision of administered prices in June
2008. With the Government announcing
hikes in administered prices of petrol and
diesel effective from July 2, 2009 to partially
offset the under recoveries of oil companies
arising from increase in international crude
prices, fuel price disinflation moderated.
VI.24 Manufactured products inflation,
year-on-year, has also decelerated since
March 2009, reflecting the base effect, and
turned negative in July 2009. It, however,
reversed on September 12, 2009 and
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 6.5: Wholesale Price Inflation in India

(year-on-year)
(Per cent)
Commodity 2008-09 2008-09 2009-10 Financial Year
(October 11) (Mar 28) (October 10) P (over end-
March 09) P
Weight Inflation C Inflation C Inflation C Inflation C
1 2 3 4 5 6 7 8 9 10

All Commodities 100.0 11.3 11.3 0.8 0.8 1.2 1.2 5.9 5.9
1. Primary Articles 22.0 12.6 2.9 5.2 1.2 8.6 2.0 9.8 2.4
Food Articles 15.4 10.2 1.6 7.0 1.1 13.3 2.1 14.1 2.3
i. Rice 2.4 12.4 0.3 14.9 0.3 12.7 0.3 5.9 0.1
ii. Wheat 1.4 5.0 0.1 4.5 0.1 6.7 0.1 3.5 0.1
iii. Pulses 0.6 8.6 0.1 9.4 0.1 22.8 0.2 19.2 0.1
iv. Vegetables 1.5 11.1 0.2 -5.2 -0.1 19.6 0.3 59.3 0.7
v. Fruits 1.5 16.2 0.3 5.9 0.1 3.2 0.1 5.2 0.1
vi. Milk 4.4 7.9 0.3 7.0 0.3 10.0 0.4 7.0 0.3
vii. Eggs, Fish and Meat 2.2 7.6 0.2 3.2 0.1 24.1 0.6 25.3 0.6
Non-Food Articles 6.1 14.1 0.8 0.1 0.0 -1.2 -0.1 3.6 0.2
i. Raw Cotton 1.4 32.5 0.4 2.5 0.0 -11.2 -0.1 3.2 0.0
ii. Oilseeds 2.7 15.2 0.4 -1.6 0.0 0.8 0.0 3.4 0.1
iii. Sugarcane 1.3 -0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Minerals 0.5 43.6 0.4 7.2 0.1 -3.8 0.0 -13.1 -0.2
2. Fuel, Power, Light and Lubricants 14.2 14.5 3.1 -6.1 -1.3 -6.8 -1.5 7.6 1.5
i. Coal Mining 1.8 9.8 0.2 -1.0 0.0 -1.0 0.0 0.0 0.0
ii Mineral Oils 7.0 22.4 2.8 -8.7 -1.1 -11.6 -1.6 10.5 1.2
iii. Electricity 5.5 1.4 0.1 -2.6 -0.2 2.0 0.1 4.7 0.3
3. Manufactured Products 63.8 9.5 5.3 1.7 1.0 1.3 0.7 3.7 2.1
i. Food Products 11.5 8.8 0.9 8.8 0.9 16.1 1.6 8.0 0.9
of which: Sugar 3.6 13.9 0.3 18.4 0.4 45.1 1.1 31.0 0.9
Edible Oils 2.8 8.9 0.2 -7.6 -0.2 -7.2 -0.2 -3.9 -0.1
ii. Cotton Textiles 4.2 6.3 0.2 16.2 0.4 6.5 0.2 3.3 0.1
iii. Man Made Fibres 4.4 3.5 0.1 -1.5 0.0 -4.7 -0.1 0.8 0.0
iv. Chemicals and Products 11.9 9.7 1.1 2.0 0.2 2.1 0.2 6.6 0.7
of which : Fertilisers 3.7 9.1 0.3 4.8 0.1 -2.9 -0.1 -2.4 -0.1
v. Non-Metallic Mineral Products 2.5 3.6 0.1 1.9 0.0 3.0 0.1 2.7 0.1
of which: Cement 1.7 2.3 0.0 2.2 0.0 0.3 0.0 -0.1 0.0
vi. Basic Metals, Alloys and
Metal Products 8.3 19.7 1.9 -12.2 -1.3 -13.2 -1.4 0.4 0.0
of which: Iron and Steel 3.6 28.4 1.3 -18.4 -1.0 -18.4 -1.0 1.0 0.0
vii. Machinery and Machine Tools 8.4 5.3 0.3 2.6 0.2 -1.5 -0.1 0.9 0.1
of which: Electrical Machinery 5.0 5.2 0.2 1.1 0.0 -2.8 -0.1 1.0 0.0
viii. Transport Equipment and Parts 4.3 7.0 0.2 3.1 0.1 -0.8 0.0 0.5 0.0
Memo:
Food Items (Composite) 26.9 9.6 2.5 7.7 2.0 14.4 3.7 11.6 3.2
WPI Excluding Food 73.1 11.9 8.8 -1.6 -1.2 -3.4 -2.5 3.8 2.7
WPI Excluding Fuel 85.8 10.4 8.2 2.7 2.1 3.5 2.7 5.5 4.4
WPI Essential Commodity Group 17.6 8.7 1.5 9.0 1.4 17.8 2.9 13.8 2.5
C : Contribution to inflation. P : Provisional.
Note: As per the press realease by the Ministry of Commerce and Industry dated October 19, 2009, the current series of WPI
(base 1993-94) would be released on a monthly basis instead of the present practice of weekly releases. However, a
weekly price index for primary articles and commodities in ‘fuel, power, light and lubricant’ group would be compiled to
facilitate weekly monitoring of sensitive commodities.

RBI
Monthly Bulletin
November 2009 2159
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
2160
remained marginally positive since then.
The movement in manufactured products
inflation was largely driven by the year-on-
year decline in prices of iron and steel,
edible oils, fertilisers, man-made fibre and
machiner y and machine tools.
Manufactured food articles inflation was
mainly driven by sugar prices, which rose
sharply due to falling stocks and weak and
sporadic monsoon. The other major
contributor to manufactured food inflation
was dairy products, the prices of which were
affected by reduced supplies in the wake of
the recent weak monsoon and its impact on
animal fodder.
VI.25 ‘Basic metals, alloys and products’
sub-group of manufactured products
registered negative inflation y-o-y, as on
October 10, 2009, mainly on account of a
decline in the prices of iron and steel which
could be attributed to decline in global
prices and sluggish domestic and external
demand.
VI.26 Primary articles prices have increased
by 9.8 per cent over the end-March 2009
level of the index. Vegetable prices recorded
RBI
Monthly Bulletin
November 2009
an increase of around 59.3 per cent over
end-March 2009. This was mainly on
account of a steep increase of over 100 per
cent in the price of potatoes, the second
highest weighted commodity amongst the
vegetables, due to a decline in output in the
current season following a slump in potato
prices during the previous year. Pulses
prices moved into double digit during the
second quarter of 2009-10. Although
increase in rice prices over end-March 2009
were moderate, at less than 3 per cent up
to October 3, 2009, prospects of a decline
in output during 2009-10 due to the shortfall
in acreage under paddy as well as the
damage caused by floods in rice growing
States has led to the firming up of prices to
around 6 per cent as on October 10, 2009.
VI.27 During the current financial year (up
to October 10, 2009), prices of various freely
priced petroleum products increased over
their levels in end-March 2009 in line with
international prices. While increase in the
prices of furnace oil was the highest, at 55.7
per cent, that of bitumen was the least at
5.4 per cent. Price increases in other

products were 39.9 per cent for avian
turbine fuel, 30.1 per cent for light diesel
oil, 28.1 per cent for naphtha and 6.5 per
cent for high speed diesel.
VI.28 Manufactured product inflation for
the financial year (up to October 10, 2009)
was driven by the increase in manufactured
food products and drugs and medicines. A
sharp increase in the volume of edible oil
imports in the face of low international
prices exerted downward pressure on edible
oils which declined over the end-March
level. With the revival in automobile sales
and the unwinding of stocks, both in the
domestic and international markets, major
steel companies have raised their prices of
flat steel during the current financial year.
This has resulted in a marginal increase in
the price of steel sheets within the iron and
steel sub-group over end-March 2009 level.
VI.29 Overall, the year-on-year deceleration
in WPI inflation has been on account of the
sharp decline in fuel group. While prices of
primary articles continue to remain high,
manufactured products posted modest price
increases.
Consumer Price Inflation
VI.30 Inflation based on y-o-y variation in
consumer price indices (CPIs) has increased
since June 2008, mainly due to increase in
the prices of food, fuel and ser vices
(represented by the ‘miscellaneous’ group).
The various measures of consumer price
inflation remained high in the range of 11.7-
13.2 per cent during August/September 2009
as compared with 8.5-12.4 per cent in
August/September 2008 and 8.0-9.7 per cent
in March 2009 (Table 6.6).
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
VI.31 CPI inflation has been significantly
different from the WPI inflation in the
recent period and the divergence has also
been increasing (Chart VI.6).
VI.32 The greater divergence between WPI
and CPI inflation could be attributed to the
higher weight in CPIs of food articles, which
have displayed higher inflation in recent
months. When there is an upward pressure
on food prices, CPI (IW) food inflation in
general appears to increase at a faster rate
and remain at the elevated level for a longer
period than the WPI inflation. There has,
however, been a dip in CPI food inflation
in August 2009, bringing it closer to WPI
food inflation (Chart VI.7). The higher order
of inflation in the same commodities at the
retail level (as captured in CPI) could be on
account of intermediation costs, higher
transportation and labour costs between
wholesale and retail markets, as well as
better pricing power in the retail market in
relation to wholesale markets. Thus, the
divergence between WPI and CPI inflation
is not only because of differences in weights
and coverage, but also because of the actual
price differences for similar commodities at
the wholesale and retail levels.
VI.33 Among the non-common groups in
the WPI and CPI, the miscellaneous group
under CPIs (with weights ranging from 11.9
per cent to 24 per cent) which includes
services, also exhibited significant price
pressures. Similarly, metals group (weight
of 8.3 per cent), which is only represented
in the WPI, has exhibited significant
negative inflation, contributing to the
widening of the overall difference between
inflations as per the CPIs and WPI. There
also exists a lag in the movement of CPI
inflation in relation to the WPI inflation.
RBI
Monthly Bulletin
November 2009 2161
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 6.6: Consumer Price Inflation - Major Groups

(Year-on-year variation in per cent)
CPI Measure Weight Mar-07 Mar-08 Jul-08 Aug-08 Sep-08 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09
1 2 3 4 5 6 7 8 9 10 11 12
CPI-IW (Base: 2001=100)
General 100 6.7 7.9 8.3 9.0 9.8 8 8.7 8.6 9.3 11.9 11.7 –
Food Group 46.2 12.2 9.3 10.3 11.7 13.1 10.6 10.4 11.7 12.2 14.7 13.7 –
Pan, Supari etc. 2.3 4.4 10.9 6.3 6.3 7.8 8.3 6.7 7.5 8.1 8.9 9.6 –
Fuel and Light 6.4 3.2 4.6 9.2 9.9 9.1 7.4 6.6 5.9 1.4 2.1 2.8 –
Housing 15.3 4.1 4.7 3.8 3.8 3.8 6 6 6 6 22.1 22.1 –
Clothing, Bedding etc. 6.6 3.7 2.6 2.5 3.4 2.5 5 4.2 4.1 4.1 5.0 4.1 –
Miscellaneous 23.3 3.3 6.3 7.8 7.7 7.6 7.4 7.4 7.4 6.6 5.8 6.4 –
CPI-UNME (Base: 1984-85=100)
General 100 7.6 6 7.4 8.5 9.5 9.3 8.8 9.7 9.6 13.0 12.9 –
Food Group 47.1 10.9 7.8 10.0 11.5 13.2 12.2 11.1 12.9 13.6 15.3 15.0 –
Fuel and Light 5.5 6.4 4.6 6.2 6.5 6.2 5.9 6.7 5.8 1.3 2.1 2.7 –
Housing 16.4 5.6 4 3.7 3.5 3.5 5.8 6 6 6.0 22.0 22.0 –
Clothing, Bedding etc. 7 3.6 4.3 3.2 3.8 3.1 3.3 4.2 4.2 4.2 5.0 4.1 –
Miscellaneous 24 4.4 4.8 7.3 7.7 8.4 8.6 7.6 8.1 7.3 7.0 6.8 –

CPI-AL (Base: 1986-87=100)

General 100 9.5 7.9 9.4 10.3 11.0 9.5 9.1 10.2 11.5 12.9 12.9 13.2
Food Group 69.2 11.8 8.5 10.7 11.3 12.0 9.7 9.1 11.2 12.4 14 14.1 14.6
Pan, Supari etc. 3.8 5.7 10.4 10.8 11.8 12.8 15.3 14.5 14.4 14.2 15.6 16.5 15.5
Fuel and Light 8.4 6.9 8 9.3 9.5 10.2 11.5 10.9 10.6 11.0 12.0 11.6 12.0
Clothing, Bedding etc. 7 3.5 1.8 3.6 5.0 6.0 7.4 7.9 7.6 8.3 8.8 8.5 8.1
Miscellaneous 11.7 6.8 6.1 7.0 6.9 7.1 6.5 6.2 6.6 6.1 6.5 7.2 7.1

CPI-RL (Base: 1986-87=100)

General 100 9.2 7.6 9.4 10.3 11.0 9.7 9.1 10.2 11.3 12.7 12.7 13.0
Food Group 66.8 11.5 8.2 10.5 11.6 12.0 10 9.1 11.2 12.4 14.2 14.1 14.6
Pan, Supari etc. 3.7 5.7 10.6 10.5 11.5 12.5 15 14 14.1 14.1 15.3 16.2 15.4
Fuel and Light 7.9 6.9 8 9.3 9.8 10.5 11.5 10.9 10.6 11.0 11.8 11.4 12.0
Clothing, Bedding etc. 9.8 3.1 2.8 4.3 5.6 6.5 8.2 8.4 8.3 8.8 9.7 9.1 9.5
Miscellaneous 11.9 6.3 6.2 7.0 7.2 7.4 6.7 6.2 6.4 6.2 6.1 7.0 6.9
Memo:
WPI Inflation
(End of period) 5.9 7.7 12.5 12.4 12.1 0.8 1.7 0.1 -1.1 -0.7 -0.1 0.7
GDP Deflator based
Inflation* 5.5 4.9 – – 10.6 7.0 – – 0.9 – – –
*: Data for March pertain to full year.
IW : Industrial Workers. UNME : Urban Non-Manual Employees. AL : Agricultural Labourers. RL : Rural Labourers.

VI.34 Within the food category of the CPI
(IW), inflation has been the highest in the
pulses sub-group amongst the staples and
in the vegetables sub-group amongst the
perishables, since April 2009 and May 2009,
respectively (Charts VI.8a and b).
VI.35 CPI-IW for housing, which is not
represented in the CPI-AL and CPI-RL
showed a sharp rise of 22.1 per cent in July
2009 on account of revision of imputed rent
for rent-free accommodation, reflecting the
impact of the Sixth Pay Commission award

RBI
Monthly Bulletin
2162 November 2009

on CPI inflation. It may be mentioned that
housing index in the CPI is compiled once
in every six months, viz., January and July.
The index would, therefore, remain at the
elevated level in the months to come.
VI.36 Overall, the emerging price pressures
are already visible, even though year-on-year
WPI inflation remains low. With the base
effect of sharp fuel price increases a year ago
petering out, year-on-year WPI inflation has
emerged out from the negative zone after 13
weeks. Within the WPI, the essential
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
commodities group, particularly food articles
contributed the most to the increase in
inflation. Reflecting inflation momentum,
WPI has been rising since end-March 2009,
spurred both by domestic supply constraints
in certain commodities and increases in
international commodity prices. Consumer
price inflation continues to remain firm and
the divergence between CPI and WPI
inflation has widened further during the first
half of 2009-10. High CPI inflation is a major
risk to inclusive growth, since it could
RBI
Monthly Bulletin
November 2009 2163
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
2164
potentially lead to erosion in real income of
the segments of population for which the CPI
indices are prepared. Persistent high CPI
inflation could also lead to wage/cost push
inflation because of the pressures for price/
wage revisions and revisions to minimum
support prices, which are linked to CPI
indices. More importantly, it could further
inflate the inflationary expectations. Given
the supply side sources of emerging
inflationary pressures, the policy focus needs
to be directed at improving both the supply
conditions and the supply chain for more
efficient distribution. Measures are already
afoot to manage the supply side pressure on
inflation. These include the proposed release
of 30 lakh tonnes of wheat during October
RBI
Monthly Bulletin
November 2009
2009-March 2010 under the open market sale
scheme; removal of restrictions such as stock
holding limits on wheat in order to facilitate
purchase by private traders during the
harvesting season; restrictions on large
consumers of sugar to conserve stock;
increased release in sugar quota ahead of the
festival season; removal of import duty on
rice, wheat and raw sugar; and permission
for duty free import of white/refined sugar
up to 10 lakh tonnes by Central/State
Government agencies and private traders in
addition to designated agencies. Sustained
high CPI and essential commodities inflation
could pose a challenge to the Reserve Bank’s
objective of firmly anchoring inflation
expectations.
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

VII. Macroeconomic Surveys conducted by the Reserve Bank as

well as other agencies to collect lead
Outlook information on the expectations about the
overall business outlook point to significant
turnaround and rising optimism, which
is also corroborated by the recovery in the
industrial production up to August 2009.
The expected decline in agricultural
output under the influence of the deficient
monsoon, however, has impacted the overall
growth outlook, which is evident from the
findings of the Reserve Bank’s survey of
professional forecasters suggesting a
downward revision to the growth outlook for
2009-10 from 6.5 per cent to 6.0 per cent.
The inflation outlook, notwithstanding the
low year-on-year WPI inflation so far, is
conditioned by the pressures of emerging
high inflation in essential commodities as
well as elevated and expanding consumer
price inflation.

VII.1 The projections of various domestic

and international agencies as well as the
different forward looking surveys point to an
improvement in India’s growth outlook.
However, the impact of the deficient monsoon
on agricultural output and rural demand could
inhibit a faster recovery. Business confidence
surveys in general exhibit significant
optimism, a marked turnaround from the
bearish sentiments of the previous quarters.
The industrial outlook survey of the Reserve
Bank indicates the return of the economy to
an expansion path. The professional
forecasters’ survey conducted by the Reserve
Bank in September 2009, however, suggests a
downward revision to the growth outlook,
reflecting the expected negative impact of the
deficient monsoon on agricultural output.

RBI
Monthly Bulletin
November 2009 2165
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
Business Expectations Surveys
VII.2 Surveys conducted by different
agencies to collect lead information on the
for ward looking assessment of the
companies about the prospects of the
economy show a general pattern of
optimism, with the relevant business
confidence indices exhibiting significant
increases over the levels in the preceding
quarter (Table 7.1)
VII.3 The Business Confidence Index
(BCI) of the NCAER (National Council of
Applied Economic Research) that was
released in July 2009 showed a 45 percent
increase over the level in the previous
quarter, which represents a reversal of the
declining trend that was noticed in the
previous five quarters. The survey exhibited
improvement in all four components of BCI,
i.e. “investment climate”, “overall economic
conditions”, “financial position of firms” and
“capacity utilisation”. The improvement was
also broad based across all five sectors, i.e.
consumer durables, consumer non-durables,
capital goods, intermediates and services. The
October 2009 NCAER-Mastercard Worldwide
Index of Business Confidence shows further
improvement in the BCI by 21 per cent, over
and above the 45 per cent increase in July
over April 2009. The findings of the survey
Table 7.1: Business Expectations Surveys
Period NCAER Q3: 2009
Index Business Confidence
Index
1 2
Current level of the Index 118.6
Index as per previous survey 81.6
Index Levels on Year back 125.4
% change (Q-on-Q) sequential 45.4
% change (Y-on-Y) -5.7
RBI
Monthly Bulletin
2166 November 2009
suggest business sentiments returning closer
to the pre-crisis levels.
VII.4 The Business Confidence Survey of
the FICCI for Q1:2009-10 that was released
in September 2009 suggests that 70 per cent
of the companies felt the overall economic
conditions to be “moderately to substantially
better” compared to previous six months.
The overall business confidence index rose
by 4.8 per cent over the previous quarter
level, as 50 per cent of the sur vey
respondents expected sales volume to
increase, 30 per cent expected investment
to increase, and 22 per cent viewed that they
would add to the workforce in the next two
quarters. While 80 per cent of the
respondents recognised the beneficial effects
of the fiscal stimulus on economic activity,
rising cost of raw materials and manpower,
delayed monsoon and high interest rates
were expressed as areas of concern.
VII.5 The Dun and Bradstreet Business
Optimism Index for Q3:2009 which was
conducted in June 2009 rose sharply by 40.8
per cent over the lowest level of the index
in the previous quarter. Five of the six
optimism indices, namely volume of sales,
net profits, new orders, selling prices, and
employee levels recorded improvement over
the previous quarter. Inventory levels,
however, declined by 2 percentage points.
FICCI Q1:2009-10 Dun& Bradstreet Q3: 2009
Overall Business Business Optimism
Confidence Index Index
3 4
67.2 132.1
64.1 93.8
52.5 136.5
4.8 40.8
28.0 -3.2

VII.6 The HSBC Markit Purchasing
Managers’ Index (PMI) – which is an
indicative measure of the health of the
manufacturing sector – moved up in
September 2009 after the decline in August
2009, but remained above the threshold (of
50) for the sixth month in a row suggesting
expansion in activities. The turnaround into
the expansion phase since April 2009 is
largely driven by home market. PMI for the
services remained in the expansion zone
(i.e., above 50), though with some
moderation in September 2009. The
composite PMI in September 2009 was
almost unchanged in the expansion zone,
as improvement in manufacturing was
offset by moderation in services.
Reserve Bank’s Industrial Outlook
Survey
VII.7 The 47th round of Industrial Outlook
Survey of the Reserve Bank conducted in July-
August 2009 showed further improvement
in the sentiments of the manufacturing
sector after the turnaround that was seen in
the survey findings of the previous quarter.
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
The survey covered opinions on “assessment
for July-September 2009” and “expectations
for October-December 2009”, and both
indices remained in the growth terrain (i.e.
above 100, which is the threshold that
separates contraction from expansion) for
the last two quarters of 2009. This suggests
that as per expectations of the survey
respondents, the industrial recovery already
seen up to August 2009 in terms of trends
in IIP growth could gain further momentum
during 2009-10 (Chart VII.1). The indices for
assessment (July-September) and
expectations (October-December) reached
107.2 and 116.4, respectively.
VII.8 The survey findings also indicate
improving demand conditions, as reflected
in better expectations about order books,
capacity utilisation and production. The
working capital finance requirement is
expected to grow in the October-December
quarter of 2009, which suggests that demand
for credit from the private sector may exhibit
a turnaround from the persistent
deceleration experienced so far. The overall
survey response indicates that availability of
RBI
Monthly Bulletin
November 2009 2167
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
finance has further improved and eased,
which corroborates the impact of the
accommodative monetary policy stance in
improving the availability of finance in
general. The survey findings also point to
continuation of pressures on profit margins,
though of a much lower magnitude in
relation to what was experienced in past few
quarters. The input prices are expected to
firm up for the second successive quarter;
with improving demand condition,
however, gradual return of pricing power
could also give rise to higher selling prices.
According to the survey findings, the outlook
for employment is also improving and firms
are expected to increase their workforce on
the back of expected increase in demand
(Table 7.2).
VII.9 The significant upturn in business
expectations could be seen as broad based
across industry groups, though industries
such as transportation, food products,
pharmaceuticals and fertilisers look more
optimistic than the others. The input price
inflation is also felt across the board, but it
is higher for paper, rubber, textiles and food
industries. All industries, excluding textiles,
are expected to increase their employment
levels. The improvement is also seen across
all size groups, but the bigger companies with
annual production of Rs. 1,000 crore or more
look most optimistic.
Survey of Professional
Forecasters1
VII.10 The general prevailing perception
about the impact of the delayed monsoon
1
Introduced by the Reserve Bank from the quarter ended
September 2007. The forecasts reflect the views of
professional forecasters and not the Reserve Bank.
RBI
Monthly Bulletin
2168 November 2009
gets reflected in the assessment of the
growth outlook of the professional
forecasters. The results of the ninth round
of sur vey of professional forecasters'
conducted by the Reser ve Bank in
September 2009 shows overall (median)
growth rate for 2009-10 at 6.0 per cent, as
against 6.5 per cent reported in the earlier
survey (Table 7.3). The sectoral growth rate
forecast for the agriculture sector was
revised downwards from 2.5 per cent to (-)
1.4 per cent, whereas for industry the
assessment was revised upwards from 4.8
per cent to 6.3 per cent. For services, the
forecasts suggest modest downward
revision from 8.3 per cent in the earlier
survey to 8.1 per cent in the current survey.
VII.11 The outlook for India’s growth in
2009-10 as projected by different
organisations since June 2009 has been
either revised upwards or maintained
unchanged (Table 7.4). The Asian
Development Bank (ADB) revised the
growth outlook for India upwards in
September 2009 from 5 per cent to 6 per
cent, highlighting the role of both emerging
signs of recovery in business confidence and
continuation of fiscal stimulus. NCAER
outlook released in July 2009 also showed a
higher projected growth figure of 7.2 per
cent for 2009-10, notwithstanding the
significant downward revision in growth
outlook for the agriculture sector to 1 per
cent from the previous projection of 2.5 per
cent. The IMF had already scaled up the
projected growth for India in its July 2009
outlook from 4.5 per cent to 5.4 per cent.
The October 2009 outlook of the IMF retains
the projected growth at the same level for
2009, while highlighting the role of policy
stimulus in boosting domestic demand and
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 7.2: Reserve Bank’s Survey – Net Response on ‘A Quarter Ahead’ Expectations
About the Industrial Performance
Parameter Response Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec
2008 2008 2009 2009 2009 2009
1 2 4 5 6 7 8 9
1 Overall business situation Better 41.8 33.7 21.1 11.2 24.2 39.8
(42.6) (44.1) (43.9) (47.6) (46.7) (45.4)
2 Financial situation Better 32.7 27.7 16.4 8.4 20.0 33.5
(53.0) (52.5) (53.2) (52.7) (54.4) (52.5)
3 Working capital finance requirement Increase 33.6 33.8 32.9 23.2 26.3 30.4
(57.3) (57.7) (57.1) (61.0) (61.7) (61.0)
4 Availability of finance Improve 30.2 23.3 13.7 9.3 16.6 26.1
(57.9) (59.0) (56.3) (61.7) (62.6) (62.7)
5 Production Increase 43.5 39.8 26.0 9.9 22.4 35.0
(36.6) (42.1) (42.3) (44.9) (45.5) (43.0)
6 Order books Increase 38.5 35.7 20.6 6.4 16.8 32.3
(43.5) (46.1) (46.1) (44.4) (45.8) (45.3)
7 Pending orders, if applicable Below 2.2 4.6 11.5 23.2 19.1 11.0
normal (80.9) (82.0) (77.8) (59.4) (73.4) (80.6)
8 Cost of raw material Decrease -54.7 -61.1 -35.7 -16.2 -27.1 -38.4
Inventory of raw material (39.1) (32.3) (39.7) (33.7) (55.5) (51.6)
Below -3.8 -7.6 -3.3 1.1 -0.5 -1.2
average (81.8) (77.6) (81.3) (80.2) (82.7) (85.0)
9 Inventory of finished goods Below average -1.5 -4.3 -4.4 -4.4 -1.8 -3.7
(84.5) (82.6) (80.9) (78.4) (80.6) (85.3)
10 Capacity utilisation (Main product) Increase 22.2 26.4 12.3 -0.7 10.7 22.0
(58.8) (56.0) (59.1) (55.0) (57.5) (56.2)
11 Level of capacity utilisation Above normal 3.6 -0.5 -7.4 -20.8 -12.1 -3.8
(Compared to the average in the (74.9) (78.7) (73.7) (66.4) (70.8) (76.0)
preceding four quarters)
12 Assessment of the production capacity More than 4.6 5.7 11.8 8.9 5.5 6.5
(With regard to expected demand in adequate (81.3) (81.7) (81.0) (70.7) (76.9) (79.7)
the next six months)
13 Employment in the company Increase 15.8 16.6 7.7 -5.1 1.5 8.8
(71.5) (70.4) (75.7) (74.0) (78.6) (77.2)
14 Exports, if applicable Increase 27.7 27.3 16.0 -3.8 0.1 12.5
(54.9) (54.3) (54.8) (57.3) (59.0) (58.5)
15 Imports, if any Increase 21.3 21.4 9.1 -1.4 4.6 11.5
(66.5) (67.9) (69.7) (68.8) (70.6) (68.9)
16 Selling prices are expected to Increase 21.0 26.2 4.1 -9.1 0.0 6.0
(61.5) (57.6) (61.7) (61.9) (65.6) (67.6)
17 If increase expected in selling prices Increase at 3.0 0.6 0.9 25.9 -100.0 19.4
lower rate (61.3) (54.7) (54.0) (53.5) (0.0) (63.2)
18 Profit margin Increase 3.8 -3.6 -12.9 -18.6 -13.4 -2.8
(59.8) (54.7) (53.3) (50.6) (54.5) (56.8)
Note: 1. ‘Net response’ is measured as the percentage share differential between the companies reporting ‘optimistic’ (positive)
and ‘pessimistic’ (negative) responses; responses indicating status quo (no change) are not reckoned. Higher ‘net response’
indicates higher level of confidence and vice versa.
2. Figures in parentheses are the percentages of respondents with ‘no change over the preceding quarter’ as responses.

relatively lower dependence of India on Minister projected recently the Indian

exports in relation to other Asian countries. economy to grow by 6.5 per cent in 2009-10,
The Economic Advisory Council to the Prime with an assessment suggesting growth

RBI
Monthly Bulletin
November 2009 2169
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 7.3: Median Forecasts of Select Macroeconomic Indicators by

Professional Forecasters 2009-10
Actual Annual forecasts Quarterly forecasts
2008-09
2009-10 2010-11
2009-10 2010-11
Q2 Q3 Q4 Q1 Q2
E L E L E L E L E L E L E L
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1. Real GDP growth rate at
factor cost (in per cent) 6.7 6.5 6.0 7.5 7.7 6.2 6.2 6.9 5.7 7.1 6.7 7.5 7.3 – 7.6
a. Agriculture &
Allied Activities 1.6 2.5 -1.4 3.0 3.7 2.4 -1.0 3.5 -3.7 3.0 -1.0 3.0 2.0 – 2.7
b. Industry 2.6 4.8 6.3 7.4 7.3 3.5 6.6 5.9 6.9 7.2 6.9 7.0 6.7 – 6.7
c. Services 9.4 8.3 8.1 9.0 9.1 8.0 7.8 8.5 8.4 8.5 8.6 8.8 8.9 – 9.1
2. Gross Domestic Saving
(per cent of GDP at
current market price) – 35.0 33.6 36.0 36.6 – – – – – – – – – –
3. Gross Domestic Capital
Formation (per cent of GDP
at current market price) – 36.6 37.3 37.9 37.7 36.4 34.8 38.0 36.5 37.0 36.0 36.2 36.2 – –
4. Corporate profit after tax
(growth rate in per cent)* – 7.5 10.0 15.0 14.5 3.0 4.5 8.0 9.0 9.0 12.0 15.0 15.0 – 17.5
5. Inflation WPI 8.4 1.6 3.0 5.5 5.8 -1.4 -0.24# 2.5 4.0 5.4 6.8 5.9 7.2 – 6.5
6. Exchange Rate (US$/INR
end period) 51.0 46.5 46.0 44.5 44.5 47.5 48# 47.0 47.0 46.0 46.0 45.4 45.9 – 45.3
7. T-Bill 91 days Yield
(per cent-end period) 7.1 4.6 4.1 5.0 4.9 – – – – – – – – – –
8. 10-year Govt. Securities
Yield (per cent-end period) 7.6 7.0 7.3 7.0 7.5 – – – – – – – – – –
9. Export (growth rate
in per cent)! 5.4 -0.5 -5.0 12.0 14.2 – – – – – – – – – –
10. Import (growth rate
in per cent)! 14.3 -3.5 -15.7 14.0 12.0 – – – – – – – – – –
11. Trade Balance
(US $ billion) -119.4 – – – – -25.8 -23.5 -31.0 -28.1 -19.9 -22.1 -29.3 -20.7 – -28.9
E : Earlier Projection. L : Latest Projection.
– : Not Available. # : Actuals. * : BSE listed companies. !:US$ on BoP basis.
Note : The latest round refers to ninth round for the quarter ended September 2009, while earlier round refers to eighth round for the
quarter ended June 2009.
Source : Survey of Professional Forecasters, Second Quarter 2009-10.

unlikely to be lower than 6.25 per cent but
with the possibility of reaching 6.75 per cent.
Factors Influencing the Current
Growth and Inflation Outlook
VII.12 Emerging upside prospects as well
as possible downside risks condition the
current assessment of India’s growth
outlook for 2009-10. Factors that support
the prospects of a faster and sustained
recovery in growth include: (a) the impact
of the policy stimulus, (b) visible signs of
industrial recovery, as evidenced by 5.8 per
cent growth in IIP during April-August 2009,
with double digit growth recorded in
August, (c) stronger performance of the core
infrastructure sector, showing higher
growth of 4.8 per cent in April-August 2009
as against 3.3 per cent in the corresponding
period of the previous year, besides the
significant acceleration in growth in August

RBI
Monthly Bulletin
2170 November 2009
 MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10

Table 7.4: Projections of Real GDP for India by Various Agencies – 2009-10
(Per cent)
Agency Latest Projection Month of Earlier Projection
Overall Agriculture Industry Services Projection Overall Month
Growth Growth
(Per cent)
1 2 3 4 5 6 7 8
Economic Advisory Council to PM 6.5 -2.0 8.2 8.2 Oct-09 7.0-7.5 Jan-09
IMF (Calendar year) 5.4 – – – Oct-09 5.4 July-09
ICRIER* 5.8-6.1 Oct-09 6.0 June-09
ADB 6.0 – – – Sep-09 5.0 Mar-09
NCAER 7.2 1.0 6.7 9.4 July-09 6.5-6.9 April-09
OECD 5.9 – – – June-09 4.3 Mar-09
World Bank 5.1 – – – June-09 4.0 Mar-09
Range 5.1-7.2 4.0-7.5
* ICRIER Macro Team.

2009 at 7.1 per cent, (d) improvement in
lead indicators of services in July-September
2009, such as railways freight, cement
production/delivery, sales of steel and
automobiles including commercial vehicles,
(e) significant upturn in the business
confidence as per different business
expectations sur veys, including the
Reserve Bank’s Industrial Outlook Survey,
(f) revival in capital flows in the first half of
2009-10, after two consecutive quarters of
net outflows in the second half of 2008-09,
(g) significant recovery in the stock market
(over end March 2009 level), and higher
resource mobilisation through public issues
and private placements in the first five
months of 2009-10 over the corresponding
period of last year, and (h) the improving
overall global economic and financial
conditions.
conditions in several parts of the country
and the flood in a few states affecting both
kharif production as well as rural demand,
(c) decline in sales of corporates in the first
quarter of 2009-10, (d) persistence of
deceleration in non-food credit growth, with
growth in credit card and consumer
durables related credit turning negative,
suggesting possible continuation of the
deceleration in private consumption
demand even in the second quarter of 2009-
10, (e) persistence of decline in exports for
the 12 th consecutive month, (f) external
demand dependent ser vices activities
remaining sluggish, such as tourism and
cargo handled at ports, and (g) negative
growth in non-oil imports and weak growth
in capital goods production (notwithstanding
the pick up in August 2009) corroborating the
sluggish demand conditions.

VII.13 A number of strong downside risks
weigh down the growth prospects: (a) the
deceleration in growth of private
consumption and investment demand, (b)
deficient monsoon and drought like
VII.14 The combination of weak recovery
and elevated CPI inflation has already
magnified the complexity of policy
challenges, notwithstanding the subdued
nature of headline WPI inflation so far.

RBI
Monthly Bulletin
November 2009 2171
MONETARY POLICY
STATEMENT 2009-10
Macroeconomic and
Monetary Developments
Second Quarter Review 2009-10
Among the alternative plausible sources of
inflation that could determine the near-
term inflation outlook, factors which
support possible firming up of headline
inflation clearly overshadow the factors
which may help in containing the
inflationary pressures. The sources of
comfort for the inflation outlook could be:
(a) persistence of negative output-gap and
weak aggregate demand, (b) stabilisation of
international oil prices over the last few
months, notwithstanding the recent
increase in October 2009 so far, (c) modest
recent deceleration in broad money growth,
despite the accommodative monetary policy
stance of the Reserve Bank, (d) no further
increase in minimum support prices for
agricultural commodities, since that could
worsen the inflation with much greater
certainty than helping in generating positive
supply response, (e) effective use of the high
stock of foodgrains with special focus on
improved distribution to contain the high
food prices, (f) better harvest during rabi
season that could help in bringing down the
prices of certain commodities which have
led the spiral in inflation in essential
commodities so far, and (g) selective import
of certain commodities where the current
price differentials with international
markets could still be significant.
VII.15 Factors that could firm up
inflationary pressures further in the near-
term, particularly in terms of headline WPI
RBI
Monthly Bulletin
2172 November 2009
inflation include: (a) fading base effect of
the last year, which in itself alone will
manifest in the form of positive WPI
inflation in the second half of 2009-10,
(b) the rigidity of the CPI inflation at the
double digit level for last few months, (c)
strong upward momentum already seen
in WPI inflation as the index has risen by
5.9 per cent over its end-March 2009 level,
even though the year-on-year inflation
continues to be low at 1.2 per cent, (d) high
inflation in food and essential commodities,
which requires augmentation of supply, but
could be difficult to ensure over the short-
run, and limited import options for specific
commodities, (e) persistent high CPI
inflation, which could lead to wage/cost
push inflation, as wages and prices would
come under increasing pressure of revision
with gradual return of pricing power and
wage bargaining, (f) the risk of further
increase in minimum support prices under
the cost-plus pricing approach, (g) possible
firming up of international commodity
prices with economic recovery and sudden
spurt in demand from EMEs, and more
importantly (h) given the dominance of
supply side factors in the emerging
inflationary pressures, the policy challenges
in anchoring inflation expectations. The
overall economic outlook, thus, is
conditioned by both upside prospects of
recovery with downside risks and emerging
inflationary pressures.
Speeches
Emerging Market Concerns: An Indian Perspective
by Duvvuri Subbarao

Changing Dynamics of Legal Risks in Financial Sector

by Shyamala Gopinath

Learning from Crises

by Usha Thorat

RBI
Monthly Bulletin
November 2009

Emerging Market
Concerns: An Indian
Perspective*
Duvvuri Subbarao
* Remarks by Dr. Duvvuri Subbarao, Governor, Reserve
Bank of India at G-30 International Banking Seminar in
Istanbul on October 5, 2009 organised on the occasion of
the IMF-World Bank Annual Meetings 2009.
SPEECH
Emerging Market
Concerns: An Indian
Perspective
Duvvuri Subbarao
1. From the perspective of Emerging
Market Economies (EMEs) and particularly
for that of India, I will highlight five
concerns. These are: first, timing of exit
from the accommodative monetary policy
in the context of rising food price-led
inflation but still weak growth; second, the
possibility of another surge in capital flows,
especially if we turn out to be an outlier in
withdrawal of monetary stimulus; third,
monetary transmission mechanism as it is
evolving from the crisis period; fourth,
return to fiscal consolidation and quality of
fiscal adjustment; and finally, the
implications of the efforts towards financial
stability on financial inclusion and growth.
Unique Features of the Indian
Economy
2. Before I turn to these issues, I want to
indicate a few features unique to the Indian
economy. These features, I believe, are
important to appreciate my comments on
emerging market concerns.
3. What are the unique features of the
Indian economy that distinguish it from
other EMEs? First, our growth is driven by
domestic demand – both consumption and
investment. Consumption and saving are
well balanced. In India, the share of private
final consumption expenditure in GDP is
around 55 per cent. Our savings rate is 37.7
per cent and investment rate is 39.1 per cent.
4. Second, we have twin deficits – fiscal
as well as current account deficit. We were
on a path of fiscal consolidation before the
crisis, but got off track because of the
counter cyclical spending necessitated by
the crisis. Unlike major EMEs, which are
running current account surpluses, we have
RBI
Monthly Bulletin
November 2009 2173
SPEECH
Emerging Market
Concerns: An Indian
Perspective
Duvvuri Subbarao
recorded deficits on the current account.
Although current account deficits have been
modest, the deficit reached a high of 2.6 per
cent of GDP in 2008-09 but is expected to
moderate during 2009-10.
5. Third, given the right balance between
domestic consumption and saving on the
one hand, and infrastructural bottlenecks
in major areas (such as power, roads, urban
infrastructure as also social infrastructure)
on the other, India is essentially a supply-
constrained economy. Just before the crisis,
such supply concerns led to a view that
there might be overheating in the economy.
Generally, weak external demand has led
to some externally induced cyclical
slowdown. However, as the global economy
recovers, supply constraints are again
expected to be binding.
6. Against this backdrop of the unique
features of our economy, let me turn to the
five concerns that I want to raise.
First Concern: Exit from
Accommodative Monetary
Policy: Growth vs. Inflation
7. While there is broad agreement that we
need to exit from the present excessively
accommodative monetary and fiscal policies,
there is less agreement on when and how we
should exit. There are incipient signs of
recovery. Industrial production has picked up
in the past couple of months, but export
growth remains negative. Business confidence
surveys suggest recovery from the troughs
touched a year ago although the confidence
levels remain below the earlier peaks.
8. Even as recover y remains weak,
consumer price inflation (CPI) is running
RBI
Monthly Bulletin
2174 November 2009
in double digits on the back of high food
prices. While the headline wholesale price
inflation remains low (0.84 per cent for the
week ended September 19, 2009) – it was
even negative during June-August 2009 –
CPI inflation has been persistently high for
almost a year. Higher food prices in our case
are partly a result of the structural demand-
supply imbalances. At present, cyclical
factors are also at play. Monsoon in the
current season, which ended on September
30, has been the weakest since 1972.
Agricultural output is expected to suffer and
this could keep upward pressure on food
prices in the coming months. High food
prices are, therefore, a mix of structural and
cyclical factors. While the buffer stock of
foodgrains and better supply management
could mitigate the adverse effects to an
extent, imports are not an easy solution
given the requirement.
9. Although inflation pressures
emanating from higher food prices may
limit the scope for monetary policy action,
there are implications for inflation
expectations. Furthermore, unlike the major
advanced economies, growth remains
positive. Real GDP growth was 6.7 per cent
in 2008-09 and is expected to be 6.0 per cent
(with an upward bias) as per the Reserve
Bank’s July 2009 projections. In view of the
country specific features, we may need to
exit from accommodative monetary policy
earlier than advanced economies. This calls
for careful management of trade-offs:
growth concerns warrant a delayed exit, but
inflation concerns call for an earlier exit.
An early exit on inflation concerns runs the
risk of derailing the fragile growth, while a
delayed exit may engender inflation
expectations.

Second Concern: Management of
Large and Volatile Capital Flows
10. Major central banks – such as the US
Fed, the ECB, the BoE – have flushed their
financial systems with unprecedented
amount of liquidity. Till the first quarter of
2009, this liquidity was finding its way back
to the central banks as excess reserves
because of risk aversion.
11. Risk appetite is now returning. There
are signs of recover y in portfolio
investments to the EMEs. For instance,
portfolio investments by FIIs in the Indian
equity market amounted to US$ 13.6 billion
in the period April 1-September 18, 2009 as
against outflows of US$ 5.2 billion in the
corresponding period of 2008 reflecting a
turnaround of almost US$ 19 billion.
12. Moreover, as noted above, in view of
incipient inflationary pressures, policy rates
in our case may have to be tightened ahead
of those in advanced economies. The
resultant larger interest differential may
attract larger capital inflows. Will capital
inflows be modest or turn into a flood as in
2007? The latter concern is particularly
relevant in view of abundant liquidity in the
major advanced economies. What will the
implications be for exchange rates? In India,
the current account is in modest deficit;
hence large and volatile capital flows can
impose macroeconomic costs.
13. Emerging market central banks have
three options in managing capital flows. The
first option is for the central bank not to
intervene in the forex market and let the
exchange rate bear the burden of
adjustment. Will undue exchange rate
appreciation not further widen the current
SPEECH
Emerging Market
Concerns: An Indian
Perspective
Duvvuri Subbarao
account and what will the implications be
for future sustainability? Will exchange rate
appreciation help to contain inflation?
These are the questions to address if this
option is adopted.
14. Second, the central bank can intervene
in the forex market, but refrain from
sterilisation. Such an approach runs the risk
of excessive growth in monetary and credit
aggregates which can lead to higher inflation
as well as credit and investment booms and
create financial fragility.
15. The third option is to sterilise the
interventions. Irrespective of the method
of sterilisation, the financial cost of
sterilisation in terms of national balance
sheet is obviously ultimately borne by the
government even though direct costs may be
borne by separate agencies. Sterilised
intervention can exacerbate fiscal pressures,
but this needs to be assessed against the
benefits of macro-financial stability.
Third Concern: De-clogging
Monetary Transmission
Mechanism
16. Following the collapse of Lehman
Brothers, the global economic outlook
deteriorated sharply, and the Indian
economy got impacted by the contagion
through all the channels – the financial
channel, the real channel and the
confidence channel. The Reserve Bank’s
crisis response included, like in the case of
other central banks, both conventional and
unconventional measures.
17. In response to the easing of policy
interest rates and abundant liquidity made
available, market rates eased significantly.
RBI
Monthly Bulletin
November 2009 2175
SPEECH
Emerging Market
Concerns: An Indian
Perspective
Duvvuri Subbarao
Yields on 10-year central government
securities fell from 8.6 per cent at end-
September 2008 to 5.3 per cent by end-
December 2008. This trend has since
reversed with yields hardening since the
beginning of the current calendar year on
the back of large and abrupt increase in the
government borrowing programme.
18. In contrast, interest rates on bank
deposits and loans have exhibited stickiness.
While the Reserve Bank cut the effective
policy rate by 575 basis points, banks’
Benchmark Prime Lending Rates (BPLRs)
have seen a reduction of only 100-275 basis
points. This stickiness has impeded
monetary transmission and blunted the
intended impact of policy actions. What is
the explanation for the stickiness in the
interest rate structure of banks?
19. There are several factors that cause this
stickiness – the higher rates of interest
offered by the small savings instruments
which discourage banks from reducing
deposit rates, the high cost of deposits
raised by banks during earlier tighter
monetary policy regime which raised their
weighted average costs, and the large
government borrowing programme which
pushed up yields on government securities.
20. These factors, which impeded
monetary transmission, were in play even
before the crisis. A definite task going
forward will be to address the impediments
to monetary transmission.
Fourth Concern: Fiscal Stimulus -
Withdrawal and Quality of
Adjustment
21. Like in other economies, fiscal
stimulus measures and weakening of
RBI
Monthly Bulletin
2176 November 2009
economic activity have led to substantial
increase in our fiscal deficits. The Central
Government’s fiscal deficit is budgeted to
jump from 2.7 per cent of GDP in 2007-08
to 6.8 per cent in 2009-10; the combined
fiscal deficit of the Centre and the states is
expected to increase from 4.2 per cent of
GDP to 10.2 per cent over the same period.
These deficits are large and need to be rolled
back. What is the scope for adjustment?
What lesson does our past experience offer?
22. As a result of the discipline imposed
by the Fiscal Responsibility and Budget
Management (FRBM) Act, the Centre’s fiscal
deficit came down from 6.2 per cent of GDP
in 2001-02 to 2.7 per cent in 2007-08. Over
the same period, the deficit of the state
governments declined from 4.1 per cent of
GDP to 1.5 per cent. Thus, we saw a large
adjustment over a relatively small period.
This past experience with fiscal adjustment
may raise hopes that we will be able to roll
back the recent fiscal deficits. Such a
simplistic approach may be misleading. A
large part of our fiscal deficit is structural
and not cyclical. Also, at least a part of
fiscal consolidation resulted from high
growth, not the other way round. It is
important to acknowledge this in order to
define the problem and assess the
enormity of the challenge.
23. Three issues are important in this
context. First, this concept of ‘fiscal
adjustment over a cycle’ is inadvisable for
us. Adjustment over a cycle is for mature
and advanced economies. Even there it does
not work - the UK, for instance, was running
its highest fiscal deficit at the peak of the
economic cycle. We will be safest sticking
to a single formula and tying ourselves

down to annual, inflexible targets. This is a
blunt but safe way of de-linking fiscal
adjustment from democratic pressures.
Second, we must focus on the quality of
fiscal adjustment, not just chase a numerical
target. The ratio of capital outlay to GDP for
the Central Government has stagnated
between 1 and 2 per cent of GDP since the
early 1990s from around 2-3 per cent in the
preceding decade. Third, we cannot sit back
and hope that tax increase will deliver fiscal
consolidation on a platter. Revenue
expenditure has increased from around 12
per cent of GDP during the period 2000-08
to over 15 per cent now. We need to work
seriously on expenditure compression. This
is going to be politically challenging both at
the Centre and in the States, but it needs to
be done regardless.
Fifth Concern: Financial Stability,
Financial Inclusion and Growth
24. The last concern I want to raise relates
to the challenge of financial inclusion.
25. Given the enormity of the crisis,
financial sector regulation is being
tightened under the aegis of international
bodies such as the BCBS and FSB. There are
proposals that would raise the reserve
requirement of banks. New regulations for
liquidity requirements are also going to be
in place. There are also proposals to require
banks to hold government securities. Many
of these measures are necessary. But we
need to recognise that all such proposals
will have the impact of increasing the banks’
funding costs which will translate into
higher lending rates. How will banks react
to such higher costs? Will this lead to an
erosion of banks’ social responsibility
SPEECH
Emerging Market
Concerns: An Indian
Perspective
Duvvuri Subbarao
towards the poorer and other needy
segments of the society? In economies such
as India, a large part of population remains
financially excluded. We will need to ensure
that efforts at financial inclusion do not get
negated by the ongoing tightening of the
regulatory regime.
26. In order to safeguard financial
stability, we have traditionally used a
variety of prudential measures such as
specifying exposure norms and pre-
emptive tightening of risk weights and
provisioning requirements. But these
measures are not always costless. For
instance, tightening of risk weights
arguably tempers the flow of credit to
certain sectors, but excessive, premature
or unnecessary tightening could blunt
growth. Similarly, exposure norms offer
protection against concentration risks;
however, such limits could restrict the
availability of credit for important growth
sectors. This is a live issue in our country
in the context of the immense needs of
infrastructure financing. Thus, as in the
case of price stability, central banks face
the challenge of managing the trade-off
between financial stability and growth.
27. It needs to be recognised that after a
crisis, with the benefit of hindsight, all
conservative policies appear justified. But
excessive conservatism in order to be
prepared to ride out a potential crisis could
thwart growth and financial innovation.
The question is what price are we willing
to pay, in other words, what potential
benefits are we willing to give up, in order
to prevent a black swan event? Experience
shows that managing this challenge, that
is to determine how much to tighten and
when, is more a question of good
RBI
Monthly Bulletin
November 2009 2177
SPEECH
Emerging Market
Concerns: An Indian
Perspective

Duvvuri Subbarao

judgement rather than analytical skill. This Conclusion

judgement skill is the one that central
banks, especially in developing countries
such as India, need to hone as they
simultaneously pursue the objectives of
growth and financial stability.
Thank you very much for giving me this
platform to speak about the concerns of
emerging economies as we shift from
managing the crisis to managing the
recovery.

RBI
Monthly Bulletin
2178 November 2009

Changing Dynamics
of Legal Risks in
Financial Sector*
Shyamala Gopinath
* Inaugural address by Smt. Shyamala Gopinath, Deputy
Governor, Reser ve Bank of India at International
symposium on “Changing Dynamics of Legal Risks in
Financial Sector”, organised by the RBI as part of its
Platinum Jubilee Celebrations at Kochi on October 31, 2009.
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector
Shyamala Gopinath
It gives me great pleasure to be amidst
you all today to inaugurate this Symposium.
1. At the outset, I may say that this
Symposium on “Changing Dynamics of
Legal Risks in Financial Sector” could not
have been organised at a more appropriate
time than now. The recent global financial
crisis has brought to light various risks. It
has to a great extent blurred the distinction
between operational risks and legal risks.
As they say, each crisis opens up
opportunities for learning and innovation;
it is just the right time for the legal fraternity
to put on their thinking cap and investigate
which of the many risks that culminated in
the crisis may be identified as legal risks and
what legal steps could have been taken that
would have mitigated its effects.
Contextually in the wake of increased
financial integration and globalisation, it is
essential that in-house legal officers also
have an understanding of legal risks from a
cross border point of view. I have no doubt
that a Symposium like this in which heads
of legal departments of various regulators,
banks and financial institutions are
participating where they will have an
opportunity to interact with distinguished
speakers having rich experience in the field,
drawn from within the country and abroad,
will provide a proper direction to identify
and deal with legal risks.
2. As a central banker with three decades
of experience I have had occasions to deal
with diverse operational problems and
difficult issues. I have no hesitation in
saying that inputs received from the legal
department of the Reserve Bank have been
very useful. At times one may feel that the
legal opinion is a bit too rigid and
conservative and fails to recognise the
RBI
Monthly Bulletin
November 2009 2179
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector
Shyamala Gopinath
dynamics of the sector, but in the end we
all need to appreciate that legal risks have
to be accorded prime consideration and
addressed.
What is Legal Risk?
3. There appears to be no concrete
definition for the expression “legal risk” nor
do I venture to make an attempt at defining
it considering the complexities and
variations in the risks involved. The Basel
II accord covers “legal” risk under
“operational” risk.
4. Legal risk may vary from institution to
institution depending on the manner in
which it conducts its business and the
documentation it follows. The legal risks
primarily arise either due to lack of clarity
of the documentation of the product or the
act of the counterparty. Change in legal
environment due to legislative changes and
Court interpretations/proceedings also
result in legal risk. Legal risk includes risk
of non-enforceability of contract or in-
correct documentation resulting in the
increased probability of loss. Broadly, legal
risks may result in (i) claims against
institution, (ii) fines, penalties, punitive
damages, (iii) unenforceable contracts
resulting from defective documentation,
and (iv) loss of institutional reputation.
5. Documentation forms an important
part of the banking and financial sector. For
many, documentation is a panacea to the
legal risks that may arise in banking
activities. But then it has also been realised
and widely acknowledged that loopholes
exist in these documentations. As a result
of lessons learnt from time to time, the
loopholes in the documentation are
RBI
Monthly Bulletin
2180 November 2009
attempted to be plugged by adding further
terms and conditions in existing documents
or by adding further documents resulting in
voluminous and confusing documentation.
In banking there is no end to innovation in
documentation because, for keeping pace
with the changing needs and aspirations of
the customers, banks have been venturing
into various kinds of innovative products.
Identifying the legal risks that lurk behind
modern techno-savvy complex transactions
and market jargon, is no easy task.
6. The starting point while entering into
any financial transaction is the legal capacity
to contract and this becomes complex to
interpret in respect of innovative financial
instruments, since laws or regulators may
not have kept pace with financial innovation.
7. The risk of loss due to non-
enforceability of the contract in a Court of
Law as one of the counterparties lacks the
legal capacity to contract was witnessed in
the case of Hammersmith & Fulham, UK. In
this case, the city councils had entered into
a series of interest rate swaps with banks,
which turned out to produce major losses
for the councils due to increase in British
interest rates. The swaps were later ruled
invalid by British Courts as the city councils
did not have the authority to enter into such
transactions and were found to be ultra
vires. As a result, the loss had to be absorbed
by the counterparty banks.
Lessons of the crisis
8. Some of the key legal risks faced by
entities in the recent financial crisis related
to bankruptcy risks, mis-selling of complex
derivatives, enforceability of contracts/
agreements backing OTC transactions

across jurisdictions and the hitherto
untested risks in the securities market –
custodial arrangements, repo transactions,
tripartite agreements, securities lending,
etc. Over the past few decades the rising
complexity of financial markets and
instruments had also engendered a parallel
legal paraphernalia primarily to manage the
counterparty risks. However, this was the
first occasion that this support structure
was put to real test internationally. I would
like to briefly touch upon the key legal
issues and lessons thrown up by the crisis
in operations of different areas of the
financial industry.
9. One of the key issues faced in many
jurisdictions was the heterogeneity of
resolution arrangements where the entity
under bankruptcy proceedings had
operations across many countries. Towards
addressing the difficulties faced by
regulators on this count, international
efforts are underway for developing a
homogenised resolution framework for
entities having cross-border operations. A
tricky issue in this regard is that a common
resolution framework may be difficult to
achieve given the diverse nature and
difficulties in carr ying out legislative
changes since each jurisdiction will want to
protect its domestic interests.
10. The crisis also highlighted the issue of
sharing of information among regulators.
Countries have different arrangements for
sharing such information. This becomes
more onerous when it comes to sharing of
information with overseas regulators. As
countries become more globalised the
regulators may have to consider
arrangements to share appropriate and
relevant confidential information of
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector
Shyamala Gopinath
regulated entities with other regulators
subject to conditions and safeguards within
the individual countries’ political and
economic circumstances.
11. Huge derivatives losses faced by
corporates in many countries has clearly
underlined the need for sound contractual
agreements between the banks and clients.
More than that, it has highlighted the need
for the providers of service, particularly
banking ser vices, to have a more
responsible approach. Banking as a concept
essentially rests on trust and confidence
and no amount of legal remedies can
substitute these.
12. The crisis has also brought to the fore
the importance of sound legal agreements
with all counterparties, particularly brokers
and other intermediaries in forex and
securities markets, which essentially act as
agents. It is essential to ensure that these
intermediaries are regulated in a regime
with specific provisions to ensure
segregation of assets. The same risk applies
to global fund managers where it is a 3-tier
structure with the fund manager further
having a link with the brokers. It is better
to have some guidelines/oversight on the
type of broker relationships that the fund
manager can enter into.
13. It is important to ensure that the
collateral rights are enforceable under the
relevant law and that the agreements
provide for keeping collaterals out of the
bankruptcy provisions – in case of
bankruptcy, the bankruptcy administrator
has the discretion to decide which
obligations to enforce and which ones to
write off after closeout netting – if
collaterals are part of the closeout netting,
RBI
Monthly Bulletin
November 2009 2181
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector
Shyamala Gopinath
then there may be a possibility of write-offs
as part of bankruptcy proceedings.
14. The crisis has also underlined the risks
inherent in re-hypothecating assets. Where
assets are re-hypothecated, they are at best
difficult to identify and extract in the event
of bankruptcy. At worst, the assets may never
be located, leaving clients to stand in line
with other creditors to try and get their
assets. Perhaps this is a challenge to the legal
mechanism to protect the interest of the
original holders. This highlights the flaws in
the co-mingled account model also. Assets
held in co-mingled accounts can be difficult
to identify if the prime broker fails, leaving
administrators with the task of identifying
which assets belong to which clients. Some
suggest the use of the tri-party collateral
management model in which a third party
sits between the prime broker and their
hedge fund or other clients holding the
collateral in segregated accounts. However,
concentration of such repos with only few
banks aggravates systemic risk.
15. I would like to cite another instance of
issues regarding re-use of collaterals. In one
case a bank entered into Equity Finance1 and
Standard Securities Lending arrangements
with a number of brokers. The securities
lent to the bank by brokers were generally
obtained as a result of the Equity Finance
arrangements between the brokers and
their clients. However, after the collapse of
one of the brokers there was dispute about
the ownership of securities highlighting the
loopholes in the agreement entered.
1
Equity Finance is a form of Securities Lending where
the value of the transferred securities is more than the
value of the cash received in exchange.
RBI
Monthly Bulletin
2182 November 2009
Indian experience
16. Though the financial services industry
in India is of a relatively recent origin, there
have been many tricky legal issues that the
industry has faced over the years.
17. I would like to refer to one of the early
instances where the legality of a market
product, ready forward transactions, was
decided by the Supreme Court in a
landmark judgement.
18. Ready-forward (repo) transactions were
quite popular in the market in the eighties.
But immediately after irregularities in
Indian capital markets in early nineties, the
legality of this product was challenged. The
Supreme Court of India2 held that ready
forward contract is severable into two
parts, namely, ready leg and forward leg . It
further held that the ready leg is valid but
the forward leg is not. Therefore, all the
repo transactions were treated and
accounted as outright sale and purchase
transactions. The lending and borrowing
nature of repo transactions has now been
captured in the amendment to the Reserve
Bank of India Act carried out in 2006 by
defining repo and reverse repo transactions.
19. Another issue is related to legal
validity of OTC contracts. Since derivative
transactions may be regarded as contracts
for differences, they could be regarded as
wagering in nature, when cash settled.
However, under section 18A of the
Securities Contracts (Regulation) Act, 1956,
derivatives traded on a recognised stock
exchange and settled on the clearing house
2
B.O.I Finance Ltd. v. Custodian and others, (1997) 10
SCC 488.

of the recognised stock exchange are valid.
The uncertainty with respect to the validity
of OTC derivatives was removed by
amendment to the Reserve Bank of India
Act carried out in 2006 providing for
validity of OTC derivative contracts in
certain cases.
Certain Legal challenges faced by
banks in India
20. During the Financial Sector Assessment
Program jointly undertaken by the
Government of India and Reserve Bank, it
was found that insolvency matters take on
an average ten years for resolution. An
instance of a Court decision posing serious
ramifications to the business of banks was
recently seen when the Gujarat High Court
held that sale of non performing assets by
one bank to another is not a permissible form
of business for banks. Though the matter is
now before the Hon’ble Supreme Court,
considerable time may be lost. Similarly,
amendments made by certain States
according priority to the dues of State over
those of the secured creditors and the recent
decision of the Supreme Court holding that
such State claims would have predominance,
has been highlighted by the banks as posing
a significant legal risk to them. The fact that
even security interests created prior to the
crystallisation of State dues are not getting
priority is a matter of grave concern for the
banking sector. The absence of a single point
database for verification of security interests
created by banks/FIs accentuates the legal
risk in security interest creation.
21. Another area where banks are
increasingly exposed to legal risk is the rising
consumer grievances about the services
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector
Shyamala Gopinath
rendered by the banks. Many a time, the lack
of awareness among customers about the
niceties of the innovative products offered
by the banks leads to customer grievances
and resultant litigations. In order to tide over
legal risks, some of the banks have been
incorporating suitable clauses in the
agreements which make the terms therein
tilt in their favour. It is not possible to predict
how the Courts would treat these clauses, if
challenged by the customers as
unconscionable. This makes it imperative
that the contracts governing such innovative
products clearly exhibit fairness in the terms
and conditions and are transparent with
adequate disclosures and are not one sided
contracts.
22. Even though outsourcing of certain
activities by banks has helped customer
service, banks have to address the legal risks
that may arise owing to breach of
confidentiality or any fraud that may be
committed by their agents as banks would
be liable for their acts and omissions
including any misrepresentations to the
customers and breach of any law committed
by the service providers.
Legal reforms initiated by RBI
23. The Reserve Bank has been initiating
amendments in law to keep pace with the
dynamic market place.
(i) The enactment of the Payment and
Settlement Systems Act, 2007
providing, inter alia, for settlement
finality and netting is a very big step
in ensuring settlement finality
resulting from multilateral netting. The
settlement that has become final and
irrevocable under this Act will not be
RBI
Monthly Bulletin
November 2009 2183
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector
Shyamala Gopinath
affected by the passing of the order of
adjudication or dissolution or winding
up under other laws including
Companies Act, 1956 and Banking
Regulation Act, 1949.
(ii) Amendments to the Reserve Bank of
India Act providing for validity of
certain OTC derivative contracts which
I referred to earlier.
(iii) The amendments to the Negotiable
Instruments Act providing for electronic
cheques and cheque truncation.
(iv) The Information Technology Act providing
for recognition of digital signatures and
consequent amendments to the Indian
Evidence Act, Bankers’ Books Evidence
Act are some of the recent initiatives
undertaken in India.
But there are still issues which are left
to be addressed like cross border insolvency
issues, jurisdictional issues in cross border
transactions etc., which would require a
concerted effort from the international
community. It is advantageous to refer to
the recommendations of the Committee on
Financial Sector Assessment in this regard.
Some of the legal reforms suggested by that
Committee are:
(1) Enactment of the UNCITRAL Model
Law on Cross Border Insolvency with
modifications suitable to India’s needs;
(2) Conferring statutory priority to the
claim of banks and financial
institutions in respect of the financial
assistance given to rehabilitate a sick/
weak company in financial distress;
(3) Extension of such priority of claim
even while disbursing the assets in
liquidation;
RBI
Monthly Bulletin
2184 November 2009
(4) National Company Law Tribunal
(NCLT) to be made functional for any
significant improvement in the
restructuring process;
(5) Extension of SARFAESI Act to cover
security interest in Agricultural land
beyond a specified holding (for e.g. 5
Acres);
(6) Insertion of Section 29A in Banking
Regulation Act empowering Reserve
Bank to call for information and returns
from the associate enterprises of
banking companies and inspect the
same, if necessary.
(7) Setting up of the Central Registr y
urgently to have a central and reliable
record of all security interests created
by banks and financial institutions and
other entities/individuals in respect of
both immovable and movable property
by a separate legislation in respect of
the Central Registry.
Legal risks for the regulators
24. I am sure that you would acknowledge
that life of Central Bankers and regulators
is not enviable either. Regulators also face
legal risks. In addition to being exposed to
the legal risks arising out of international
contracts entered into as part of their own
operations between banking regulators
inter se and the risks arising out of domestic
contracts such as derivatives entered into
with regulated entities, regulators run the
risk of the regulatory measures taken by
them for disciplining the errant entities
being quashed by the Courts.
25. Our experience is that customers filing
suits/complaints in courts and Consumer

fora implead the Reserve Bank of India as a
party to the case for failing to enforce its
circulars. The track record of the Reserve
Bank (and by implication the legal
department) in this regard has been very
good. Right from the 1962 decision of the
Supreme Court in Palai Central Bank case
upto the 2007 decision of the Supreme Court
in the case of Ganesh Bank of Kurundwad,
the action taken by the Reserve Bank has
been upheld.
26. However, the point is that the exercise
of statutory powers by the regulators is not
immune from judicial scrutiny. The
regulator is expected to act strictly within
the four corners of law. The regulator should
ensure that the decision making process is
fair, bonafide and reasonable and the
decision is in accordance with law. Any
dilution of these standards exposes the
regulator to legal risk which has far reaching
consequences on its credibility.
27. Some financial transactions or products
introduced by financial intermediaries may
fall within the domain of more than one
regulator. There is a need to have a clear,
effective and smooth co-ordination among
the regulators to deal with issues relating
to regulatory arbitrage, tax arbitrage, etc. In
India the High Level Co-ordination
Committee comprising Members from RBI,
SEBI, IRDA, etc. provides an effective
platform facilitating coordinated action.
Role of in-house lawyers
28. In the present day, the role of in-house
lawyers has changed considerably. They can
no longer confine to their traditional role
of giving legal advice keeping themselves
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector
Shyamala Gopinath
aloof from the business requirements of the
institutions. The role of an in-house lawyer
becomes most prominent as they are best
equipped to identify and assess “legal risks”.
Their specialised knowledge and familiarity
with the institutional policies enable them
to perform this function. The in-house
lawyers need to understand the business
processes and the transactional intricacies
to assess legal risk. They are expected to
apprise the management the nature and
extent of “legal risks” and help the
management to take a well informed
commercial decision. To achieve this, in-
house lawyers should not hesitate to obtain
access to all relevant information and
should involve themselves in the decision
making process of the institution in a
proactive way. They should also have
sufficient independence and a separate
reporting line to the top management in the
organisational structure.
Concluding Remarks
29. Perhaps the bottom line in the area of
legal risk management remains on the
choice of counterparty and the
understanding of the legal documents. The
understanding of legal documents should
be crystal clear without any scope of
ambiguous interpretation and match with
the requirements and objectives of the
parties concerned. Due diligence during the
process of preparation of the legal
documents is actually put to rigorous test
only during periods of crisis. At times of
crisis/distress, not only the aggrieved party
looks at the legal recourse for remedy, the
defaulting party also looks at legal
loopholes to get out of the liabilities arising
RBI
Monthly Bulletin
November 2009 2185
SPEECH
Changing Dynamics
of Legal Risks in
Financial Sector

Shyamala Gopinath

out of the transactions or atleast delay the of identifying legal risks and suggesting course
settlement process. correction for smoother sails during crises.

30. In the light of various developments in
the fast changing financial markets during the
recent crisis, the importance of Legal Audit
in all financial institutions cannot be
overemphasised. The objective of the legal
audit could be to review the various
agreements with the custodians,
counterparties, service providers, etc. The
coverage of the audit could include all the
agreements, the legal title to the foreign assets,
liabilities under various laws. Thus, legal audit
is a health check of the level of risk that can
arise due to insufficient or inappropriate
documentation or lack of understanding acts
of a foreign land. The legal audit is a means
31. These are some of the thoughts which
I felt were relevant to this Symposium
organised by the Legal Department of the
Reserve Bank in the Platinum Jubilee year
of the Reserve Bank. I have quickly run
through the articles contributed by the
participants which are included in the
reading material distributed to you and find
these very educative and extremely valuable
and very important points have been raised
and well articulated arguments have been
made. I am sure this Symposium will prove
to be fruitful for all of us.
32. With these words, I formally inaugurate
this Symposium and wish it all success.

RBI
Monthly Bulletin
2186 November 2009

Learning from Crises*
Usha Thorat
* The ‘Institute of Banking and Finance (IBF) Distinguished
Speaker Series’ lecture delivered by Smt. Usha Thorat,
Deputy Governor, Reserve Bank of India at Singapore on
October 12, 2009.
SPEECH
Learning from
Crises
Usha Thorat
1. The late John Kenneth Galbraith,
Harvard Economics Professor Emeritus,
attributed the longevity of his book The
Great Crash 1929 – published in 1955 and
never since out of print – to the tendency
of history to threaten a repeat. “Each time
it has been about to pass from bookstores,”
he wrote in a later foreword, “another
speculative episode – another bubble or the
ensuing misfortune – has stirred interest in
the history of this, the great modern case
of boom and collapse, which led on to an
unforgiving depression.” So here we are
again. The financial crisis that has engulfed
credit markets over the recent period has
pushed the old Keynesian economist’s book
back into the Amazon charts.
2. “Bad distribution of income” is the first
of five weaknesses of the US economy that
Galbraith cites in his definitive work on the
stock market collapse. Though Galbraith
says it was 5 per cent, not 3 per cent, of
Americans who received one-third of
personal income in 1929, he says this well-
heeled group played a crucial role in the
crash. “The collapse in securities values
affected in the first instance the wealthy
and the well-to-do. But in the world of 1929
this was a vital group. The members
disposed of a large proportion of the
consumer income; they were the source of
the lion’s share of personal savings and
investment”.
3. History has an eerie way of repeating
itself and memory of the pain of busts,
according to Galbraith, is perhaps the best
regulator.
4. In the latest best seller The Ascent of
Money, Niall Ferguson has also highlighted
the fact that the income of the median
RBI
Monthly Bulletin
November 2009 2187
SPEECH
Learning from
Crises
Usha Thorat
household in the US has scarcely changed
since 1980, increasing by just 7 per cent in
the last 18 years while their borrowings
multiplied several times and made what
seemed a sub-prime mortgage crisis to a full
blown global financial crisis.
5. In the current global crisis, no country
has been spared be it big or small, developing
or developed, relatively insulated or more
open. The shock has impacted both the
financial and real sectors although it was
financial sector led. In India, the impact
though significant, has not been to the same
extent as in other parts. This is partly
attributed to the curbs India still has on the
capital account, but mainly to the dominance
of domestic expenditure – consumption and
investment – and high savings rate, leading
to a balanced macro economy, having small
current account deficits. Nevertheless, the
impact has been felt by the domestic credit
equity and forex markets leading to slowing
down in the growth rate and employment
generation. Still, the country is the second
fastest growing economy in the world with
over 6 per cent growth projected for the
current year.
6. The topic of my talk is “Learning from
crises”. As Galbraith recalled it is amazing
how the same mistakes get repeated. Hence
I think we owe it to the system to recollect
and recount lessons from crises. The key
lessons are how to anticipate and take pre-
emptive action and equally important, once
you are in the middle of it, how to respond
effectively, viz., crisis management. Post
crisis, the critical issues are - how do we put
in systems and buffers that can cushion the
impact of economic cycles and booms and
busts that are so typical of market driven
systems.
RBI
Monthly Bulletin
2188 November 2009
7. During the journey I have traversed in
the Reserve Bank, I have been witness to
many crisis situations of differing
dimensions, especially since 1991. Delving
into the past I feel veteran enough to share
these experiences and draw lessons.
The BOP crisis of 1991
8. This was a major crisis in the country.
In mid 1991, the foreign exchange reserves
of the country were down to 11 days
imports, even what little reserves that
remained were not unencumbered. While
the crisis was triggered by increase in oil
prices and the Gulf war, the underlying
factors were the macro imbalance in the
form of unmanageable current account and
fiscal deficits. External debt servicing as a
proportion of current receipts increased
from 10.2 per cent in 1980-81 to 35.3 per
cent of current receipts in 1990-91. The
responses included curbing imports
through a system of administrative controls
for large value letters of credit, giving
incentives for exports, pledging of gold
reserves with the Bank of England and the
Bank of Japan, devaluation of the Indian
Rupee, issuing attractive bonds in foreign
currency to Non-Resident Indians,
encouraging return flow of capital, an
amnesty scheme through gold bonds,
borrowing from multilateral institutions,
etc., and so on. The long-term response
included major reforms in trade, industry,
foreign, investment, fiscal and financial
sector paving the way for development of
equity, forex money and government
securities markets. There were fundamental
changes in monetar y management
consequent upon stoppage of automatic
monetisation of the government deficit and

switch over to an auction based market
borrowing for meeting the fiscal deficits.
9. Many valuable lessons were learnt from
the crisis –
• Exchange rates should not be
overvalued for long periods.
• Providing exchange guarantees by the
central bank or government are best
avoided.
• On the external account , liberalising
equity flows first is a better option
followed by commercial credit and longer
term debt , while limiting the access to
foreign debt by the financial sector.
• Central bank funding of the
government in the primary market
should not be resorted to.
• Excessively high remuneration on
reserve requirements erodes monetary
control.
• Financial sector repression - excessive
interest controls and credit rationing -
is deleterious to growth.
• A strong financial sector requires
prudential regulation and effective
supervision.
• Removing or reducing entry barriers to
facilitate more competition.
• Coordinated action by the Government
and the central bank with a well knit
professional team working together
greatly facilitates the process.
The Securities irregularities of 1992
10. The irregularities reflected speculative
buying in the stock market funded by bank
liquidity through repurchase transactions in
SPEECH
Learning from
Crises
Usha Thorat
government securities and bonds, facilitated
by a nexus between brokers and banks. In
part this reflected a way of earning higher
yields in an otherwise administered interest
rate structure. Such transactions were done
against bank receipts where there were no
underlying government securities. The
events that led to these irregularities could
be attributed to weaknesses and lack of
transparency in the market infrastructure for
government securities, excess liquidity with
public sector undertakings, nexus between
banks and brokers and inadequate internal
controls that led to bank funds flowing to
the stock markets fuelling abnormal stock
price increase. Poor internal controls were
reflective of low levels of computerisation
and reliance on manual processing.
Consequences resulted when a settlement
failure triggered panic and the irregularities
surfaced in the open. The Reserve Bank of
India had to undertake a series of
investigations to unravel the irregular
transactions and fix responsibility. A Joint
Parliamentary Committee (JPC) constituted
to investigate into these operations required
enormous resources of the management.
11. There were several positive fall outs of
this crisis:
• Acceleration of capital market reforms
and introduction of screen based order
matching systems with commensurate
depositor y custody clearing and
settlement arrangements that are
continuously upgraded.
• Institution of a delivery versus payment
mechanism for settlement of trades in
government securities initially in the
Reserve Bank of India but later led to
establishment of a central counterparty
RBI
Monthly Bulletin
November 2009 2189
SPEECH
Learning from
Crises
Usha Thorat
in the form of CCIL (Clearing
Corporation Of India ) which today
undertakes guaranteed settlement for
government securities , repos in G-Secs.
and forex market trades.
• Dissemination of information on all
individual transactions in the
government securities market on a daily
basis and currently on real time basis.
• Tightening of internal controls in
investment transactions.
• Removal of administered interest rates
–currently only the savings bank
deposit rate is fixed by the Reserve
Bank, while all other deposit rates are
deregulated.
• Strengthening supervision over banks
and other financial institutions and
establishment of the Board for
Financial Supervision (BFS) in 1994
with the primar y objective of
undertaking super vision of the
financial sector comprising commercial
banks, financial institutions and non-
banking financial companies.
• Recognition of the possibility of
systemic risk in the absence of proper
assessment of counterparty risk and
well functioning securities markets
with greater transparency.
• Focused attention on the role of the
regulator which ensures adherence to
regulations in letter and spirit and need
for greater accountability.
Imbroglio caused by dealings of
Non-Banking Financial Companies
in 1997
12. Non-Banking Financial Companies
(NBFCs) have been historically subjected
RBI
Monthly Bulletin
2190 November 2009
to a relatively lower degree of regulation vis-
à-vis the banks, the higher rates of return
on deposits they could offer enabled them
to attract a large base of small savers and a
potential threat to the stability of the
financial system. Added to these was the
fact that operations of NBFCs were
characterised by several distinctive features
viz., no entry barriers, no requirement for
large investment in fixed assets and
inventories, freedom to open branch offices,
all of which led to their proliferation in an
unbridled manner. A few such companies
which were perceived as well-functioning,
well-managed and financially healthy and
consequently had a large depositor base,
defaulted in repayment of deposits, leading
to the realisation that the extant framework
was inadequate to monitor and regulate
these companies. Though there were no
systemic problems, confidence of the
depositors in the NBFCs as a sector was
eroded and the Reserve Bank faced the risk
of loss of reputation. In a specific instance,
the in-principle approval given by the
Reserve Bank to start a bank was used by
the entity to mobilise huge funds from the
unsuspecting public and payable-at-par
cheques issued by the entity on a leading
commercial bank resulted in a huge
exposure and default to the bank because
of the lag between the timing of payments
and providing funds cover.
The learning points were:
• Recognition of the possibility of
regulator y arbitrage between the
entities regulated by banks and non
banking financial companies and
between the securities regulator and
the bank regulator.

• Need for legal powers to regulate the
activities of NBFCs, including framing
of guidelines for compulsor y
registration, stringency in conditions
for deposit-taking companies akin to
banks, and applicability of prudential
norms for such companies.
In the recent period, it has been noted
that, even if not accepting deposits, these
companies can contribute to systemic risk
as they access public funds and participate
in various markets (debt, equity and foreign
exchange markets). Hence capital ratios and
a quarterly system of reporting were
introduced for large non-deposit taking
NBFCs in 2007.
Asian Crisis of 1997 – the first
global contagion
13. The South-East Asian crisis started with
stock market and currency crashes followed
by financial crisis which spilt over to the
real sector. It changed irrevocably the way
Asian countries look at issues of financial
stability. The Indian market was not
immune and even though there was a
general belief that some correction in rupee
was required, the pressure on rupee in later
part of the year required the Reserve Bank
to intervene to maintain orderly conditions.
Withdrawal of funds by foreign institutional
investors (FIIs) hit the equity and foreign
exchange markets and the sale of foreign
exchange by the Reserve Bank also affected
the money and bond markets. In addition to
intervention, monetary and administrative
measures had to be taken to stabilise
markets. The impact on the domestic
interest rates and liquidity was the cost to
be paid for restoring stability. The
government borrowing programme was
SPEECH
Learning from
Crises
Usha Thorat
managed through private placement and
subsequent open market operations when
the markets stabilised.
The learning points were:
• Need for complementarity between
macroeconomic stability and financial
stability and exchange rate management
for preserving competitiveness and
confidence in the economy.
• Need for closer super vision and
regulation of banks and other financial
institutions.
• During asset price booms it is
important to ensure that banks’
exposure to capital markets and real
estate is not excessive and to
understand that banks can be subject
to foreign exchange risk even without
any currency mismatches in their
books, when their constituents have
huge unhedged exposures.
• Management of capital account is
important for countries having chronic
CAD and where inflation and interest
rates are persistently over global levels.
• Dollarisation of the domestic market or
internationalisation of the domestic
currency can both require careful
management.
• Financial stability emerged as a specific
objective of policy as the cost of
instability to the real sector is huge
especially on the vulnerable segments
of society.
Urban Co-operative Banks – the
Weak Link
14. The tightening of regulation over the
banking and NBFC sectors saw the
RBI
Monthly Bulletin
November 2009 2191
SPEECH
Learning from
Crises
Usha Thorat
gravitation of risk to the lightly regulated
Urban Co-operative Banks (UCBs) which
were under dual regulation of the Reserve
Bank and the registrar of cooperative
societies. The stock market crash in 2002
triggered a payments problem and it was
found that the nexus between the broker
and a large UCB (Madhavpura Mercantile Co-
operative Bank) led to huge exposure to the
broker and the bank collapsed. The
systemic implication was that hundreds of
small UCBs had exposure to this bank and
the collapse of these banks would have been
very disruptive though confined to a small
region. The Deposit Insurance and Credit
Guarantee Corporation (DICGC) had to
make a large payout to the collapsed bank
under a restructuring package and averted
the domino effect. But the Madhavpura
Bank collapse led to erosion in public
confidence and there were a series of UCB
failures across the country. The immediate
measures taken were to ban connected
lending, exposure to share-brokers and
inter-UCB deposits. The super visor y
system – both on-site and off-site – was
triggered and strengthened. In 2004, all
new branch and bank expansion was
stopped and a vision document was put out
in 2005 which provided for an MoU with
the state governments to work out a way
for non-disruptive exit of weak UCBs while
simultaneously incentivising the growth of
strong banks. Subsequently various
resolution options have been provided such
as merger with or without support from
DICGC, restructuring of liabilities,
introduction of new capital-like instruments,
and transfer of assets and liabilities. The UCB
sector has seen a reduction in the number
of weak banks from 725 to 496. 102 banks
have gone out of the system through
RBI
Monthly Bulletin
2192 November 2009
mergers and liquidation. DICGC has also
strengthened its claim payments system to
ensure that prompt relief is given to small
depositors of failed banks.
The lessons learnt were:
• In dealing with a crisis arising out of
interconnectedness, breathing time
needs to be provided through liquidity
injection.
• Reduce interconnectedness within the
financial system as it leads to a ‘moral
hazard’ problem of ‘too interconnected
to fail’.
• The most lightly regulated entity in the
financial system becomes the weakest
link. The system’s weakest link
becomes a source of reputation risk
and erosion in public confidence.
• Even though under dual regulation, the
bank regulator has to use its powers
more effectively and take steps to
resolve weak banks.
Failure of a fairly significant mid
sized commercial bank in 2004
15. The Global Trust Bank Ltd, a private
sector bank had reported substantial growth
and was growing too fast. The bank’s
balance sheet was flawed and disclosures
inadequate. Ver y large capital market
exposures and shortfall in provisioning
were the causes for downfall of the bank.
The common depositor does not have the
wherewithal to study bank balance sheets
before making a deposit, but even the
institutional investors seem to be gullible
investors. It was also realised that even
though insolvent, a bank can carry on
without a run as long as it has adequate

liquidity or access to liquidity. Interestingly,
even at the time of moratorium, the bank
had huge inter-bank borrowings and
deposits reflecting the confidence placed by
other banks and institutional investors or
the moral hazard view that banks will not
be allowed to fail. Auditor accountability
came under focus. The problem had to be
dealt with heads on when all avenues and
options for revival by the promoters and
directors failed. Compulsory amalgamation
with a public sector bank was resorted to.
This experience gave us valuable
lessons of how to deal with a bank run.
• The process of resolution should be
swift and decisive and preferably over
the weekend.
• In a computerised system with 24/7
banking, and large retail base, the
preparation for a moratorium has to be
much more meticulous than in
traditional banking.
• Role of media is critical and in any crisis
management media management has
to be given priority. We actually had to
go on media to give out reassurances
about the bank to stop the run.
• Adequate liquidity and currency needs
to be kept ready to stem a run once the
resolution strategy is decided.
• A moratorium is useful to give
breathing time to put a resolution
package in place but hardship requests
can become tedious to handle.
Institutional factors
16. This decade has been one of challenges
in managing capital flows both inflows and
SPEECH
Learning from
Crises
Usha Thorat
outflows. Both monetar y policies and
prudential policies have been used through
a variety of instruments to manage the
macro economic and financial stability
challenges arising out of large capital flows,
external shocks such as 9/11, political
uncertainty, geo political events, and have
called for vigilance and prompt actions.
While evolving policy instruments to
manage these conditions such as the Market
Stabilisation Scheme for sterilising the
impact of inflows are important I would like
to flag a few critical institutional factors
which I think are required to be encouraged
and made part of the automatic trigger
mechanisms in the system. I would like to
turn to these.
17. Problem Recognition – The meaning
of being vigilant is to be able to constantly
scan the horizon and recognise that a
problem is brewing and take pre-emptive
action before the problem becomes
disruptive. The indicators could be asset
values, excess credit growth, large unhedged
exposures, continuing current account
deficits financed by short-term credit,
weakly regulated entities in the system,
opportunities for regulatory arbitrage, large
leveraged positions, prolonged periods of
liquidity excesses or shortages; or the
tendencies of entities to leverage, especially
by exploiting the inter-linkages in the
financial system .
18. Committee Approach – As part of crisis
management, it is necessary to have a
harmonised approach. First it is essential
to have close coordination with the
Government. As in 1991, this was an
important requirement in responding to the
recent crisis. Putting in place an
institutional mechanism and systems that
RBI
Monthly Bulletin
November 2009 2193
SPEECH
Learning from
Crises

Usha Thorat

can facilitate continuous dialogue and co-
ordination between those in charge of
monetary policy, debt management, foreign
exchange management, regulation and
supervision of banking entities, supervision
of non-banking entities, securities markets
regulation and the like is a sine-qua-non.
Within each of these segments it is crucial
to be in sync. We have a Financial Markets
Committee (FMC) in the central bank
consisting of senior executives responsible
for monetary policy and operations, debt
management and foreign exchange reserves
management. The FMC meets at least once
every day in the morning and emergent
meetings are also convened when there are
episodes of sharp volatility in equity
markets, or when any of the other markets
are significantly affected. Other regulatory
departments including the department
responsible for payment system also get
involved during such times. The Committee
keeps in touch with the securities regulator
(SEBI), the stock exchanges especially the
clearing and settlement corporation of the
exchanges, the Clearing Corporation of
India Ltd. (CCIL) and the like. We also have
a Crisis Management Group that meets
whenever a crisis is anticipated or occurs.
19. Inter-regulator y Co-ordination –
Financial sector harmonisation among the
securities, insurance, pension fund and
bank regulators is enabled through the High
Level Co-ordination Committee on
Financial Markets (HLCCFM). The HLCCFM
is headed by Governor, Reserve Bank of
India and meets as and when felt required.
The Ministry of Finance provides the
secretariat. Sub-committees / groups
formed among SEBI, IRDA, PFRDA and RBI
meet to discuss and sort out issues relating
to developments in the financial markets
having implications cutting across different
regulators. Institutionalised and formal
approach to decision making in a crisis has
the benefit of building on the experience
of the members.
20. Consultative Approach – we have also
reaped the advantages of using external
experts in our policy making. We have a
Technical Advisor y Committee for
Monetary Policy consisting of academicians,
practitioners and experts, which tenders
advice to the Reserve Bank on monetary
policy stance. There is also a Technical
Advisor y Committee that consists of
financial sector experts from areas such as
banking, academics, government, stock
exchanges, credit rating agencies and
market representatives. This committee
meets once a quarter to deliberate on
developments in money, foreign exchange
and government-securities markets and
offers advice on policies for regulation,
growth and further reforms in financial
markets, including products, practices and
institutional arrangements.
21. Capacity Building– Equally crucial is
the need to develop people and systems to
deal with scenarios and contingencies,
which can be achieved only through a
sustained process of capacity building.
Giving exposure through participation in
meetings at local and international levels,
allowing officers even at fairly junior levels
to be part of the dialogue process at the top
levels in various co-ordination fora,
enormously helps in nurturing talent. A
consultative and participative approach to
decision making through setting-up of
working groups consisting of a mix of
internal and external people with clearly set

RBI
Monthly Bulletin
2194 November 2009

tasks and time-lines not only casts
responsibility but also aids developing
expertise. Emphasis in these groups is on
harnessing collective wisdom and balanced
judgement, typical of a college-like
atmosphere for decision-making.
22. Robust Infrastructure – I am referring
to the development of sound market
infrastructure for payments and settlement
for all financial transactions as also market
infrastructure for trading reporting
information dissemination and clearing
settlement. CCPs for clearing and
settlement of equity, government securities,
forex and money markets are in place
following the best practices laid down by
IOSCO/CPSS. The infrastructure for
electronic payments and RTGS are now
taken for granted.
Summing up
23. A lot has been talked about the current
crisis and the response. Most of these talks
are on the website. I would just like to say
that the major learning from this crisis is
that globalisation has meant that no country
is immune from the happenings in global
financial markets. Also, at one level, the
presence of complex and interconnected
financial entities across several jurisdictions
with regulators at the national level has
SPEECH
Learning from
Crises
Usha Thorat
posed huge challenges in ensuring that
there is no regulatory arbitrage and that
there is coordination amongst regulators.
Even within a jurisdiction, it is recognised
that all regulators have to deal with systemic
risk and there is need for inter regulatory
dialogue and vigilance.
24. At the macro level, Asian countries and
Latin American countries have learnt lessons
from their own past currency and financial
crises and have built-up reserves and have
strengthened their financial systems apart
from consciously developing their financial
markets. But they have been careful to ensure
that their banks are not involved excessively
in toxic assets or innovative transactions.
Even so, the countries have had to face the
consequences of falling global trade and GDP
and unemployment and slowing credit
growth. Macro economic imbalances
continue though they have reduced. Savings
is increasing in the western world and
consumption is increasing in the East.
25. Ultimately, we all have to be concerned
about the real sector and recognise that
financial sector development is not a goal
by itself but is intended to enable growth,
not just of the rich, but more importantly
inclusive growth cutting across all segments
of the society and regions. As regulators and
central banks, it is our duty to ensure this.
RBI
Monthly Bulletin
November 2009 2195
Articles
India's Foreign Trade: 2009-10 (April-August)

South-West Monsoon 2009 : A Review

(June 1 to September 30, 2009)

Composition and Ownership Pattern of Deposits

with Scheduled Commercial Banks: March 2008

International Banking Statistics of India –

March 31, 2009

International Trade in Banking Services, 2007-08

RBI
Monthly Bulletin
November 2009
 ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

India's Foreign Trade: This article reviews India’s merchandise

trade performance during April-August 2009
2009-10 (April-August)* on the basis of data released by the
Directorate General of Commercial
Intelligence and Statistics (DGCI&S);
disaggregated commodity-wise details for
2008-09 (April-March) are also analysed.

Highlights
• India’s merchandise exports during
August 2009 at US$ 14.3 billion
recorded a decline of 19.4 per cent as
against a rise of 40.2 per cent registered
in August 2008. This is the eleventh
successive month that exports have
shown a decline since October 2008.
However, the rate of decline in exports
witnessed in August 2009 was the
lowest during 2009-10 so far (April-
August 2009), thereby exhibiting some
signs of revival in exports.
• During April-August 2009, exports at
US$ 64.1 billion showed a decline of
31.0 per cent as against a high growth of
52.3 per cent during the corresponding
period of 2008.
• Imports during August 2009 at US$ 22.7
billion showed a decline of 32.4 per cent
as against a substantial growth of 64.5
per cent in August 2008, due to decline
in both oil and non-oil imports. This is
the ninth successive month that imports
have shown a decline since December
2008. The decline in imports during
August 2009 was lower than that in July
2009 (decline of 37.1 per cent).
• During April-August 2009, imports at
* Prepared in the Division of International Trade, US$ 102.3 billion recorded a decline of
Department of Economic Analysis and Policy. The
previous issue of the article was published in RBI Bulletin,
33.4 per cent as against a growth of 52.1
October 2009. per cent a year ago.

RBI
Monthly Bulletin
November 2009 2197
ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

• Petroleum, oil and lubricants (POL)
imports during April-August 2009 at
US$ 28.3 billion showed a sharp decline
of 47.4 per cent as against an increase
of 86.6 per cent during April-August
2008, mainly due to substantial fall in
international crude oil prices over the
year. The average price of Indian basket
of crude oil during April-August 2009
stood at US$ 62.7 per barrel (ranged
between US$ 50.4 – US$ 71.8 per
barrel), which was lower by 47.9 per
cent than US$ 120.4 per barrel (ranged
between US$ 106.0 – US$ 132.2 per
barrel) during April-August 2008.
• Non-POL imports during April-August
2009 at US$ 74.0 billion showed a decline
of 25.9 per cent as against a growth of
38.4 per cent a year ago, reflecting a
slowdown in domestic economic activity.
• Trade deficit during April-August 2009
amounted to US$ 38.2 billion, a decline
of US$ 22.6 billion (37.1 per cent) over
US$ 60.7 billion in April-August 2008,
mainly due to larger decline in oil
imports.
as the rate of decline in exports showed
reduction. But subsequently in July 2009,
exports showed larger decline than in the
previous month (June 2009). However,
export performance considerably improved
in August 2009, as the decline in exports in
this month was much smaller than that in
all the previous months in 2009-10, i.e., April-
July 2009. As such, the rate of decline in
exports witnessed during August 2009 was
the lowest during 2009-10 so far (April-August
2009), thereby exhibiting some signs of
revival in exports (Chart 1). The decline in
exports was 33.2 per cent in April 2009, 29.2
per cent in May 2009, 27.7 per cent in June
2009, 28.4 per cent in July 2009 and 19.4 per
cent in August 2009. Cumulatively, exports
during the first five months of 2009-10 (April-
August 2009) stood at US$ 64.1 billion,
posting a decline of 31.0 per cent as against
a high growth of 52.3 per cent during April-
August 2008 (Table 1 and Statement 2).
Table 1: India's Merchandise Trade: April-August
(US $ billion)
Items 2008-09 R 2009-10 P
April-August
1 2 3

India’s Merchandise Trade during Exports 93.0

(52.3)
64.1
(-31.0)
2009-10 (April-August) Oil Exports 16.0 ..
(50.8)
Exports Non-Oil Exports 77.0 ..
(52.6)
India’s merchandise exports during Imports 153.7 102.3
(52.1) (-33.4)
August 2009 at US$ 14.3 billion recorded a Oil Imports 53.7 28.3
decline of 19.4 per cent, as against a high (86.6) (-47.4)
Non-Oil Imports 99.9 74.0
growth of 40.2 per cent registered in August (38.4) (-25.9)
2008 (Statement 1). This is the eleventh Trade Balance -60.7 -38.2
Oil Trade Balance -37.8 ..
successive month that exports have shown Non-Oil Trade Balance -23.0 ..
a decline since October 2008. The rate of R : Revised. P : Provisional. .. Not available.
decline in exports, which reached the Note : Figures in parentheses show percentage change
over the corresponding period of the previous year.
maximum at 33.2 per cent in April 2009, Source : Compiled from Ministry of Commerce and
showed improvement during May-June 2009 Industry and DGCI&S data.

RBI
Monthly Bulletin
2198 November 2009
 ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

The latest commodity-wise exports data
released by DGCI&S for 2008-09 revealed
that manufactured goods continued to
maintain the largest share at 67.2 per cent,
followed by petroleum products (14.7 per
cent) and primary products (13.9 per cent).
Moreover, the share of manufactured goods
has increased along with decrease in shares
of petroleum products and primar y
products (Table 2).
primary products, agricultural and allied
products exports at US$ 17.5 billion showed
a decline of 4.9 per cent as against a high
growth of 45.3 per cent during previous
year. Slowdown in agricultural and allied
products exports was mainly due to decline
in exports of rice, cotton, marine products,
Table 2: India's Exports of Principal Commodities
(Percentage Shares)

During 2008-09, exports of major Commodity Group 2006-07 2007-08 2008-09

commodity groups slowed down. However, April-March
1 2 3 4
engineering goods exhibited a marginally
I. Primary Products 15.6 16.9 13.9
higher growth and gems and jewellery
Agriculture and
showed substantially accelerated growth. Allied Products 10.0 11.3 9.6
Exports of agricultural and allied products, Ores and Minerals 5.5 5.6 4.3
ores and minerals and petroleum products II. Manufactured Goods 67.2 63.2 67.2
Leather and Manufactures 2.4 2.2 1.9
declined, while those of leather and
Chemicals and Related
manufactures, chemicals and related Products 13.7 13.0 12.4
products, and textiles and textile products Engineering Goods 23.4 22.9 25.9
showed deceleration in growth during the Textiles and Textile
Products 13.7 11.9 11.0
period (Statement 3). Gems and Jewellery 12.6 12.1 15.2
III. Petroleum Products 14.7 17.4 14.7
Exports of primary products during
IV. Others 2.5 2.5 4.2
2008-09 declined by 8.1 per cent as against
Total Exports 100.0 100.0 100.0
a growth of 40.0 per cent a year ago, due to
Source: Compiled from DGCI&S data.
decline in its major components. Within

RBI
Monthly Bulletin
November 2009 2199
ARTICLE
India's Foreign
Trade: 2009-10
(April-August)
sugar and molasses and deceleration in
export growth of tea, coffee, spices and oil
meal. Ores and minerals exports declined
by 14.5 per cent during the period (30.2 per
cent growth a year ago), mainly due to
decline in iron ore.
Exports of manufactured goods during
2008-09 at US$ 122.8 billion exhibited
deceleration in growth to 19.3 per cent from
21.3 per cent a year ago, due to deceleration/
decline in its major components. Within
manufactured goods, exports of engineering
goods, which is the largest item in India’s
exports, at US$ 47.3 billion showed
marginally higher growth at 26.5 per cent
on the top of 26.4 per cent growth a year
ago. Growth in engineering goods exports
was contributed largely by its largest
component, viz., transport equipments, as
also iron and steel and electronic goods. The
share of engineering goods in total exports
has gone up remarkably during 2008-09 to
25.9 per cent from 22.9 per cent, as a result
of high growth maintained by engineering
goods in contrast with slowdown in most
of the other major commodity groups.
Chemicals and related products exports
during 2008-09 at US$ 22.6 billion showed
moderation in growth to 6.8 per cent from
22.3 per cent during 2007-08. The slowdown
in the exports of chemicals and related
products was primarily due to deceleration
in growth of its largest component, viz.,
‘basic chemicals, pharmaceuticals and
cosmetics’ as also in other major
components, and the decline in plastic and
linoleum.
Exports of textiles and textile products
during 2008-09 at US$ 20.0 billion showed
a sharp moderation in growth to 3.0 per cent
RBI
Monthly Bulletin
2200 November 2009
from 11.8 per cent a year ago. Among major
components of textiles and textile
products, cotton yarn, fabrics and made-ups
declined and manmade yarn, fabrics and
made-ups exhibited a deceleration in
growth. However, readymade garments
witnessed a higher growth.
Gems and jewellery exports during
2008-09 at US$ 27.7 billion recorded an
accelerated growth at 40.8 per cent (growth
of 23.2 per cent a year ago). Gems and
jewellery became the second largest item in
India’s exports during 2008-09 with a higher
share of 15.2 per cent than 12.1 per cent in
2007-08.
Exports of petroleum products at US$
26.8 billion during 2008-09 registered a
decline of 5.4 per cent as against a high
growth of 52.2 per cent a year ago. This was
the result of overall decline in world oil
prices during August 2008-March 2009
(Chart 3), as also fall in the volume of
petroleum products exports. The volume of
these exports declined by 6.9 per cent
during the period as against the growth of
21.0 per cent a year back, as a result of
reduction in demand for petroleum
products from India’s major markets
consequent upon a slowdown in world
industrial activity.
Destination-wise, during 2008-09,
among the regions, developing countries
and OECD countries were the major markets
for India’s exports with these groups
accounting for 37.6 per cent and 37.4 per
cent shares, respectively (Table 3). Another
major contributor was OPEC with 21.2 per
cent share. During 2008-09 the share of
OPEC increased significantly to 21.2 per
cent from 16.6 per cent in 2007-08, while
 ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Table 3: India's Exports to Principal Regions show the shift in geographical focus as
regards destination of India’s exports in an
(Percentage Shares)
aftermath of global economic crisis.
Region/Country 2006-07 2007-08 2008-09
April-March
1 2 3 4
Imports
I. OECD Countries 42.0 39.5 37.4 Imports during August 2009 at US$ 22.7
EU 21.2 21.2 21.3 billion showed a decline of 32.4 per cent as
North America 15.8 13.5 12.1
US 14.9 12.7 11.4
against a high growth of 64.5 per cent
Asia and Oceania 3.4 3.2 2.5 recorded in August 2008. This was due to
Other OECD Countries 1.6 1.6 1.4 decline in both POL and non-POL imports.
II. OPEC 16.6 16.6 21.2 However, the decline in POL imports
III. Eastern Europe 1.2 1.1 1.1
continued to be much sharper than that in
IV. Developing Countries 39.9 42.5 37.6
non-POL imports (Statement 1 and Chart 1).
Asia 29.8 31.6 28.1
SAARC 5.1 5.9 4.6 The fall in imports started since December
Other Asian 2008. The rate of decline in imports
Developing Countries 24.6 25.7 23.5
progressively deteriorated thereafter, and
Africa 6.9 7.5 6.3
Latin America 3.3 3.4 3.1 reached its maximum in May 2009 (39.2 per
V. Others / Unspecified 0.4 0.4 2.7 cent decline). It improved considerably in
Total Exports 100.0 100.0 100.0 June 2009 to 29.3 per cent, but again
Source: Compiled from DGCI&S data. deteriorated in July 2009 to 37.1 per cent.
The decline in imports during August 2009
was lower than that in July 2009. During
the shares of both developing countries and April-August 2009 imports at US$ 102.3
OECD countries declined. Country-wise, the billion registered a decline of 33.4 per cent
UAE became the single largest destination (52.1 per cent growth a year ago) [Table 1
for India in 2008-09, with a share of 13.1 and Statement 2].
per cent in India’s total exports (9.6 per cent
in 2007-08) thereby replacing the US which POL imports at US$ 28.3 billion during
remained India’s largest export market for April-August 2009 showed a substantial
a number of years. The UAE was followed decline of 47.4 per cent, as against a high
by the US (11.4 per cent), China (5.1 per growth of 86.6 per cent a year ago, primarily
cent), Singapore (4.5 per cent), Hong Kong due to sharp reduction in international
(3.6 per cent) and the UK (3.6 per cent). crude oil prices over the period. The average
Direction of India’s exports during 2008-09 price of Indian basket of crude oil during
indicated that the exports to Asia and April-August 2009 stood at US$ 62.7 per
Oceania, Asian developing countries and barrel (ranged between US$ 50.4 – 71.8 per
African developing countries declined; barrel), which was lower by 47.9 per cent
exports growth to the EU, North America, than US$ 120.4 per barrel (ranged between
Eastern Europe and Latin American US$ 106.0 – 132.2 per barrel) during April-
developing countries decelerated, while August 2008 (Table 4). Non-POL imports at
exports to OPEC showed accelerated growth US$ 74.0 billion recorded a decrease of 25.9
(Statement 4). Thus the trends in 2008-09 per cent during April-August 2009 as against

RBI
Monthly Bulletin
November 2009 2201
ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Table 4: Trends in Crude Oil Prices deceleration in import growth of capital

goods (0.6 per cent growth as compared with
(US $/barrel)
a growth of 49.0 per cent a year ago), gold
Period Dubai Brent WTI* Indian
Basket** and silver (4.6 per cent growth in
1 2 3 4 5 comparison with 22.0 per cent growth
2000-01 25.9 28.1 30.3 26.8 during 2007-08), iron and steel and
2001-02 21.8 23.2 24.1 22.4
chemicals and the decline in imports of
2002-03 25.9 27.6 29.2 26.6
2003-04 26.9 29.0 31.4 27.8 metalliferrous ores and metal scrap.
2004-05 36.4 42.2 45.0 39.2 However, imports of pearls, precious and
2005-06 53.4 58.0 59.9 55.7 semi-precious stones, fertilisers and coal,
2006-07 60.9 64.4 64.7 62.4
coke and briquettes exhibited substantially
2007-08 77.3 82.4 82.3 79.5
2008-09 82.1 84.7 85.8 82.7
higher growth during the year. During 2008-
August 2008 113.2 113.9 116.6 113.5 09 the shares of chemicals, coal, coke and
August 2009 71.3 72.5 71.1 71.8 briquettes, fertilisers and pearls, precious
* West Texas Intermediate. and semi-precious stones in total imports
** The composition of Indian basket of crude represents went up, while those of petroleum, crude
average of Oman and Dubai for sour grades and Brent
(dated) for sweet grade in the ratio of 63.5:36.5 w.e.f. April and products (single largest component of
1, 2009. imports), capital goods, gold and silver,
Sources: International Monetary Fund, International Financial metalliferrous ores and metal scrap and
Statistics; World Bank’s Commodity Price Pink Sheet
for September 2009; Ministry of Petroleum and iron and steel came down during the year
Natural Gas, Government of India. (Table 5).

a growth of 38.4 per cent in April-August

2008 due to reduction in domestic demand Table 5: Imports of Principal Commodities
as a result of moderation in economic (Percentage Shares)

growth. Commodity/Group 2006-07 2007-08 2008-09

April-March
The commodity-wise imports data for 1 2 3 4
2008-09 indicated that POL imports at US$ 1. Petroleum, crude
91.3 billion showed a deceleration in growth and products 30.7 31.7 31.3
2. Capital Goods 25.3 27.9 24.2
to 14.6 per cent from 39.9 per cent a year
3. Gold and Silver 7.9 7.1 6.4
ago, mainly due to sharp reduction in 4. Organic and inorganic
international crude oil prices during August chemicals 4.2 3.9 4.2
2008-March 2009, as also due to slowdown 5. Coal, coke and
briquettes, etc. 2.5 2.6 3.4
in the growth of volume of POL imports,
6. Fertilisers 1.7 2.2 4.7
which moderated to 9.4 per cent from 10.1 7. Metalliferrous ores,
per cent a year ago (Statement 5). metal scrap, etc. 4.5 3.1 2.7
8. Iron and Steel 3.5 3.5 3.2
Non-POL imports during 2008-09 at US$ 9. Pearls, precious and
200.2 billion witnessed moderation in semi-precious stones 4.0 3.2 5.0
10. Others 15.8 14.8 14.9
growth to 16.5 per cent from 33.4 per cent
Total Imports 100.0 100.0 100.0
during the previous year. Slowdown in non-
Source: Compiled from DGCI&S data.
POL imports was mainly due to sharp

RBI
Monthly Bulletin
2202 November 2009
 ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Source-wise, during 2008-09, developing Oceania, OPEC, Asian and African

countries had the highest share in India’s
imports (32.9 per cent), followed by OPEC
(32.6 per cent) and OECD countries (31.8 per
cent) [Table 6]. This was in contrast with
2007-08 when OECD countries had the
highest share in India’s imports. Country-
wise, China continued to be the single
largest source of imports with the share of
10.8 per cent in total imports, followed by
the UAE (7.1 per cent), Saudi Arabia (6.7 per
cent), the US (6.2 per cent), Iran (4.2 per
cent) and Germany (4.0 per cent). Direction
of India’s imports during 2008-09 indicated
that imports from North America and Latin
American developing countries declined
and growth of imports from the EU, Asia and
Table 6: Shares of Groups/Countries in
India’s Imports
(Percentage Shares)
developing countries decelerated, while
imports from Eastern Europe witnessed
turnaround (Statement 6).
Trade Deficit
The trade deficit during April-August
2009 stood at US$ 38.2 billion, which was
lower by US$ 22.6 billion (37.1 per cent) than
US$ 60.7 billion a year ago, due to relatively
larger decline in imports than exports during
the period (Statement 2 and Chart 1). Trade
deficit on oil account during 2008-09 stood
at US$ 64.5 billion, which was higher by US$
13.2 billion than US$ 51.3 billion a year ago.
Trade deficit on non-oil account during this
period stood at US$ 44.4 billion, which was
higher by US$ 7.1 billion than US$ 37.3
billion a year back.

Region/Country 2006-07 2007-08 2008-09 Global Trade

April-March
1 2 3 4 World merchandise exports, which
I. OECD Countries 35.2 35.4 31.8 started declining since November 2008 as
EU 16.1 15.3 14.3
France 2.3 2.5 1.6
an outcome of global economic crisis,
Germany 4.1 3.9 4.0 subsequently witnessed much larger rates
UK 2.2 2.0 2.0 of decline. However, according to the latest
North America 7.3 9.1 7.1
US 6.3 8.4 6.2
monthly data from International Monetary
Asia and Oceania 6.4 5.8 5.6 Fund’s (IMF) International Financial
Other OECD Countries 5.5 5.2 4.8 Statistics (IFS), in June 2009 the decline in
II. OPEC 30.4 30.7 32.6
world exports was the lowest (26.9 per
III. Eastern Europe 2.1 1.5 2.3
IV. Developing Countries 31.9 31.5 32.9 cent) in 2009 so far (January-June 2009).
Asia 25.5 25.5 26.6 The trend showed that world exports and
SAARC 0.8 0.8 0.6
exports of advanced economies and
Other Asian
Developing Countries 24.7 24.7 26.0 emerging and developing economies
of which : moved in tandem with each other in 2008
People’s Rep of China 9.4 10.8 10.8
Africa 3.5 3.7 4.3
and their rates of decline have exhibited
Latin America 2.8 2.3 2.0 convergence during 2009 so far (Chart 2).
V. Others / Unspecified 0.5 0.8 0.4 Cumulatively, world merchandise exports
Total Imports 100.0 100.0 100.0 during January-June 2009, in dollar terms,
Source: Compiled from DGCI&S data. showed a decline of 29.5 per cent as

RBI
Monthly Bulletin
November 2009 2203
ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Table 7: Growth in Exports - Global Scenario

(Per cent)

Region/Country 2007 2008 2008 2009

January-December January-June
1 2 3 4 5
World 14.1 16.2 25.9 -29.5

Advanced Economies 13.5 11.0 21.6 -31.1

US 12.0 11.9 18.0 -23.8

France 12.8 10.0 22.5 -32.0
Germany 18.0 10.6 23.6 -33.4
Japan 7.8 12.3 23.2 -37.9

Emerging and Developing

Economies 15.1 25.6 34.1 -27.6

Singapore 10.1 13.0 23.8 -31.7

China 25.6 17.3 21.8 -21.7
India 23.3 20.0 39.8 * -25.6 *
Indonesia 14.7 24.4 27.8 -28.3
against a growth of 25.9 per cent a year ago Korea 14.1 13.6 20.4 -22.7
Malaysia 9.6 19.1 24.2 -31.2
(Table 7). During the same period, exports Thailand 17.0 12.9 25.0 -23.4
of advanced economies declined by 31.1 * : Pertains to Januar y-August over corresponding period of
previous year.
per cent in contrast with a growth of 21.6 Sources: 1. IMF (www.imfstatistics.org)
per cent a year back, while the exports of 2. DGCI&S for India.

emerging and developing economies

declined by 27.6 per cent as against a of metals, energy and food showed decline
growth of 34.1 per cent during January- of 21.5 per cent, 40.4 per cent and 16.1 per
June 2008. cent, respectively, in August 2009.

World Commodity Prices

The world commodity prices which
started declining since October 2008 saw
substantially higher rates of decline during
subsequent months. However, according to
the latest available data, the rate of decline Chart 3
in prices moderated in August 2009 (Chart
3). In fact, the decline in prices witnessed
in August 2009 was the lowest in 2009 so
far (January-August 2009). According to
IMF’s IFS, world commodity prices declined
by 33.4 per cent in August 2009. The prices

RBI
Monthly Bulletin
2204 November 2009
 ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Statement 1 : India's Foreign Trade - August 2009

Year Exports Imports Trade Balance
Total Oil Non-Oil Total Oil Non-Oil Total Oil Non-Oil
1 2 3 4 5 6 7 8 9 10
Rupees crore
2007-08 51,600 8,039 43,561 83,136 25,318 57,818 -31,536 -17,279 -14,257
(3.0) (-3.6) (4.3) (16.6) (-1.9) (27.0)
2008-09 R 76,103 13,854 62,249 143,890 49,460 94,430 -67,787 -35,606 -32,181
(47.5) (72.3) (42.9) (73.1) (95.4) (63.3)
2009-10 P 69,066 .. .. 109,533 30,359 79,174 -40,467
(-9.2) (-23.9) (-38.6) (-16.2)
US dollar million
2007-08 12,641 1,969 10,671 20,366 6,202 14,164 -7,725 -4,233 -3,492
(17.4) (9.9) (18.9) (32.9) (11.9) (44.8)
2008-09 R 17,724 3,227 14,498 33,512 11,519 21,992 -15,787 -8,293 -7,495
(40.2) (63.8) (35.9) (64.5) (85.7) (55.3)
2009-10 P 14,289 .. .. 22,661 6,281 16,380 -8,372
(-19.4) (-32.4) (-45.5) (-25.5)
P : Provisional. R- Revised. .. Not available.
Note : Figures in brackets relate to percentage variation over the corresponding previous period.
Source : DGCI&S.

RBI
Monthly Bulletin
November 2009 2205
ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Statement 2 : India’s Foreign Trade

Year Exports Imports Trade Balance
Total Oil Non-Oil Total Oil Non-Oil Total Oil Non-Oil
1 2 3 4 5 6 7 8 9 10
April-March
Rupees crore
2006-07 571,779 84,520 487,259 840,506 258,572 581,935 -268,727 -174,052 -94,675
(25.3) (64.0) (20.3) (27.3) (32.8) (24.9)
2007-08 R 655,864 114,192 541,672 1,012,312 320,655 691,657 -356,448 -206,463 -149,985
(14.7) (35.1) (11.2) (20.4) (24.0) (18.9)
2008-09 P 839,978 123,398 716,580 1,340,588 419,878 920,709 -500,610 -296,480 -204,129
(28.1) (8.1) (32.3) (32.4) (30.9) (33.1)
US dollar million
2006-07 126,414 18,635 107,780 185,735 56,945 128,790 -59,321 -38,311 -21,010
(22.6) (60.1) (17.9) (24.5) (29.5) (22.4) (28.7)
2007-08 R 162,904 28,363 134,541 251,439 79,645 171,795 -88,535 -51,281 -37,254
(28.9) (52.2) (24.8) (35.4) (39.9) (33.4) (49.2)
2008-09 P 182,631 26,830 155,801 291,475 91,291 200,183 -108,844 -64462 -44383
(12.1) (-5.4) (15.8) (15.9) (14.6) (16.5) (22.9)
April-August
Rupees crore
2007-08 250,048 43,442 206,606 413,817 118,275 295,541 -163,768 -74,833 -88,935
(7.8) (13.1) (6.7) (23.9) (5.6) (33.2)
2008-09 R 391,841 67,604 324,237 648,041 227,028 421,013 -256,200 -159,423 -96,777
(56.7) (55.6) (56.9) (56.6) (91.9) (42.5)
2009-10 P 311,715 .. .. 497,108 137,316 359,792 -185,393 .. ..
(-20.4) (-23.3) (-39.5) (-14.5)
US dollar million
2007-08 61,037 10,599 50,438 101,031 28,798 72,233 -39,993 -18,199 -21,795
(20.8) (27.0) (19.6) (38.9) (20.4) (47.9)
2008-09 R 92,959 15,981 76,978 153,691 53,742 99,949 -60,732 -37,761 -22,971
(52.3) (50.8) (52.6) (52.1) (86.6) (38.4)
2009-10 P 64,129 .. .. 102,300 28,275 74,025 -38,171 .. ..
(-31.0) (-33.4) (-47.4) (-25.9)
P - Provisional. R - Revised. .. Not available.
Note : Figures in brackets relate to percentage variation over the corresponding period of the previous year.
Source : DGCI&S.

RBI
Monthly Bulletin
2206 November 2009
 ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Statement 3 : India’s Exports of Principal Commodities

(US$ million)
Commodity/Group April-March Percentage Variation
2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)
1 2 3 4 5 6
I. Primary Products 19685.9 27551.9 25333.4 40.0 -8.1
15.6 16.9 13.9
A. Agricultural & Allied Products 12683.4 18432.1 17533.6 45.3 -4.9
of which: 10.0 11.3 9.6
1. Tea 435.3 505.3 584.4 16.1 15.7
2. Coffee 435.1 465.0 490.5 6.9 5.5
3. Rice 1554.9 2919.6 2428.2 87.8 -16.8
4. Wheat 7.8 0.1 0.3 -99.2 432.9
5. Cotton Raw incl. Waste 1349.8 2202.0 623.1 63.1 -71.7
6. Tobacco 372.4 479.8 751.8 28.8 56.7
7. Cashew incl. CNSL 553.9 555.1 637.2 0.2 14.8
8. Spices 697.9 1071.7 1378.1 53.6 28.6
9. Oil Meal 1216.4 2022.0 2232.8 66.2 10.4
10. Marine Products 1768.2 1720.5 1535.9 -2.7 -10.7
11. Sugar & Mollases 720.6 1406.5 985.2 95.2 -30.0
B. Ores & Minerals 7002.5 9119.8 7799.8 30.2 -14.5
of which: 5.5 5.6 4.3
1. Iron Ore 3902.0 5812.0 4723.6 49.0 -18.7
2. Processed Minerals 1311.8 1247.7 1359.7 -4.9 9.0
II. Manufactured Goods 84920.4 102978.7 122812.4 21.3 19.3
of which: 67.2 63.2 67.2
A. Leather & Manufactures 3016.7 3502.5 3555.1 16.1 1.5
B. Chemicals & Related Products 17335.4 21193.8 22641.3 22.3 6.8
1. Basic Chemicals, Pharmaceuticals & Cosmetics 10958.8 13952.4 15548.7 27.3 11.4
2. Plastic & Linoleum 3252.6 3418.6 2987.9 5.1 -12.6
3. Rubber, Glass, Paints & Enamels, etc., 2372.8 2886.3 2991.8 21.6 3.7
4. Residual Chemicals & Allied Products 751.2 936.5 1112.8 24.7 18.8
C. Engineering Goods 29567.1 37365.2 47264.2 26.4 26.5
of which:
1. Manufactures of metals 5081.2 7051.3 7550.8 38.8 7.1
2. Machinery & Instruments 6722.8 9128.1 10953.0 35.8 20.0
3. Transport equipments 4949.9 7024.7 11142.1 41.9 58.6
4. Iron & steel 5238.6 5446.5 5822.5 4.0 6.9
5. Electronic goods 2854.0 3361.1 6789.6 17.8 102.0
D. Textiles and Textile Products 17373.2 19425.7 20017.6 11.8 3.0
1. Cotton Yarn, Fabrics, Made-ups, etc. 4218.7 4653.3 4118.5 10.3 -11.5
2. Natural Silk Yarn, Fabrics Madeups, etc.
(incl.silk waste) 441.9 385.8 362.9 -12.7 -5.9
3. Manmade Yarn, Fabrics, Made-ups, etc. 2204.4 2896.9 3025.7 31.4 4.4
4. Manmade Staple Fibre 196.4 278.6 254.8 41.9 -8.5
5. Woolen Yarn, Fabrics, Madeups, etc. 85.2 92.8 99.3 8.9 7.0
6. Readymade Garments 8892.3 9687.1 10934.4 8.9 12.9
7. Jute & Jute Manufactures 260.4 327.7 299.1 25.8 -8.7
8. Coir & Coir Manufactures 145.9 160.2 148.0 9.8 -7.6
9. Carpets 928.0 943.3 774.9 1.7 -17.9
(a) Carpet Handmade 898.7 925.4 762.1 3.0 -17.6
(b) Carpet Millmade 0.0 0.0 0.0 .- .-
(c) Silk Carpets 29.3 17.9 12.8 -38.8 -28.7
E. Gems & Jewellery 15977.0 19678.7 27705.0 23.2 40.8
F. Handicrafts 438.0 508.2 299.1 16.0 -41.2
III. Petroleum Products 18634.6 28363.1 26829.6 52.2 -5.4
14.7 17.4 14.7
IV. Others 3173.2 4010.5 7655.1 26.4 90.9
2.5 2.5 4.2
Total Exports 126414.1 162904.2 182630.5 28.9 12.1
P : Provisional.
Note : Figures in brackets relate to percentage to total exports for the period.
Source : DGCI&S.

RBI
Monthly Bulletin
November 2009 2207
ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Statement 4: Direction of India’s Foreign Trade- Exports

(US$ million)
Group/Country April-March Percentage Variation
2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)
1 2 3 4 5 6
I. O E C D Countries 53056.9 64272.0 68277.4 21.1 6.2
A. E U 26805.9 34490.2 38952.9 28.7 12.9
of which:
1. Belgium 3474.4 4208.3 4414.9 21.1 4.9
2. France 2100.8 2596.6 2995.3 23.6 15.4
3. Germany 3979.5 5116.4 6343.9 28.6 24.0
4. Italy 3582.9 3911.5 3776.2 9.2 -3.5
5. Netherland 2670.2 5225.6 6279.9 95.7 20.2
6. U K 5618.0 6698.2 6594.6 19.2 -1.5
B. North America 19976.5 21977.3 22176.2 10.0 0.9
1. Canada 1110.4 1265.3 1357.9 13.9 7.3
2. U S A 18866.1 20712.0 20818.4 9.8 0.5
C. Asia and Oceania 4290.8 5162.3 4612.7 20.3 -10.6
of which:
1. Australia 924.8 1150.0 1426.0 24.4 24.0
2. Japan 2862.7 3853.8 3000.8 34.6 -22.1
D. Other O E C D Countries 1983.6 2642.2 2535.5 33.2 -4.0
of which:
1. Switzerland 466.5 615.0 765.7 31.8 24.5
II. O P E C 20953.1 26989.6 38806.3 28.8 43.8
of which:
1. Indonesia 2028.1 2159.1 2517.3 6.5 16.6
2. Iran 1450.8 1948.5 2509.5 34.3 28.8
3. Iraq 203.5 271.1 430.8 33.2 58.9
4. Kuwait 614.3 681.8 788.4 11.0 15.6
5. Saudi Arabia 2588.2 3706.5 4987.9 43.2 34.6
6. U A E 12032.1 15626.9 23921.1 29.9 53.1
III. Eastern Europe 1554.1 1836.7 2010.5 18.2 9.5
of which:
1. Russia 902.9 939.7 1078.2 4.1 14.7
IV. Developing Countries 50417.2 69171.0 68620.8 37.2 -0.8
of which:
A. Asia 37611.5 51477.2 51388.1 36.9 -0.2
a) S A A R C 6469.5 9617.2 8438.3 48.7 -12.3
1. Afghanistan 181.7 248.9 395.3 36.9 58.8
2. Bangladesh 1627.9 2916.8 2460.6 79.2 -15.6
3. Bhutan 57.5 86.6 110.7 50.7 27.8
4. Maldives 68.7 89.6 128.3 30.3 43.3
5. Nepal 928.5 1506.1 1555.8 62.2 3.3
6. Pakistan 1349.6 1944.2 1417.8 44.1 -27.1
7 Sri Lanka 2255.6 2825.2 2369.7 25.3 -16.1
b. Other Asian Developing Countries 31142.0 41859.9 42949.8 34.4 2.6
of which:
1. People’s Rep of China 8293.9 10828.8 9275.5 30.6 -14.3
2. Hong Kong 4680.6 6305.2 6661.7 34.7 5.7
3. South Korea 2514.7 2851.8 3990.5 13.4 39.9
4. Malaysia 1304.3 2567.6 3430.8 96.9 33.6
5. Singapore 6068.9 7367.5 8207.0 21.4 11.4
6. Thailand 1444.3 1807.9 1978.2 25.2 9.4
B. Africa 8679.5 12230.6 11560.5 40.9 -5.5
of which:
1. Benin 151.5 275.3 203.7 81.7 -26.0
2. Egypt Arab Republic 761.0 1396.2 1631.4 83.5 16.8
3. Kenya 1315.5 1578.7 1335.1 20.0 -15.4
4. South Africa 2246.5 2657.4 1966.2 18.3 -26.0
5. Sudan 403.7 407.8 481.9 1.0 18.2
6. Tanzania 288.8 587.3 1028.3 103.3 75.1
7. Zambia 108.4 132.2 106.5 22.0 -19.4
C. Latin American Countries 4126.2 5463.2 5672.2 32.4 3.8
V. Others 190.8 270.2 497.3 41.6 84.0
VI. Unspecified 242.0 364.6 4418.4 50.6 1112.0
Total Exports 126414.1 162904.2 182630.5 28.9 12.1
P : Provisional.
Source: DGCI & S.

RBI
Monthly Bulletin
2208 November 2009
 ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Statement 5 : India's Imports of Principal Commodities

(US$ million)
Commodity/Group April-March Percentage Variation
2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)
1 2 3 4 5 6
I. Bulk Imports 84,235.8 1,12,744.7 1,35,681.7 33.8 20.3
45.4 44.8 46.6
A. Petroleum, Petroleum Products 56,945.3 79,644.5 91,291.2 39.9 14.6
& Related Material 30.7 31.7 31.3
B. Bulk Consumption Goods 4,294.1 4,600.3 4,887.2 7.1 6.2
1. Wheat 1,292.9 660.1 0.0 -48.9 –
2. Cereals & Cereal Preparations 32.1 45.1 46.9 40.7 3.9
3. Edible Oil 2,108.3 2,558.6 3,438.5 21.4 34.4
4. Pulses 860.1 1,335.0 1,275.1 55.2 -4.5
5. Sugar 0.8 1.5 126.8 89.4 –
C. Other Bulk Items 22,996.4 28,499.9 39,503.3 23.9 38.6
1. Fertilisers 3,144.1 5,406.0 13,577.4 71.9 151.2
a) Crude 361.1 467.3 1,060.4 29.4 126.9
b) Sulphur & Unroasted Iron Pyrites 109.3 362.0 625.0 231.1 72.7
c) Manufactured 2,673.6 4,576.6 11,891.9 71.2 159.8
2. Non-Ferrous Metals 2,604.9 3,505.2 5,240.8 34.6 49.5
3. Paper, Paperboard & Mgfd. incl. Newsprint 1,206.8 1,424.8 1,765.9 18.1 23.9
4. Crude Rubber, incl. Synthetic & Reclaimed 630.8 785.7 859.6 24.6 9.4
5. Pulp & Waste Paper 639.3 778.0 799.1 21.7 2.7
6. Metalliferrous Ores & Metal Scrap 8,345.8 7,911.7 7,896.9 -5.2 -0.2
7. Iron & Steel 6,424.7 8,688.6 9,363.7 35.2 7.8
II. Non-Bulk Imports 1,01,499.4 1,38,694.5 1,55,792.8 36.6 12.3
54.6 55.2 53.4
A. Capital Goods 47,069.1 70,110.4 70,542.6 49.0 0.6
1. Manufactures of Metals 1,603.6 2,662.7 3,197.8 66.0 20.1
2. Machine Tools 1,481.3 2,208.0 2,235.3 49.1 1.2
3. Machinery except Electrical & Electronics 13,850.4 19,860.4 20,914.5 43.4 5.3
4. Electrical Machinery except Electronics 1,959.8 2,870.5 3,623.1 46.5 26.2
5. Electronic Goods incl. Computer Software 16,939.5 21,103.6 24,421.7 24.6 15.7
6. Transport Equipments 9,438.6 20,111.6 13,022.9 113.1 -35.2
7. Project Goods 1,795.9 1,293.5 3,127.4 -28.0 141.8
B. Mainly Export Related Items 17,871.7 20,768.3 29,716.9 16.2 43.1
1. Pearls, Precious & Semi-Precious Stones 7,487.5 7,971.6 14,439.1 6.5 81.1
2. Chemicals, Organic & Inorganic 7,830.6 9,896.6 12,157.7 26.4 22.8
3. Textile Yarn, Fabric, etc. 2,151.2 2,474.1 2,539.3 15.0 2.6
4. Cashew Nuts, raw 402.4 425.9 580.8 5.8 36.4
C. Others 36,558.5 47,815.8 55,533.4 30.8 16.1
of which :
1. Gold & Silver 14,646.0 17,866.9 18,682.6 22.0 4.6
2. Artificial Resins & Plastic Materials 2,584.8 3,685.1 3,846.4 42.6 4.4
3. Professional Instruments etc. except electrical 2,341.0 3,899.6 4,373.2 66.6 12.1
4. Coal, Coke & Briquittes etc. 4,576.8 6,423.7 9,991.9 40.4 55.5
5. Medicinal & Pharmaceutical Products 1,296.4 1,671.7 1,880.1 28.9 12.5
6. Chemical Materials & Products 1,321.6 1,625.3 2,079.9 23.0 28.0
7. Non-Metallic Mineral Manufactures 780.0 1,046.6 1,156.2 34.2 10.5
Total Imports 1,85,735.2 2,51,439.2 2,91,474.6 35.4 15.9
Memo Items:
Non-Oil Imports 1,28,789.9 1,71,794.6 2,00,183.4 33.4 16.5
Non-Oil Imports excl. Gold & Silver 1,14,143.9 1,53,927.7 1,81,500.7 34.9 17.9
Mainly Industrial Inputs* 1,04,835.1 1,40,851.2 1,60,348.3 34.4 13.8
P : Provisional.
* : Non oil imports net of gold and silver, bulk consumption goods, manufactured fertilisers and professional instruments.
Note : Figures in brackets relate to percentage to total imports for the period.
Source : DGCI & S.

RBI
Monthly Bulletin
November 2009 2209
ARTICLE
India's Foreign
Trade: 2009-10
(April-August)

Statement 6: Direction of India’s Foreign Trade-Imports

(US$ million)
Group / Country April-March Percentage Variation
2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)
1 2 3 4 5 6
I. O E C D Countries 65,439.3 89,048.7 92,749.8 36.1 4.2
A. E U 29,832.3 38,413.7 41,652.7 28.8 8.4
of which:
1. Belgium 4,141.8 4,358.0 5,441.4 5.2 24.9
2. France 4,212.0 6,253.2 4,588.1 48.5 -26.6
3. Germany 7,546.3 9,869.7 11,694.3 30.8 18.5
4. Italy 2,674.4 3,898.2 4,308.9 45.8 10.5
5. Netherland 1,156.4 1,919.6 1,875.7 66.0 -2.3
6. U K 4174.5 4,953.1 5,792.2 18.7 16.9
B. North America 13,513.5 22,991.5 20,614.3 70.1 -10.3
1. Canada 1,777.4 1,972.2 2,451.4 11.0 24.3
2. U S A 11,736.1 21,019.3 18,162.9 79.1 -13.6
C. Asia and Oceania 11,869.4 14,496.3 16,453.6 22.1 13.5
of which:
1. Australia 7,008.0 7,836.9 8,423.1 11.8 7.5
2. Japan 4,595.6 6,323.2 7,606.6 37.6 20.3
D. Other O E C D Countries 10,224.1 13,147.3 14,029.3 28.6 6.7
of which:
1. Switzerland 9,123.4 9,828.6 11,447.2 7.7 16.5
II. O P E C 56,374.8 77,309.9 95,026.7 37.1 22.9
of which:
1. Indonesia 4,169.1 4,823.7 6,674.3 15.7 38.4
2. Iran 7,627.8 10,915.3 12,133.7 43.1 11.2
3. Iraq 5,526.0 6,829.2 7,454.3 23.6 9.2
4. Kuwait 5,992.1 7,689.9 9,392.6 28.3 22.1
5. Saudi Arabia 13,383.9 19,401.1 19,493.0 45.0 0.5
6. U A E 8,657.5 13,470.5 20,604.7 55.6 53.0
III.Eastern Europe 3,922.6 3,813.5 6,588.9 -2.8 72.8
of which:
1 Russia 2,409.5 2,468.5 4,290.8 2.4 73.8
IV. Developing Countries 59,189.4 79,260.7 95,774.3 33.9 20.8
of which:
A. Asia 47,363.9 64,141.6 77,581.3 35.4 21.0
a) S A A R C 1,507.3 2111.4 1,791.4 40.1 -15.2
1. Afghanistan 34.5 109.2 128.8 216.6 17.9
2. Bangladesh 228.5 257.0 308.4 12.5 20.0
3. Bhutan 141.4 194.4 149.6 37.4 -23.1
4. Maldives 3.1 4.1 3.9 35.7 -6.0
5. Nepal 306.0 627.7 488.4 105.2 -22.2
6. Pakistan 323.3 287.8 362.4 -11.0 25.9
7 Sri Lanka 470.6 631.1 349.9 34.1 -44.6
b) Other Asian Developing Countries 45,856.5 62,030.2 75,790.0 35.3 22.2
of which:
1. People’s Rep of China 17,460.6 27,102.4 31,333.9 55.2 15.6
2. Hong Kong 2,483.8 2,699.2 6,410.5 8.7 137.5
3. South Korea 4,806.0 6,037.6 8,591.3 25.6 42.3
4. Malaysia 5,294.8 6,004.9 7,020.8 13.4 16.9
5. Singapore 5,489.5 8,117.6 7,431.5 47.9 -8.5
6. Thailand 1,745.6 2,301.0 2,656.0 31.8 15.4
B. Africa 6,557.9 9,338.4 12,500.9 42.4 33.9
of which:
1. Benin 80.8 72.0 106.8 -10.9 48.3
2. Egypt Arab Republic 1,743.0 1,982.8 2,123.1 13.8 7.1
3. Kenya 56.5 86.5 81.4 53.2 -5.9
4. South Africa 2,471.7 3,613.1 5,440.4 46.2 50.6
5. Sudan 89.3 431.5 400.0 383.0 -7.3
6. Tanzania 98.1 164.5 199.4 67.7 21.2
7. Zambia 86.2 74.8 215.5 -13.3 188.1
C. Latin American Countries 5,267.7 5,780.7 5,692.1 9.7 -1.5
V. Others 129.1 229.8 64.4 78.0 -72.0
VI. Unspecified 680.0 1,776.5 1,270.4 161.3 -28.5
Total Imports 1,85,735.2 2,51,439.2 2,91,474.6 35.4 15.9
P : Provisional.
Note : The figures for 2006-07, which include country-wise distribution of petroleum imports, are not strictly comparable
with the data for previous years.
Source : DGCI & S.

RBI
Monthly Bulletin
2210 November 2009

South-West Monsoon 2009 :
A Review*
(June 1 to September 30, 2009)
* Prepared in the Division of Rural Economics, Department
of Economic Analysis and Policy, Reserve Bank of India.
ARTICLE
South-West
Monsoon 2009 :
A Review
The performance of the South-West
monsoon 2009, with a shortfall of 23 per
cent in precipitation, is the weakest since
1972. Although Indian agriculture is
more capable today to withstand drought
conditions than in 1972, kharif
agricultural production would get
adversely affected, particularly for paddy
and oilseeds, in view of lower yields and
acreage consequent on lower precipitation
in the current year. The agricultural
sector, however, is expected to derive support
from the rabi crops, the prospects for which
remain promising on account of delayed
withdrawal of South-West monsoon, the
strong and large ‘allied sector’ and the
various Government policies supporting
rural sector. The progress of the North-East
monsoon too will have a bearing on overall
agricultural output for 2009-10.
Introduction
The Indian subcontinent is
predominantly characterised by a tropical
monsoon climate. There are two monsoon
seasons viz., South-West or the summer
monsoon covering the period from June-
September and North-East or the winter
monsoon from October to December. The
summer monsoon accounts for about 70-80
per cent of the annual rainfall in the
countr y. The spatial and temporal
distribution of rainfall during the South-
West monsoon is crucial for the success or
failure of the Kharif crops that are
essentially sown in July-August. The
performance of South-West monsoon had
remained close to normal during the four
RBI
Monthly Bulletin
November 2009 2211
ARTICLE
South-West
Monsoon 2009 :
A Review
years from 2005 to 2008, thus, contributing
positively to the overall foodgrains
production. However, the 2009 South-West
• Monthly rainfall was close to normal for
(SW) monsoon recorded a deficiency of 27
per cent resulting in drought in several
states. This article provides a detailed review
of the performance of South-West Monsoon
2009.
• Out of 526 meteorological districts for
South-West Monsoon 2009:
Highlights
• The long term mean date for the onset
of South-West monsoon over Kerala is
June 1 with a standard deviation of
about one week. During the year 2009,
the South-West monsoon arrived over
• At 23 per cent deficiency, the 2009
Kerala on May 23, 2009, one week ahead
of the normal date.
• Monsoon generally covers the whole
country by July 15. During the current
season, after setting in on May 23, 2009,
there was hiatus in the advance of the
monsoon till third week of June. After
that, the monsoon advanced rapidly
and covered the entire country by 3rd
• The uneven temporal rainfall
July.
• For the country as a whole, the rainfall
for the season (June – September 2009)
was 77 per cent of its Long Period
Average (LPA), i.e., 23 per cent below
normal. The LPA of South-West
monsoon rainfall averaged over the
• The withdrawal of monsoon from west
country as a whole was about 689.9 mm
as against normal of 892.5 mm.
• Seasonal rainfall was close to normal for
the Southern Peninsula (96 per cent of
its LPA), while it remained largely
deficient in other regions, viz., 64 per
cent of its LPA over North-West India,
80 per cent of its LPA over Central India
RBI
Monthly Bulletin
2212 November 2009
and 73 per cent of its LPA over North-
East India.
July (96 per cent of LPA) while it
remained deficient during June (53 per
cent of LPA), August (73 per cent of LPA)
and September (79 per cent of LPA).
which data were available, 215 districts
(41 per cent) of the meteorological
districts received excess/normal rainfall
and the remaining 311 districts (59 per
cent) received deficient/scanty rainfall
during the season.
South-West monsoon season rainfall
over the country as a whole was the
lowest recorded rainfall in the current
decade. Drought was declared by 12
States in about 300 districts. In 2002 (a
drought year) the shortfall in South-
West monsoon rainfall was 19 per cent
and there was 13 per cent shortfall in
2004.
distribution caused flood situation in
many states, viz., Karnataka, Assam,
Meghalaya, Arunachal Pradesh, West
Bengal, Orissa, Bihar, Jharkhand, Uttar
Pradesh, Gujarat, Maharashtra, Madhya
Pradesh, Kerela and Andhra Pradesh.
Rajasthan was delayed and it
commenced only on 25th September
compared to its normal date of 1st
September (a delay of more than 3
weeks). Subsequently, it withdrew from
most parts of the northwestern states
and from the northern parts of Gujarat
on September 28, 2009.
 ARTICLE
South-West
Monsoon 2009 :
A Review

Forecast of South-West Monsoon Table 1: South-West Monsoon Rainfall

and Kharif Production
India Meteorological Department (IMD) Year IMD’s Actual Kharif
has been adopting a two-stage forecast Forecast Rainfall foodgrains
strategy for the South-West monsoon rainfall (% of LPA) (% of LPA) production
(% change)
since 2003. The first forecast for South-West 1 2 3 4
monsoon rainfall comes out in the month of 1997 92 102 -2.4
April using the data up to March. It also issues 1998 99 106 0.5
1999 111 96 2.5
updated forecasts using the data up to May 2000 99 92 -3.2
in the month of June, which also includes 2001 98 92 9.8
2002* 101 81 -22.2
forecast for the July rainfall over the country 2003 96 102 34.1
as a whole and seasonal rainfall over the four 2004 100 87 -11.7
2005 98 99 6.3
broad homogeneous regions of India. 2006 92 99 0.6
2007 93 105 1.6
IMD in its first stage Long Range Forecast 2008 99 98 -2.8
2009* 93 77 NA
issued on April 17, 2009 had indicated that
* : Drought year. NA: Not Available.
the rainfall during the South-West Monsoon Source: India Meteorological Department (IMD),
season (June-September) 2009 for the country Ministry of Agriculture, Government of India.
as a whole was likely to be 96 per cent of the
Long Period Average (LPA) with a model error
Spatial Distribution
+/-5 per cent. Subsequently, in the update
issued on June 24, 2009, the forecast for the The spatial distribution of rainfall
country as a whole was revised to a lower value during South-West monsoon 2009 remained
of 93 per cent of LPA with a model error of +/ uneven. Of the 36 meteorological sub-
- 4 per cent. However, the forecast turned out divisions, cumulative rainfall was excess/
to be incorrect as the actual area-weighted normal in 13 sub-divisions (32 sub-divisions
rainfall for the country as a whole was 77 per during last year) and deficient/scanty/no
cent of LPA, well below the lower limit of rain in 23 sub-divisions (4 sub-divisions
forecast value (Table 1). On a temporal basis, during last year) (Chart 1, Table 2 and
only the rainfall forecast for July came out to
be correct. On a spatial basis, the actual rainfall
in South Peninsula was closest to the forecast.
In the rest three regions, actual rainfall
remained very much less than the lower
forecast limits.

Cumulative Rainfall during South-

West Monsoon 2009
The season ended with the area-
weighted rainfall for the country as a whole
at 77 per cent of the LPA, less than even the
lower bound of the IMD’s long range
forecast. The shortfall in rainfall during the
current year marks the lowest since 1972.

RBI
Monthly Bulletin
November 2009 2213
ARTICLE
South-West
Monsoon 2009 :
A Review

Table 2: Distribution of Sub-divisions Among the four broad homogeneous

According to Category of Rainfall
Category Sub-divisions
of Rainfall
1 2
Excess Saurashtra and Kutch, North Interior
Karnataka and South Interior Karnataka.
Normal Andaman and Nicobar Islands, Gangetic
West Bengal, Orissa , Konkan and Goa,
Madhya Maharashtra, Rayalaseema,
Tamilnadu and Puducherry, Coastal
Karnataka, Kerala and Lakshadweep.
Deficient Arunachal Pradesh, Assam and Meghalaya,
Nagaland, Manipur, Mizoram and Tripura,
Sub-Himalayan West Bengal and Sikkim,
Jharkhand, Bihar, East Uttar Pradesh, West
Uttar Pradesh, Uttarakhand, Haryana,
Chandigarh and Delhi, Punjab, Himachal
Pradesh, Jammu and K ashmir, West
Rajasthan, East Rajasthan, West Madhya
Pradesh, East Madhya Pradesh, Gujarat
Region, Daman, Dadra and Nagar Haveli,
Marathwada, Vidarbha , Chhattisgarh,
Coastal Andhra Pradesh and Telangana.
Note : Excess: + 20 per cent or more; Normal: + 19
per cent to –19 per cent; Deficient: -20 per
cent to – 59 per cent; Scanty: –60 per cent to –
99 per cent; No Rain: -100 per cent (All with
respect to the Long Period Average).
Source : India Meteorological Department.
Statement I). Excess rainfall in some sub-
divisions resulted in floods while large
deficiency resulted in drought in several
districts.
regions1 , the South-West monsoon rainfall
was normal over Southern Peninsular Region.
It was deficient over North-West India,
Central India and North-East India (Table 3).
Districtwise, out of 526 meteorological
districts for which data were available, 41 per
cent of the meteorological districts received
excess/normal rainfall and the remaining 59
per cent received deficient/scanty rainfall
during the season (Statement II). The
temporal rainfall distribution caused flood
situation in the states of Karnataka, Assam,
Meghalaya, Arunachal Pradesh, West Bengal,
Orissa, Bihar, Jharkhand, Uttar Pradesh,
Gujarat, Maharashtra, Madhya Pradesh,
Kerela and Andhra Pradesh.
Temporal Distribution
The temporal distribution of monsoon
rainfall over the country as a whole reveals
that the cumulative rainfall remained below
the LPA throughout the season. The rainfall
during July at 96 per cent of LPA was,
however, within the normal limits of +/- 19
per cent and was higher than corresponding
month last year. Monsoon rainfall over the

Table 3: Region-wise Rainfall during the South-West Monsoon 2009

Region Normal (mm) Actual (mm) Percentage Departure
2008 2009 2008 2009
1 2 3 4 5 6
All-India 892.5 873.2 689.9 -2 -23
North-West India 611.7 651.7 392.1 7 -36
Central India 995.1 956.9 795.4 -4 -20
South Peninsula 722.5 692.5 692.9 -4 -4
North-East India 1427.3 1346.0 1037.7 -6 -27
Source: India Meteorological Department.

1 The four broad homogeneous regions are: 1) North-West India (Uttar Pradesh, Rajasthan, Haryana, Chandigarh and
Delhi, Punjab, Uttaranchal, Himachal Pradesh and Jammu and Kashmir); 2) Central India (Madhya Pradesh, Chhattisgarh,
Maharashtra, Orissa, Gujarat and Goa); 3) South Peninsula (Andhra Pradesh, Karnataka, Tamil Nadu and Puducherry,
Kerala, Lakshadweep and Andaman and Nicobar Islands); and 4) North-East India (Bihar, Jharkhand, West Bengal,
Sikkim, Assam, Arunachal Pradesh, Meghalaya, Nagaland, Manipur, Mizoram, Tripura).

RBI
Monthly Bulletin
2214 November 2009
 ARTICLE
South-West
Monsoon 2009 :
A Review

country as a whole was 53 per cent of LPA Table 4: Month-wise Rainfall during
during June, 73 per cent of LPA during S-W Monsoon
Month Per cent Departure from Normal
August and 79 per cent of LPA during
2008 2009
September (Chart 2 and Table 4). 1 2 3
June 24 -47
Production Weighted Rainfall Index July -17 -4
August -3 -27
The foodgrains production weighted September -1 -21
index (PRN) is constructed by the Reserve Source : India Meteorological Department.
Bank based on the weighted average of
actual rainfall received by the States where Drought 2009
weights are taken as the average share of With more than 73 per cent of annual
food grains production by a particular State rainfall in India being received during the
in the overall foodgrains production2 . As per South-West monsoon season, a major shortfall
this index, the rainfall during South-West in SW monsoon generally culminates into a
monsoon 2009 was 27 per cent deficient, drought. Drought connotes a situation of water
which is higher than that of the deficiency shortage for human, cattle and agriculture
shown by IMD data, thus indicating a consumption resulting in economic losses,
relatively higher deficiency in the foodgrains primarily in agriculture sector. Drought is
producing states. The foodgrains weighted classified as Meteorological, Hydrological and
rainfall index was 4 per cent above normal Agricultural3. Unlike the Hydrological and
during last year (Chart 3). Agricultural droughts, the Meteorological

2 A PRN of 100 indicates normal rainfall, where normal represents average of last 10 years’ weighted rainfall.
3 Meteorological Drought connotes rainfall reduction below 19 per cent of normal rainfall; Hydrological drought refers
to large depletion of surface water leading to drying up of lakes, rivers and reservoirs; Agricultural drought refers to a
more severe situation whereby inadequate moisture leads to acute crop stress and decline in crop productivity. As per
IMD, shortfall of 11 per cent to 25 per cent in south-west rainfall is considered as “mild drought”, a deficiency of 26 per
cent to 50 per cent is regarded as “moderate” drought and above 50 per cent shortfall in south-west monsoon precipitation
is treated as “severe drought”.

RBI
Monthly Bulletin
November 2009 2215
ARTICLE
South-West
Monsoon 2009 :
A Review

Table 5: Droughts in Independent India,

Monsoon and Agriculture GDP
Drought years South-West Agricultural Overall
Monsoon GDP GDP
shortfall growth growth
(in per cent) (per cent) (per cent)

2009 23 – –
2004 13 0.0 7.5
2002 19 -7.2 3.8
1987 19 -1.6 3.5
1986 13 -0.4 4.3
1982 15 -0.3 2.9
1979 19 -12.8 -5.2
1974 12 -1.5 1.2
1972 24 -5.0 -0.3
1966 13 -1.4 1.0
1965 18 -11.0 -3.7
1951 19 1.5 2.3
drought may not necessarily have any serious Source: IMD, RBI, Ministry of Agriculture.
impact if the departure from normal is not
As regards the impact of drought on
significant and the rainfall is sufficient
GDP, while in the 1960s and 1970s, droughts
enough to sustain the soil moisture. Available
that resulted in a decline in foodgrains
data indicate that on an average 16 per cent
production generally culminated into
of the country’s total area is drought prone
negative GDP growth, e.g., 1965-66, 1972-73
and about 50 million people in the country
and 1979-80. The 1990s, however, revealed
are annually exposed to the adverse impact
a different picture where by Indian economy
of drought. The possibility of drought
continued to register positive growth
occurrence in India varies from once in 2
despite decline in agriculture. This is
years in Western Rajasthan to once in 15
attributed to the decline in the share of
years in Assam.
agriculture in national income from 57 per
In the post independence period, the cent in 1961 and 35 per cent in 1987-88 to
country has experienced about 10 to 11 22 per cent in 2002-03 and further to 17 per
droughts, of which, 5 were of relatively large cent in 2008-09. Even within the
scale with significant declines in agricultural manufacturing sector, the share of agro-
output – 1965, 1972, 1979, 1987 and 2002 based industries has come down from 44 per
(Table 5). While the droughts of 1965 and cent in 1961 to 13.4 per cent in 2002 and
1979 were ‘late season droughts’ (rainfall further to 12.8 per cent in 2007. Besides,
deficiency mostly in September), droughts agriculture today is substantially diversified
in 1972, 1987 and 2002 were ‘early season with more than 60 per cent of the income
droughts’ with rainfall deficiency being coming from allied activities. Kharif crops
maximum during the month of July. In the that are grown in the South-West monsoon
current year, the rainfall deficiency has been season contribute 20 per cent to the overall
the maximum in the month of June. agricultural GDP. Besides, Government has

RBI
Monthly Bulletin
2216 November 2009

also been taking more proactive initiatives
towards supplementing rural incomes in
drought stricken years. While assessing the
impact of drought on Indian agricultural
output, the above factors need to be taken
into account.
During the current season, around 300
districts have been declared as drought hit,
partially or wholly in 12 States. In view of
drought conditions, the GoI had formulated
a Comprehensive Drought Management
Plan as early as in July 2009. It has also
initiated several timely measures to
compensate for the likely decline in Kharif
production. These include: provision of
supplemental irrigation facilities via the
diesel subsidy in states with more than 50
per cent deficiency in rainfall, planned
efforts to increase Rabi production through
ensuring availability of seeds, fertilisers and
other inputs to farmers, issuing several
policies/advisories with regard to crop
substitution, water conservation techniques,
providing the flexibility to states in the use
of funds under various central schemes and
lastly providing the assurance as well as
actually going in for import of foodgrains
and open market release of stocks. As per
Government advisories, several districts in
the eastern region have taken up short
duration Boro rice cultivation that would
compensate for shortfall in paddy. The
Table 6: Reservoir Status
Status As On 1.10.2005
1 2
Total Live Storage (BCM) 108.06
Percentage to Live Capacity at FRL 81
Source: Central Water Commission.
ARTICLE
South-West
Monsoon 2009 :
A Review
shortfall in groundnut sowing is being partly
offset by Toria and Taramira that could be
sown even in late kharif season.
Reservoir Status
In India, the Central Water Commission
monitors the total live water storage in the
81 major reservoirs having full reservoir
level (FRL) of 151.77 billion cubic metres
(BCM), which accounts for around 67 per
cent of the total reservoir capacity of the
country. As on October 1, 2009 water stock
in these 81 major reservoirs was 60 per cent
of the FRL, lower than 75 per cent during
the corresponding period of the previous
year and the average of 67 per cent during
the last 10 years (Table 6).
Progress of Sowing
The deficient South-West monsoon has
impacted the kharif sowing, which is about
5.3 per cent below that of the last year.
Latest sowing position indicates that sowing
of all crops during the current kharif season
as on October 30, 2009 was 92 per cent of
the normal level (Table 7). Sowing of most
pulses and cotton are higher than last year
levels, while the sowing of coarse cereals
and jute remained the same as last year,
though paddy sowing has been substantially
affected (15.5 per cent below last year’s
level). Other crops whose sowing has been
1.10.2006 1.10.2007 1.10.2008 1.10.2009
3 4 5 6
120.45 124.80 113.74 90.48
91 82 75 60
RBI
Monthly Bulletin
November 2009 2217
ARTICLE
South-West
Monsoon 2009 :
A Review

Table 7: Summary of Progress of Kharif Crops (Area coverage)

(Area in Million Hectares)
Crop Normal Area Coverage
Area (as on October 30, 2009)
2008 2009 Variation Percentage
1 2 3 4 5 6
Rice 39.2 38.9 32.9 -6.1 -15.5
Coarse Cereals 23.0 20.7 20.7 0.1 0.3
of which:
Bajra 9.7 8.5 8.5 0.0 0.2
Jowar 3.9 2.9 3.1 0.2 6.6
Maize 6.8 7.1 7.1 0.1 0.9
Total Pulses 11.2 9.6 10.1 0.5 5.6
Total Oilseeds 16.9 18.4 17.5 -1.0 -5.2
of which:
Groundnut 5.4 5.3 4.4 -0.9 -16.6
Soyabean 7.8 9.6 9.6 0.0 -0.2
Sugarcane 4.4 4.4 4.3 -0.1 -2.9
Cotton 8.7 8.5 9.6 1.1 13.4
Jute 0.8 0.7 0.7 0.0 -2.0
All Crops 104.2 101.2 95.8 -5.4 -5.3
Source : Ministry of Agriculture, Government of India.

affected somewhat include oilseeds and of total foodgrains production in India, the
sugarcane. Considering that Kharif paddy is shortfall in its sowing could be expected to
an important crop accounting for about 86 per depress the overall foodgrains production
cent of total rice production and 36 per cent during 2009-10.

RBI
Monthly Bulletin
2218 November 2009
 ARTICLE
South-West
Monsoon 2009 :
A Review

Statement I : Basic Rainfall Data (Cumulative)

Sub-Divisions June 1 to September 30 , 2009 June 1 to September 30 , 2008
Actual Normal % deviation from Actual Normal % deviation from
(mm) (mm) Normal (mm) (mm) Normal
1 2 3 4 5 6 7 8 9
1. Andaman & Nicobar Islands 1671.8 1755.2 N N 1752.0 1755.2 0 N
2. Arunachal Pradesh 1323.9 1834.9 -28 D 1658.4 1834.9 -10 N
3. Assam & Meghalaya 1320.9 1885.3 -30 D 1601.2 1885.3 -15 N
4. Nagaland, Manipur, 822.5 1240.9 -34 D 983.8 1240.9 -21 D
Mizoram & Tripura
5. Sub-Himalayan West 1529.5 1955.4 -22 D 2098.0 1955.4 7 N
Bengal and Sikkim
6. Gangetic West Bengal 973.7 1136.3 -14 N 1288.8 1136.3 13 N
7. Orissa 1167.3 1164.9 0 N 1418.7 1164.9 22 E
8. Jharkhand 799.6 1092.5 -27 D 1075.1 1092.5 -2 N
9. Bihar 736.3 1039.2 -29 D 1104.4 1039.2 6 N
10. East Uttar Pradesh 563.1 913.6 -38 D 1062.8 913.6 16 N
11. West Uttar Pradesh 442.6 772.8 -43 D 864.0 772.8 12 N
12. Uttarakhand 864.9 1223.1 -29 D 1198.8 1223.1 -2 N
13. Haryana, Chandigarh & Delhi 290.7 470.0 -38 D 538.3 470.0 15 N
14. Punjab 323.6 501.8 -36 D 600.2 501.8 20 E
15. Himachal Pradesh 494.2 773.7 -36 D 738.5 773.7 -5 N
16. Jammu & Kashmir 337.6 513.6 -34 D 524.8 513.6 2 N
17. West Rajasthan 155.4 262.8 -41 D 287.7 262.8 9 N
18. East Rajasthan 436.8 623.6 -30 D 607.1 623.6 -3 N
19. West Madhya Pradesh 657.0 904.3 -27 D 709.6 904.3 -22 D
20. East Madhya Pradesh 738.2 1097.4 -33 D 948.9 1097.4 -14 N
21. Gujarat Region, Daman, 613.4 933.6 -34 D 918.3 933.6 -2 N
Dadra & Nagar Haveli
22. Saurashtra & Kutch 612.8 485.7 26 E 558.5 485.7 15 N
23. Konkan and Goa 2316.4 2802.1 -17 N 2982.9 2802.1 6 N
24. Madhya Maharashtra 683.6 700.1 -2 N 755.3 700.1 8 N
25. Marathwada 529.7 704.3 -25 D 587.5 704.3 -17 N
26. Vidarbha 661.9 976.2 -32 D 782.7 976.2 -20 D
27. Chhattisgarh 796.3 1205.8 -34 D 1061.0 1205.8 -12 N
28. Coastal Andhra Pradesh 429.6 575.2 -25 D 599.0 575.2 4 N
29. Telangana 497.9 767.3 -35 D 797.5 767.2 4 N
30. Rayalaseema 390.1 380.9 2 N 387.6 380.9 2 N
31. Tamil Nadu & Puducherry 314.8 315.6 0 N 324.4 315.6 3 N
32. Coastal Karnataka 3469.1 3173.9 9 N 2663.3 3173.9 -16 N
33. North Interior Karnataka 601.3 490.9 22 E 430.6 490.9 -12 N
34. South Interior Karnataka 855.3 659.3 30 E 720.8 659.3 9 N
35. Kerala 1959.4 2143.0 -9 N 1678.5 2143.0 -22 D
36. Lakshadweep 1026.4 985.2 4 N 933.9 985.2 -5 N

E : Excess, i.e.,+20% or more 3 2

N : Normal, i.e.,+19% to -19% 10 30
D : Deficient, i.e.,-20% to -59% 23 4
S : Scanty, i.e.,-60% to -99% 0 0
NR: No Rain, i.e. -100% 0 0
TOTAL 36 36
Source : India Meteorological Department.

RBI
Monthly Bulletin
November 2009 2219
ARTICLE
South-West
Monsoon 2009 :
A Review

Statement II : Statewise Distribution of No. of Districts with Excess, Normal, Deficient,

Scanty and No Rainfall during South-West Monsoon 2009

S. State/UT E N D S NR ND Total
No.
1 2 3 4 5 6 7 8 9
1. A & N Island (UT) 0 1 1 0 0 0 2
2. Arunachal Pradesh 2 3 5 2 0 1 13
3. Assam 1 12 7 1 0 1 22
4. Meghalaya 1 1 0 0 0 1 3
5. Nagaland 0 0 2 2 0 0 4
6. Manipur 0 0 1 1 0 1 3
7. Mizoram 0 0 1 0 0 1 2
8. Tripura 0 2 1 0 0 0 3
9. Sikkim 0 0 1 0 0 0 1
10. West Bengal 1 10 6 0 0 0 17
11. Orissa 8 17 5 0 0 0 30
12. Jharkhand 0 7 4 3 0 1 15
13. Bihar 0 10 20 2 0 0 32
14. Uttar Pradesh 1 10 38 15 0 0 64
15. Uttarakhand 1 3 5 3 0 0 12
16. Haryana 0 4 11 4 0 0 19
17. Chandigarh (UT) 0 1 0 0 0 0 1
18. Delhi 0 0 1 0 0 0 1
19. Punjab 1 3 8 4 0 0 16
20. Himachal Pradesh 2 3 6 1 0 0 12
21. Jammu & Kashmir 0 2 7 1 0 1 11
22. Rajasthan 0 5 27 0 0 0 32
23. Madhya Pradesh 0 11 32 2 0 0 45
24. Chhattisgarh 0 3 13 0 0 0 16
25. Gujarat 4 5 16 0 0 0 25
26. DNH & Daman (UTD) 0 1 0 0 0 0 1
27. Diu (UT) 1 0 1 0 0 0 1
28. Goa 0 1 0 0 0 0 1
29. Maharashtra 2 14 17 0 0 0 33
30. Andhra Pradesh 0 8 15 0 0 0 23
31. Tamilnadu 4 13 13 2 0 0 30
32. Puducherry 0 0 1 0 0 0 1
33. Karnataka 17 9 1 0 0 0 27
34. Kerala 0 9 5 0 0 0 14
35. Lakshadweep (UT) 0 1 0 0 0 0 1

Total 46 169 270 41 0 7 533

E: Excess. N: Normal. D: Deficient. S: Scanty. NR: No Rain. ND: No Data.

Source: India Meteorological Department.

RBI
Monthly Bulletin
2220 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Composition and This article presents an analysis of

composition and ownership pattern of
Ownership Pattern of outstanding deposits with Scheduled
Deposits with Scheduled Commercial Banks (including Regional
Rural Banks) as at the end of March
Commercial Banks: 2008. The data on ownership of deposits
March 2008* are collected from a sample of branches
of Scheduled Commercial Banks, under
the reporting system of the annual Basic
Statistical Return (BSR)-4. The BSR-
4 return captures data on outstanding
deposits as on March 31, according to
type of deposits (viz., Current, Savings
and Term deposits) classified by broad
institutional sectors, (viz., 'Household',
'Government', 'Private Corporate (Non-
Financial)', 'Financial' and 'Foreign'
sectors) of the economy, which own the
deposits. The ownership pattern of
estimated deposits is analysed according
to the Population groups, States/Union
Territories and Bank groups. The article
also provides comparative position of
composition and ownership pattern of
bank deposits in March 2007.

The major highlights are:

• The current, savings and term deposits

* Prepared in the Banking Statistics Division of the
Department of Statistics and Information Management.
accounted for 13.5 per cent, 23.7 per cent
and 62.8 per cent, respectively in total
deposits in March 2008. The share of
current deposits in total deposits, as on
March 31, 2008, registered 1.1 percentage
points increase over the position a year
ago, with corresponding decrease in the
share of savings deposits. The share of
term deposits remained almost same (at
62.7 per cent) in both the years.

RBI
Monthly Bulletin
November 2009 2221
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

• ‘Household’ sector with 58.1 per cent Introduction

share in total deposits was the largest
holder of outstanding deposits as on
March 31, 2008; its share was 57.4 per
cent a year ago. As at end March 2008,
the share of ‘Private Corporate (Non-
Financial)’ sector in total deposits
recorded a rise, while those of
‘Government’, ‘Financial’ and ‘Foreign’
sectors depicted a decline, compared to
the position as at end March 2007.
• Term deposits contributed 63.1 per cent
to incremental deposits during 2007-08
(72.1 per cent in 2006-07), while 18.3
per cent of incremental deposits were
accounted for by current deposits (9.4
per cent in 2006-07).
• The share of current deposits in total
deposits recorded an increase in case
of ‘Private Corporate (Non-Financial)’
and ‘Financial’ sectors while it
registered a decline in case of
‘Household’ sector. On the other hand,
the relative share of term deposits in
total deposits increased in the case of
‘Private Corporate (Non-Financial)’ and
‘Household’ sectors, and declined in
the case of ‘Government’, ‘ Financial’
and ‘Foreign’ sectors.
• The share of term deposits in total
deposits of metropolitan areas stood at
69.8 per cent as on March 31, 2008
marginally lower compared to 70.7 per
cent in the preceding year. Saving
deposits accounted for 44.9 per cent
and 39.7 per cent of the total deposits
of rural and semi-urban areas, while
their share was 14.8 per cent in
metropolitan areas.
The sample survey on composition and
ownership pattern of bank deposits with
Scheduled Commercial Banks (SCBs),
including Regional Rural Banks (RRBs), is
conducted by the Reserve Bank of India
under the system of Basic Statistical Returns
(BSR) through the BSR-4 return on an annual
basis and the results are published in the
Reserve Bank of India Bulletin. The results
of the survey as on March 31, 2008 are
discussed in this article @. The survey
schedule was designed to capture branch
level data on ownership of deposits,
classified according to broad institutional
sectors and sub-sectors for each type of
deposits, viz., current, savings and term,
including inter-bank deposits. Out of 74,326
branches of SCBs as on March 31, 2008 a
sample of 13,512 branches was selected as
per the sampling design explained below.
Of the 13,512 bank branches selected, valid
filled-in schedules were received from
13,046 branches resulting in a response rate
of 96.6 per cent.
Stratified sampling design was used
for selection of branches of banks for this
sur vey. The branch-wise data on
outstanding aggregate deposits as on March
31, 2008, based on quarterly BSR-7 return,
formed the base for construction of the
frame. All the branches of the SCBs in the
country were first stratified into basic
strata based on State/Union Territory,
population group of the centre where bank
branch was located, and bank group. The
@
The previous article on ‘Composition and Ownership
Pattern of Deposits with Scheduled Commercial Banks:
March 2007’ was published in October 2008 issue of the
Reserve Bank of India Bulletin.

RBI
Monthly Bulletin
2222 November 2009

population groups are (i) rural, (ii) semi-
urban, (iii) urban and (iv) metropolitan.
Five bank groups, viz., (i) State Bank of
India and its Associates; (ii) Nationalised
Banks; (iii) Regional Rural Banks, (iv) Other
Indian Scheduled Commercial Banks or
Indian Private Sector Banks and (v) Foreign
Banks, were considered for the purpose.
Thereafter, each stratum was sub-stratified
into 3 size classes of deposits (up to Rs. 25
crore, Rs. 25 crore to Rs. 100 crore and Rs.
100 crore and above). Thus, 1083 ultimate
strata were formed. All branches having
deposits of Rs. 100 crore and above were
included in the sample. A sample of 15 per
cent branches was selected from each of
the ‘Rs. 25 crore to Rs. 100 crore’ strata,
using Simple R andom Sampling (SRS)
technique. Similarly, 10 per cent of the
branches were selected from ‘up to Rs. 25
crore’ strata. The minimum sample size
for each stratum was fixed as 3 and if a
stratum had fewer than 3 branches, then
all the branches of such stratum were
included in the sample. Accordingly, the
selected sample consisted of 13,512
branches of 171 SCBs. The aggregate
deposits of the branches selected
amounted to Rs. 20,32,148 crore, forming
62.9 per cent of aggregate deposits of
Scheduled Commercial Banks as on
March 31, 2008.
Results#
The article presents the results of the
survey encompassing various classificatory
#
As total outstanding deposits as discussed in this article
are estimated based on a sample of 13,046 branches, the
figures may thus not be strictly comparable with data on
deposits from other sources.
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008
characteristics of deposits with Scheduled
Commercial Banks. Section I presents a brief
review of the trends and pattern of
ownership of deposits over long period from
March 1999 to March 2008. Detailed
analysis of the results relating to the survey
as on March 31, 2008 is provided in
subsequent sections. Section II outlines, at
the aggregate level, the composition by type
of deposit account and ownership pattern
of deposits by broad institutional sectors.
Section III analyses ownership pattern of
deposits by type of account and institutional
sectors. Section IV discusses ownership
pattern of deposits according to population
groups and States/Union territories, as also
for major metropolitan centres. Section V
covers ownership pattern according to bank-
groups, viz., State Bank of India (SBI) and
its Associates, Nationalised Banks, Regional
Rural Banks (RRBs), Foreign Banks and Other
Scheduled Commercial Banks or Indian
Private Sector Banks (OSCBs). Three
categories of deposit accounts covered in the
sur vey are current, savings and term
deposits and are inclusive of inter-bank
deposits. The broad sectors covered in the
survey are ‘Household’, ‘Government’,
‘Private Corporate (Non-Financial)’,
‘Financial’ and ‘Foreign’ sectors.
I Trends in Composition and
Ownership Pattern of Deposits
Chart 1 presents shares of different
types of deposits, viz., current, savings and
term deposits over the 10 year period 1999-
2008. Term deposits accounted for over two-
fifths of total deposits outstanding with
SCBs, while the share of savings deposits
was around one-fourth during the decade
1999-2008.
RBI
Monthly Bulletin
November 2009 2223
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

The trend in ownership pattern of ‘Financial’ sectors in total deposits also

deposits, according to major sectors is
depicted in Chart 2. The household sector
remained the largest holder of bank
deposits, though its share showed a steady
decline over the recent years; its share
which averaged to 66.4 per cent during 1999-
2003, declined to 58.6 per cent (average)
during 2004-2008. During the same sub-
periods of 1999-2008, the share (average) of
‘Private Corporate (Non-financial)’ sector
more than doubled from 4.7 per cent to 10.2
per cent. The shares of ‘Government’ and
witnessed an increase during 2004-2008
compared to the position during 1999-2003.
On the other hand, the share of ‘Foreign’
sector has recorded a decline.
II. Ownership Pattern of Deposits:
Aggregate Level
II.1 Composition of Deposits by Type
of Account
The composition of aggregate deposits
by type of account, viz., current, savings and

RBI
Monthly Bulletin
2224 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

term deposits during 2007-08, indicated an Table 1: Growth rates in Deposits according
increase in the share of current deposits by to type of account
(Per cent)
1.1 percentage points and a decline of equal Account type 2005-06 2006-07 2007-08
magnitude in the share of savings deposits Current deposits 27.5 17.8 33.8
(Chart 3). The current deposits and savings Savings deposits 20.9 17.5 17.1
deposits accounted for 13.5 per cent and 23.7 Term deposits 19.7 29.8 23.0
per cent of total deposits as on March 31, 2008. Total deposits 21.0 24.9 22.9

Term deposits accounted for 62.8 per cent of

total deposits in March 2008 which was at the
same level as a year ago (62.7 per cent).
The total outstanding deposits with
SCBs, including inter-bank deposits, as on
March 31,2008, at Rs 33,18,641 crore
recorded 22.9 per cent increase over the
outstanding deposits (Rs. 26,99,901 crore),
as on March 31, 2007 (Statement 1); the
growth rate for the previous year (March 31,
2007) was higher at 24.9 per cent. During
the year 2007-08, growth in current deposits
at 33.8 per cent was substantially higher
than the previous year’s growth (17.8 per
cent). On the other hand growth in term
deposits decelerated to 23.0 per cent during
2007-08 from 29.8 per cent during 2006-07.
savings deposits registered a little lower
growth (17.1 per cent) than the previous
year’s growth at 17.5 per cent (Table 1).
II.2 Ownership Pattern By Institutional
Sectors
The classification of bank deposits by
institutional sectors as on March 31, 2007
and 2008 is presented in Statement 1.
During 2007-08, the ‘Private Corporate (Non-
Financial)’ sector recorded an increase in its
share in total deposits to 13.0 per cent from
11.2 per cent while the share of ‘Financial’
sector declined marginally from 10.5 per
cent to 10.3 per cent. The ‘Government’
sector deposits constituted 13.5 per cent of
total deposits with SCBs in March 2008,
which was 1.0 percentage point lower than
that in the previous year (14.5 per cent). The
share of ‘Household’ sector, the largest
shareholder of the deposits with the SCBs
increased to 58.1 per cent as on March 31,
2008 from 57.4 per cent in 2007 (Chart 4).

RBI
Monthly Bulletin
November 2009 2225
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

The share of deposits of ‘Foreign’ sector as

at end March 2008 stood at 5.1 per cent,
compared to 6.4 per cent a year ago.

III. Ownership Pattern by Type of

Deposit Accounts and
Institutional Sectors
The ownership pattern according to
major sectors and type of deposits as on
March 31, 2007 and 2008, is depicted in
Charts 5A and 5B. The ‘Household’ sector,
which was the largest holder of total
deposits outstanding with SCBs, also held
the largest share across the three types of
deposits, viz., current, savings and term
deposits. As regards current deposits, the
share of ‘Household’ sector in total current
deposits declined to 40.7 per cent in March
2008 from 47.9 per cent a year ago. The
‘Private Corporate(Non-Financial)’ and
‘Financial’ sectors, recorded 2.0 percentage
points and 4.9 percentage points increase
in their share of current deposits, during
2007-08, which stood at 24.8 per cent and
16.3 per cent as on March 31, 2008. The
share of ‘Government’ sector deposits in
outstanding current deposits was 14.8 per
cent both as at end-March 2007 and 2008,
while the share of ‘Foreign’ sector deposits
in current deposits increased marginally to
3.4 per cent from 3.0 per cent.
‘Household’ sector accounted for the
bulk of savings deposits in March 2008 with
the largest share of 85.4 per cent, which was
marginally lower than 86.2 per cent a year
ago. The share of ‘Government’ sector in
savings deposits improved marginally by 0.7
percentage points during 2007-08 and stood
at 8.0 per cent as on March 31, 2008. The
‘Private Corporate (Non-financial)’ and
‘Financial’ sectors had negligible shares in
savings deposits both in 2007 and 2008,
while the ‘Foreign’ sector accounted for
about 5.7 per cent share.

As regards term deposits, share of the

largest constituent, viz., the ‘Household’
sector increased by 3.6 percentage points
during 2007-08 to 51.5 per cent. The share
of ‘Private Corporate (Non-Financial)’ sector
in term deposits improved by 2.0 percentage
points during the year under review. The
shares of ‘Government’ and ‘Foreign’ sectors
registered a decline to 15.3 per cent from

RBI
Monthly Bulletin
2226 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

17.2 per cent and to 5.2 per cent from 7.5
per cent, respectively. The ‘Financial’ sector
held 12.7 per cent of term deposits in March
2008, as against a share of 14.2 per cent in
March 2007.
The percentage shares of the deposits
in incremental deposits of the major sectors
are presented in Table 2. During 2007-08
about two-thirds (63.1 per cent) of the
incremental deposits were contributed by
term deposits, as compared to 72.1 per cent
in 2006-07. The share of current deposits
in incremental deposits at 18.3 per cent in
2007-08 was almost double of 9.4 per cent
share observed in 2006-07, while the share
of savings deposits in incremental deposits
was at about the same level (18.5 per cent)
in both the years.
The share of term deposits in
incremental deposits in the case of
‘Government’ and ‘Financial’ sectors was
46.7 per cent and 41.7 per cent, respectively,
while for the ‘Private Corporate (Non-
Financial)’ and ‘Household’ sectors, 72.8 per
cent and 69.6 per cent of the incremental
deposits were in case of term deposits. As
regards the ‘Foreign’ sector, term deposits
witnessed a decline during 2007-08.The
contribution of current deposits to
incremental deposits was in the 27.0 per
cent to 29.1 per cent range for ‘Government’
and ‘Private Corporate (Non-Financial)’
sectors. It was high (57.7 per cent) for the
‘Financial’ sector, but low (5.8 per cent)
for the ‘Household’ sector. Savings
deposits accounted for about one-fourth of
the incremental deposits for the
‘Household’ sector.
IV. Ownership Pattern of Deposits
According to Population Groups/
States and Union Territories/
Metropolitan Centres
IV.1 Population Groups1
The ownership of deposits classified by
population groups is presented in Statement
2. The metropolitan areas accounted for the
largest share (57.3 per cent) in total deposits
as on March 31, 2008, compared to 56.4 per
cent share as at end March 2007. The deposits

Table 2: The contribution of the three types of deposits in incremental deposits of the selected sectors
(Per cent)
Sectors Contribution in incremental deposits
2006-07 2007-08
Current Savings Term Total Current Savings Term Total
1 2 3 4 5 6 7 8 9
Government 11.9 15.5 72.6 100.0 29.1 24.2 46.7 100.0
Private corporate
(Non-financial) 15.1 0.4 84.6 100.0 27.0 0.2 72.8 100.0
Financial -4.1 -3.2 107.3 100.0 57.7 0.6 41.7 100.0
Household 11.0 29.6 59.4 100.0 5.8 24.5 69.6 100.0
Foreign 0.1 29.9 70.0 100.0 -88.8 -131.5 320.3 100.0
Total 9.4 18.5 72.1 100.0 18.3 18.6 63.1 100.0

1
The population group classification of banked centres is based on 2001 population census for the surveys beginning
2006, while for the earlier surveys the classification was based on 1991 population census. This may be taken into
consideration while comparing population-group wise data for earlier surveys with those of the current survey.

RBI
Monthly Bulletin
November 2009 2227
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008
of rural and semi-urban areas accounted for
9.1 per cent and 13.0 per cent, respectively
as on March 31, 2008 and these shares were
lower than those observed for March 2007.
The share of deposits in March 2008 in
urban areas remained almost at the same
level as a year ago. Chart 6 provides
information on distributional pattern of
aggregate deposits according to population
groups for 2007 and 2008.
The ‘Household’ sector accounted for
the largest share in total deposits in each of
the population groups. The share of
‘Household sector’ was 86.4 per cent in rural
areas, 77.9 per cent in semi-urban areas, 67.2
per cent in urban areas and 45.8 per cent in
metropolitan areas as on March 31, 2008
(Statement 2). This sector’s shares have
shown improvement over the position a
year ago for semi-urban, urban and
metropolitan population groups, while for
the rural areas its share has declined by 0.8
percentage points. ‘Individuals (including
Hindu Undivided Families-HUFs)’ were the
major constituent of the ‘Household’ sector
in all the population groups Individuals
(including HUFs) held 74.6 per cent of the
RBI
Monthly Bulletin
2228 November 2009
deposits in rural areas though their share
declined by 3.9 per cent during 2007-08.
Among the ‘Individuals (including HUFs)’,
‘Farmers’ held 27.6 per cent of total deposits
in the rural areas and 11.4 per cent of total
deposits in semi-urban areas. The
corresponding shares were higher at 33.6
per cent and 13.2 per cent as on March
31,2007 and consequently the share of
‘Farmers’ in total deposits declined from 6.4
per cent to 5.3 per cent during 2007-08.
Shares of ‘Businessmen, Traders,
Professionals and Self-employed Persons’
group in the rural, semi-urban and urban
areas were in the range of 9.7 per cent to
11.4 per cent, while the same in the
metropolitan areas was lower at 6.3 per cent.
The share of ‘Wage and Salary Earners’
under the category of ‘Individuals (including
HUFs)’ of the ‘Household’ sector was in the
range of 8.0 per cent and 9.3 per cent in
areas other than metropolitan areas, where
it was lower at 5.1 per cent.
Deposits from the ‘Government’ sector
constituted 8.2 per cent and 8.4 per cent of
the total deposits in rural and semi-urban
areas, respectively as on March 31, 2008.
The share of deposits held by the
‘Government’ sector in the urban and
metropolitan areas stood higher at 16.0 per
cent and 14.6 per cent of total deposits,
respectively. Population group-wise shares
of bank deposits of ‘Private Corporate (Non-
Financial)’ and ‘Financial’ sectors exhibited
a composition similar to that obtained for
the deposits of ‘Government’ sector.
The share of ‘Foreign’ sector deposits,
comprising deposits of non-residents and
foreign embassies, etc., in total deposits,
across population groups, was the highest

in semi-urban areas (8.2 per cent), followed
by urban areas (5.3 per cent), metropolitan
areas (4.6 per cent) and rural areas (2.1 per
cent). Deposits from ‘Non Residents’ was
the major constituent of ‘Foreign’ sector
deposits and maintained same order among
population groups as for the total ‘Foreign’
sector deposits.
Distributional pattern of total deposits
by their type and population groups, as on
March 31, 2008 remained similar to that a
year ago, with metropolitan centres
accounting for the highest share and rural
centres accounting for the lowest share in
all types of deposits (Chart 7). In respect of
current deposits, the metropolitan centres
accounted for a share at 65.2 per cent, while
the shares of urban and semi-urban centres
were lower at 20.8 per cent and 10.1 per
cent, respectively. Metropolitan centres
held a share of 35.9 per cent in savings
deposits in 2008. The shares in savings
deposits of urban, semi-urban and rural
centres were 25.1 per cent, 21.9 per cent
and 17.2 per cent, respectively in March
2008. In the case of term deposits,
metropolitan centres held the highest
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008
share of 63.7 per cent, followed distantly
by urban (18.8 per cent), semi-urban (10.3
per cent) and rural (7.3 per cent) centres.
The distribution of deposits according
to type and population groups indicated that
across all population groups, term deposits
accounted for the largest share in total
deposits in March 2008 with 69.8 per cent
share in metropolitan centres, and between
49.3 per cent and 57.5 per cent in other
centres (Chart 8). The share of current
deposits as at end March 2008 increased
across all population groups, except for the
urban population group. The share of
savings deposits in March 2008 was
observed to be lower than that a year ago
across all population groups. The share was
the highest at 44.9 per cent in rural centres,
followed by 39.7 per cent in semi-urban
centres. In metropolitan centres, the share
of term deposits declined to 69.8 per cent
as at end March 2008 from 70.7 per cent a
year ago while in urban centres it increased
to 57.5 per cent from 55.0 per cent a year
ago. In rural centres, the share of term
deposits witnessed a 1.2 percentage increase
and stood at 49.3 per cent in March 2008.
IV.2 States / Union Territories
The ownership pattern of deposits for
end March 2008 classified according to
States/Union Territories is presented in
Statement 3. In all the major States and
Union Territories, except Maharashtra and
Delhi, the bank deposits have been
primarily mobilised from the ‘Household’
sector, which accounted for over one-half
of the total deposits. This is brought out by
the fact that in 29 States/UTs, share of
‘Household’ sector deposits in total deposits
was higher than the all-India share of
RBI
Monthly Bulletin
November 2009 2229
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008
‘Household’ sector deposits in total deposits
(58.1 per cent). Further, in 8 of these States/
UTs, viz, Punjab, Rajasthan, Haryana, Jammu
& Kashmir, Uttar Pradesh, Dadra & Nagar
Haveli, Mizoram and Jharkhand the
contribution of ‘Household’ sector deposits
to total deposits in respective states was
above 75 per cent. These states accounted for
16.2 of total deposits and 22.1 per cent of
‘Household’ sector deposits. 19 States/UTs
had ‘Household’ sector deposits between
60.0 per cent and 75.0 per cent of their
respective total deposits, and 5 States/UTs
reported ‘Household’ sector deposits
between 50.0 per cent and 60.0 per cent. At
the other end of the spectrum, Maharashtra
and Delhi had 37.8 per cent and 45.9 per cent
of their total deposits from the ‘Household’
sector and they collectively accounted for
27.7 per cent of ‘Household’ sector deposits
and 39.8 per cent total deposits in 2008.
In 13 States/UTs, the share of the
deposits of ‘Government’ sector in the total
deposits as on March 31, 2008 was less than
the all-India level share (13.5 per cent). The
remaining 22 States/UTs, with combined
share of 37.0 per cent of total deposits,
RBI
Monthly Bulletin
2230 November 2009
accounted for 58.9 per cent of ‘Government’
sector’s deposits. Deposits of this sector had
considerable contribution (more than 25 per
cent) in the total deposits in 7 States/Union
Territories viz., Andaman & Nicobar
Islands, Delhi, Chhatisgarh, Chandigarh,
Uttarakhand, Manipur and Lakshadweep.
The share of ‘Foreign’ sector deposits
in total deposits was below 5 per cent in
respect of 25 States/UTs. The ‘Foreign’ sector
deposits accounted for 28.5 per cent, 24.0
per cent and 21.7 per cent of deposits in
respect of Kerala, Daman & Diu and Goa,
respectively. However, the ‘Foreign’ sector
deposits were concentrated in the States of
Maharashtra, Kerala, Delhi, Gujarat, Tamil
Nadu, K arnataka and Punjab, which
collectively accounted for 83.6 per cent of
total ‘Foreign’ sector deposits.
The share of ‘Private Corporate (Non-
Financial)’ sector in total deposits in
Maharashtra, Delhi and K arnataka was
higher than the all-India level (13.0 per cent).
About three-fourths (75.9 per cent) of ‘Private
Corporate (Non-Financial)’ sector deposits
were concentrated in these three states.

IV.3 Major Metropolitan Centres
Deposits in Mumbai, Delhi, Kolkata
and Chennai, the four major metropolitan
centers, are analysed in this section. The
ownership pattern of deposits of the four
major metropolitan centers, viz., Mumbai,
Delhi, Kolkata and Chennai, is presented in
Statement 4. The ‘Household’ sector owned
the highest share of deposits in each of the
centre. The share was observed to be the
highest in Chennai (58.9 per cent) and the
lowest in Mumbai (30.4 per cent). The next
highest shares of deposits were owned by
‘Private Corporate (Non-Financial)’ and
‘Government’ sectors in the four major
metropolitan centers taken together. The
highest share of ‘Government’ sector was
recorded in Delhi (25.0 per cent), followed
by Kolkata (21.2 per cent), Chennai (10.5 per
cent) and Mumbai (8.4 per cent). The share
of ‘Private Corporate (Non-Financial)’ sector
was the highest in Mumbai (27.7 per cent),
followed by Delhi and Chennai (about 19.0
per cent each) and Kolkata (11.7 per cent).
The ‘Foreign’ sector accounted for 6.2 per
cent and 5.3 per cent of total deposits in
Chennai and Mumbai, respectively while its
share was lower (3.1 per cent to 3.5 per cent)
in other two major metropolitan centers and
4.7 per cent in the four major metropolitan
centres taken together.
V. Ownership Pattern of Deposits
According to Bank Groups
V.1 Composition of Deposits by Type
of Account and Bank-groups
The composition of deposits according
to bank-groups is presented in Statement
5. At the aggregate level, the relative shares
of different bank groups depicted very
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008
marginal changes as on March 31, 2008, as
compared with the position a year ago
(Chart 9). The Nationalised Banks accounted
for the largest share at 47.7 per cent of total
deposits as on March 31, 2008, followed by
SBI and its Associates (22.6 per cent), OSCBs
(21.0 per cent) and Foreign Banks (5.7 per
cent) (Chart 9).
The distribution of deposits according
to type for SBI and its Associates and
Nationalised Banks revealed more or less
identical pattern, i.e., the share of term
deposits at about 59.0 per cent to 66.0 per
cent, share of savings deposits at about 24.0
per cent to 28.0 per cent and current deposits
at about 10.0 per cent to 13.0 per cent. RRBs
had 53.9 per cent of their deposits in savings
deposits and 40.8 per cent of their deposits
in term deposits. In respect of OSCBs, term
deposits accounted for the largest share of
66.6 per cent of total deposits (Charts 10A
and 10B), while in the case of Foreign Banks,
they contributed 50.1 per cent to total
deposits. Current deposits formed a
substantial share (36.2 per cent) of total
deposits with Foreign Banks and on the
other hand, such deposits for RRBs
RBI
Monthly Bulletin
November 2009 2231
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

constituted only 5.3 per cent of total
deposits.
V.2 Ownership of Deposits by
Institutional Sectors and Bank-
groups
The ownership pattern of deposits
according to bank groups as on March 31,
2008 is presented in Statement 6. The
‘Household’ sector accounted for the
highest share in total deposits in all bank
groups, except Foreign Banks, in whose case
‘Private Corporate (Non-Financial)’ sector
deposits had the largest share (48.9 per
cent). The share of the ‘Household’ sector
in total deposits was at 61.5 per cent for SBI
and its Associates, 65.2 per cent for
Nationalised Banks and 43.0 per cent for
OSCBs while it was the highest at 85.9 per
cent for RRBs.
‘Individuals (including HUFs)’ was the
major constituent of the ‘Household’ sector,
in all the bank groups, though its share
ranged from 18.6 per cent in the case of

RBI
Monthly Bulletin
2232 November 2009

Foreign Banks to as high as 80.7 per cent
for RRBs, and about one-half each in the
cases of SBI and its Associates and
Nationalised banks.
The share of the ‘Government’ sector
deposits was the highest at about 17.3 in
respect of deposits with both SBI and its
Associates and Nationalised Banks. This
sector’s share for RRBs was at 13.0 per cent
and for OSCBs at 4.2 per cent. ‘Central and
State Governments’ and ‘Public Sector
Corporations and Companies’ contributed
12.7 per cent to deposits with SBI and its
Associates, as against 9.4 per cent share at
all SCB level.
‘Government’ sector deposits with
RRBs were largely contributed by ‘State
Governments’ (5.5 per cent) and ‘Local
Authorities’ (5.4 per cent). ‘Government’
sector held 3.1 per cent of the total deposits
with OSCBs and these were held with
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008
almost equal shares by ‘Central and State
Governments’ and ‘Public Sector
Corporations and Companies’.
The share of ‘Private Corporate (Non-
Financial)’ sector in the total deposits was
the highest for Foreign Banks (48.9 per cent),
followed by OSCBs (29.0 per cent). The
corresponding shares in total deposits with
SBI and its Associates and Nationalised Banks
were relatively low at 6.5 per cent and 5.5
per cent, respectively as on March 31, 2008.
The share of deposits from ‘Foreign’
sector was the highest in the case of
Foreign banks (11.7 per cent of total
deposits), followed by SBI and its
Associates (6.7 per cent), OSCBs (4.7 per
cent) and Nationalised Banks (3.9 per cent).
This sector had a negligible share of 0.3 per
cent for RRBs. All bank groups derived
major part of ‘Foreign’ sector deposits from
‘Non-Residents’.
RBI
Monthly Bulletin
November 2009 2233
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 1 : Ownership of Deposits with Scheduled Commercial Banks by

Type of Deposits and Sector - As on March 31, 2007 and 2008
(Rs. crore)
Sector Current Savings Term Total Variations
2007 2008 2007 2008 2007 2008 2007 2008 Current Savings Term Total
1 2 3 4 5 6 7 8 9 10 11 12 13
I. Government Sector 49,663 66,281 49,049 62,861 2,91,961 3,18,663 3,90,673 4,47,805 16,618 13,811 26,702 57,131
(14.8) (14.8) (7.3) (8.0) (17.2) (15.3) (14.5) (13.5) (14.6) (12.0) (6.8) (9.2)
1. Central & State 20,918 30,529 25,966 34,138 83,206 1,13,888 1,30,091 1,78,555 9,611 8,172 30,682 48,464
Governments (6.2) (6.8) (3.9) (4.3) (4.9) (5.5) (4.8) (5.4) (8.5) (7.1) (7.9) (7.8)
i) Central 9,393 13,004 2,661 4,473 51,669 60,019 63,723 77,496 3,611 1,812 8,349 13,773
Government (2.8) (2.9) (0.4) (0.6) (3.1) (2.9) (2.4) (2.3) (3.2) (1.6) (2.1) (2.2)
ii) State 11,525 17,525 23,305 29,665 31,537 53,869 66,368 1,01,059 6,000 6,359 22,332 34,692
Governments (3.4) (3.9) (3.5) (3.8) (1.9) (2.6) (2.5) (3.0) (5.3) (5.5) (5.7) (5.6)
2. Local Authorities 6,051 7,967 13,616 16,908 48,711 44,971 68,377 69,846 1,916 3,292 -3,740 1,469
(1.8) (1.8) (2.0) (2.2) (2.9) (2.2) (2.5) (2.1) (1.7) (2.9) (-1.0) (0.2)
3. Quasi Government 10,750 9,800 3,979 4,890 53,701 53,287 68,431 67,977 -951 911 -414 -453
Bodies (3.2) (2.2) (0.6) (0.6) (3.2) (2.6) (2.5) (2.0) (-0.8) (0.8) (-0.1) (-0.1)
Of which:
State Electricity 4,124 2,364 435 798 6,783 9,962 11,341 13,123 -1,760 363 3,179 1,782
Boards (1.2) (0.5) (0.1) (0.1) (0.4) (0.5) (0.4) (0.4) (-1.6) (0.3) (0.8) (0.3)
4. Public Sector 11,943 17,985 5,488 6,924 1,06,343 1,06,517 1,23,774 1,31,426 6,042 1,436 174 7,652
Corporations and (3.6) (4.0) (0.8) (0.9) (6.3) (5.1) (4.6) (4.0) (5.3) (1.2) (–) (1.2)
Companies
i) Non - Departmental 3,681 5,801 751 699 59,246 40,261 63,677 46,761 2,120 -51 -18,985 -16,917
Commercial (1.1) (1.3) (0.1) (0.1) (3.5) (1.9) (2.4) (1.4) (1.9) (–) (-4.9) (-2.7)
Undertakings
ii) Others 8,262 12,184 4,738 6,225 47,098 66,256 60,097 84,665 3,922 1,488 19,159 24,568
(2.5) (2.7) (0.7) (0.8) (2.8) (3.2) (2.2) (2.6) (3.5) (1.3) (4.9) (4.0)

II. Private Corporate Sector 76,647 1,11,357 3,245 3,487 2,23,591 3,17,365 3,03,482 4,32,209 34,710 242 93,774 1,28,727
(Non - Financial) (22.8) (24.8) (0.5) (0.4) (13.2) (15.2) (11.2) (13.0) (30.6) (0.2) (24.0) (20.8)
1. Non- Financial 61,242 77,295 917 886 1,85,668 2,51,110 2,47,826 3,29,291 16,053 -30 65,442 81,465
Companies (18.2) (17.2) (0.1) (0.1) (11.0) (12.1) (9.2) (9.9) (14.1) (–) (16.8) (13.2)
2. Non-Credit 842 375 607 411 2,623 2,101 4,071 2,887 -467 -195 -522 -1,184
Co -operative (0.3) (0.1) (0.1) (0.1) (0.2) (0.1) (0.2) (0.1) (-0.4) (-0.2) (-0.1) (-0.2)
Institutions
3. Others 14,563 33,687 1,722 2,190 35,300 64,154 51,585 1,00,031 19,124 468 28,854 48,446
(4.3) (7.5) (0.3) (0.3) (2.1) (3.1) (1.9) (3.0) (16.8) (0.4) (7.4) (7.8)

III. Financial Sector 38,367 73,223 3,684 4,041 2,40,413 2,65,648 2,82,465 3,42,912 34,856 357 25,234 60,447
(11.4) (16.3) (0.5) (0.5) (14.2) (12.7) (10.5) (10.3) (30.7) (0.3) (6.5) (9.8)
1. Banks 18,732 19,889 1,693 2,042 91,849 97,178 1,12,274 1,19,110 1,157 348 5,329 6,835
(5.6) (4.4) (0.3) (0.3) (5.4) (4.7) (4.2) (3.6) (1.0) (0.3) (1.4) (1.1)
i) Indian Commercial 13,822 12,383 1,389 1,572 59,838 65,158 75,048 79,114 -1,438 184 5,320 4,065
Banks (4.1) (2.8) (0.2) (0.2) (3.5) (3.1) (2.8) (2.4) (-1.3) (0.2) (1.4) (0.7)
ii) Foreign Resident 1,614 1,359 5 2 8,779 4,081 10,398 5,441 -256 -3 -4,698 -4,956
Banks (Offices of (0.5) (0.3) (–) (–) (0.5) (0.2) (0.4) (0.2) (-0.2) (–) (-1.2) (-0.8)
Foreign Banks in
India)

RBI
Monthly Bulletin
2234 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 1 : Ownership of Deposits with Scheduled Commercial Banks by

Type of Deposits and Sector - As on March 31, 2007 and 2008 (Contd.)
(Rs. crore)
Sector Current Savings Term Total Variations
2007 2008 2007 2008 2007 2008 2007 2008 Current Savings Term Total
1 2 3 4 5 6 7 8 9 10 11 12 13
iii) Co-operative Banks 3,296 6,147 300 467 23,232 27,940 26,828 34,555 2,851 168 4,708 7,726
& Credit societies (1.0) (1.4) (–) (0.1) (1.4) (1.3) (1.0) (1.0) (2.5) (0.1) (1.2) (1.2)

a. Co-operative 3,043 5,679 99 141 22,539 26,639 25,682 32,459 2,636 42 4,099 6,777
Banks (0.9) (1.3) (–) (–) (1.3) (1.3) (1.0) (1.0) (2.3) (–) (1.1) (1.1)

b. Credit Societies 253 468 201 326 693 1,301 1,147 2,096 215 126 608 949
(0.1) (0.1) (–) (–) (–) (0.1) (–) (0.1) (0.2) (0.1) (0.2) (0.2)

2. Other Financial 11,560 26,248 1,109 1,209 1,05,426 1,03,107 1,18,095 1,30,564 14,687 101 -2,319 12,469
Institutions (3.4) (5.8) (0.2) (0.2) (6.2) (4.9) (4.4) (3.9) (12.9) (0.1) (-0.6) (2.0)

i) Financial Companies 549 574 72 58 2,837 2,560 3,458 3,192 25 -14 -278 -267
(0.2) (0.1) (–) (–) (0.2) (0.1) (0.1) (0.1) (–) (–) (-0.1) (–)

a. Housing Finance 387 293 62 46 1,093 1,045 1,541 1,385 -93 -16 -48 -157
Companies (0.1) (0.1) (–) (–) (0.1) (0.1) (0.1) (–) (-0.1) (–) (–) (–)

b. Auto Finance 163 281 10 12 1,744 1,515 1,917 1,807 118 2 -229 -110
Companies (–) (0.1) (–) (–) (0.1) (0.1) (0.1) (0.1) (0.1) (–) (-0.1) (–)

ii) Mutual Funds 1,645 1,473 16 23 59,157 45,702 60,818 47,198 -173 7 -13,454 -13,620
(including Private (0.5) (0.3) (–) (–) (3.5) (2.2) (2.3) (1.4) (-0.2) (–) (-3.4) (-2.2)
Sector Mutual Funds)

a. Mutual Funds in 640 332 – – 19,399 21,760 20,040 22,092 -309 – 2,361 2,052
Private Sector (0.2) (0.1) (1.1) (1.0) (0.7) (0.7) (-0.3) (0.6) (0.3)

b. Other Mutual 1,005 1,141 16 23 39,757 23,942 40,778 25,106 136 7 -15,815 -15,673
Funds (0.3) (0.3) (–) (–) (2.3) (1.1) (1.5) (0.8) (0.1) (–) (-4.1) (-2.5)

iii) Unit Trust of India 2,009 18,637 16 85 4,028 3,414 6,054 22,136 16,628 68 -614 16,083
(0.6) (4.1) (–) (–) (0.2) (0.2) (0.2) (0.7) (14.6) (0.1) (-0.2) (2.6)

iv) Insurance 5,739 4,269 29 22 16,853 18,671 22,621 22,962 -1,470 -7 1,818 341
Corporations (1.7) (1.0) (–) (–) (1.0) (0.9) (0.8) (0.7) (-1.3) (–) (0.5) (0.1)
and Companies
(Life and General)

v) Term Lending 249 176 21 51 2,918 3,409 3,189 3,636 -74 29 491 447
Institutions (0.1) (–) (–) (–) (0.2) (0.2) (0.1) (0.1) (-0.1) (–) (0.1) (0.1)

vi) Provident Fund 1,368 1,119 955 972 19,632 29,351 21,955 31,441 -249 17 9,718 9,486
Institutions (0.4) (0.2) (0.1) (0.1) (1.2) (1.4) (0.8) (0.9) (-0.2) (–) (2.5) (1.5)

3. Other Financial 8,075 27,086 882 790 43,139 65,363 52,095 93,238 19,011 -92 22,224 41,143
Companies@ (2.4) (6.0) (0.1) (0.1) (2.5) (3.1) (1.9) (2.8) (16.7) (-0.1) (5.7) (6.6)

i) Financial Services 2,137 14,400 52 33 11,356 13,114 13,545 27,547 12,262 -19 1,758 14,002
Companies (0.6) (3.2) (–) (–) (0.7) (0.6) (0.5) (0.8) (10.8) (–) (0.5) (2.3)

ii) Other Financial 4,002 6,820 72 79 13,536 30,415 17,610 37,314 2,818 7 16,879 19,704
Companies (1.2) (1.5) (–) (–) (0.8) (1.5) (0.7) (1.1) (2.5) (–) (4.3) (3.2)

iii) Others 1,936 5,866 759 679 18,247 21,833 20,941 28,378 3,930 -80 3,586 7,437
(0.6) (1.3) (0.1) (0.1) (1.1) (1.0) (0.8) (0.9) (3.5) (-0.1) (0.9) (1.2)

RBI
Monthly Bulletin
November 2009 2235
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 1 : Ownership of Deposits with Scheduled Commercial Banks by

Type of Deposits and Sector - As on March 31, 2007 and 2008 (Concld.)
(Rs. crore)
Sector Current Savings Term Total Variations
2007 2008 2007 2008 2007 2008 2007 2008 Current Savings Term Total
1 2 3 4 5 6 7 8 9 10 11 12 13
IV. Household Sector 1,60,883 1,83,013 5,78,107 6,70,895 8,10,726 10,74,109 15,49,716 19,28,017 22,130 92,789 2,63,383 3,78,301
(47.9) (40.7) (86.2) (85.4) (47.9) (51.5) (57.4) (58.1) (19.5) (80.7) (67.5) (61.1)
1. Individuals (including 73,220 82,796 5,15,938 5,98,620 6,12,681 8,13,963 12,01,839 14,95,379 9,576 82,682 2,01,282 2,93,540
Hindu Undivided (21.8) (18.4) (76.9) (76.2) (36.2) (39.1) (44.5) (45.1) (8.4) (72.0) (51.6) (47.4)
Families)
i) Farmers 2,716 3,569 85,316 82,609 84,410 91,012 1,72,442 1,77,189 853 -2,707 6,602 4,747
(0.8) (0.8) (12.7) (10.5) (5.0) (4.4) (6.4) (5.3) (0.8) (-2.4) (1.7) (0.8)
ii) Businessmen, 38,796 39,971 69,206 87,928 1,01,167 1,35,647 2,09,170 2,63,546 1,174 18,722 34,480 54,376
Traders, Professionals (11.6) (8.9) (10.3) (11.2) (6.0) (6.5) (7.7) (7.9) (1.0) (16.3) (8.8) (8.8)
and Self - Employed
Persons
iii) Wage and Salary 4,240 3,886 95,582 1,07,263 78,211 1,07,046 1,78,033 2,18,196 -354 11,681 28,835 40,162
Earners (1.3) (0.9) (14.2) (13.7) (4.6) (5.1) (6.6) (6.6) (-0.3) (10.2) (7.4) (6.5)
iv) Shroffs, Money 999 1,028 4,161 4,580 5,309 10,644 10,469 16,252 29 419 5,335 5,784
Lenders, Stock (0.3) (0.2) (0.6) (0.6) (0.3) (0.5) (0.4) (0.5) (–) (0.4) (1.4) (0.9)
Brokers, Dealers
in Bullion etc.
v) Other Individuals 26,468 34,341 2,61,673 3,16,240 3,43,584 4,69,614 6,31,725 8,20,196 7,873 54,567 1,26,031 1,88,471
(7.9) (7.6) (39.0) (40.2) (20.3) (22.5) (23.4) (24.7) (6.9) (47.5) (32.3) (30.5)
2. Trusts, Associations, 10,229 12,904 11,717 12,056 49,718 56,017 71,663 80,977 2,676 339 6,299 9,314
Clubs etc. (3.0) (2.9) (1.7) (1.5) (2.9) (2.7) (2.7) (2.4) (2.4) (0.3) (1.6) (1.5)
3. Proprietary and 47,556 54,575 4,311 5,082 39,521 50,648 91,388 1,10,305 7,019 771 11,127 18,917
Partnership (14.2) (12.1) (0.6) (0.6) (2.3) (2.4) (3.4) (3.3) (6.2) (0.7) (2.9) (3.1)
concerns etc.
4. Educational 2,865 3,175 7,980 8,951 15,306 16,469 26112 28,595 310 971 1,163 2,444
Institutions (0.9) (0.7) (1.2) (1.1) (0.9) (0.8) (1.0) (0.9) (0.3) (0.8) (0.3) (0.4)
5. Religious Institutions 475 355 2,003 2,161 7,024 5,958 9,502 8,474 -119 158 -1,066 -1,028
(0.1) (0.1) (0.3) (0.3) (0.4) (0.3) (0.4) (0.3) (-0.1) (0.1) (-0.3) (-0.2)
6. Others (not elsewhere 26,539 29,207 36,157 44,025 86,476 1,31,054 1,49,172 2,04,287 2,668 7,868 44,578 55,114
classified) (7.9) (6.5) (5.4) (5.6) (5.1) (6.3) (5.5) (6.2) (2.4) (6.8) (11.4) (8.9)
V. Foreign Sector 10,147 15,355 36,765 44,479 1,26,653 1,07,865 1,73,565 1,67,699 5,208 7,714 -18,788 -5,866
(3.0) (3.4) (5.5) (5.7) (7.5) (5.2) (6.4) (5.1) (4.6) (6.7) (-4.8) (-0.9)
1. Foreign Consulates, 497 1,049 328 334 752 2,624 1,578 4,007 552 6 1,872 2,430
Embassies, Trade (0.1) (0.2) (–) (–) (–) (0.1) (0.1) (0.1) (0.5) (–) (0.5) (0.4)
Missions, Information
Services etc.
2. Non-Residents 2,623 1,931 33,156 40,447 1,13,640 97,087 1,49,418 1,39,465 -692 7,291 -16,552 -9,953
(0.8) (0.4) (4.9) (5.1) (6.7) (4.7) (5.5) (4.2) (-0.6) (6.3) (-4.2) (-1.6)
3. Others 7,027 12,375 3,281 3,698 12,261 8,153 22,569 24,226 5,347 417 -4,107 1,657
(2.1) (2.8) (0.5) (0.5) (0.7) (0.4) (0.8) (0.7) (4.7) (0.4) (-1.1) (0.3)
Total 3,35,707 4,49,228 6,70,851 7,85,764 16,93,343 20,83,649 26,99,901 33,18,641 1,13,521 1,14,913 3,90,305 6,18,740
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
— : Nil or Negligible.
Note : Figures in brackets indicate percentages to total.

RBI
Monthly Bulletin
2236 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 2 : Population Group-wise Ownership of Deposits of Scheduled

Commercial Banks – As on March 31, 2008
(Rs. crore)
Sector Rural Semi-Urban Urban Metropolitan Total
Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent
1 2 3 4 5 6 7 8 9 10 11
I. Government Sector 24,722 8.2 36,183 8.4 1,09,124 16.0 2,77,774 14.6 4,47,805 13.5
1. Central & State 9,427 3.1 17,407 4.0 43,256 6.3 1,08,466 5.7 1,78,555 5.4
Governments
i) Central Government 1,458 0.5 4,605 1.1 11,219 1.6 60,214 3.2 77,496 2.3
ii) State Governments 7,969 2.6 12,802 3.0 32,037 4.7 48,252 2.5 1,01,059 3.0
2. Local Authorities 6,496 2.2 8,117 1.9 16,170 2.4 39,063 2.1 69,846 2.1
3. Quasi-Government Bodies 3,837 1.3 2,882 0.7 19,936 2.9 41,323 2.2 67,977 2.0
of which: State
Electricity Boards 171 0.1 494 0.1 5,337 0.8 7,122 0.4 13,123 0.4
4. Public Sector Corporations 4,963 1.6 7,777 1.8 29,763 4.4 88,923 4.7 1,31,426 4.0
and Companies
i) Non-Departmental 1,818 0.6 2,503 0.6 8,460 1.2 33,981 1.8 46,761 1.4
Commercial
undertakings
ii) Others 3,145 1.0 5,274 1.2 21,303 3.1 54,942 2.9 84,665 2.6

II. Private Corporate Sector 2,491 0.8 9,538 2.2 32,521 4.8 3,87,659 20.4 4,32,209 13.0
(Non-Financial)
1. Non-Financial Companies 1,343 0.4 5,000 1.2 21,122 3.1 3,01,826 15.9 3,29,291 9.9
2. Non-Credit Co-operative 84 – 150 – 757 0.1 1,896 0.1 2,887 0.1
Institutions
3. Others 1,064 0.4 4,388 1.0 10,642 1.6 83,936 4.4 1,00,031 3.0

III. Financial Sector 4,998 1.7 14,521 3.4 46,066 6.7 2,77,326 14.6 3,42,912 10.3
1. Banks 3,704 1.2 9,330 2.2 30,432 4.5 75,644 4.0 1,19,110 3.6
i) Indian Commercial 2,274 0.8 5,343 1.2 16,862 2.5 54,635 2.9 79,114 2.4
Banks
ii) Foreign Resident – – 6 – 197 – 5,238 0.3 5,441 0.2
Banks (Offices of
foreign banks in India)
iii) Co-operative Banks 1,430 0.5 3,982 0.9 13,372 2.0 15,770 0.8 34,555 1.0
& Credit Societies
a. Co-operative Banks 1,238 0.4 3,575 0.8 12,759 1.9 14,887 0.8 32,459 1.0
b. Credit Societies 192 0.1 407 0.1 614 0.1 884 – 2,096 0.1
2. Other Financial 464 0.2 2,963 0.7 10,838 1.6 1,16,299 6.1 1,30,564 3.9
Institutions
i) Financial Companies 149 – 44 – 330 – 2,669 0.1 3,192 0.1
a. Housing Finance 109 – 24 – 294 – 958 0.1 1,385 –
Companies
b. Auto Finance 40 – 20 – 36 – 1,712 0.1 1,807 0.1
Companies
ii) Total of Mutual Funds – – 99 – 131 – 46,967 2.5 47,198 1.4
(including - Private
sector Mutual Funds
a. Mutual Funds in – – 1 – 24 – 22,067 1.2 22,092 0.7
Private Sector
b. Other Mutual Funds – – 99 – 107 – 24,900 1.3 25,106 0.8

RBI
Monthly Bulletin
November 2009 2237
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 2 : Population Group-wise Ownership of Deposits of Scheduled

Commercial Banks – As on March 31, 2008 (Concld.)
(Rs. crore)
Sector Rural Semi-urban Urban Metropolitan Total
Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent
1 2 3 4 5 6 7 8 9 10 11
iii) Unit Trust of India 80 – 1,378 0.3 5,007 0.7 15,671 0.8 22,136 0.7
iv) Insurance Corporations 158 0.1 1,057 0.2 1,429 0.2 20,318 1.1 22,962 0.7
and Companies
v) Term Lending 9 – 11 – 177 – 3,439 0.2 3,636 0.1
Institutions
vi) Provident Fund 68 – 374 0.1 3,764 0.6 27,235 1.4 31,441 0.9
Institutions
3. Other Financial Companies 831 0.3 2,228 0.5 4,797 0.7 85,383 4.5 93,238 2.8
i) Financial Services 101 – 194 – 769 0.1 26,482 1.4 27,547 0.8
Companies
ii) Other Financial 50 – 552 0.1 1,624 0.2 35,088 1.8 37,314 1.1
Companies
iii) Others 679 0.2 1,482 0.3 2,404 0.4 23,812 1.3 28,378 0.9

IV. Household Sector 2,59,952 86.4 3,36,983 77.9 4,59,104 67.2 8,71,978 45.8 19,28,017 58.1
1. Individuals (including 2,24,577 74.6 2,87,905 66.5 3,67,350 53.8 6,15,547 32.4 14,95,379 45.1
Hindu Undivided Families)
i) Farmers 83,050 27.6 49,463 11.4 24,789 3.6 19,888 1.0 1,77,189 5.3
ii) Businessmen, Traders, 34,420 11.4 42,935 9.9 66,439 9.7 1,19,752 6.3 2,63,546 7.9
Professionals and
Self-Employed Persons
iii) Wage and Salary Earners 28,120 9.3 37,620 8.7 54,596 8.0 97,860 5.1 2,18,196 6.6
iv) Shroffs, Money 942 0.3 2,356 0.5 3,559 0.5 9,395 0.5 16,252 0.5
Lenders, Stock Brokers,
Dealers in Bullion etc.
v) Other Individuals 78,045 25.9 1,55,531 35.9 2,17,967 31.9 3,68,652 19.4 8,20,196 24.7
2. Trusts, Associations, 3,147 1.0 8,489 2.0 16,092 2.4 53,249 2.8 80,977 2.4
Clubs etc.
3. Proprietary and 4,629 1.5 11,424 2.6 25,018 3.7 69,234 3.6 1,10,305 3.3
Partnership Concerns
4. Educational Institutions 3,336 1.1 5,076 1.2 8,331 1.2 11,853 0.6 28,595 0.9
5. Religious Institutions 792 0.3 2,391 0.6 3,196 0.5 2,094 0.1 8,474 0.3
6. Others (Not elsewhere 23,471 7.8 21,698 5.0 39,117 5.7 1,20,000 6.3 2,04,287 6.2
Classified)

V. Foreign Sector 8,806 2.9 35,591 8.2 36,081 5.3 87,221 4.6 1,67,699 5.1
1. Foreign Consulates, 360 0.1 158 – 29 – 3,460 0.2 4,007 0.1
Embassies, Trade
2. Non-Residents 7,383 2.5 32,652 7.5 31,388 4.6 68,042 3.6 1,39,465 4.2
3. Others 1,063 0.4 2,781 0.6 4,664 0.7 15,719 0.8 24,226 0.7
Total 3,00,969 100.0 4,32,816 100.0 6,82,897 100.0 19,01,958 100.0 33,18,641 100.0
@ : Includes (a) ‘Financial Service Companies’ which undertake issue management, portfolio management etc., (b) ‘Other Financial Companies’
which are engaged in leasing hire purchase, loan companies, etc., and (c) ‘Others’ indicating non-profit institutions serving business
like FICCI, CII, ASSOCHAM, etc.
– : Nil or Negligible.

RBI
Monthly Bulletin
2238 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 3 : Ownership Pattern of Deposits of Scheduled Commercial Banks Classified

by States & Union Territories - As on March 31, 2008
(Rs. crore)
Region / Government Foreign Private Financial Sector Household Total
State / Sector Sector Corporate Banks Other Other Sector
Union Sector Financial Financial
Territory (Non - Institutions Companies
Financial)
1 2 3 4 5 6 7 8 9
Northern 1,36,848 32,929 92,866 9,732 10,053 19,716 4,45,980 7,48,123
Region (18.3) (4.4) (12.4) (1.3) (1.3) (2.6) (59.6) (100.0)
Haryana 6,809 1,348 5,312 1,155 719 209 58,710 74,262
(9.2) (1.8) (7.2) (1.6) (1.0) (0.3) (79.1) (100.0)
Himachal 2,882 399 87 2,328 167 115 14,615 20,592
Pradesh (14.0) (1.9) (0.4) (11.3) (0.8) (0.6) (71.0) (100.0)
Jammu & 3,343 437 29 715 901 54 20,243 25,722
Kashmir (13.0) (1.7) (0.1) (2.8) (3.5) (0.2) (78.7) (100.0)
Punjab 3,957 10,581 1,615 1,140 622 462 81,994 1,00,372
(3.9) (10.5) (1.6) (1.1) (0.6) (0.5) (81.7) (100.0)
Rajasthan 5,643 2,776 3,217 1,212 648 330 59,668 73,493
(7.7) (3.8) (4.4) (1.6) (0.9) (0.4) (81.2) (100.0)
Chandigarh 6,873 1,515 1,428 545 89 103 13,683 24,235
(28.4) (6.3) (5.9) (2.2) (0.4) (0.4) (56.5) (100.0)
Delhi 1,07,341 15,872 81,178 2,638 6,907 18,443 1,97,068 4,29,446
(25.0) (3.7) (18.9) (0.6) (1.6) (4.3) (45.9) (100.0)
North- 11,329 137 1,343 2,301 1,434 379 34,950 51,872
eastern (21.8) (0.3) (2.6) (4.4) (2.8) (0.7) (67.4) (100.0)
Region
Arunachal 440 20 105 140 30 61 2,150 2,947
Pradesh (14.9) (0.7) (3.6) (4.7) (1.0) (2.1) (73.0) (100.0)
Assam 7,063 112 872 1,018 1,266 277 21,632 32,240
(21.9) (0.3) (2.7) (3.2) (3.9) (0.9) (67.1) (100.0)
Manipur 753 1 2 128 6 – 1,068 1,958
(38.5) (0.1) (0.1) (6.5) (0.3) (54.5) (100.0)
Meghalaya 1,070 2 48 474 18 9 3,664 5,285
(20.3) (–) (0.9) (9.0) (0.3) (0.2) (69.3) (100.0)
Mizoram 308 1 5 35 18 4 1,162 1,534
(20.1) (0.1) (0.3) (2.3) (1.2) (0.3) (75.7) (100.0)
Nagaland 663 – 85 120 44 10 1,809 2,731
(24.3) (3.1) (4.4) (1.6) (0.3) (66.3) (100.0)
Tripura 1,031 – 225 386 52 18 3,465 5,178
(19.9) (4.4) (7.5) (1.0) (0.4) (66.9) (100.0)
Eastern 67,289 5,660 19,567 8,690 4,281 8,607 2,48,539 3,62,634
Region (18.6) (1.6) (5.4) (2.4) (1.2) (2.4) (68.5) (100.0)
Bihar 13,024 749 743 2,460 286 327 51,267 68,855
(18.9) (1.1) (1.1) (3.6) (0.4) (0.5) (74.5) (100.0)
Jharkhand 7,579 274 1,153 1,607 263 312 33,609 44,798
(16.9) (0.6) (2.6) (3.6) (0.6) (0.7) (75.0) (100.0)
Orissa 13,306 558 3,970 1,741 559 372 34,967 55,472
(24.0) (1.0) (7.2) (3.1) (1.0) (0.7) (63.0) (100.0)
Sikkim 463 5 70 90 53 29 1,454 2,164
(21.4) (0.2) (3.2) (4.2) (2.4) (1.3) (67.2) (100.0)
West Bengal 32,634 4,074 13,624 2,769 3,101 7,568 1,26,443 1,90,213
(17.2) (2.1) (7.2) (1.5) (1.6) (4.0) (66.5) (100.0)

RBI
Monthly Bulletin
November 2009 2239
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 3 : Ownership Pattern of Deposits of Scheduled Commercial Banks Classified

by States & Union Territories - As on March 31, 2008 (Concld.)
(Rs. crore)
Region / Government Foreign Private Financial Sector Household Total
State / Sector Sector Corporate Banks Other Other Sector
Union Sector Financial Financial
Territory (Non - Institutions Companies
Financial)
1 2 3 4 5 6 7 8 9

Andaman & 283 1 8 23 20 – 798 1,133

Nicobar (25.0) (0.1) (0.7) (2.0) (1.8) (70.5) (100.0)
Central 61,532 4,932 14,608 17,772 2,324 2,274 2,69,221 3,72,663
Region (16.5) (1.3) (3.9) (4.8) (0.6) (0.6) (72.2) (100.0)
Chhattisgarh 8,996 74 1,109 2,471 615 47 19,644 32,956
(27.3) (0.2) (3.4) (7.5) (1.9) (0.1) (59.6) (100.0)
Madhya 13,125 846 6,460 4,619 513 406 59,574 85,544
Pradesh (15.3) (1.0) (7.6) (5.4) (0.6) (0.5) (69.6) (100.0)
Uttar 25,954 3,594 6,568 8,311 1,125 1,676 1,70,304 2,17,532
Pradesh (11.9) (1.7) (3.0) (3.8) (0.5) (0.8) (78.3) (100.0)
Uttarakhand 13,457 417 471 2,371 71 145 19,699 36,632
(36.7) (1.1) (1.3) (6.5) (0.2) (0.4) (53.8) (100.0)
Western 89,703 62,584 2,28,414 68,018 1,04,384 54,553 4,63,096 10,70,752
Region (8.4) (5.8) (21.3) (6.4) (9.7) (5.1) (43.2) (100.0)
Goa 1,335 4,116 1,455 85 307 48 11,664 19,010
(7.0) (21.7) (7.7) (0.4) (1.6) (0.3) (61.4) (100.0)
Gujarat 8,967 13,303 12,444 4,518 2,715 2,785 1,12,478 1,57,209
(5.7) (8.5) (7.9) (2.9) (1.7) (1.8) (71.5) (100.0)
Maharashtra 79,265 44,900 2,14,421 63,402 1,01,357 51,712 3,37,739 8,92,796
(8.9) (5.0) (24.0) (7.1) (11.4) (5.8) (37.8) (100.0)
Dadra & 81 2 48 9 – 1 494 636
Nagar Haveli (12.7) (0.4) (7.6) (1.4) (0.2) (77.7) (100.0)
Daman & Diu 55 264 46 4 5 8 720 1,101
(5.0) (24.0) (4.2) (0.3) (0.4) (0.7) (65.4) (100.0)
Southern 81,104 61,457 75,411 12,597 8,088 7,708 4,66,231 7,12,596
Region (11.4) (8.6) (10.6) (1.8) (1.1) (1.1) (65.4) (100.0)
Andhra 31,538 5,479 16,910 2,056 2,512 1,893 1,18,301 1,78,691
Pradesh (17.6) (3.1) (9.5) (1.2) (1.4) (1.1) (66.2) (100.0)
Karnataka 23,955 11,138 32,236 4,514 1,673 2,158 1,39,058 2,14,732
(11.2) (5.2) (15.0) (2.1) (0.8) (1.0) (64.8) (100.0)
Kerala 6,867 31,805 2,588 2,825 1,328 515 65,560 1,11,488
(6.2) (28.5) (2.3) (2.5) (1.2) (0.5) (58.8) (100.0)
Tamil Nadu 17,654 12,562 23,454 3,131 2,511 3,119 1,40,135 2,02,566
(8.7) (6.2) (11.6) (1.5) (1.2) (1.5) (69.2) (100.0)
Lakshadweep 244 1 2 28 – – 78 354
(69.1) (0.2) (0.7) (7.9) (22.1) (100.0)
Puducherry 845 472 219 43 65 23 3,098 4,765
(17.7) (9.9) (4.6) (0.9) (1.4) (0.5) (65.0) (100.0)

Total 4,47,805 1,67,699 4,32,209 1,19,110 1,30,564 93,238 19,28,017 33,18,641

(13.5) (5.1) (13.0) (3.6) (3.9) (2.8) (58.1) (100.0)
– : Nil or Negligible.
Note : Figures in Brackets Indicate Percentage to Total.

RBI
Monthly Bulletin
2240 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 4: Pattern of Ownership of Deposits in Selected Metropolitan Areas - As on March 31, 2008
(Rs. crore)
Centre Government Foreign Private Financial Sector Household Total
Sector Sector Corporate Banks Other Other Sector
Sector Financial Financial
(Non - Institutions Companies
Financial)
1 2 3 4 5 6 7 8 9
Chennai 10,100 5,991 18,371 1,480 1,677 2,056 56,788 96,463
(10.5) (6.2) (19.0) (1.5) (1.7) (2.1) (58.9) (100.0)

Mumbai 60,954 38,525 201,235 55,604 99,005 51,274 221,138 727,734

(8.4) (5.3) (27.7) (7.6) (13.6) (7.0) (30.4) (100.0)

Delhi 1,05,844 15,866 81,054 2,378 6,906 18,441 1,93,198 4,23,688

(25.0) (3.7) (19.1) (0.6) (1.6) (4.4) (45.6) (100.0)

Kolkata 22,479 3,312 12,374 958 1,502 7,166 58,397 1,06,188

(21.2) (3.1) (11.7) (0.9) (1.4) (6.7) (55.0) (100.0)

Total 1,99,377 63,694 3,13,033 60,420 1,09,090 78,937 5,29,521 13,54,072

(14.7) (4.7) (23.1) (4.5) (8.1) (5.8) (39.1) (100.0)

Note : Figures in Brackets Indicate Percentages to Total.

RBI
Monthly Bulletin
November 2009 2241
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 5: Composition of Deposits According to Bank Group and Type - of Deposits -

As on March 31, 2008
(Rs. crore)
Bank group Current Savings Term Total
Amount Per cent Amount Per cent Amount Per cent Amount Per cent
1 2 3 4 5 6 7 8 9
State Bank of India and 99,653 13.3 2,10,336 28.0 4,41,264 58.7 7,51,254 100.0
its Associates

Nationalised Banks 1,60,626 10.1 3,79,518 24.0 10,44,338 65.9 15,84,483 100.0

Regional Rural Banks 5,079 5.3 51,846 53.9 39,181 40.8 96,106 100.0

Other Indian Scheduled 1,14,761 16.5 1,17,966 16.9 4,63,292 66.6 6,96,019 100.0
Commercial Banks

Foreign Banks 69,109 36.2 26,098 13.7 95,572 50.1 1,90,780 100.0

All Scheduled
Commercial Banks 4,49,228 13.5 7,85,764 23.7 20,83,649 62.8 33,18,641 100.0

RBI
Monthly Bulletin
2242 November 2009
 ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 6: Pattern of Ownership of Deposits with Scheduled Commercial Banks

Classified by Bank Groups - As on March 31, 2008
(Rs. crore)
Sector State Bank of Nationalised Regional Other Scheduled Foreign All Scheduled
India and Banks Rural Commercial Banks Commercial
its Asscociates Banks Banks Banks
Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent
1 2 3 4 5 6 7 8 9 10 11 12 13
I. Government Sector 1,29,911 17.3 2,76,170 17.4 12,465 13.0 29,099 4.2 160 0.1 4,47,805 13.5
1. Central & State 53,812 7.2 1,07,271 6.8 5,652 5.9 11,820 1.7 1 – 1,78,555 5.4
Governments
i) Central Government 25,372 3.4 47,579 3.0 338 0.4 4,207 0.6 – – 77,496 2.3
ii) State Governments 28,440 3.8 59,692 3.8 5,314 5.5 7,614 1.1 – – 1,01,059 3.0
2. Local Authorities 18,996 2.5 43,684 2.8 5,214 5.4 1,951 0.3 – – 69,846 2.1
3. Quasi Government Bodies 15,982 2.1 46,064 2.9 778 0.8 5,137 0.7 16 – 67,977 2.0
Of which:
State Electricity Boards 2,335 0.3 8,584 0.5 31 – 2,172 0.3 – – 13,123 0.4
4. Public Sector Corporations 41,120 5.5 79,151 5.0 821 0.9 10,191 1.5 143 0.1 1,31,426 4.0
and Companies
i) Non - Departmental 12,841 1.7 29,646 1.9 98 0.1 4,035 0.6 141 0.1 46,761 1.4
Commercial Undertakings
ii) Others 28,279 3.8 49,505 3.1 723 0.8 6,156 0.9 2 – 84,665 2.6
II. Private Corporate Sector 48,823 6.5 87,904 5.5 92 0.1 2,02,003 29.0 93,386 48.9 4,32,209 13.0
(Non - Financial)
1. Non- Financial Companies 30,954 4.1 49,112 3.1 27 – 1,59,241 22.9 89,957 47.2 3,29,291 9.9
2. Non-Credit Co -operative 606 0.1 1,765 0.1 59 0.1 450 0.1 7 – 2,887 0.1
Institutions
3. Others 17,262 2.3 37,027 2.3 6 – 42,312 6.1 3,422 1.8 1,00,031 3.0
III. Financial Sector 60,153 8.0 1,25,014 7.9 681 0.7 1,33,187 19.1 23,877 12.5 3,42,912 10.3
1. Banks 24,599 3.3 45,693 2.9 590 0.6 39,046 5.6 9,181 4.8 1,19,110 3.6
i) Indian Commercial 19,269 2.6 26,591 1.7 346 0.4 26,029 3.7 6,878 3.6 79,114 2.4
Banks
ii) Foreign Resident Banks 786 0.1 1,032 0.1 – – 1,554 0.2 2,068 1.1 5,441 0.2
(Offices of Foreign
Banks in India )
iii) Co-operative Banks 4,544 0.6 18,069 1.1 244 0.3 11,463 1.6 235 0.1 34,555 1.0
& Credit societies
a. Co-operative Banks 3,892 0.5 17,083 1.1 132 0.1 11,117 1.6 234 0.1 32,459 1.0
b. Credit Societies 652 0.1 986 0.1 112 0.1 346 – – – 2,096 0.1
2. Other Financial Institutions 18,408 2.5 64,486 4.1 41 – 42,529 6.1 5,100 2.7 1,30,564 3.9
i) Financial Companies 766 0.1 1,231 0.1 – – 1,009 0.1 186 0.1 3,192 0.1
a. Housing Finance 429 0.1 636 – – 236 – 84 – 1,385 –
Companies
b. Auto Finance 337 – 596 – – – 773 0.1 101 0.1 1,807 0.1
Companies
ii) Total of Mutual Funds 5,136 0.7 32,413 2.0 – – 5,545 0.8 4,103 2.2 47,198 1.4
(including Private Sector
Mutual Funds)
a. Mutual Funds in 2 – 20,258 1.3 – – 745 0.1 1,087 0.6 22,092 0.7
Private Sector
b. Other Mutual Funds 5,135 0.7 12,155 0.8 – – 4,800 0.7 3,016 1.6 25,106 0.8

RBI
Monthly Bulletin
November 2009 2243
ARTICLE
Composition and
Ownership Pattern
of Deposits with
Scheduled Commercial
Banks: March 2008

Statement 6: Pattern of Ownership of Deposits with Scheduled Commercial Banks

Classified by Bank Groups - As on March 31, 2008 (Concld.)
(Rs. crore)
Sector State Bank of Nationalised Regional Other Sch. Foreign All Scheduled
India and Banks Rural Commercial Banks Commercial
its Asscociates Banks Banks Banks
Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent
1 2 3 4 5 6 7 8 9 10 11 12 13
iii) Unit Trust of India 1,083 0.1 2,482 0.2 – – 18,558 2.7 13 – 22,136 0.7
iv) Insurance Corporations 2,402 0.3 12,211 0.8 – – 7,569 1.1 780 0.4 22,962 0.7
and Companies
(Life and General)
v) Term Lending Institutions 350 – 1,168 0.1 40 – 2,076 0.3 1 – 3,636 0.1
vi) Provident Fund 8,670 1.2 14,981 0.9 – – 7,772 1.1 18 – 31,441 0.9
Institutions
3. Other Financial Companies@ 17,146 2.3 14,835 0.9 50 0.1 51,611 7.4 9,596 5.0 93,238 2.8
i) Financial Services 271 – 3,962 0.3 6 – 17,043 2.4 6,265 3.3 27,547 0.8
Companies
ii) Other Financial 2,051 0.3 4,018 0.3 9 – 28,357 4.1 2,880 1.5 37,314 1.1
Companies
iii) Others 14,825 2.0 6,855 0.4 35 – 6,211 0.9 451 0.2 28,378 0.9
IV. Household Sector 4,61,791 61.5 10,33,241 65.2 82,595 85.9 2,99,352 43.0 51,038 26.8 19,28,017 58.1
1. Individuals (including 3,65,866 48.7 8,06,100 50.9 77,588 80.7 2,10,404 30.2 35,420 18.6 14,95,379 45.1
Hindu Undivided Families)
i) Farmers 39,098 5.2 91,481 5.8 41,148 42.8 5,433 0.8 30 – 1,77,189 5.3
ii) Businessmen, Traders, 49,459 6.6 1,52,566 9.6 16,503 17.2 40,415 5.8 4,603 2.4 2,63,546 7.9
Professional and
Self - Employed Persons
iii) Wage and Salary Earners 68,528 9.1 1,07,116 6.8 7,543 7.8 29,496 4.2 5,512 2.9 2,18,196 6.6
iv) Shroffs, Money Lenders 3,438 0.5 8,929 0.6 816 0.8 3,054 0.4 15 – 16,252 0.5
Stock Brokers, Dealers
in Bullion etc.
v) Other Individuals 2,05,344 27.3 4,46,009 28.1 11,578 12.0 1,32,006 19.0 25,259 13.2 8,20,196 24.7
2. Trusts, Associations, 11,343 1.5 26,783 1.7 660 0.7 35,210 5.1 6,983 3.7 80,977 2.4
Clubs etc.
3. Proprietary and Partnership 22,138 2.9 54,327 3.4 738 0.8 27,884 4.0 5,217 2.7 1,10,305 3.3
concerns etc.
4. Educational Institutions 8,003 1.1 16,440 1.0 1,298 1.4 2,830 0.4 25 – 28,595 0.9
5. Religious Institutions 1,421 0.2 5,306 0.3 273 0.3 1,410 0.2 62 – 8,474 0.3
6. Others(not elsewhere 53,019 7.1 1,24,285 7.8 2,038 2.1 21,615 3.1 3,330 1.7 2,04,287 6.2
classified)
V. Foreign Sector 50,576 6.7 62,153 3.9 273 0.3 32,378 4.7 22,318 11.7 1,67,699 5.1
1. Foreign Consulates, 1,824 0.2 1,302 0.1 48 – 11 – 823 0.4 4,007 0.1
Embassies, - Trade Missions,
Information Services etc.
2. Non-Residents 41,042 5.5 55,356 3.5 187 0.2 30,084 4.3 12,796 6.7 1,39,465 4.2
3. Others 7,710 1.0 5,496 0.3 38 – 2,283 0.3 8,699 4.6 24,226 0.7

Total 7,51,254 100.0 15,84,483 100.0 96,106 100.0 6,96,019 100.0 1,90,780 100.0 33,18,641 100.0
@ Includes (a) ‘Financial Service Companies’ which undertake issue management, portfolio management etc., (b) ‘Other Financial Companies’ which
are engaged in leasing hire purchase, loan companies, etc., and (c) ‘Others’ indicating non-profit institutions serving business like FICCI, CII,
ASSOCHAM, etc.
“–” = Nil or Negligible.

RBI
Monthly Bulletin
2244 November 2009

International Banking
Statistics of India –
March 31, 2009*
* Prepared in the Banking Statistics Division of the
Department of Statistics and Information Management.
The previous article on the subject as at end of December
2008 was published in September 2009 issue of the
bulletin.
ARTICLE
International Banking
Statistics of India –
March 31, 2009
The article presents analysis of
international liabilities and assets of
banks in India, classified under
Locational Banking Statistics (LBS) and
consolidated international/foreign claims
under Consolidated Banking Statistics
(CBS), collected as per the reporting
system of the Bank for International
Settlements (BIS), for the quarter ended
March 2009. These data are compared
with those as at the end of the previous
quarters and a year ago. The analysis of
international liabilities/assets, based on
LBS, has been undertaken by
instrument, country and sector of
customer/borrower, currency and country
of incorporation of reporting bank; and
the consolidated international claims,
based on CBS, according to country and
sector of borrower and residual maturity.
Further, a broad comparison of
international/foreign claims of BIS
reporting banks vis-à-vis Indian Banks
has also been covered. Besides, the article
details international/foreign claims
derived from on- balance sheet items, viz.,
loans and deposits, holdings of securities
as well as off- balance sheet items, viz.,
derivatives, guarantees and credit
commitments on ultimate risk basis.
Highlights
International Liabilities
• The international liabilities of banks in
India in rupee terms, end-March 2009
declined by 1.1 per cent over the
RBI
Monthly Bulletin
November 2009 2245
ARTICLE
International Banking
Statistics of India –
March 31, 2009
position a year ago and by 1.7 per cent
over the previous quarter.
• A declining trend in the ADRs / GDRs,
equities of banks held by the non-
residents and other own issues of
international debt securities since March
2008 resulted in the decline in the
international liabilities over the previous
year position.
• For the quarter end-March 2009, currency
composition of the international
liabilities revealed that the Indian Rupee
continued to be dominating currency,
although its share in the international
liabilities was lower than the
corresponding period a year ago.
• The share of the international liabilities
towards the non-bank sector was lower
at 71.8 per cent than 73.0 per cent a year
ago.
International Assets
• At end-March 2009, the annual growth
of international assets (in Rupees) of
banks in India was at 3.0 per cent and
the growth over the previous quarter
was 1.2 per cent.
• The annual rise in the international
assets was on account of the
components NOSTRO balances,
investment in equities abroad and
investment in foreign government
securities while the increase over the
previous quarter can be attributed
primarily to the NOSTRO balances.
• For the quarter, the share of the non-bank
sector in the international assets declined
to 60.2 per cent from 62.9 per cent in the
previous quarter. The corresponding share
was 70.3 per cent a year ago.
RBI
Monthly Bulletin
2246 November 2009
• At end-March 2009, almost all (99.0 per
cent) assets denominated in Indian
Rupee were towards non-bank sector.
Consolidated Banking Statistics
• The annual growth in consolidated
international claims (in Rupees) of
banks based on immediate risk, at end-
March 2009, was 32.6 per cent compared
to 13.6 per cent registered a year ago.
• Consolidated international claims of
Indian banks on immediate risk basis, at
end-March 2009, continued to be of short-
term nature (less than one year) and
accounted for 62.4 per cent of total claims
compared to 69.2 per cent a year ago.
I. Introduction
International Banking Statistics (IBS) is
defined as banks’ on-balance sheet liabilities
and assets vis-à-vis non-residents in any
currency or unit of account along with such
liabilities and assets vis-à-vis residents in
foreign currencies or units of account. IBS
comprises Locational Banking Statistics (LBS)
and Consolidated Banking Statistics (CBS).
The LBS are designed to provide
comprehensive and consistent quarterly data
on international banking business conducted
in the Bank for International Settlements
(BIS) reporting area. The purpose of CBS is
to provide comprehensive and consistent
quarterly data on banks’ financial claims on
other countries, on immediate borrower
basis for providing a measure of country
transfer risk and on an ultimate risk basis
for assessing country risk exposures of
national banking system. LBS provides the
assets and liabilities by instrument/
components, currency, sector, country of
residence of counter-party / transacting unit,

and nationality of reporting banks, while CBS
provides data on international/ foreign claims
as per residual maturity and sector of borrower
along with the exposures by country of
immediate borrower and on the reallocation
of claims (i.e. risk transfers) to the country of
ultimate risk. The BIS reporting system of IBS
was revised since March 2005, inter alia,
covering the claims of domestic reporting
banks arising from derivatives, guarantees and
credit commitments.
Other than India, central banks from 42
other countries report aggregate LBS to BIS
while central banks from 30 countries report
aggregate CBS under the BIS reporting system
of IBS. The data are published as a part of
the BIS Quarterly Review. This article
presents a brief analysis of the LBS as well as
CBS for India for the quarter ending March
2009. It also presents data on comparative
position of CBS of India vis-à-vis other
countries based on data published by BIS1 .
II. Data Coverage and
Methodology2
The analysis is based on the data as on
March 31, 2009 reported by 86 banks. These
banks are authorised to conduct business in
foreign exchange through their branches,
designated as authorised dealers. These
banks include 57 Indian banks and 29 foreign
banks (incorporated in 22 countries). Out of
1
A brief outline of the BIS reporting system of IBS
comprising LBS and CBS, purpose of IBS, BIS reporting area
for IBS, the distinction / relation between IBS vis-à-vis
external debt of India has been provided in the Annex to
the article published in September 2009 issue on the
subject.
2
The methodology of compilation of LBS/CBS and
explanation to various terms used in IBS has been provided
in the Annex to the article published in September 2009
issue on the subject.
ARTICLE
International Banking
Statistics of India –
March 31, 2009
the 57 Indian banks, 27 are public sector banks
(including IDBI Ltd.), 20 are private sector
banks and 10 are co-operative banks. The
banks received data from their branches,
which in turn are consolidated at bank level
and submitted to the Reserve Bank. The
details such as asset or liability category, actual
currency (24 major currencies and domestic
currency), country of transacting unit, sector
of the transacting unit, country of ultimate
risk, sector of ultimate risk, etc., are reported.
III. Comparison of External Debt
Statistics and International
Liabilities
The international liabilities of banks
covered in IBS (as per BIS definition) and
external debt accounted for by banking sector
in India are not strictly comparable, since
certain items of liabilities, like, American
Depositar y Receipts (ADRs), Global
Depositary Receipts (GDRs), equity of banks
held by non-residents, included in IBS, are
not part of the external debt statistics. It may
be construed that broadly international
liabilities of banking sector in India (under
IBS reporting) are the sum of external debt
statistics (for banking sector in India),
liabilities of banks in foreign currency
towards residents (EEFC, RFC, Intra-bank FC
Deposits), equities of banks held by NRIs,
non-debt credit flows on account of ADRs/
GDRs, capital supplied by head offices of
foreign banks in India, and Rupee and ACU
Dollar balance in VOSTRO accounts.
Table 1 presents a classification of the
international liabilities into items included
and not included under external debt
statistics, as at end March 2009 covered
under IBS, in US dollar terms.
RBI
Monthly Bulletin
November 2009 2247
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Table 1: International Liabilities of Banks in India

(US $ million)
Categories /Items Amount Outstanding as at end
March 2008 December 2008 March 2009
I. Items included under External Debt Statistics + 70,711 62,904 61,005
1. Foreign Currency Non-Resident Bank [FCNR(B)] Schemes 15,040 13,418 14,350
2. Non-Resident External (NRE) Rupee A/Cs 27,742 24,410 24,544
3. Foreign Currency Borrowings (includes Inter-bank
borrowings and external commercial borrowings of
banks) other than through ADRs, GDRs, Bonds, etc. 19,256 18,105 14,866
4. Bonds 1,989 1,651 1,350
5. Floating Rate Notes (FRNs) — — —
6. Foreign Institutional Investors’ (FII) A/Cs 3,562 1,846 1,816
7. Other Own issues of Intl. Debt Securities 284 0 0
8. Non-Resident Ordinary(NRO) Rupee Deposits 2,838 3,475 4,078
II. Items not included under External Debt Statistics 27 45 23
1. Embassy A/Cs 24 45 23
2. ESCROW A/Cs 3 0 0
III. Non-Debt Liabilities (not included in External Debt due
to definitional aspects) 23,013 13,593 11,147
1. American Depository Receipts(ADRs) and Global
Depository Receipts (GDRs) 6,259 2,935 2,042
2. Equities of banks held by NRIs 11,367 5,351 3,733
3. Capital of foreign banks/branches in India and
certain other items in transition 5,388 5,306 5,373
IV. FC Liabilities to Residents (not included in External
Debt due to definitional aspects) + 3,288 3,789 3,649
1. Exchange Earners’ Foreign Currency (EEFC) A/Cs 2,501 3,102 3,138
2. Resident Foreign Currency (RFC) Deposits 354 223 187
3. Inter-Bank Foreign Currency Deposits and other
Foreign Currency Deposits of Residents 433 464 325
V. Other Items of International Liabilities (not included
in External Debt due to definitional aspects) 370 401 397
1. Balances in VOSTRO A/Cs of non-resident banks and
exchange houses (including term deposits) 370 401 397
VI. Total International Liabilities (I+II+III+IV+V) 97,422 80,736 76,224
+: Data as reported under IBS do not cover all branches and are not comparable with data reported by all bank branches under
a different set of data.
Notes: 1. All figures are inclusive of accrued interest.
2. The FEDAI revaluation rate for Rupee-US Dollar exchange as at end-March 2008, December 2008, and March 2009
were Rs. 40.1200, Rs. 48.7100 and Rs. 50.7200 per US Dollar, respectively .
3. Data have been revised for previous quarters

IV Results wise, major currency-wise classification of

liabilities and assets of banks in India. Data
IV.1 Locational Banking Statistics
presented in this section are based on data
The LBS provides component/ reported by branches of banks, which are
instrument-wise, country-wise (residence of conducting business in India, viz. the
transacting unit and the countr y of branches of Indian banks and branches of
incorporation of reporting bank), sector- foreign banks in India.
RBI
Monthly Bulletin
2248 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

IV.1.A International Liabilities and

Assets –Aggregate Level
As at end-March 2009, the international
assets increased by Rs. 6,645 crore (3.0 per
cent) over the position a year ago while the
increase over the previous quarter was of
Rs.2,826 crore (1.2 per cent) (Statement I).
The international liabilities, however,
recorded a decline of Rs. 4,249 crore (1.1 per
cent) over the position a year ago and a
decline of Rs.6,655 (1.7 per cent) over the
previous quarter. The gap between the
international assets and liabilities was lower
(Chart 1) than the previous quarter.
the overall international liabilities over the
IV. 1. B Components and Composition of year ago position.
International Liabilities
Major components of the international
As at end-March 2009, despite liabilities of banks in India are presented in
substantial increase in the FCNR(B) Chart 2 and Chart 3. For the quarter under
deposits, NRO and NRE deposits, VOSTRO reference, the percentage share of the major
balances and capital/ remittable profits of component ‘Deposits and Loans’ in the total
foreign banks in India, over the previous international liabilities increased to 83.6 per
year position, the declining trend in the cent from 74.0 per cent a year ago, with a
value of ADRs / GDRs, equities of banks held corresponding decline in the share of the
by the non-residents and other own issues of major component ‘Other International
international debt securities (Statement I) Liabilities’ to 14.6 per cent from 23.6 per cent
since March 2008 resulted in the decline in during the period.

RBI
Monthly Bulletin
November 2009 2249
ARTICLE
International Banking
Statistics of India –
March 31, 2009

During the year, FCNR(B), NRE and NRO

deposits have contributed primarily to the
increase in the share of the ‘Loans and
Deposits’.

IV.1.C Components and Composition of

International Assets
As at end-March 2009, the annual
growth in the international assets (Chart 4
and Chart 5) was on account of the
components NOSTRO balances, investment
in equities abroad and investment in foreign
government securities while the increase
over the previous quarter can be attributed
international assets soared to 29.0 per cent
primarily to increase in NOSTRO balances from 20.5 per cent a year ago. The
during the period. component ‘foreign currency loans to
The composition of the international residents’ continued to be the dominating
assets in terms of the shares by the three component of the international assets.
major components (viz. ‘Loans and
IV. 1. D Composition of Liabilities and
Deposits’, ‘Holdings of Debt Securities’ and
Assets by Sector and Currency
‘Other International Assets’) in the total
international assets remained more or less As at end-March 2009, the share of the
same since March 2008 [Statement I]. The international liabilities towards the non-
share of the component NOSTRO balances bank sector was marginally lower at 71.8
has been increasing since June 2008 and as per cent than 73.0 per cent a year ago
at end-March 2009, the share to the total (Statement II, Chart 6). As regards the

RBI
Monthly Bulletin
2250 November 2009

currency composition of the international
liabilities, the Indian Rupee continued to be
the dominating currency, although, its share
in the international liabilities was lower
than the corresponding share a year ago.
The sector and currency-wise
composition of total international liabilities
at end-March 2009 showed that as high as
85.3 per cent and 83.3 per cent of liabilities
denominated in Indian Rupees and Pound
Sterling, respectively, are towards non-bank
sector. The share of the liabilities
denominated in Euro towards non-bank
sector increased to 76.5 per cent as at end-
March 2009 from 70.7 per cent a year ago.
The share of non-bank sector in the
international assets, at end-March 2009,
declined to 60.2 per cent (Statement II) from
62.9 per cent in the previous quarter. The
corresponding share was at 70.3 per cent a
year ago. In terms of the currency
composition of international assets for all
sectors, the US Dollar continued to be the
major currency with a share of 82.8 per cent,
distantly followed by Euro (6.1 per cent).
The international assets denominated in
Indian Rupee had a share of 3.3 per cent in
ARTICLE
International Banking
Statistics of India –
March 31, 2009
the total international assets (Chart 7,
Statement II).
Sector and currency-wise composition of
total assets showed that as at end-March
2009, almost all (99.0 per cent) the assets
denominated in Indian Rupee are towards
non-bank sector. For the assets
denominated in US Dollar and Euro, the
share of the non-bank sector declined as
compared to the corresponding shares in the
previous quarters.
IV.1.E Composition by Country of
Residence of Transacting Units
Statement III presents the classification
of liabilities and assets according to country
of residence of transacting unit
denominated in domestic as well foreign
currencies. As at end-March 2009, the
international liabilities towards transacting
units (bank and non-bank sectors) from the
US had the highest share of 28.4 per cent,
followed by a share of 13.0 per cent towards
the UK. The share towards transacting units
in India increased to 6.8 per cent from 4.3
per cent a year ago.
The country-wise breakup of major
components of the international liabilities
(Statement IV) revealed that at end-March
2009, overall decline in the (foreign
currency) borrowings over the previous
quarter may be attributed to the
corresponding decline against transacting
units of the US, the UK, France as well as
India.
For the quarter under reference, of the
total international assets of banks, 66.8 per
cent were concentrated in the two countries,
viz., India (43.8 per cent) and the US (23.0
RBI
Monthly Bulletin
November 2009 2251
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Table 2: International Liabilities and Assets of Banks in India

(branches of Indian and Foreign Banks in India)
(in Rs. crore)
Items Amount Outstanding # as at end
March 2008 December 2008 March 2009
International Liabilities Rs. US $ Rs. US $ Rs. US $
Crore+ million Crore+ million Crore+ million
Liabilities to residents and non-residents 187,008 46,612 197,074 40,459 186,171 36,706
denominated in foreign currencies (47.8) (47.8) (50.1) (50.1) (48.2) (48.2)
Liabilities to non-residents 203,849 50,810 196,189 40,277 200,437 39,518
denominated in Indian Rupees (52.2) (52.2) (49.9) (49.9) (51.8) (51.8)
Total International Liabilities + 390,857 97,422 393,263 80,736 386,608 76,224
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
International Assets
Foreign Currency(FC) Assets
(includes FC loans to residents and non-residents,
Outstanding Export Bills, FC lending to banks in
India, FC deposits with banks in India, Overseas
FC Assets, Remittable profits of foreign branches 215,356 53,678 217,958 44,746 221,676 43,706
of Indian banks, etc.) (96.7) (96.7) (96.2) (96.2) (96.7) (96.7)
Assets in Indian Rupees with Non-
residents (includes Rupee loans to non- 7,355 1,833 8,572 1,760 7,680 1,514
residents out of non-resident deposits) (3.3) (3.3) (3.8) (3.8) (3.3) (3.3)
Total International Assets 222,711 55,511 226,530 46,506 229,356 45,220
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
+ : 1 crore= 10 million. The FEDAI revaluation rate for Rupee-US Dollar exchange as at end-March 2008, December 2008
and March 2009 were Rs 40.1200, Rs. 48.7100 and Rs.50.7200 per US Dollar, respectively .
# : Data pertain to only reporting branches. As such, these data provide broad dimensions of international assets and
liabilities,
Notes: 1. All figures are inclusive of accrued interest.
2. Figures in brackets represent percentages to total international assets
3. Sum of the components may not tally with total due to rounding off .
4. Data have been revised for previous quarters.

per cent) (Chart 9, Statement III). Among the at end-March 2009, over the previous quarter,
major components of the international was primarily towards the banks from the
assets, the steep rise in the NOSTRO balances UK, Germany and France (Statement V).

RBI
Monthly Bulletin
2252 November 2009

IV. 1. F Composition by Country of
Incorporation of Reporting Bank
The classification of international
liabilities of banks according to their
country of incorporation is presented in
Statement VI. Among the banks
incorporated in countries other than India,
at end-March 2009, the US had the highest
share in international liabilities at 8.1 per
cent while those from Hong Kong and the
UK had shares 6.8 per cent and 5.4 per cent,
respectively. The banks incorporated in
India accounted for the highest share at 70.9
per cent against a share of 76.5 per cent a
year ago.
The share of the banks incorporated in
India in the international assets declined to
70.6 per cent for the quarter, from 74.8 per
cent registered a year ago. The share of the
banks incorporated in the UK registered an
increasing trend since March 2008
while the share of the banks incorporated
in the US declined during the period
(Statement VI).
IV. 2 Consolidated Banking Statistics
(CBS)
The CBS provides country-wise
(immediate country risk exposure), residual-
maturity-wise and sector-wise classification
of international claims (on-balance-sheet) of
banks on countries other than India. It also
provides consolidated country risk exposure
on an ultimate risk basis and international
claims arising out of derivatives, guarantees
and credit commitments.
There are four reports comprising the
consolidated banking statistics on
immediate risk basis. The first report is sum
of the consolidated banking statistics for
ARTICLE
International Banking
Statistics of India –
March 31, 2009
(i) domestic banks, (ii) inside (reporting)
area foreign banks and (iii) outside
(reporting) area foreign banks and the
remaining three reports recount the above
three components (i), (ii) and (iii), separately.
The data presented in this section and
Statement VII is based on data reported by
all banks functioning in India as well as
foreign branches of Indian banks i.e. based
on the first combined report and no separate
discussion is done on other three reports.
IV. 2. A Overall Exposure/Claims on
Immediate Risk Basis
Consolidated international claims of
banks, based on immediate risk basis, on
countries other than India at end-March
2009, recorded an increase of Rs. 33,547
crore (28.9 per cent) to Rs.2,24,665 crore
over the previous quarter and an increase
of Rs. 55,184 crore (32.6 per cent) over the
position a year ago (Statement VII).
IV. 2. B Composition by Country of
Residence of Transacting Unit –
Immediate Risk
Consolidated international claims of
banks, classified according to country of
immediate risk, revealed that at end-March
2009, reporting banks’ claims on the USA
accounted for the largest share (24.8 per
cent), followed by the UK (13.2 per cent),
Hong Kong (8.5 per cent) and Singapore (7.0
per cent) (Chart 10 and Table 3).
IV. 2. C Composition by Sector -
Immediate Risk Basis
Sectoral classification of consolidated
international claims of banks on other
countries, on immediate country risk basis
is presented in Statement VII. At end-March
RBI
Monthly Bulletin
November 2009 2253
ARTICLE
International Banking
Statistics of India –
March 31, 2009

The sectoral classification of the

consolidated international claims of banks
against the UK and Hong Kong depicted a
shift in the sectoral composition during the
period March 2008 to March 2009. For the
international claims against these countries,
the share of the banking sector increased
during the period. The share of the banking
sector in the consolidated international
claims against the US climbed up to 49.6 per
cent from 29.9 per cent in the previous
quarter. The share was at 30.2 per cent a
year ago.

IV. 2. D Composition by Residual

2009, the share of the banking sector in the
international claims increased to 45.5 per
cent from 36.8 per cent a year ago. A
corresponding decline was observed in the
share towards the non-bank private sector.
Maturity- Immediate risk basis
As evidenced by the data as at end-
March 2009, the reporting banks continued
to prefer short-term lending/investments

Table 3: Consolidated International Claims of Indian Banks on Countries other

than India on Immediate Country Risk Basis
Country Amount Outstanding as at end
March 2008 December 2008 March 2009
Rs. Crore+ US $ million Rs. Crore+ US $ million Rs. Crore+ US $ million

Total Consolidated International 169,481 42,244 191,118 39,236 224,665 44,295

Claims (excluding claims on India)
of which:
United States of America # 35,374 8,817 43,986 9,030 55,734 10,989
(20.9) (20.9) (23.0) (23.0) (24.8) (24.8)
United Kingdom@ 21,899 5,458 25,246 5,183 29,753 5,866
(12.9) (12.9) (13.2) (13.2) (13.2) (13.2)
Singapore 11,918 2,971 14,454 2,967 15,762 3,108
(7.0) (7.0) (7.6) (7.6) (7.0) (7.0)
Hong Kong 9,792 2,441 14,779 3,034 19,031 3,752
(5.8) (5.8) (7.7) (7.7) (8.5) (8.5)
United Arab Emirates 7,990 1,992 9,660 1,983 11,309 2,230
(4.7) (4.7) (5.1) (5.1) (5.0) (5.0)
Germany 10,607 2,644 9,565 1,964 9,869 1,946
(6.3) (6.3) (5.0) (5.0) (4.4) (4.4)

+ : 1 crore= 10 million. The FEDAI revaluation rate for Rupee-US Dollar exchange as at end-March 2008, December 2008, and
March 2009 wereRs. 40.1200, Rs 48.7100 and Rs. 50.7200 per US Dollar, respectively .
@ : excluding Guernsey, Isle of Man and Jersey, # : includes Miday Island and Wake Islands.
Note: 1. Figures in brackets represent percentages to the total international claims.
2. Data have been revised for previous quarters.

RBI
Monthly Bulletin
2254 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

over the long term portfolio. However, the
share of the long-term claims to the total
international claims was higher at 35.5 per
cent against 29.6 per cent a year ago,
although it was marginally lower than 37.7
per cent for the previous quarter. The details
of consolidated international claims of
banks according to residual maturity and
country of immediate risk are provided in
Statement VII.
IV. 2. E Exposure/Claims on Ultimate
Risk Basis
Consolidated foreign claims of domestic
banks (international claims of Indian banks
plus local claims in local currency of foreign
offices of Indian banks) on ultimate risk
basis, as at end-March 2009, has seen a rise
to Rs. 202,279 crore (22.5 per cent) from Rs.
165,181 crore a year ago (Table 4).
Consolidated foreign claims of Indian banks,

Table 4: Consolidated Foreign Claims and Contingent Claims/Exposures arising from Derivatives,
Guarantees and Credit Commitments of Domestic Banks on Ultimate Risk Basis
(Rs. crore)

Total Foreign Claims Contingent Claims/Exposures Arising from Guarantees

Country of Consolidated Claims as at end Country of Consolidated Claims as at end
Ultimate Risk March December March Ultimate Risk March December March
2008 2008 2009 2008 2008 2009
Total 165,181 180,585 202,279 Total 26,818 45,920 45,600
of which: of which:
United States of 31,951 37,941 48,357 United States of 3,982 8,884 7,185
America # (19.3) (21.0) (23.9) America # (14.8) (19.3) (15.8)
United Kingdom @ 18,170 17,537 21,181 China 2,041 5,156 6,275
(11.0) (9.7) (10.5) (7.6) (11.2) (13.8)
Singapore 12,340 14,725 14,557 United Arab 1,718 3,270 3,577
(7.5) (8.2) (7.2) Emirates (6.4) (7.1) (7.8)
Canada 8,984 11,239 11,982 Germany 2,559 3,433 2,946
(5.4) (6.2) (5.9) (5.2) (7.5) (6.5)
Hong Kong 8,341 8,098 10,509 United Kingdom @ 1,387 3,619 2,837
(5.0) (4.5) (5.2) (5.8) (7.9) (6.2)
Contingent Claims/Exposures Arising from Derivatives Contingent Claims/Exposures Arising from Credit Commitments
Country of Consolidated Claim as at end Country of Consolidated Claim as at end
Ultimate Risk March December March Ultimate Risk March December March
2008 2008 2009 2008 2008 2009
Total 21,311 19,001 18,728 Total 7,333 6,737 5,731
of which: of which:
United Kingdom @ 4,830 4,887 5,414 United States of 2,975 4,113 3,278
(22.7) (25.7) (28.9) America # (40.6) (61.1) (57.2)
United States of 3,452 3,491 3,101 Singspore 369 458 549
America # (16.2) (18.4) (16.6) (5.0) (6.8) (9.6)
France 2,269 2,284 1,940 Hongkong 160 428 540
(10.6) (12.0) (10.4) (2.2) (6.8) (9.4)
Germany 2,316 1,135 1,103 Egypt — — 237
(10.9) (6.0) (5.9) (4.1)
Switzerland 1,623 1,217 896 United Arab 230 93 76
(7.6) (6.4) (4.8) Emirates (3.1) (1.4) (1.3)
@ : excluding Guernsey, Isle of Man and Jersey. # : includes Miday Island and Wake Islands.
Note: Figures in brackets represent percentages to total.

RBI
Monthly Bulletin
November 2009 2255
ARTICLE
International Banking
Statistics of India –
March 31, 2009

for the quarter, against the top five countries
in terms of their share in the consolidated
foreign claims, witnessed an increase over
the levels as at end-March 2008.
The consolidated claims/exposure of
Indian banks, on countries other than India,
arising out of derivatives, as at end-March
2009, declined to Rs. 18,728 crore from Rs.
21,311 crore a year ago. The claims, arising
out of guarantees, as at end-March 2009
registered a substantial increase over the
level a year ago. For the reference quarter,
the consolidated claims of India, on
countries other than India, arising out of
credit commitments has witnessed a decline
over the position of the previous quarter as
well as a year ago.
IV. 2. F Comparison of CBS of the
Countries Reporting Data to BIS vis-à-
vis CBS of India
A comparative position of CBS of India
and the CBS of BIS reporting countries as
at end-March 2009 and end-March 2008 has
been presented in various tables (Table 5,

Table 5: International Claims of BIS Reporting Banks vis-à-vis

Indian Banks - by Maturity and Sector
(US $ billion)
Maturity/sector Claims of BIS Reporting Claims of BIS Reporting Claims of Indian Banks on countries
Countries on all Other Countries Countries on India other than India #
March 2008 March 2009 March 2008 March 2009 March 2008 March 2009

(a) Total Foreign 36,908.1 29,832.0 228.7 218.7 47.9 48.6

Claims (b+c) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
(b) Local Claims in 11,781.3 10,093.7 83.2 77.6 5.7 4.3
Local Currencies (31.9) (33.8) (36.4) (35.5) (11.9) (8.9)
(c) Total International 25,126.7 19,738.3 145.5 141.1 42.2 44.3
Claim (68.1) (66.2) (63.6) (64.5) (88.1) (91.1)
of which:
Maturity Short Term * 13,642.6 9,760.5 79.7 72.0 29.2 27.7
(54.3) (49.4) (54.8) (51.0) (69.2) (62.5)
Long Term ** 7,617.9 7,082.2 43.8 53.8 12.5 15.7
(30.3) (35.9) (30.1) (38.1) (29.6) (35.5)
Sector $ Bank 11,833.8 8,592.5 48.5 45.0 15.6 20.2
(47.1) (43.5) (33.3) (31.9) (37.0) (45.6)
Non-Bank 2,529.7 2,295.2 7.8 6.6 0.2 0.1
Public (10.1) (11.6) (5.3) (4.7) (0.5) (0.3)
Non-Bank 10,500.9 8,630.1 85.5 85.4 26.5 24.0
Private (41.8) (43.7) (58.7) (60.5) (62.8) (54.2)
# : Claims of Indian Banks’ branches/offices operating in India and abroad, on countries other than India; these data are taken from
the data supplied to the BIS.
* : Claims with a residual maturity of up to and including one year
** : Claims with a maturity of over one year (excluding unallocated maturity)
$ : Excluding unallocated sector
Note : Figures in brackets represent percentages to total international claims.
Source : BIS International Consolidated Banking Statistics (www.bis.org) updated till April 25, 2007

RBI
Monthly Bulletin
2256 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Table 6: International Claims of BIS Reporting Banks on all other Countries - by Country of Incorporation
(US $ billion)
Country of Incorporation International Claims on all other Countries
March 2008 March 2009
Total International Claims 19,869.3 15,463.4
of which :
Germany 3,915.7 2,763.9
(19.7) (17.9)
France 2,511.0 1,850.3
(12.6) (12.0)
United Kingdom 2,120.8 1,638.2
(10.7) (10.6)
Japan 2,067.6 1,834.6
(10.4) (11.9)
Swtzerland 1,500.3 969.0
(7.6) (6.3)
Netherlands 1,318.6 868.9
(6.6) (5.6)
United States 1,069.5 1,644.4
(5.4) (10.6)
India # 42.2 44.3
(0.2) (0.3)
# : Claims of Indian Banks’ branches/offices operating in India and abroad, on countries other than India; these data are taken from the
data supplied to the BIS.
Note : Figures in brackets represent percentages to total international claims.
Source : BIS International Consolidated Banking Statistics (www.bis.org)

6, 7 and 8) covering three aspects, viz., countries on all other countries,

(i) consolidated international/foreign (ii) consolidated international/foreign
claims of banks in the BIS reporting claims of banks in the BIS reporting

Table7: Consolidated Foreign Claims of BIS Reporting Banks on India & other Countries and
Indian Banks’ claim on other Countries: Ultimate Risk Basis
(US $ billion)
Claims Claims of BIS Reporting Claims of BIS Reporting Claims of Indian Banks on
Countries’ Banks on all Countries’ countries other
Countries including India## Banks on India than India #
March 2008 March 2009 March 2008 March 2009 March 2008 March 2009
(a) Total Foreign Claims 30,543.3 24,734.7 207.6 191.3 41.2 40.0
of which :
Banks 8,879.9 6,166.3 48.4 39.6 19.3 20.0
(29.1) (24.9) (23.3) (20.7) (46.8) (50.0)
Sector Non-Bank Public 4,371.2 4,081.8 16.7 18.6 0.4 0.3
(14.3) (16.5) (8.0) (9.7) (1.0) (0.8)
Non-Bank Private 17,091.8 14,270.8 142.1 132.9 21.5 19.6
(56.0) (57.7) (68.4) (69.5) (52.2) (49.0)
(b) Other Exposures
Derivatives 4,744.6 6,366.5 16.3 24.4 5.3 3.7
Guarantees 8,254.0 7,632.9 21.1 26.0 6.7 9.0
Credit Commitments 4,970.6 3,932.5 16.0 17.0 1.8 1.1
# : Claims of Indian Banks’ branches/offices operating in India and abroad, on countries other than India; these data are taken from
the data supplied to the BIS.
## : Out of thirty countries submitting CBS on immediate risk basis, twenty four countries submitted CBS on ultimate risk basis to
the BIS.
Note : Figures in brackets represent percentages to total foreign claims.
Source : BIS International Consolidated Banking Statistics (www.bis.org)

RBI
Monthly Bulletin
November 2009 2257
ARTICLE
International Banking
Statistics of India –
March 31, 2009

countries on India and (iii) international/
foreign claims of Indian Banks on
countries other than India. The data
published by the BIS relate to the
consolidated total international/foreign
claims of all BIS reporting countries on
other countries. Further, the claims of
India denote claims of Indian Banks’
branches/offices, operating in India and
abroad, on countries other than India.

Table 8: International Claims of BIS Reporting Banks on India - by Country of Incorporation

(US $ billion)
Country of Incorporation International Claims on India

March 2008 March 2009

Total International Claims 121.7 113.5
of which:
United States 24.9 31.1
(20.5) (27.4)
United Kingdom 19.7 18.9
(16.2) (16.7)
Germany 14.8 13.9
(12.2) (12.2)
Japan 12.7 10.0
(10.4) (8.8)
Netherlands 12.7 8.6
(10.4) (7.6)
France 8.6 7.6
(7.1) (6.7)
Belgium 5.2 3.1
(4.3) (2.7)
Note : 1. The data on international claims on India of banks incorporated in Canada and Ireland are masked by the BIS.
2. Figures in brackets represent percentages to total international claims.
Source : BIS International Consolidated Banking Statistics (www.bis.org)

RBI
Monthly Bulletin
2258 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement I: International Liabilities/Assets of Banks Classified According to Type

(Based on LBS Statements)
(Rs. crore)
Liability/Asset Category International Liabilities
Amount Outstanding as at end of
Q1:2008 Q2:2008 Q3:2008 Q4:2008 Q1:2009

1. Deposits and Loans 289,362 304,586 313,589 318,994 323,205

(74.0) (77.3) (79.0) (81.1) (83.6)
(a) Foreign Currency Non-resident Bank 60,340 62,730 64,868 65,357 72,783
[FCNR(B)] scheme (15.4) (15.9) (16.4) (16.6) (18.8)
(b) Resident Foreign Currency (RFC) A/Cs 1,421 1,197 1,010 1,084 947
(0.4) (0.3) (0.3) (0.3) (0.2)
(c) Exchange Earners Foreign 10,036 10,897 11,170 15,112 15,914
Currency (EEFC) A/Cs (2.6) (2.8) (2.8) (3.8) (4.1)
(d) Other foreign currency deposits (including 1,736 1,712 2,166 2,261 1,648
Inter-bank Foreign Currency deposits) (0.4) (0.4) (0.5) (0.6) (0.4)
(e) Foreign Currency Borrowing (Inter-bank 77,257 90,791 94,155 88,189 75,398
borrowing in India and from abroad, (19.8) (23.1) (23.7) (22.4) (19.5)
external commercial borrowings of banks)
(f) VOSTRO balances and balances in 1,485 1,867 2,066 1,954 2,012
exchange houses and in term deposits (0.4) (0.5) (0.5) (0.5) (0.5)
(g) Non-Resident External Rupee(NRE)A 111,301 114,316 116,368 118,899 124,488
ccounts (28.5) (29.0) (29.3) (30.2) (32.2)
(h) Non-Resident Ordinary (NRO) 11,387 10,339 10,926 16,929 20,686
Rupee Accounts (2.9) (2.6) (2.8) (4.3) (5.4)
(i) Embassy accounts 95 227 239 218 116
(0.0) (0.1) (0.1) (0.1) (0.0)
(j) Foreign Institutional Investors’ (FII) 14,290 10,505 10,619 8,991 9,211
Accounts (3.7) (2.7) (2.7) (2.3) (2.4)
(k) ESCROW A/Cs 13 4 2 1 1
(0.0) (0.0) (0.0) (0.0) (0.0)
2. Own Issues of International Securities 9,166 9,369 10,127 8,058 6,864
(2.3) (2.4) (2.6) (2.0) (1.8)
(a) Bonds 7,980 8,322 9,231 8,040 6,849
(2.0) (2.1) (2.3) (2.0) (1.8)
(b) Floating Rate Notes (FRNs) 48 35 25 19 14
(0.0) (0.0) (0.0) (0.0) (0.0)
(c) Other Own Issues of International 1,138 1,013 872 0 0
Debt Securities (0.3) (0.3) (0.2) (0.0) (0.0)
3. Other International Liabilities 92,329 79,877 73,001 66,210 56,540
(23.6) (20.3) (18.4) (16.8) (14.6)
(a) ADRs/GDRs 25,111 19,861 17,673 14,298 10,357
(6.4) (5.0) (4.5) (3.6) (2.7)
(b) Equities of banks held by non-residents 45,603 34,388 29,648 26,066 18,932
(11.7) (8.7) (7.5) (6.6) (4.9)
(c) Capital/remittable profits of foreign 21,615 25,628 25,681 25,846 27,251
banks in India and other unclassified (5.5) (6.5) (6.5) (6.6) (7.0)
international liabilities
Total International Liabilities + 390,857 393,832 396,717 393,263 386,608
(100.0) (100.0) (100.0) (100.0) (100.0)

RBI
Monthly Bulletin
November 2009 2259
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement I: International Liabilities/Assets of Banks Classified According to Type

(Based on LBS Statements) (Concld.)
(Rs. crore)
Liability/Asset Category International Assets
Amount Outstanding as at end of
Q1:2008 Q2:2008 Q3:2008 Q4:2008 Q1:2009
1. Loans and Deposits 212126 198278 211606 217310 219547
(95.2) (95.1) (95.6) (95.9) (95.7)
(a) Loans to Non-residents (includes Rupee 8,565 8,321 8,324 8,387 8,341
loans and Foreign Currency (FC) (3.8) (4.0) (3.8) (3.7) (3.6)
loans out of non-resident deposits)
(b) FC Loans to Residents (incl. loans out 108,440 106,393 116,257 105,582 99,973
of FCNR(B) deposits, PCFCs, FC lending (48.7) (51.0) (52.5) (46.6) (43.6)
to & FC Deposits with banks in India, etc.,
(c) Outstanding Export Bills drawn on 49,011 45,951 47,872 44,041 44,564
non-residents by residents (22.0) (22.0) (21.6) (19.4) (19.4)
(d) Foreign Currency /TTs, etc., in hand 358 361 571 159 172
(0.2) (0.2) (0.3) (0.1) (0.1)
(e) NOSTRO balances including balances in 45,752 37,252 38,581 59,140 66,496
Term Deposits with non-resident banks (20.5) (17.9) (17.4) (26.1) (29.0)
(includes FCNR funds held abroad)
2. Holdings of Debt Securities 334 287 152 84 76
(0.1) (0.1) (0.1) (0.0) (0.0)
(a) Investment in Foreign Government 41 74 70 61 54
Securities (including Treasury Bills) (0.0) (0.0) (0.0) (0.0) (0.0)
(b) Investment in Other Debt Securities 293 213 81 23 22
(0.1) (0.1) (0.0) (0.0) (0.0)
3. Other International Assets 10,250 9,951 9,489 9,137 9,733
(4.6) (4.8) (4.3) (4.0) (4.2)
(a) Investments in Equities Abroad 1,432 1,480 1,579 1,585 1,556
(0.6) (0.7) (0.7) (0.7) (0.7)
(b) Capital supplied to and receivable profits 8,818 8,471 7,910 7,552 8,177
from foreign branches of Indian banks (4.0) (4.1) (3.6) (3.3) (3.6)
and other unclassified intl. assets

Total International Assets + 222,711 208,516 221,246 226,530 229,356

(100.0) (100.0) (100.0) (100.0) (100.0)
+ : In view of the incomplete data coverage from all the branches, the data reported under the LBS are not strictly
comparable with those capturing data from all the branches
‘-’ : nil/negligible
Notes: 1. Figures in brackets represent percentages to total international liabilities/assets.
2. Totals may not tally due to rounding off .
3. Data have been revised for previous quarters.
4. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

RBI
Monthly Bulletin
2260 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement II: Currency and Sector - wise Breakup of International Liabilities/Assets of Banks
(Based on LBS Statements)
(Rs. crore)
Currency International Liabilities
All Sector Non-Bank Sector

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Swiss Franc 413 491 567 594 792 59 28 21 59 34

(0.1) (0.1) (0.1) (0.2) (0.2) (0.0) (0.0) (0.0) (0.0) (0.0)
Euro 15,304 16,423 16,399 16,802 16,695 10,826 12,574 12,425 11,944 12,774
(3.9) (4.2) (4.1) (4.3) (4.3) (3.8) (4.6) (4.6) (4.4) (4.6)
Pound Sterling 18,641 26,124 26,445 21,831 22,584 15,677 17,211 16,934 17,681 18,819
(4.8) (6.6) (6.7) (5.6) (5.8) (5.5) (6.3) (6.3) (6.5) (6.8)
Indian Rupee 2,03,850 1,95,065 1,93,803 1,96,188 200,437 1,79,761 1,68,373 1,66,437 1,67,458 1,70,943
(52.2) (49.5) (48.9) (49.9) (51.8) (63.0) (61.9) (61.5) (61.4) (61.6)
Japanese Yen 18,035 15,162 15,473 17,451 12,541 1,874 1,401 1,213 1,178 651
(4.6) (3.8) (3.9) (4.4) (3.2) (0.7) (0.5) (0.4) (0.4) (0.2)
Other Foreign 2,288 3,367 4,181 4,341 5,451 658 1,041 1,073 983 1,337|
Currencies (0.6) (0.9) (1.1) (1.1) (1.4) (0.2) (0.4) (0.4) (0.4) (0.5)
US Dollar 1,32,328 1,37,201 1,39,850 1,36,056 128,109 76,447 71,365 72,714 73,307 73,005
(33.9) (34.8) (35.3) (34.6) (33.1) (26.8) (26.2) (26.8) (26.9) (26.3)

Total 3,90,857 3,93,832 3,96,717 3,93,263 386,608 2,85,303 2,71,993 2,70,817 2,72,609 2,77,562
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

International Assets

Swiss Franc 2,466 1,861 1,693 1,555 1,212 1,836 1,387 1,368 1,043 889
(1.1) (0.9) (0.8) (0.7) (0.5) (1.2) (0.9) (0.8) (0.7) (0.6)
EURO 13,972 13,218 14,891 13,650 13,999 9,915 9,715 9,755 8,776 6,634
(6.3) (6.3) (6.7) (6.0) (6.1) (6.3) (6.4) (6.0) (6.2) (4.8)
Pound Sterling 6,018 6,082 5,258 5,690 5,712 2,216 1,784 1,442 1,147 1,349
(2.7) (2.9) (2.4) (2.5) (2.5) (1.5) (1.3) (0.9) (0.8) (1.0)
Indian Rupee 7,354 7,541 8,894 8,572 7,680 7,300 7,518 8,812 8,529 7,606
(3.3) (3.6) (4.0) (3.8) (3.3) (4.7) (5.0) (5.5) (6.0) (5.5)
Japanese Yen 4,180 3,091 3,179 3,049 4,156 2,895 1,969 1,818 1,753 2,999
(1.9) (1.5) (1.4) (1.3) (1.8) (1.9) (1.3) (1.1) (1.2) (2.2)
Other Foreign 7,976 6,691 6,826 7,167 6,737 1,222 945 1,130 839 1,110
Currencies (3.6) (3.2) (3.1) (3.2) (2.9) (0.8) (0.6) (0.7) (0.6) (0.8)
US Dollar 1,80,743 1,70,032 1,80,504 1,86,848 189,860 1,30,926 1,27,366 1,36,969 1,20,292 1,17,424
(81.2) (81.5) (81.6) (82.5) (82.8) (83.7) (84.4) (84.9) (84.5) (85.1)

Total 2,22,711 2,08,516 2,21,246 2,26,530 229,356 1,56,458 1,50,683 1,61,294 1,42,378 1,38,011
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

@ : excluding Guernsey, Isle of Man and Jersey #: includes Miday Island and Wake Islands ‘-’ : nil/negligible
Note: 1. Figures in brackets represent percentages to total in the respective group (column).
2. Totals may not tally due to rounding off.
3. Data have been revised for previous quarters.
4. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

RBI
Monthly Bulletin
November 2009 2261
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement III: International Liabilities/Assets of Banks Classified According to Country of

Residence of Transacting Units (Based on LBS Statements) - Amount outstanding as at end
(Rs. crore)
Country International Liabilities
All Currencies Foreign Currencies

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Total 3,90,857 3,93,832 3,96,717 3,93,263 3,86,608 1,87,008 1,98,767 2,02,914 1,97,074 1,86,171
Of Which (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Bahrain 7,451 8,027 8,423 8,059 9,260 5,602 6,024 6,093 5,874 6,446
(1.9) (2.0) (2.1) (2.0) (2.4) (3.0) (3.0) (3.0) (3.0) (3.5)

China 4,161 4,567 5,152 5,076 5,697 3,967 4,431 4,799 4,874 5,533
(1.1) (1.2) (1.3) (1.3) (1.5) (2.1) (2.2) (2.4) (2.5) (3.0)

France 5,769 6,581 7,831 6,452 6,116 3,335 3,901 5,167 4,007 2,609
(1.5) (1.7) (2.0) (1.6) (1.6) (1.8) (2.0) (2.5) (2.0) (1.4)

Germany 14,296 15,225 15,227 15,221 16,819 9,421 10,491 10,725 10,622 11,665
(includes ECB) (3.7) (3.9) (3.8) (3.9) (4.4) (5.0) (5.3) (5.3) (5.4) (6.3)

Hong Kong 9,738 10,264 12,638 14,153 11,682 5,145 5,714 6,328 7,933 5,245
(2.5) (2.6) (3.2) (3.6) (3.0) (2.8) (2.9) (3.1) (4.0) (2.8)

India 16,929 21,583 22,282 26,711 24,725 16,929 21,583 22,282 26,711 24,725
(4.3) (5.5) (5.6) (6.8) (6.4) (9.1) (10.9) (11.0) (13.6) (13.3)

Kuwait 6,708 6,966 6,609 6,348 7,213 1,525 1,708 1,537 1,745 1,868
(1.7) (1.8) (1.7) (1.6) (1.9) (0.8) (0.9) (0.8) (0.9) (1.0)

Mauritius 21,040 15,336 15,507 11,565 9,970 1,560 1,453 1,855 1,745 2,143
(5.4) (3.9) (3.9) (2.9) (2.6) (0.8) (0.7) (0.9) (0.9) (1.2)

Netherlands 11,641 12,250 11,315 9,989 6,851 6,330 7,196 6,440 4,925 2,651
(3.0) (3.1) (2.9) (2.5) (1.8) (3.4) (3.6) (3.2) (2.5) (1.4)

No Specific 24,881 23,846 23,764 15,329 12,626 2,243 2,413 1,893 1,629 1,550
Country(country (6.4) (6.1) (6.0) (3.9) (3.3) (1.2) (1.2) (0.9) (0.8) (0.8)
Unknown)

Saudi Arabia 9,481 9,640 9,668 11,930 11,853 1,550 1,626 1,676 1,660 1,694
(2.4) (2.4) (2.4) (3.0) (3.1) (0.8) (0.8) (0.8) (0.8) (0.9)

Singapore 18,911 18,815 19,032 19,789 19,753 12,721 12,871 13,536 13,865 13,932
(4.8) (4.8) (4.8) (5.0) (5.1) (6.8) (6.5) (6.7) (7.0) (7.5)

United Arab 24,664 27,374 26,229 31,018 29,417 4,270 4,485 5,238 5,503 6,406
Emirates (6.3) (7.0) (6.6) (7.9) (7.6) (2.3) (2.3) (2.6) (2.8) (3.4)

United Kingdom@ 56,417 64,851 67,195 57,665 50,419 38,287 44,827 46,593 36,350 33,409
(14.4) (16.5) (16.9) (14.7) (13.0) (20.5) (22.6) (23.0) (18.4) (17.9)

United States# 1,07,453 97,205 94,012 1,02,571 1,09,933 53,595 48,913 46,998 48,174 45,955
(27.5) (24.7) (23.7) (26.1) (28.4) (28.7) (24.6) (23.2) (24.4) (24.7)

RBI
Monthly Bulletin
2262 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement III: International Liabilities/Assets of Banks Classified According to Country of

Residence of Transacting Units (Based on LBS Statements) - Amount outstanding as at end (Concld.)
(Rs. crore)
Country International Assets
All Currencies Foreign Currencies

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Total 2,22,711 2,08,516 2,21,246 2,26,530 2,29,356 2,15,356 2,00,975 2,12,352 2,17,958 2,21,676
of Which (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Bahrain 1,141 1,091 890 1,123 1,508 1,047 996 797 1,035 1,423
(0.5) (0.5) (0.4) (0.5) (0.7) (0.5) (0.5) (0.4) (0.5) (0.6)

Belgium 1,765 1,798 1,705 1,871 2,013 1,759 1,788 1,684 1,864 2,005
(0.8) (0.9) (0.8) (0.8) (0.9) (0.8) (0.9) (0.8) (0.9) (0.9)

Canada 1,825 1,429 1,481 1,432 1,974 1,585 1,267 1,312 1,256 1,806
(0.8) (0.7) (0.7) (0.6) (0.9) (0.7) (0.6) (0.6) (0.6) (0.8)

China 1,347 1,464 1,410 1,444 1,476 1,333 1,445 1,396 1,433 1,463
(0.6) (0.7) (0.6) (0.6) (0.6) (0.6) (0.7) (0.7) (0.7) (0.7)

France 1,548 1,190 1,662 1,640 3,168 1,530 1,166 1,531 1,627 3,119
(0.7) (0.6) (0.8) (0.7) (1.4) (0.7) (0.6) (0.7) (0.7) (1.4)

Germany 4,160 3,261 5,157 4,517 5,779 4,074 3,170 5,024 4,442 5,675
(includes ECB) (1.9) (1.6) (2.3) (2.0) (2.5) (1.9) (1.6) (2.4) (2.0) (2.6)

Hong Kong 6,784 7,305 7,057 14,915 16,176 6,720 7,228 6,971 14,841 16,107
(3.0) (3.5) (3.2) (6.6) (7.1) (3.1) (3.6) (3.3) (6.8) (7.3)

India 1,08,614 1,06,894 1,16,711 1,06,062 1,00,480 1,08,614 1,06,894 1,16,711 1,06,062 1,00,480
(48.8) (51.3) (52.8) (46.8) (43.8) (50.4) (53.2) (55.0) (48.7) (45.3)

Italy 1,577 1,426 1,355 1,234 1,397 1,568 1,412 1,339 1,224 1,389
(0.7) (0.7) (0.6) (0.5) (0.6) (0.7) (0.7) (0.6) (0.6) (0.6)

Japan 1,837 1,634 1,773 1,862 2,793 1,805 1,599 1,744 1,834 2,766
(0.8) (0.8) (0.8) (0.8) (1.2) (0.8) (0.8) (0.8) (0.8) (1.2)

Netherlands 867 728 806 651 1,111 860 718 798 644 1,104
(0.4) (0.3) (0.4) (0.3) (0.5) (0.4) (0.4) (0.4) (0.3) (0.5)

Singapore 5,689 4,785 4,647 4,179 3,800 5,421 4,469 4,221 3,861 3,517
(2.6) (2.3) (2.1) (1.8) (1.7) (2.5) (2.2) (2.0) (1.8) (1.6)

United Arab 6,458 5,733 5,306 5,024 5,225 5,641 4,918 4,246 4,219 4,440
Emirates (2.9) (2.7) (2.4) (2.2) (2.3) (2.6) (2.4) (2.0) (1.9) (2.0)

United Kingdom@ 12,399 10,988 8,693 11,190 14,430 11,854 10,295 8,027 10,536 13,806
(5.6) (5.3) (3.9) (4.9) (6.3) (5.5) (5.1) (3.8) (4.8) (6.2)

United States# 46,615 41,412 45,689 52,053 52,685 43,267 37,984 41,469 48,521 48,781
(20.9) (19.9) (20.7) (23.0) (23.0) (20.1) (18.9) (19.5) (22.3) (22.0)

@ : Excluding Guernsey, Isle of Man And Jersey #: Includes Miday Island and Wake Islands ‘-’ : Nil/Negligible
Note: 1. Figures in Brackets Represent Percentages to Total un the Respective Group (Column).
2. Totals May not Tally Due to Rounding off .
3. “No specific country” means the country information has not been provided by the reporting bank branches.
4. Data have been revised for previous quarters.
5. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

RBI
Monthly Bulletin
November 2009 2263
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement IV: Country - wise Breakup of Major Component of International Liabilities of Banks
(Based on LBS Statements)
(Rs. crore)
Country Major Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009
Components
Australia FCNR(B) 286 (0.5) 284 (0.5) 331 (0.5) 289 (0.4) 552 (0.8)
Borrowings 50 (0.1) 238 (0.3) 294 (0.3) 144 (0.2) 443 (0.6)
NRE Deposits 658 (0.6) 813 (0.7) 890 (0.8) 710 (0.6) 781 (0.6)
Total 1,527 (0.4) 1,823 (0.5) 1,955 (0.5) 1,637 (0.4) 2,294 (0.6)
Bahrain FCNR(B) 4,742 (7.9) 5,194 (8.3) 5,526 (8.5) 5,579 (8.5) 6,273 (8.6)
Borrowings 853 (1.1) 820 (0.9) 556 (0.6) 220 (0.2) 100 (0.1)
NRE Deposits 1,663 (1.5) 1,830 (1.6) 2,116 (1.8) 1,721 (1.4) 2,241 (1.8)
Total 7,451 (1.9) 8,027 (2.0) 8,423 (2.1) 8,059 (2.0) 9,260 (2.4)
Belgium FCNR(B) 90 (0.1) 86 (0.1) 67 (0.1) 89 (0.1) 105 (0.1)
Borrowings 1,872 (2.4) 1,795 (2.0) 1,831 (1.9) 3,036 (3.4) 1,179 (1.6)
NRE Deposits 105 (0.1) 117 (0.1) 100 (0.1) 168 (0.1) 246 (0.2)
Total 2,346 (0.6) 2,264 (0.6) 2,271 (0.6) 3,588 (0.9) 1,822 (0.5)
Canada FCNR(B) 1,019 (1.7) 1,039 (1.7) 1,025 (1.6) 974 (1.5) 950 (1.3)
Borrowings 586 (0.8) 557 (0.6) 471 (0.5) 441 (0.5) 306 (0.4)
NRE Deposits 1,546 (1.4) 1,600 (1.4) 1,724 (1.5) 1,171 (1.0) 1,753 (1.4)
Total 4,416 (1.1) 4,440 (1.1) 4,523 (1.1) 4,079 (1.0) 4,847 (1.3)
China FCNR(B) 3,966 (6.6) 4,429 (7.1) 4,766 (7.3) 4,874 (7.5) 5,506 (7.6)
Borrowings — — — — 25 (0.0)
NRE Deposits 141 (0.1) 109 (0.1) 221 (0.2) 113 (0.1) 120 (0.1)
Total 4,161 (1.1) 4,567 (1.2) 5,152 (1.3) 5,076 (1.3) 5,697 (1.5)
France FCNR(B) 170 (0.3) 137 (0.2) 168 (0.3) 203 (0.3) 265 (0.4)
Borrowings 2,601 (3.4) 3,263 (3.6) 4,354 (4.6) 3,340 (3.8) 2,078 (2.8)
NRE Deposits 490 (0.4) 444 (0.4) 431 (0.4) 344 (0.3) 416 (0.3)
Total 5,769 (1.5) 6,581 (1.7) 7,831 (2.0) 6,452 (1.6) 6,116 (1.6)
Germany FCNR(B) 5,509 (9.1) 6,652 (10.6) 6,741 (10.4) 7,000 (10.7) 7,651 (10.5)
(Includes ECB) Borrowings 3,526 (4.6) 3,502 (3.9) 3,605 (3.8) 3,283 (3.7) 3,675 (4.9)
NRE Deposits 1,019 (0.9) 1,055 (0.9) 949 (0.8) 1,055 (0.9) 1,865 (1.5)
Total 14,296 (3.7) 15,225 (3.9) 15,227 (3.8) 15,221 (3.9) 16,819 (4.4)
Hong Kong FCNR(B) 954 (1.6) 966 (1.5) 807 (1.2) 904 (1.4) 886 (1.2)
Borrowings 1,355 (1.8) 1,832 (2.0) 2,320 (2.5) 3,817 (4.3) 2,683 (3.6)
NRE Deposits 1,037 (0.9) 901 (0.8) 1,187 (1.0) 1,203 (1.0) 1,315 (1.1)
Total 9,738 (2.5) 10,264 (2.6) 12,638 (3.2) 14,153 (3.6) 11,682 (3.0)
India FCNR(B) — — — — — — — — — —
Borrowings 4,908 (6.4) 8,594 (9.5) 8,773 (9.3) 8,944 (10.1) 7,486 (9.9)
NRE Deposits — — — — — — — — — —
Total 16,929 (4.3) 21,583 (5.5) 22,282 (5.6) 26,711 (6.8) 24,725 (6.4)
Japan FCNR(B) 288 (0.5) 175 (0.3) 172 (0.3) 370 (0.6) 259 (0.4)
Borrowings 1,385 (1.8) 1,783 (2.0) 1,412 (1.5) 1,521 (1.7) 1,419 (1.9)
NRE Deposits 699 (0.6) 758 (0.7) 570 (0.5) 587 (0.5) 671 (0.5)
Total 4,784 (1.2) 5,518 (1.4) 4,357 (1.1) 4,481 (1.1) 4,361 (1.1)
Kenya FCNR(B) 958 (1.6) 923 (1.5) 1,101 (1.7) 916 (1.4) 848 (1.2)
Borrowings 37 (0.0) 178 (0.2) 71 (0.1) 43 (0.0) 56 (0.1)
NRE Deposits 1,217 (1.1) 1,027 (0.9) 1,079 (0.9) 950 (0.8) 1,167 (0.9)
Total 2,257 (0.6) 2,187 (0.6) 2,317 (0.6) 1,999 (0.5) 2,387 (0.6)
Kuwait FCNR(B) 1,504 (2.5) 1,664 (2.7) 1,508 (2.3) 1,692 (2.6) 1,712 (2.4)
Borrowings 2 (0.0) 21 (0.0) 4 (0.0) 2 (0.0) 109 (0.1)
NRE Deposits 4,808 (4.3) 4,943 (4.3) 4,709 (4.0) 4,101 (3.4) 4,588 (3.7)
Total 6,708 (1.7) 6,966 (1.8) 6,609 (1.7) 6,348 (1.6) 7,213 (1.9)
Mauritius FCNR(B) 34 (0.1) 15 (0.0) 17 (0.0) 15 (0.0) 35 (0.0)
Borrowings 1,498 (1.9) 1,435 (1.6) 1,711 (1.8) 1,624 (1.8) 2,028 (2.7)
NRE Deposits 174 (0.2) 35 (0.0) 32 (0.0) 31 (0.0) 237 (0.2)
Total 21,040 (5.4) 15,336 (3.9) 15,507 (3.9) 11,565 (2.9) 9,970 (2.6)

RBI
Monthly Bulletin
2264 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement IV: Country - wise Breakup of Major Component of International Liabilities of Banks
(Based on LBS Statements) (Concld.)
(Rs. crore)
Country Major Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009
Components

Netherlands FCNR(B) 286 (0.5) 258 (0.4) 243 (0.4) 175 (0.3) 175 (0.2)
Borrowings 5,885 (7.6) 6,778 (7.5) 5,950 (6.3) 4,496 (5.1) 2,319 (3.1)
NRE Deposits 367 (0.3) 163 (0.1) 204 (0.2) 164 (0.1) 269 (0.2)
Total 11,641 (3.0) 12,250 (3.1) 11,315 (2.9) 9,989 (2.5) 6,851 (1.8)
No Specific Country FCNR(B) 1,613 (2.7) 1,744 (2.8) 1,312 (2.0) 1,291 (2.0) 1,230 (1.7)
(country Unknown) Borrowings 42 (0.1) 52 (0.1) — — —
NRE Deposits 12,209 (11.0) 12,984 (11.4) 12,215 (10.5) 5,519 (4.6) 6,005 (4.8)
Total 24,881 (6.4) 23,846 (6.1) 23,764 (6.0) 15,329 (3.9) 12,626 (3.3)
Oman FCNR(B) 614 (1.0) 675 (1.1) 608 (0.9) 638 (1.0) 658 (0.9)
Borrowings 133 (0.2) 72 (0.1) 31 (0.0) 15 (0.0) 26 (0.0)
NRE Deposits 2,736 (2.5) 2,899 (2.5) 2,998 (2.6) 3,999 (3.4) 3,783 (3.0)
Total 3,747 (1.0) 3,866 (1.0) 3,946 (1.0) 5,059 (1.3) 4,927 (1.3)
Qatar FCNR(B) 517 (0.9) 481 (0.8) 405 (0.6) 377 (0.6) 362 (0.5)
Borrowings 1 (0.0) 16 (0.0) 1 (0.0) — —
NRE Deposits 1,954 (1.8) 2,143 (1.9) 2,568 (2.2) 2,267 (1.9) 2,572 (2.1)
Total 2,617 (0.7) 2,841 (0.7) 3,208 (0.8) 2,979 (0.8) 3,588 (0.9)
Saudi Arabia FCNR(B) 1,537 (2.5) 1,612 (2.6) 1,648 (2.5) 1,638 (2.5) 1,573 (2.2)
Borrowings 4 (0.0) 3 (0.0) 17 (0.0) 3 (0.0) 103 (0.1)
NRE Deposits 7,474 (6.7) 7,653 (6.7) 7,621 (6.5) 9,555 (8.0) 9,376 (7.5)
Total 9,481 (2.4) 9,640 (2.4) 9,668 (2.4) 11,930 (3.0) 11,853 (3.1)
Singapore FCNR(B) 513 (0.9) 568 (0.9) 620 (1.0) 626 (1.0) 739 (1.0)
Borrowings 9,754 (12.6) 9,312 (10.3) 9,942 (10.6) 11,821 (13.4) 12,085 (16.0)
NRE Deposits 1,967 (1.8) 2,626 (2.3) 2,330 (2.0) 2,199 (1.8) 2,398 (1.9)
Total 18,911 (4.8) 18,815 (4.8) 19,032 (4.8) 19,789 (5.0) 19,753 (5.1)
Spain FCNR(B) 379 (0.6) 458 (0.7) 451 (0.7) 325 (0.5) 470 (0.6)
Borrowings 5 (0.0) 8 (0.0) 13 (0.0) 6 (0.0) —
NRE Deposits 238 (0.2) 377 (0.3) 788 (0.7) 691 (0.6) 827 (0.7)
Total 2,732 (0.7) 2765 (0.7) 2,166 (0.5) 1836 (0.5) 1,509 (0.4)
Switzerland FCNR(B) 164 (0.3) 128 (0.2) 112 (0.2) 145 (0.2) 350 (0.5)
(Includes BIS) Borrowings 322 (0.4) 439 (0.5) 534 (0.6) 523 (0.6) 724 (1.0)
NRE Deposits 340 (0.3) 383 (0.3) 366 (0.3) 396 (0.3) 420 (0.3)
Total 1,518 (0.4) 1,355 (0.3) 1,709 (0.4) 1,570 (0.4) 2,230 (0.6)
United Arab FCNR(B) 4,133 (6.8) 4,007 (6.4) 4,915 (7.6) 5,358 (8.2) 5,853 (8.0)
Emirates Borrowings 63 (0.1) 341 (0.4) 191 (0.2) 2 (0.0) 397 (0.5)
NRE Deposits 17,896 (16.1) 20,532 (18.0) 18,402 (15.8) 22,007 (18.5) 18,799 (15.1)
Total 24,664 (6.3) 27,374 (7.0) 26,229 (6.6) 31,018 (7.9) 29,417 (7.6)
United Kingdom@ FCNR(B) 15,226 (25.2) 14,999 (23.9) 14,379 (22.2) 14,766 (22.6) 16,396 (22.5)
Borrowings 18,453 (23.9) 26,972 (29.7) 30,151 (32.0) 19,663 (22.3) 15,739 (20.9)
NRE Deposits 9,010 (8.1) 8,283 (7.2) 11,076 (9.5) 12,920 (10.9) 8,691 (7.0)
Total 56,417 (14.4) 64,851 (16.5) 67,195 (16.9) 57,665 (14.7) 50,419 (13.0)
United States# FCNR(B) 9,990 (16.6) 10,412 (16.6) 11,284 (17.4) 10,733 (16.4) 14,494 (19.9)
Borrowings 21,080 (27.3) 20,022 (22.1) 18,695 (19.9) 21,742 (24.7) 18,587 (24.7)
NRE Deposits 35,251 (31.7) 34,567 (30.2) 35,028 (30.1) 38,221 (32.1) 45,797 (36.8)
Total 1,07,453 (27.5) 97,205 (24.7) 94,012 (23.7) 1,02,571 (26.1) 1,09,933 (28.4)
Total FCNR(B) 60,340 (100.0) 62,730 (100.0) 64,868 (100.0) 65,357 (100.0) 72,783 (100.0)
Borrowings 77,257 (100.0) 90,791 (100.0) 94,155 (100.0) 88,189 (100.0) 75,398 (100.0)
NRE Deposits 1,11,301 (100.0) 1,14,316 (100.0) 1,16,368 (100.0) 1,18,899 (100.0) 1,24,488 (100.0)
Total 3,90,857 (100.0) 3,93,832 (100.0) 3,96,717 (100.0) 3,93,263 (100.0) 3,86,608 (100.0)
@ : excluding Guernsey, Isle of Man and Jersey. #: includes Miday Island and Wake Islands. ‘—’ : nil/negligible.
Notes: 1. Figures in brackets represent percentages to total.
2. Totals may not tally due to rounding off .
3. Data have been revised for previous quarters.
4. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

RBI
Monthly Bulletin
November 2009 2265
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement V: Country - wise Breakup of Major Component of International Assets of Banks

(Based on LBS Statements)
(Rs. crore)
Country Major Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009
Components

Bahrain Export Bill 65 (0.1) 160 (0.3) 80 (0.2) 55 (0.1) 191 (0.4)
NOSTRO 580 (1.3) 465 (1.2) 397 (1.0) 668 (1.1) 923 (1.4)
Total 1,141 (0.5) 1,091 (0.5) 890 (0.4) 1,123 (0.5) 1,508 (0.7)

Belgium Export Bill 936 (1.9) 961 (2.1) 993 (2.1) 1,268 (2.9) 1,228 (2.8)
NOSTRO 342 (0.7) 536 (1.4) 419 (1.1) 332 (0.6) 518 (0.8)
Total 1,765 (0.8) 1,798 (0.9) 1,705 (0.8) 1,871 (0.8) 2,013 (0.9)

Canada Export Bill 378 (0.8) 339 (0.7) 402 (0.8) 382 (0.9) 315 (0.7)
NOSTRO 755 (1.7) 468 (1.3) 423 (1.1) 537 (0.9) 514 (0.8)
Total 1,825 (0.8) 1,429 (0.7) 1,481 (0.7) 1,432 (0.6) 1,974 (0.9)

China Export Bill 1,149 (2.3) 1,244 (2.7) 1,098 (2.3) 761 (1.7) 749 (1.7)
NOSTRO — — — — —
Total 1,347 (0.6) 1,464 (0.7) 1,410 (0.6) 1,444 (0.6) 1,476 (0.6)

France Export Bill 1,032 (2.1) 926 (2.0) 1,046 (2.2) 1,010 (2.3) 874 (2.0)
NOSTRO 339 (0.7) 95 (0.3) 445 (1.2) 472 (0.8) 2,128 (3.2)
Total 1,548 (0.7) 1,190 (0.6) 1,662 (0.8) 1,640 (0.7) 3,168 (1.4)

Germany Export Bill 1,657 (3.4) 1,384 (3.0) 1,373 (2.9) 1,269 (2.9) 1,360 (3.1)
(includes ECB) NOSTRO 1,828 (4.0) 1,103 (3.0) 2,695 (7.0) 2,614 (4.4) 3,757 (5.6)
Total 4,160 (1.9) 3,261 (1.6) 5,157 (2.3) 4,517 (2.0) 5779 (2.5)

Hong Kong Export Bill 2,927 (6.0) 3,127 (6.8) 3,010 (6.3) 3,478 (7.9) 4,392 (9.9)
NOSTRO 2,706 (5.9) 3,067 (8.2) 2,872 (7.4) 10,262 (17.4) 10,545 (15.9)
Total 6,784 (3.0) 7,305 (3.5) 7,057 (3.2) 14,915 (6.6) 16,176 (7.1)

India Export Bill — — — — —

NOSTRO — — — — —
Total 1,08,614 (48.8) 1,06,894 (51.3) 1,16,711 (52.8) 1,06,062 (46.8) 1,00,480 (43.8)

Italy Export Bill 1,464 (3.0) 1,294 (2.8) 1,248 (2.6) 1,128 (2.6) 1,291 (2.9)
NOSTRO 103 (0.2) 85 (0.2) 64 (0.2) 68 (0.1) 69 (0.1)
Total 1,577 (0.7) 1,426 (0.7) 1,355 (0.6) 1,234 (0.5) 1,397 (0.6)

Japan Export Bill 516 (1.1) 395 (0.9) 310 (0.6) 443 (1.0) 1,547 (3.5)
NOSTRO 841 (1.8) 871 (2.3) 1,061 (2.8) 1,087 (1.8) 941 (1.4)
Total 1,837 (0.8) 1,634 (0.8) 1,773 (0.8) 1,862 (0.8) 2,793 (1.2)

Netherlands Export Bill 625 (1.3) 651 (1.4) 694 (1.4) 581 (1.3) 573 (1.3)
NOSTRO 235 (0.5) 62 (0.2) 98 (0.3) 52 (0.1) 524 (0.8)
Total 867 (0.4) 728 (0.3) 806 (0.4) 651 (0.3) 1,111 (0.5)

RBI
Monthly Bulletin
2266 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement V: Country - wise Breakup of Major Component of International Assets of Banks

(Based on LBS Statements) (Concld.)
(Rs. crore)
Country Major Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009
Components

No Specific Export Bill 383 (0.8) 667 (1.5) 511 (1.1) 330 (0.7) 315 (0.7)
Country (country NOSTRO 167 (0.4) 107 (0.3) — — —
Unknown) Total 1,814 (0.8) 1,648 (0.8) 1,333 (0.6) 1,127 (0.5) 962 (0.4)

Singapore Export Bill 1,431 (2.9) 1,243 (2.7) 1,401 (2.9) 1,118 (2.5) 1,080 (2.4)
NOSTRO 2,746 (6.0) 2,052 (5.5) 1,796 (4.7) 1,672 (2.8) 1,682 (2.5)
Total 5,689 (2.6) 4,785 (2.3) 4,647 (2.1) 4,179 (1.8) 3,800 (1.7)

Sri Lanka Export Bill 604 (1.2) 521 (1.1) 584 (1.2) 348 (0.8) 225 (0.5)
NOSTRO 190 (0.4) 59 (0.2) 46 (0.1) 76 (0.1) 58 (0.1)
Total 1,124 (0.5) 990 (0.5) 1,047 (0.5) 885 (0.4) 799 (0.3)

Switzerland Export Bill 421 (0.9) 327 (0.7) 374 (0.8) 349 (0.8) 390 (0.9)
(Includes BIS) NOSTRO 648 (1.4) 439 (1.2) 317 (0.8) 563 (1.0) 396 (0.6)
Total 1,102 (0.5) 796 (0.4) 720 (0.3) 939 (0.4) 811 (0.4)

United Arab Export Bill 4,535 (9.3) 4,057 (8.8) 3,667 (7.7) 3,412 (7.7) 3,403 (7.6)
Emirates NOSTRO 262 (0.6) 64 (0.2) 83 (0.2) 109 (0.2) 410 (0.6)
Total 6,458 (2.9) 5,733 (2.7) 5,306 (2.4) 5,024 (2.2) 5,225 (2.3)

United Kingdom@ Export Bill 2,900 (5.9) 3,158 (6.9) 2,434 (5.1) 2,002 (4.5) 2,171 (4.9)
NOSTRO 7,105 (15.5) 5,472 (14.7) 4,049 (10.5) 6,938 (11.7) 9,469 (14.2)
Total 12,399 (5.6) 10,988 (5.3) 8,693 (3.9) 11,190 (4.9) 14,430 (6.3)

United States # Export Bill 17,459 (35.6) 16,289 (35.4) 19,618 (41.0) 16,637 (37.8) 16,395 (36.8)
NOSTRO 24,788 (54.2) 20,673 (55.5) 22,244 (57.7) 31,691 (53.6) 32,360 (48.7)
Total 46,615 (20.9) 41,412 (19.9) 45,689 (20.7) 52,053 (23.0) 52,685 (23.0)

Total Export Bill 49,011 (100.0) 45,951 (100.0) 47,872 (100.0) 44,041 (100.0) 44,564 (100.0)
NOSTRO 45,752 (100.0) 37,252 (100.0) 38,581 (100.0) 59,140 (100.0) 66,496 (100.0)
Total 2,22,711 (100.0) 2,08,516 (100.0) 2,21,246 (100.0) 2,26,530 (100.0) 2,29,356 (100.0)
@ : excluding Guernsey, Isle of Man and Jersey. #: includes Miday Island and Wake Islands. ‘—’ : nil/negligible.
Notes: 1. Figures in brackets represent percentages to total.
2. Totals may not tally due to rounding off .
3. Data have been revised for previous quarters.
4. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

RBI
Monthly Bulletin
November 2009 2267
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement VI: International Liabilities/Assets of Banks Classified According to Country of

Incorporation of Banks (Based on LBS Statements) - Amount Outstanding as at end
(Rs. crore)
Country International Liabilities
Total: All Sectors Position vis-a-vis Banks

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Bahrain 257 215 322 301 341 19 19 68 59 59

(0.1) (0.1) (0.1) (0.1) (0.1) (0.0) (0.0) (0.1) (0.0) (0.1)
Bangladesh 58 60 64 52 74 54 57 62 49 71
(0.0) (0.0) (0.0) (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1)
Belgium 687 693 993 1,023 887 651 651 948 968 816
(0.2) (0.2) (0.3) (0.3) (0.2) (0.6) (0.5) (0.8) (0.8) (0.7)
Canada 2,591 3,151 3,535 3,835 3,485 2,488 2,991 3,427 3,609 3,350
(0.7) (0.8) (0.9) (1.0) (0.9) (2.4) (2.5) (2.7) (3.0) (3.1)
France 4,330 4,642 5,546 4,821 5,653 3,242 3,647 4,437 3,831 4,419
(1.1) (1.2) (1.4) (1.2) (1.5) (3.1) (3.0) (3.5) (3.2) (4.1)
Germany 11,100 8,751 8,492 9,461 9,963 3,816 3,764 3,637 3,541 3,341
(Includes ECB) (2.8) (2.2) (2.1) (2.4) (2.6) (3.6) (3.1) (2.9) (2.9) (3.1)
Hong Kong 25,257 23,817 28,620 26,822 26,357 8,917 8,421 11,734 10,920 9,106
(6.5) (6.0) (7.2) (6.8) (6.8) (8.4) (6.9) (9.3) (9.1) (8.4)
India 2,99,095 2,93,028 2,86,876 2,81,267 2,74,230 57,755 62,638 61,065 57,534 49,977
(76.5) (74.4) (72.3) (71.5) (70.9) (54.7) (51.4) (48.5) (47.7) (45.8)
Japan 1,212 1,809 1,399 1,368 1,417 1,144 1,719 1,324 1,311 1,340
(0.3) (0.5) (0.4) (0.3) (0.4) (1.1) (1.4) (1.1) (1.1) (1.2)
Mauritius 129 120 110 83 104 106 94 83 71 74
(0.0) (0.0) (0.0) (0.0) (0.0) (0.1) (0.1) (0.1) (0.1) (0.1)
Netherlands 11,573 12,582 11,286 10,691 7,082 10,295 11,263 10,008 8,499 5,432
(3.0) (3.2) (2.8) (2.7) (1.8) (9.8) (9.2) (7.9) (7.0) (5.0)
Oman 219 407 206 201 218 48 55 33 20 42
(0.1) (0.1) (0.1) (0.1) (0.1) (0.0) (0.0) (0.0) (0.0) (0.0)
Singapore 2,404 3,064 3,870 3,989 3,650 2,386 3,051 3,857 3,976 3,638
(0.6) (0.8) (1.0) (1.0) (0.9) (2.3) (2.5) (3.1) (3.3) (3.3)
South Korea 202 296 213 202 228 199 258 206 195 203
(0.1) (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) (0.2) (0.2) (0.2)
Sri Lanka 83 81 90 101 83 49 47 52 46 55
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.1)
Switzerland — — — — 259 — — — — 259
(Includes BIS) — — — — (0.1) — — — — (0.2)
Taiwan, China 123 84 110 110 110 123 79 110 110 110
(0.0) (0.0) (0.0) (0.0) (0.0) (0.1) (0.1) (0.1) (0.1) (0.1)
Thailand 115 119 127 139 141 36 36 36 36 36
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
United Arab 412 413 416 412 399 108 91 86 88 82
Emirates (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)
United Kingdom@ 11,923 17,388 20,290 20,986 20,718 6,361 10,808 12,724 12,050 11,510
(3.1) (4.4) (5.1) (5.3) (5.4) (6.0) (8.9) (10.1) (10.0) (10.6)
United States# 19,015 23,113 24,078 27,327 31,134 7,684 12,150 11,931 13,667 15,052
(4.9) (5.9) (6.1) (6.9) (8.1) (7.3) (10.0) (9.5) (11.3) (13.8)

Total 3,90,857 3,93,832 3,96,717 3,93,263 3,86,608 1,05,554 1,21,839 1,25,901 1,20,653 1,09,046
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

RBI
Monthly Bulletin
2268 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement VI: International Liabilities/Assets of Banks Classified According to Country of

Incorporation of Banks (Based on LBS Statements) - Amount Outstanding as at end
(Rs. crore)
Country International Assets
Total: All Sectors Position vis-a-vis Banks

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Bahrain 309 344 230 327 379 28 14 15 23 70

(0.1) (0.2) (0.1) (0.1) (0.2) (0.0) (0.0) (0.0) (0.0) (0.1)
Bangladesh 20 12 16 10 35 12 9 12 8 28
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
Belgium 472 524 763 810 666 59 78 164 186 167
(0.2) (0.3) (0.3) (0.4) (0.3) (0.1) (0.1) (0.3) (0.2) (0.2)
Canada 2,640 2,492 3,154 1,391 1,159 76 14 49 32 52
(1.2) (1.2) (1.4) (0.6) (0.5) (0.1) (0.0) (0.1) (0.0) (0.1)
France 1,038 816 1,257 948 2,366 284 97 340 228 1,626
(0.5) (0.4) (0.6) (0.4) (1.0) (0.4) (0.2) (0.6) (0.3) (1.8)
Germany 2,746 2,356 1,967 1,472 1,570 1,060 791 242 332 295
(includes ECB) (1.2) (1.1) (0.9) (0.6) (0.7) (1.6) (1.4) (0.4) (0.4) (0.3)
Hong Kong 8,408 7,354 6,590 11,196 12,863 2,522 1,162 7 5,735 7,123
(3.8) (3.5) (3.0) (4.9) (5.6) (3.8) (2.0) (0.0) (6.8) (7.8)
India 166,558 150,564 157,586 160,197 162,004 52,321 43,785 47,812 60,357 63,963
(74.8) (72.2) (71.2) (70.7) (70.6) (79.0) (76.0) (79.8) (71.7) (70.0)
Japan 570 1,273 1,572 1,573 1,113 202 322 367 358 438
(0.3) (0.6) (0.7) (0.7) (0.5) (0.3) (0.6) (0.6) (0.4) (0.5)
Mauritius 22 20 15 10 9 2 2 1 1 6
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
Netherlands 8,236 7,903 8,888 6,935 5,881 319 217 111 116 134
(3.7) (3.8) (4.0) (3.1) (2.6) (0.5) (0.4) (0.2) (0.1) (0.1)
Oman 2 0 3 29 27 2 — 2 4 1
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
Singapore 4,367 4,807 5,698 4,893 5,919 2,661 2,940 3,497 2,974 3,626
(2.0) (2.3) (2.6) (2.2) (2.6) (4.0) (5.1) (5.8) (3.5) (4.0)
South Korea 52 77 38 68 160 10 42 23 58 123
(0.0) (0.0) (0.0) (0.0) (0.1) (0.0) (0.1) (0.0) (0.1) (0.1)
Sri Lanka 10 10 13 69 68 4 3 7 7 4
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
Taiwan, China 7 8 5 2 17 1 4 — 1 14
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
Thailand 11 11 7 11 12 11 9 7 11 12
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
United Arab 60 89 138 49 34 18 31 42 28 21
Emirates (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1) (0.1) (0.0) (0.0)
United Kingdom@ 12,511 16,419 21,829 21,638 21,824 3,341 4,904 6,219 7,828 7,709
(5.6) (7.9) (9.9) (9.6) (9.5) (5.0) (8.5) (10.4) (9.3) (8.4)
United States# 14,671 13,438 11,477 14,904 13,247 3,319 3,181 1,033 5,862 5,934
(6.6) (6.4) (5.2) (6.6) (5.8) (5.0) (5.5) (1.7) (7.0) (6.5)

Total 222,711 208,516 221,246 226,530 229,356 66,252 57,607 59,952 84,152 91,345
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

@ : excluding Guernsey, Isle of Man and Jersey #: includes Miday Island and Wake Islands ‘–’ : nil/negligible
Note: 1. Figures in brackets represent percentages to total in the respective group (column).
2. Totals may not tally due to rounding off.
3. Data have been revised for previous quarters.
4. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

RBI
Monthly Bulletin
November 2009 2269
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement VII: Residual Maturity and Sector-wise Classification of Consolidated International

Claims of Banks (Based on CBS Statements) - Amount Outstanding as at
end of Period on Immediate Country Risk Basis
(Rs. crore)
Country of Transacting Period Total Residual Maturity Sector
Units International Short- Long- Un- Bank Non-Bank Non-Bank
Claims Term Term allocated Public Private
Total Intl. Claims Mar-2008 169481 117279 50232 1970 62394 748 106339
Jun-2008 171730 113983 55549 2199 65021 828 105881
Sep-2008 177560 112092 62370 3098 64497 1509 111554
Dec-2008 191118 116029 72088 3000 75135 732 115251
Mar-2009 224665 140290 79828 4548 102223 656 121786
Australia Mar-2008 2042 982 1060 — 1582 1 460
Jun-2008 2081 957 1124 — 1485 2 594
Sep-2008 2251 729 1506 17 1593 2 656
Dec-2008 1999 531 1469 — 1470 — 529
Mar-2009 1917 764 1154 — 1384 1 532
Austria Mar-2008 1123 1043 80 — 1041 — 82
Jun-2008 921 794 126 — 861 — 60
Sep-2008 1035 827 209 — 911 — 124
Dec-2008 900 704 197 — 856 — 45
Mar-2009 612 437 176 — 564 — 48
Bahamas Mar-2008 898 799 99 — — — 898
Jun-2008 886 865 20 — 64 — 822
Sep-2008 832 812 20 — 127 — 705
Dec-2008 726 717 9 — 49 — 677
Mar-2009 999 835 164 — 195 — 804
Bahrain Mar-2008 2094 849 1245 — 1654 — 440
Jun-2008 2780 1325 1455 — 2530 — 250
Sep-2008 3318 1519 1799 — 2958 — 360
Dec-2008 3302 1557 1745 — 2995 — 307
Mar-2009 3561 1969 1592 — 3021 — 539
Belgium Mar-2008 3886 3675 210 — 1286 — 2599
Jun-2008 3361 3331 29 — 1060 — 2300
Sep-2008 3649 3180 469 — 454 — 3195
Dec-2008 3433 3013 419 — 463 — 2970
Mar-2009 3835 3208 627 — 1137 — 2697
Canada Mar-2008 4019 1361 2172 486 1741 2 2276
Jun-2008 5388 2221 2565 602 2547 1 2840
Sep-2008 5772 1805 3220 747 2586 76 3110
Dec-2008 5636 1443 3205 989 3124 1 2511
Mar-2009 6348 1547 3325 1476 3823 2 2523
Cayman Islands Mar-2008 773 47 726 — 47 69 657
Jun-2008 1148 902 246 — 83 — 1066
Sep-2008 1495 1042 452 — 92 — 1403
Dec-2008 1660 1083 577 — 90 — 1570
Mar-2009 2230 1164 1066 — 161 — 2070
China Mar-2008 1026 962 65 — — — 1026
Jun-2008 1312 1133 179 — — — 1311
Sep-2008 1390 1149 241 — 122 — 1268
Dec-2008 1419 1275 144 — — — 1419
Mar-2009 1418 1278 140 — 1 — 1417
Cyprus Mar-2008 2864 1713 1151 — 232 — 2632
Jun-2008 2444 1417 1027 — 185 — 2259
Sep-2008 1862 924 939 — 298 — 1564
Dec-2008 2565 1038 1527 — 1027 — 1539
Mar-2009 2513 1104 1409 — 985 — 1528

RBI
Monthly Bulletin
2270 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement VII: Residual Maturity and Sector-wise Classification of Consolidated International

Claims of Banks (Based on CBS Statements) - Amount Outstanding as at
end of Period on Immediate Country Risk Basis (Contd.)
(Rs. crore)
Country of Transacting Period Total Residual Maturity Sector
Units International Short- Long- Un- Bank Non-Bank Non-Bank
Claims Term Term allocated Public Private
Denmark Mar-2008 1660 1347 313 — 1430 — 229
Jun-2008 1516 1186 330 — 1400 — 116
Sep-2008 1373 1042 331 — 1263 — 111
Dec-2008 1305 866 439 — 1112 — 193
Mar-2009 1461 1014 447 — 1271 — 190
France Mar-2008 2969 2074 895 — 1535 — 1434
Jun-2008 3456 2377 1079 — 2004 — 1452
Sep-2008 4519 3079 1440 — 2451 554 1514
Dec-2008 4126 2675 1451 — 2742 — 1383
Mar-2009 4393 2949 1444 — 3134 — 1259
Germany (Includes ECB) Mar-2008 10607 8572 1600 435 5266 43 5299
Jun-2008 10300 8481 1492 327 5157 144 4998
Sep-2008 9742 7778 1888 76 4348 459 4935
Dec-2008 9565 7838 1727 — 4756 80 4730
Mar-2009 9869 8380 1488 — 5295 107 4467
Hong Kong Mar-2008 9792 9092 700 — 5444 — 4347
Jun-2008 9978 8614 1364 — 5299 — 4679
Sep-2008 10056 8868 1188 — 5664 — 4392
Dec-2008 14779 13364 1414 — 9605 — 5174
Mar-2009 19031 17018 2013 — 13857 — 5174
Indonesia Mar-2008 1057 592 465 — 17 — 1039
Jun-2008 1343 899 444 — 19 — 1325
Sep-2008 1258 826 432 — 50 — 1209
Dec-2008 1416 887 529 — 22 — 1393
Mar-2009 1645 914 730 — 119 — 1525
Ireland Mar-2008 814 451 363 — 294 — 520
Jun-2008 811 405 406 — 353 — 457
Sep-2008 1328 644 684 — 616 — 713
Dec-2008 1253 491 762 — 775 — 478
Mar-2009 1135 340 795 — 730 — 405
Israel Mar-2008 479 478 1 — — — 479
Jun-2008 604 552 52 — — — 604
Sep-2008 522 470 52 — — — 522
Dec-2008 873 858 15 — — — 873
Mar-2009 875 823 52 — — — 875
Italy Mar-2008 2768 1866 902 — 1359 — 1409
Jun-2008 2541 1510 1031 — 1157 — 1384
Sep-2008 2351 1363 988 — 1140 — 1211
Dec-2008 2240 1294 946 — 1140 — 1100
Mar-2009 2857 1961 896 — 1599 — 1258
Japan Mar-2008 1232 1107 125 — 647 41 544
Jun-2008 1675 1339 336 — 1077 3 596
Sep-2008 1900 1594 305 — 1217 2 681
Dec-2008 2139 1720 419 — 1702 — 437
Mar-2009 2233 1629 604 — 1573 1 660
Jersey Mar-2008 2 1 2 — — — 2
Jun-2008 2 0 2 — — — 2
Sep-2008 173 116 57 — 173 — 0
Dec-2008 230 171 60 — 230 — —
Mar-2009 913 153 760 — 153 — 760

RBI
Monthly Bulletin
November 2009 2271
ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement VII: Residual Maturity and Sector-wise Classification of Consolidated International

Claims of Banks (Based on CBS Statements) - Amount Outstanding as at
end of Period on Immediate Country Risk Basis (Contd.)
(Rs. crore)
Country of Transacting Period Total Residual Maturity Sector
Units International Short- Long- Un- Bank Non-Bank Non-Bank
Claims Term Term allocated Public Private
Luxembourg Mar-2008 6111 3954 2157 — 1919 — 4192
Jun-2008 5641 3706 1934 1 1742 — 3899
Sep-2008 5451 3488 1963 — 1564 — 3886
Dec-2008 4383 2891 1492 — 1340 — 3043
Mar-2009 4391 2380 2011 — 1153 — 3238
Maldives Mar-2008 597 596 1 — — — 597
Jun-2008 675 674 1 — — — 675
Sep-2008 835 834 1 — — — 835
Dec-2008 1476 1476 1 — — — 1476
Mar-2009 3990 3989 1 — — — 3990
Malta Mar-2008 1 1 — — — — 1
Jun-2008 1 1 — — — — 1
Sep-2008 6 6 — — — — 6
Dec-2008 6 6 — — — — 6
Mar-2009 814 452 362 — — — 814
Mauritius Mar-2008 740 230 510 — 82 — 658
Jun-2008 933 294 639 — 67 — 866
Sep-2008 1068 377 690 — 313 — 754
Dec-2008 1022 192 831 — 278 — 745
Mar-2009 2079 401 1676 2 339 — 1740
Netherlands Mar-2008 5266 2261 3004 — 1264 — 4002
Jun-2008 5244 2162 3082 — 1188 — 4056
Sep-2008 5409 1856 3554 — 781 33 4595
Dec-2008 5073 1518 3555 — 989 32 4053
Mar-2009 6092 1845 4247 — 1133 — 4959
No Specific Country Mar-2008 2350 1386 964 — 298 — 2052
(Country Unknown) Jun-2008 2121 1273 848 — 139 — 1982
Sep-2008 2043 1233 810 — 140 — 1903
Dec-2008 1430 481 949 — 447 — 983
Mar-2009 1543 535 1008 — 487 — 1056
Norway Mar-2008 961 203 758 — 247 — 713
Jun-2008 882 111 771 — 193 — 689
Sep-2008 888 55 833 — 239 — 649
Dec-2008 908 83 825 — 267 — 641
Mar-2009 957 120 837 — 300 — 657
Russia Mar-2008 6011 3950 1962 99 3353 — 2658
Jun-2008 5573 3569 1897 106 3162 — 2411
Sep-2008 6460 3896 2447 117 3800 — 2660
Dec-2008 6170 3763 2285 122 3428 — 2742
Mar-2009 5340 3031 2182 127 2780 — 2560
Saudi Arabia Mar-2008 586 347 239 — 11 1 574
Jun-2008 660 372 288 — 7 1 652
Sep-2008 781 525 256 — 11 1 769
Dec-2008 904 491 414 — 136 — 768
Mar-2009 790 439 350 — 91 — 698
Singapore Mar-2008 11918 6194 5724 — 4165 — 7753
Jun-2008 11714 6134 5580 — 4210 1 7503
Sep-2008 12303 6148 6156 — 4158 — 8145
Dec-2008 14454 6861 7261 332 4656 — 9799
Mar-2009 15762 7620 7837 306 4408 — 11354

RBI
Monthly Bulletin
2272 November 2009
 ARTICLE
International Banking
Statistics of India –
March 31, 2009

Statement VII: Residual Maturity and Sector-wise Classification of Consolidated International

Claims of Banks (Based on CBS Statements) - Amount outstanding as at
end of Period on Immediate Country Risk Basis (Concld.)
(Rs. crore)
Country of Transacting Period Total Residual Maturity Sector
Units International Short- Long- Un- Bank Non-Bank Non-Bank
Claims Term Term allocated Public Private

South Africa Mar-2008 789 417 372 — 259 — 530

Jun-2008 568 273 296 — 174 — 394
Sep-2008 609 316 293 — 275 — 334
Dec-2008 779 309 471 — 283 — 496
Mar-2009 652 415 237 — 321 — 331
South Korea Mar-2008 963 513 450 — 705 — 258
Jun-2008 945 500 444 — 701 — 244
Sep-2008 672 255 417 — 353 — 319
Dec-2008 730 230 499 — 429 — 301
Mar-2009 817 371 446 — 544 — 273
Spain Mar-2008 921 843 79 — 18 — 903
Jun-2008 830 744 86 — — — 830
Sep-2008 794 755 39 — — — 794
Dec-2008 821 714 107 — — — 821
Mar-2009 1358 1306 52 — 670 — 689
Sri Lanka Mar-2008 2434 2007 427 — 1025 192 1217
Jun-2008 2456 2021 434 1 989 331 1136
Sep-2008 2240 1825 414 — 652 181 1407
Dec-2008 2281 1916 318 47 596 328 1357
Mar-2009 2305 1859 350 96 499 396 1410
Switzerland (Includes BIS) Mar-2008 1746 1432 314 — 761 — 984
Jun-2008 1718 1302 416 — 604 3 1112
Sep-2008 1313 911 403 — 684 2 628
Dec-2008 1597 812 785 — 850 — 746
Mar-2009 1672 827 845 — 819 — 853
United Arab Emirates Mar-2008 7990 5405 2585 — 1177 — 6812
Jun-2008 7977 4967 3010 — 1047 — 6930
Sep-2008 8082 4977 3105 — 1316 1 6765
Dec-2008 9660 5296 4364 — 984 — 8675
Mar-2009 11309 6447 4862 — 2319 — 8989
United Kingdom @ Mar-2008 21899 13161 7819 920 10211 17 11672
Jun-2008 22662 12184 9331 1147 10084 13 12565
Sep-2008 23109 11313 9851 1945 10623 14 12472
Dec-2008 25246 11481 12255 1510 12518 6 12722
Mar-2009 29753 14713 12529 2511 16291 38 13423
United States # Mar-2008 35374 27741 7618 16 10680 323 24371
Jun-2008 37447 27502 9930 14 12970 292 24185
Sep-2008 39294 27703 11410 181 10857 153 28283
Dec-2008 43986 28502 15484 — 13159 268 30560
Mar-2009 55734 37993 17711 31 27629 94 28011
@ : Excluding Guernsey, Isle of Man and Jersey. # : Includes Midway Island and Wake Islands.
‘—’ : Nil/Negligible.
Notes : 1. Totals may not tally due to rounding off.
2. Residual maturity “Unallocated” comprises maturity not applicable (e.g., for equities) and maturity
information not available.
3. “No Specific Country” means the Country Information has not been provided by the reporting bank branches.
4. Data have been revised for previous quarters.

RBI
Monthly Bulletin
November 2009 2273

International Trade in
Banking Services, 2007-08*
* Prepared in the Balance of Payments Statistics
Division, Department of Statistics and Information
Management. The previous article on the subject for the
period 2006-07 was published in January 2009 issue of
the Bulletin.
ARTICLE
International Trade
in Banking Services,
2007-08
The survey on International Trade in
Banking Services for 2007-08 was
conducted in continuation of earlier
survey for 2006-07 to obtain the data on
international trade in banking services.
In this survey 121 overseas branches of 12
Indian banks and 273 branches of 27
foreign banks operating in India were
covered. The international trade in
banking services is captured based on the
explicit and implicit fees or commission
charged to the customers for financial
auxiliary services rendered by the banks.
The services covered in the survey are (i)
deposit account management services, (ii)
credit related services, (iii) financial
leasing services, (iv) trade finance related
services, (v) payment and money
transmission services, (vi) fund
management services, (vii) financial
consultancy and advisory services, (viii)
underwriting services, (ix) clearing and
settlement services, and (x) derivative,
stock, securities and foreign exchange
trading services. Results of the survey
revealed that Indian banks abroad
generated major share of fee income by
rendering credit related services, whereas
foreign banks in India generated major
share of fee income by rendering
derivative, stock, securities, foreign
exchange trading services.
Introduction
In the context of ongoing negotiations
for liberalising the financial services sector
under the World Trade Organisation (WTO)
as a part of General Agreement on Trade in
Services (GATS), data on International Trade
RBI
Monthly Bulletin
November 2009 2275
ARTICLE
International Trade
in Banking Services,
2007-08

in Banking Services becomes important. In countries as at end March 2008, banks

order to make available the basic information furnished data for 121 Indian overseas
on trade in banking services in India and for branches operating in 27 countries on
the creation of a consistent and comparable International Trade in banking services.
database with international standards for Similarly out of 280** foreign bank
policy decisions, first survey on International branches operating in India as at end March
Trade in Banking Services was launched in 2008, the survey covered 273 branches of
January 2008 for the year 2006-07. This article foreign banks. Bank of Baroda had the
is based on the survey launched in largest overseas presence with 42 branches
September 2008 and covers data for 2007-08. in 12 countries, followed by State Bank of
The main objective of the survey is to collect India (33 branches in 18 countries) and Bank
disaggregated information relating to various of India (22 branches in 8 countries). The
banking services rendered by the overseas United Kingdom was having the highest
branches of Indian banks as well as the number of Indian banks’ branches (23),
banking services rendered by the foreign bank followed by Hong Kong (12), Singapore (9),
branches operating in India. Methodology Fiji (9), United Arab Emirates (9), Mauritius
adopted for conduct of the survey and (8), and Sri Lanka (7).
coverage are presented in Annex-I. A copy of
the survey schedule is given in Annex – II. Employment
The article is organised into six sections. The details of number of branches and
The distribution of branches of Indian banks number of employees of Indian banks
abroad and foreign banks in India is presented operating abroad and foreign banks
in Section I. Section II examines the business operating in India are given in Table 1. The
growth of Indian banks abroad and foreign foreign banks operating in India employed
banks in India. The trend in profitability of 99.6 per cent of their employees locally
Indian banks and foreign banks is discussed while the Indian banks operating abroad
in Section III. Section IV examines the trade employed 74.5 per cent of employees from
in banking services of Indian banks abroad
and foreign banks in India. Section V presents Table 1: Details of Employees as at
a disaggregated activity-wise analysis. A end-March 2008
summary of conclusions drawn based on this Item Indian Banks Foreign Banks
operating abroad operating in India
survey is presented in Section VI.
1 2 3
Number of Branches 121 273
Section I Number of Employees 4647 30159
of which;
Distribution of branches of Indian Local 3461 30062
banks operating abroad Indians 1023 NA
Others 163 97
Out of total 129* branches/offices of
NA : Not Applicable.
Indian banks operating abroad in 29
* Table 1.5 of Statistical Table Relating to Banks in ** Table 1.1 of Statistical Table Relating to Banks in India
India 2007-08 2007-08

RBI
Monthly Bulletin
2276 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

local sources, 22.0 per cent from India and
remaining 3.5 per cent from other countries.
Section II
Indian banks’ growth in overseas
business
The growth of assets / liabilities of Indian
banks’ branches operating abroad was 9.1 per
cent during 2007-08 as against 55.8 per cent
in the previous year (Table 2). The credit
extended and deposits mobilised by the
Indian banks’ branches abroad increased by
36.8 per cent and 9.9 per cent, respectively
during 2007-08 compared to 48.8 per cent and
51.3 per cent, respectively in the previous
year. Thus, there was distinctive slow down
in the banking activity of the overseas
branches of the Indian banks in 2007-08 as
compared to the previous year.
The share of credit extended in total
assets of Indian banks branches operating
overseas increased by 57.6 per cent as at end
March 2008 over the corresponding period
of the previous year whereas the share of
deposits mobilised in total liabilities of
Indian banks increased marginally for the
same period. The shares of total business
(credit extended and deposits mobilised) in
total assets/liabilities of Indian banks, which
was at 86.5 per cent as at March end 2007
increased to 98.7 per cent as at March end
2008.
Foreign Banks’ share in Indian Banking
Business
The share of foreign banks in Indian
banking business in terms of credit
extended, deposits mobilised and total
assets/liabilities are presented in Table 3.
The share of foreign banks’ assets in total
assets of Scheduled Commercial Banks
(SCBs) increased to 8.4 per cent in 2007-08
from 7.9 per cent in 2006-07 whereas their
share of credit in total credit of SCBs
increased marginally at 6.5 per cent
compared to 6.3 per cent in the
corresponding period of the previous year.
The share of foreign banks’ income in total
income of SCBs increased from 8.8 per cent
to 9.5 per cent during the period under
review, due to increase in share of interest
income (from 7.6 per cent to 7.9 per cent)
as well non-interest income (from 15.1 per
cent to 17.5 per cent).
The total assets / liabilities of foreign
banks operating in India grew by 33.4 per
cent during 2007-08. The deposit growth
was higher at 29.6 per cent than the growth
of credit at 24.5 per cent in 2007-08.

Table 2: Balance Sheet Items of Indian Banks' Branches Operating Abroad

(Rs. crore)
As at end-March
2006 2007 2008 Growth Growth
Item Amount Per cent Amount Per cent Amount Per cent (%) in (%) in
to total to total to total 2006-07 2007-08
Assets Assets Assets
1 2 3 4 5 6 7 8 9
Credit extended 78657 47.9 117069 45.7 160185 57.6 48.8 36.8
Deposits mobilized 69078 42.0 104526 40.8 114826 41.1 51.3 9.9
Total Assets/
Liabilities 164310 256018 279300 55.8 9.1

RBI
Monthly Bulletin
November 2009 2277
ARTICLE
International Trade
in Banking Services,
2007-08

Table 3: Foreign Banks' Share in Indian Banking Business

(Rs. crore)
All Scheduled Foreign Banks covered Foreign banks’ share
Commercial Banks* in the survey in Indian banking
Business (%)
2006-07 2007-08 2006-07 2007-08 2006-07 2007-08
1 2 3 4 5 6 7
No. of Reporting Banks 82 79 25 27 25 27
Assets/Liabilities 3459946 4326469 272824 364019 7.9 8.4
(33.4)
Credit 1981235 2477037 124512 160646 6.3 6.5
(24.5)
Deposits 2696934 3320052 147347 191015 5.5 5.8
(29.6)
Total Income 274714 368884 24175 349345 8.8 9.5
of which;
Interest received 231673 309568 17672 24578 7.6 7.9
Total Expenditure 208733 285212 17401 24689 8.3 8.7
of which;
Interest paid 142418 207999 7424 10769 5.2 5.2
Net Interest Margin 2.85 2.60 4.38 4.33 – –
* Source: Statistical Tables relating to banks in India – : Not applicable.
Figures in the bracket indicate annual growth in the respective items.

Section III income was lower in both Indian banks and

foreign banks implying that during 2007-08
Income and Expenditure
the non-interest income increased at a
The total income of Indian banks’ higher rate than interest income. In absolute
branches operating abroad amounting to Rs. terms, the non-interest income was only
16,048 crore, registered a growth of 14.7 per Rs.651 crore for Indian banks’ branches
cent in 2007-08 (Table 4) as against 44.5 per operating overseas compared to Rs. 10,356
cent growth in the income of foreign banks crore for foreign banks’ branches in India
operating in India. The growth of interest in 2007-08.
Table 4: Income and Expenditure
(Rs. crore)
Indian Banks' branches Operating Abroad Foreign Banks' branches operating in India
Item 2006-07 2007-08 Growth (%) 2006-07 2007-08 Growth (%)
1 2 3 4 5 6 7
Income 13987 16048 14.7 24175 34934 44.5
of which;
Interest Income 13674 15397 12.6 17672 24578 39.1

Expenditure 11265 13264 17.8 17401 24689 41.9

of which;
Interest Expenditure 10909 12552 15.1 7424 10769 45.1

RBI
Monthly Bulletin
2278 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

Table 5: Profitability Ratios

(Per cent)
Profitability Ratio Indian Banks' Branches Operating Abroad Foreign Banks' Branches Operating in India
2006-07 2007-08 2006-07 2007-08
1 2 3 4 5
Income to Total Assets 5.5 5.7 8.9 9.5
Net Profits to Total Income 19.5 17.3 28.0 29.3
Net Profits to Total Assets 1.1 1.0 2.5 2.8

Further, the interest expenses of Indian Country-wise Profitability of Indian

banks’ overseas branches was higher at
Rs.12,552 crore compared to Rs. 10,769 crore
of foreign banks operating in India during
the same period.
The profitability ratios, viz., income to
total assets, net profit to total income and
net profit to total assets of the foreign
banks operating in India improved during
2007-08 as compared to the previous year
(Table 5). In contrast, net profit to total
income of Indian banks operating abroad
declined from 19.5 per cent in 2006-07 to
17.3 per cent in 2007-08 whereas the income
to total assets and net profit to total assets
changed marginally.
Banks’ Branches Operating Abroad
Country-wise return, i.e., net profit on
total assets of Indian banks operating abroad
is presented in Chart 1.
The return on assets of Indian banks
operating in Sri Lanka was the highest at 2.4
per cent in 2007-08, followed by Singapore
(1.8 per cent) and Oman (1.7 per cent). It was
observed that return on assets of Indian
banks’ overseas branches improved in
2007-08 over the preceding year in case of
Sri Lanka, Bahrain, Belgium, France and Hong
Kong and declined in case of Japan,
Mauritius, Thailand, the UK and the US.

RBI
Monthly Bulletin
November 2009 2279
ARTICLE
International Trade
in Banking Services,
2007-08

Section IV Activity-wise Trade in Banking

Trade in Banking Services – Indian
Banks’ Branches Operating Abroad
The trade in banking services extended
was captured based on explicit and implicit
fees or commission charged to the
customers for various services rendered by
the Indian banks’ branches operating
abroad. In this survey the financial services
produced by the banks were classified into
eleven major groups. These services include
deposit account management services,
credit related services, financial leasing
services, trade finance related services,
payment and money transmission services,
fund management ser vices, financial
consultancy and advisor y ser vices,
under writing ser vices, clearing and
settlement services, “derivative, stock,
securities, foreign exchange trading
services” and other financial services.
Further details are explained in Annex-I.
Services – Indian Banks’ Overseas
Branches
The activity-wise fee income generated
through rendering banking services by the
Indian banks’ branches abroad is presented
in Table 6. It is observed that the fee income
generated by rendering trade in banking
services by the Indian banks’ branches
operating abroad increased significantly by
83.5 per cent from Rs. 1,890 crore in 2006-07
to Rs. 3,468 crore in 2007-08. Among various
banking services, fee income generated by
rendering services like credit related services,
clearing and settlement ser vices and
financial consultancy and advisory services
recorded a significant growth in 2007-08 over
2006-07. There was a decline in the income
generated by way of payment and
transmission services (38.9 per cent), fund
management services (99.9 per cent) and
underwriting services (99.0 per cent) during
2007-08 compared to the previous year.

Table 6: Composition of Trade in Banking Services - Activity-wise

(Rs. Lakhs)
Name of Banking Services 2006-07 2007-08 Growth (%)
1 2 3 4

Deposit Account Management Services 5291 6935 31.1

Credit Related Services 82751 189744 129.3
Financial Leasing Services 0 0 0.0
Trade Finance Related Services 40986 48969 19.5
Payment and Money Transmission Services 33308 20353 -38.9
Fund Management Services 6635 8 -99.9
Financial Consultancy and Advisory Services 2365 17349 633.5
Underwriting Services 529 5 -99.0
Clearing and Settlement Services 55 2000 3550.0
Derivative, Stock, Securities, Foreign Exchange
trading Services 15817 27375 73.1
Other Financial Services 1295 34091 2533.1
Total 189032 346829 83.5

RBI
Monthly Bulletin
2280 November 2009

Further, credit related services, trade
finance related services, derivative, stock,
securities, foreign exchange trading services
and payment & money transmission
services were the major banking services
rendered by the Indian banks operating
abroad. The respective shares were 54.7 per
cent, 14.2 per cent, 7.9 per cent and 5.9 per
cent, respectively in 2007-08 (see Table 9).
The Indian banks operating abroad had
hardly generated any income through fund
management and underwriting services.
None of overseas branches of Indian banks
generated any fee income from financial
leasing services in 2007-08.
Trade in Banking Services by Indian
Banks operating Abroad – Residents
and Non-Residents
The fee income of the Indian banks
operating abroad by rendering banking
services to residents increased from Rs. 578
crore in 2006-07 to Rs. 1189 crore in 2007-08
which was almost one third of total fee based
income (Table 7). The fee income generated
by rendering the banking services to residents
grew at a faster rate than to non-residents.
Further, the share of fee income derived
from residents increased in 2007-08 (34.3
per cent) as compared to the previous year
(30.6 per cent), while the share of fee income
Table 7: Trade in Banking Services (Fee Income) by
Indian Banks abroad-Residents and Non-Residents
(Rs. crore)
Item 2006-07 2007-08 Growth(%)
1 2 3 4
Residents 578 1189
Non-Residents, 1312 2279
of which
In India 679 895
In Other Countries 633 1384
Total Trade in
Banking Services 1890 3468
(Fee Income)
ARTICLE
International Trade
in Banking Services,
2007-08
from non-residents decreased correspondingly
(Chart 2). The fee income from non-residents
(in India) constituted 25.8 per cent of total
fee income in 2007-08 as compared to 35.9
per cent in the previous year. The fee income
generated from extending banking services
to non-residents of other countries accounted
for 39.9 per cent to total fee based income
and had improved over last year (by
33.5 per cent).
Countr y-wise Trade in Banking
Services - Indian Banks’ Branches
Operating Abroad
The country-wise trade in banking
services by the Indian banks’ branches
operating abroad is presented in Table 8. the
UK, Singapore, Bahrain, Hong Kong, Sri
Lanka, the US, the UAE and Belgium were
the major countries not only accounting for
the major share (76.7 per cent) in trade in
banking services of the Indian banks but had
also seen significant growth in trade in
banking services in 2007-08 over 2006-07.
Among 37 countries, Singapore had the
largest share of 25.8 per cent in total fee
income generated from trade in banking
services, followed by the UK (17.4 per cent),
105.7
73.7
31.8
118.6
83.5
RBI
Monthly Bulletin
November 2009 2281
ARTICLE
International Trade
in Banking Services,
2007-08

Table 8: Trade in Banking Services - Country-wise

(Rs. Lakhs)
Trade in Banking Services Total
Country DAM CRS TFR PMT DER All Services
2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08
1 2 3 4 5 6 7 8 9 10 11 12 13
UK 573 489 23875 45853 7509 10090 22469 2017 907 2043 55863 60492
Singapore 1029 131 30056 62507 6029 12981 822 470 3599 3965 48169 89755
Bahrain 11 61 13085 23619 307 433 67 56 2054 4941 17890 41029
Hong Kong 148 311 7598 6962 5281 4340 817 1691 2425 6040 16270 19344
Sri Lanka 39 868 133 19891 2427 409 119 22 134 0 2858 21462
USA 9 143 1250 6550 4323 4554 3022 5074 379 1188 8983 17510
Japan 29 30 959 733 1422 1507 437 338 2526 0 5380 4634
UAE 1495 2213 89 1160 1870 3361 444 267 1359 1598 5257 8599
France 0 0 487 993 2478 1275 708 396 238 0 4065 2767
Germany 0 0 320 327 2031 1412 1063 943 120 0 3534 2682
Belgium 28 167 731 4293 1963 2618 614 956 61 0 3396 8034
Other
Countries 1929 3011 4168 30079 5345 16079 2726 9664 2016 9643 17366 97908
Total 5291 6934 82751 189744 40986 48969 33308 20353 15818 27375 189032 346829
DAM : Deposit Account Management Services. CRS : Credit Related Services.
TFR : Trade Finance Related Services. PMT : Payment & Money Transmission Services.
DER : Derivative, Stock, Securities, Foreign Exchange Trading services.

Bahrain (11.8 per cent) and Sri Lanka (8.6 per
cent) in 2007-08.
Further, as stated earlier, deposit account
management services, credit related services,
trade finance related services, payment &
money transmission services and
“derivative, stock, securities, foreign
exchange trading services” were the major
trade in banking services rendered by the
Indian banks in these countries. Singapore
was the only country where Indian banks had
also rendered funds management services.
Section V
Comparison of Trade in Banking
Services – Indian Banks’ Branches
Operating Abroad vis-à-vis Foreign
Banks’ Branches Operating in India
A comparative analysis between the
Indian banks’ branches operating abroad
and foreign banks’ branches operating in
India revealed that the Indian banks were
lagging behind in generating income by
rendering trade in banking services. The
total fee income generated by the foreign
banks operating in India was Rs. 8,974 crore
whereas Indian banks operating abroad
generated only Rs. 3,468 crore in 2007-08
(Chart 3).
Comparison of Trade in Banking
Services - Activity-wise
Indian banks operating abroad
generated major share of fee income by
rendering ser vice activity viz., credit
related services, whereas in the case of
foreign banks operating in India
‘derivative, stock, securities, foreign
exchange trading services’ occupied the
major share of total trade in banking
services. The other major components of

RBI
Monthly Bulletin
2282 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

fee income for both Indian banks operating
abroad and foreign banks operating in India
were trade finance related services and
financial consultancy and advisory services.
The share of credit related services in total
fee income, in case of Indian banks,
increased significantly to 54.7 per cent in
2007-08 from 43.8 per cent in 2006-07
(Table 9). In case of foreign banks operating
in India, the share of trade finance related
services increased from 10.2 per cent to 16.5
per cent during the same period. Further, it
was observed from the data that both Indian
banks operating abroad as well as foreign
banks operating in India had not derived any
fee income by rendering financial leasing
services during the period under study, i.e.,
2006-07 and 2007-08.

Table 9: Composition of Trade in Banking Services

(Per cent)
Name of Banking Services Indian Banks' Foreign Banks
Branches Operating Abroad Branches Operating in India
2006-07 2007-08 2006-07 2007-08
1 2 3 4 5
Deposit Account Management Services 2.8 2.0 3.0 5.0
Credit Related Services 43.8 54.7 7.6 6.7
Financial Leasing Services 0.0 0.0 0.0 0.0
Trade Finance Related Services 21.7 14.1 10.2 16.5
Payment and Money Transmission Services 17.6 5.9 23.3 5.0
Fund Management Services 3.5 0.0 3.4 4.9
Financial Consultancy and Advisory Services 1.3 5.0 12.5 8.8
Underwriting Services 0.3 0.0 1.0 0.6
Clearing and Settlement Services - 0.6 5.4 1.0
Derivative, Stock, Securities, Foreign
Exchange trading Services 8.4 7.9 28.5 34.1
Other Financial Services 0.7 9.8 5.2 17.4
All activities 100.0 100.0 100.0 100.0
- : negligible.

RBI
Monthly Bulletin
November 2009 2283
ARTICLE
International Trade
in Banking Services,
2007-08

Comparison of Trade in Banking

Ser vices - Residents and non-
Residents
The composition of residents and non-
residents in total trade in banking services
of Indian banks operating abroad and
foreign banks operating in India is
presented in Table 10. A notable contrast of
generation of fee income from residents and
non-residents was observed between Indian
banks operating abroad and foreign banks
operating in India.

Indian banks generated major share of

fee income by rendering banking services
to non-residents at 65.7 percent while
foreign banks generated major share of fee
income from residents. Foreign banks
operating in India generated 95 per cent of
fee income by rendering banking services
to residents in 2007-08.
The income generated by catering
financial services to residents grew at a
faster rate as compared to the non-residents
for foreign banks operating in India as well
as Indian banks operating abroad (Chart 4).
It was observed that fee income generated
from banking services attended to non-
residents by foreign banks operating in
India recorded a decline.
Comparison of Accrual of Amounts to
India and Abroad by Rendering Trade
in Banking Services
Table 11 presents the amount accrued
to India as well as to other countries due to
fee based income generated through trade
in banking services.
The amount accrued to India by Indian
banks’ operations in various countries was
at Rs. 3,289 crore in 2007-08 whereas the
amount accrued to other countries
(excluding India) by foreign origin banks’
operating in India was much higher at Rs.
8,974 crore during the corresponding
period. The amount accrued to India was
greater than the amount accrued to foreign

Table 10: Composition of fee income generated from Trade in Banking Services
(Per cent)
Indian Banks 2006-07 2007-08 Foreign Banks 2006-07 2007-08
1 2 3 4 5 6
Residents 30.6 34.3 Residents 91.1 95.1
Non-Residents 69.4 65.7 Non-Residents 8.9 4.9
of which;
To India 35.9 25.8
To other countries 33.5 39.9

RBI
Monthly Bulletin
2284 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

Table 11: Accrual of Amounts to India and to Abroad

(Rs. Lakhs)
Country Foreign Banks' Branches Operating in India Indian Banks' Branches Operating Abroad
Accruals to Abroad Accruals to India
Number of Number of
Branches 2006-07 2007-08 Branches 2006-07 2007-08
1 2 3 4 5 6 7

Afghanistan NA NA NA 1 4.4 226.3

Australia NA NA NA 1 61.7 911.6
Bahamas NA NA NA 2 805.8 915.9
Bahrain 2 322.3 291.2 4 17889.7 41028.8
Bangladesh 3 262 372.6 4 597.6 15505.6
Belgium 1 694.7 768 3 3396.5 8034.3
Canada 5 939.8 1791.5 NA NA NA
Cayman Islands NA NA NA 1 72.4 22433.4
China NA NA NA 2 255 359.8
Fiji NA NA NA 9 1131.3 1454.9
France 16 9291.8 16132.1 2 4065.2 2766.9
Germany 10 34035.2 38802.3 1 3534.3 2681.9
Hong Kong 47 142201 201518.4 12 15546.6 19344
Israel NA NA NA 1 NA –
Japan 5 7538.3 5433.8 4 5380.3 4634.1
Kenya NA NA NA 4 487.6 571.8
Maldives NA NA NA 1 3825.8 7180.8
Mauritius 3 80.5 29.7 8 525.3 1729.7
Netherlands 28 15958.1 66156.5 NA NA NA
Oman 2 22478.8 3.1 1 403.4 256.5
Seychelles NA NA NA 1 140.9 272.1
Singapore 2 5130.3 3645.7 9 48168.7 89755.5
South Africa NA NA NA 3 651.7 617.1
South Korea 2 360.8 129.4 1 NA –
Sri Lanka 1 NA 26951.6 7 2857.7 21462.3
Taiwan 1 105.3 134 NA NA NA
Thailand 1 26.6 – 1 225.9 212
UAE 4 76.9 84155.4 9 5257.5 8598.9
UK 95 85533.4 176308 23 18933.7 60491.8
USA 45 283276.4 274741.6 6 8316.8 17510
All Countries 273 608312.1 897364.8 121 142535.7 328956.27

NA Bank/ Branch is not operating. – Nil.

countries like Singapore, Bahrain,
Bangladesh, etc., during 2007-08, whereas
the amount accrued to other countries was
greater than amount accrued to India in case
of the US, the UK, Hong Kong, Germany, etc.
Further, it was observed that the fee
income generated by 47 branches of Hong
Kong originated banks operating in India was
Rs. 2,015 crore whereas that by 12 branches
of Indian banks operating in Hong Kong was

RBI
Monthly Bulletin
November 2009 2285
ARTICLE
International Trade
in Banking Services,
2007-08
merely Rs. 193 crore in 2007-08. There were
95 branches of UK origin banks operating in
India with fee income of Rs.1, 763 crore as
compared with only Rs. 605 crore emanating
from 23 branches of Indian origin banks
operating in the UK. As against 45 branches
of US based banks operating in India with a
fee income of Rs. 2,747 crore, Indian banks
operating in the US through 6 branches could
generate Rs. 175 crore in 2007-08.
Section VI
Conclusions
A survey on international trade in
banking services was conducted among
foreign banks operating in India and Indian
banks having presence abroad. In all, 12
Indian banks operating abroad and 27
foreign banks operating in India had
responded to the survey. The coverage of
foreign banks operating in India in terms
of total assets, credit extended and deposits
received was around 99.9 per cent, 99.7 per
cent and 99.9 per cent, respectively.
The UK was having the highest number
of Indian banks’ branches (23 of 5 Indian
banks), followed by Hong Kong (12), Singapore
(9), Fiji (9), the UAE (9) Mauritius (8), and Sri
Lanka (7). The foreign banks operating in India
employed 99.6 per cent of their employees
from locally available sources while Indian
banks operating abroad recruited 74.5 per cent
of employees from local sources.
Further, the fee income generated by the
Indian banks operating abroad increased
significantly by 83.5 per cent from Rs. 1,890
crore in 2006-07 to Rs. 3,468 crore in 2007-
08, of which 82.6 per cent of fee income was
by rendering banking services like credit
RBI
Monthly Bulletin
2286 November 2009
related services, trade finance related
services, derivative, stock, securities, foreign
exchange trading services and payment &
money transmission services.
A comparative analysis between the
Indian banks operating abroad and foreign
banks operating in India revealed that during
2007-08, the total fee income generated by
the foreign banks operating in India by
rendering banking services was significantly
higher at Rs. 8,974 crore than that of Indian
banks operating abroad which generated only
Rs. 3,468 crore of fee income. Indian banks
generated a major share of fee income by
rendering banking services to non-residents
while foreign banks generated major share
of fee income from residents. Foreign banks
operating in India generated 95 per cent of
fee income by rendering banking services to
residents during 2007-08.
The UK, Singapore, Bahrain, Hong Kong,
Sri Lanka, Bangladesh were the major
countries having witnessed not only the
significant share in trade in banking services
by the Indian banks but also had seen
significant growth in trade in banking
services in 2007-08 over 2006-07.
The amount accrued to India by Indian
origin banks’ branches operations in various
countries was at Rs. 3,289 crore during
2007-08 whereas the amount accrued to rest
of the world by foreign origin banks’
operations in India was significantly higher
at Rs. 8,973 crore during the same period.
The fee income generated by 47 branches
of Hong Kong origin banks operating in
India was Rs. 2,015 crore in 2007-08
compared to the fee income at Rs. 193 crore
of 12 branches of Indian origin banks
operating in Hong Kong.

Annex - I
Methodology
Financial services, particularly banking
services, play an important role in promoting
global, regional and bilateral economic
integration. Banking ser vices include,
acceptance of deposits and lending (the core
banking services), and the other financial
services (Para banking services) like payment
ser vices, securities trading, asset
management, financial advice, settlement
and clearing ser vice, etc. With the
improvements in economic integration of
financial markets and activities, the
international trade in banking services has
significantly increased.
The GATS framework envisages that the
delivery of any commercial services can be
through four different modes viz. Mode 1 –
Cross Border Service, Mode 2 – Consumption
abroad, Mode 3 – Commercial presence and
Mode 4 – movement of natural persons. In
Mode 3, the bank has a commercial presence
in the territory of the service importing
country and the service is delivered therein.
The commercial presence can be through
various investment vehicles like representative
offices, branches, subsidiaries, associates and
correspondents.
Banking services covered in this survey
include financial auxiliary services such as
(i) deposit account management services, (ii)
credit related services, (iii) financial leasing
services, (iv) trade finance related services,
(v) payment and money transmission
services, (vi) fund management services, (vii)
financial consultancy and advisory services,
(viii) underwriting services, (ix) clearing and
settlement services, and (x) derivative, stock,
securities and foreign exchange trading
services. While carrying out the banking
ARTICLE
International Trade
in Banking Services,
2007-08
business, banks cater to the financial services
needs of the residents of the country of
operation as well as non-residents of that
country. Keeping this in view, the survey also
collected the information with bifurcation of
financial services rendered to residents and
non-residents, separately.
Details of Services Covered are:
• Deposit Account Management services
include fees and commissions charged to
or received from the deposit account
holders, for maintaining deposit
accounts such as fee for cheque book, fee
for internet banking, commission on
draft and other instrument provided,
penalty for not maintaining minimum
balance, etc. and any other fees charged
to deposit account holders.
• Credit related services include fees
received for credit-related or lending
related services like credit processing
fees, late payment or default charges and
early redemption charges. Charges for
facility and management fees, fees for
renegotiating debt terms, mortgage fees,
etc. also to be reported here.
• Financial Leasing services include fees
or commission received for arranging or
entering into financial lease contracts.
This also includes fees received directly
or deducted from the proceedings.
• Trade Finance related services include
commission or fees charged for arranging
trade finance like buyers’ and suppliers’
credit, fees for establishing/originating,
maintaining or arranging standby letters
of credit, letter of indemnity, lines of
RBI
Monthly Bulletin
November 2009 2287
ARTICLE
International Trade
in Banking Services,
2007-08
Annex - I
Methodology (Contd.)
credit, fees for factoring services, bankers
acceptance, issuing financial guaranty,
commitment fees, handling charges for
trade bills.
• Payment and Money Transmission
services include fees or charges for
electronic fund transfer services like
SWIFT, TT, wire transfer, etc. ATM
network Services, annual credit /debit
card fees, Interchange charges, fees for
point of services, etc. also have to be
reported here. Further, Charges on the
customer for making remittances abroad
or receiving remittances from abroad
have to be reported here.
• Fund Management services include fee or
income received for managing or
administering financial portfolios, all
forms of collective investment
management, pension fund management,
custodial, depository and trust services.
Commission or fees for safe custody of
shares/equities, transaction fee for
custodian account, communication cost or
any other fees/charges related to custodian
account should also be reported.
• Financial Consultancy and Advisory
ser vices include fees for advisor y,
intermediation and other auxiliar y
financial ser vices including credit
reference and analysis, portfolio research
and advice, advice on mergers and
acquisitions and on corporate
restructuring and strategy. Arrangement/
management fees for Pvt. Placement of
share/ equities are also to be included.
• Under writing ser vices include
underwriting fees, earning from buying
RBI
Monthly Bulletin
2288 November 2009
and reselling an entire or substantial
portion of newly issued securities.
• Clearing and Settlement ser vices
include settlement and clearance
services for financial assets, including
securities, derivative products, and other
negotiable instruments.
• Derivative, Stock, Securities, Foreign
Exchange trading ser vices include
commissions, margin fees, etc. received
for carrying out financial derivative
transactions, placement services, and
redemption fees. Earnings received on
banks’ own account as well as on behalf
of customers for carrying out foreign
exchange trading has to be reported
under this item. Explicit brokerage fees
and commissions for foreign exchange
brokerage services are also to be reported.
Earnings received on banks’ own account
for carrying out trading in derivative,
stock, securities etc. should not be
reported.
A technical Group on Statistics for
International Trade in Banking Services (TG-
SITBS) was set up by the Reserve Bank of
India including members from Ministry of
Finance, Ministry of Commerce and various
departments (Department of Economics
Analysis and Policy, Department of Banking
Operations & Development and Department
of Statistics and Information Management)
of the Bank.
The TG-SITBS, after examining the different
data sources available in the Reserve Bank,
recommended collection of activity-wise
international trade in services through annual
surveys and suggested that initially the data may
 ARTICLE
International Trade
in Banking Services,
2007-08

Annex - I
Methodology (Concld.)

be collected on banking services from foreign (ii) all foreign bank branches operating in
banks operating in India and Indian banks India. In all 12 Indian banks operating abroad
having operations abroad. The TG-SITBS also and 27 foreign banks operating in India
recommended that a suitable questionnaire with responded to the survey. 4 Indian banks
explanatory notes should be prepared/framed opened their overseas representative offices
in consultation with the banks and suggested furnished Nil return. Based on the response,
for conducting annual survey for the financial the coverage of foreign banks in India in
year 2006-07 by June 2007. Accordingly, a survey terms of total assets, credit extended and
schedule was prepared after detailed discussions deposits received was around 99.9 per cent,
with the major foreign banks operating in India 99.7 per cent and 99.9 per cent, respectively.
and Indian banks functioning abroad.
Coverage of the survey as at end-March 2008
The first survey on ‘International Trade (Rs. crore)
in Banking Services’ was launched by the Item Foreign Banks Foreign Banks Coverage
Bank in January 2008 and the findings based operating in covered in (%)
India* the Survey
on the survey published in the monthly
Number of
bulletin of January 2009.
Reporting Banks 28 27
Total assets 364099 364019 99.9
Coverage
Credit extended 161133 160646 99.7
The questionnaire was forwarded to (i) Deposits received 191114 191015 99.9
all Indian banks having business abroad and * Source: Statistical Tables Relating to Banks in India.

RBI
Monthly Bulletin
November 2009 2289
ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II

Reserve Bank of India

Department of Statistics and Information Management

Annual Survey on International Trade in Banking Services 2007-08

(To be reported by Foreign Banks in India)
PART I : General Information
1. Name of the Reporting Bank :
2. Address of the reporting Bank : #N/A
#N/A
#N/A
#N/A

3. Percentage Share in JV /Subsidiary/Associate

(This column is intented only for those banks submitting
the data on Joint Venture /Subsidiary/ Associates )
4. Information on Branches /JV/Subsidiary/associate :
Number of branches Total number of employees
Indian Foreign

5. Information on outstanding Assets and Liabilities : (based on the operations of the branches
in India):
(Amount in Rs ‘Thousands)
As at the end of Asset Liability (including Share Capital)
Within India Abroad Within India Abroad
June ‘07
September ‘07
December ‘07
March’08

6. Information on outstanding Credit and Deposits (based on the operations of the branches in
India):
(Amount in Rs ‘Thousands)
As at the end of Credit Deposits
Resident Non-Resident Resident Non-Resident
June ‘07
September ‘07
December ‘07
March’08

RBI
Monthly Bulletin
2290 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Contd.)

7. Information on total Income and Expenditure : (based on the operations of the branches in
India):
(Amount in Rs’Thousand)
During the financial year Total Income Total Expenditure
2007-08

8. Information on Interest Income (based on the operations of the branches in India):

(Amount in Rs ‘Thousands)
During the Period Interest received from Interest Expended to
Resident Non-Resident Resident Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

PART II: Information on Trade in Banking Services

9. Information on explicit fees and earnings [Please read the instructions before filing this
information]
A. Deposit Account management services
(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

B. Credit related services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

RBI
Monthly Bulletin
November 2009 2291
ARTICLE
International Trade
in Banking Services,
2007-08

Annex -- III (Contd.)

Annex (Contd.)

C. Financial Leasing services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

D. Trade finance related services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

E. Payment and Money Transmission Services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

F. Fund Management Services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

RBI
Monthly Bulletin
2292 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Contd.)

G. Financial Consultancy and Advisory services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

H. Underwriting services
(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

I. Clearing and settlement services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

J. Derivative, Stock, Securities, Foreign Exchange trading services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

RBI
Monthly Bulletin
November 2009 2293
ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II(Contd.)

K. Other Financial Services

(Amount in Rs’Thousand)
During the Period Resident Entities Non-Resident
April-Jun’07
July-Sept’07
Oct-Dece’07
Jan-Mar’08

Part III: Comments if any in order to enhance the transparency on the methodology used for
estimation on the data items provided in Part II

RBI
Monthly Bulletin
2294 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Contd.)

Reserve Bank of India

Department of Statistics and Information Management

Annual Survey on International Trade in Banking Services 2007-08

(To be reported by Indian Banks relating to their
offices/branches of overseas operations)

PART I : General Information

1. Reporting Bank’s Name:

2. Address of the reporting Bank : #N/A
#N/A
#N/A
#N/A

3. Country of Operations for which the information is filled in : #N/A

4. Base Currency in which financial account
reported to corporate office: #N/A

5. Percentage Share in JV/Subsidiary/Associate

(This column is intented only for those banks submitting the data on Joint Venture /Subsidiary/
Associate )

6. Information on Branches /JV/Subsidiary/Associate :

No. of Branches Total No. of Employees
Local Indian Others

7. Information on outstanding Assets (Based on the country wise Balance sheet)

(Amount in ‘Thousands of Base Currency)
Outstanding Position Resident Non Resident
at the end of In India Other Countries
June ‘07
September ‘07
December ‘07
March ‘08

RBI
Monthly Bulletin
November 2009 2295
ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Contd.)

8. Information on outstanding Liabilities (Based on the country wise Balance sheet)

(Amount in ‘Thousands of Base Currency)
Outstanding Position Resident Non Resident
at the end of India Other Countries
June ‘07
September ‘07
December ‘07
March ‘08

9. Information on outstanding Credit extended (Based on the operations of the bank in each
country)
(Amount in ‘Thousands of Base Currency)
Outstanding Position Resident Non Resident
at the end of India Other Countries
June ‘07
September ‘07
December ‘07
March ‘08

10. Information on outstanding Deposit received (Based on the operations of the bank in
each country):
(Amount in ‘Thousands of Base Currency)
Outstanding Position Resident Non Resident
at the end of India Other Countries
June ‘07
September ‘07
December ‘07
March ‘08

11. Information on total Income and Expenditure (Based on the country wise Balance sheet)
(Amount in ‘Thousands of Base Currency)
Period Total Income Total Expenditure
2007-08

RBI
Monthly Bulletin
2296 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Contd.)

12. Information on Interest income received (Based on the country wise Balance sheet):
(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

13. Information on Interest paid (Based on the country wise Balance sheet)
(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

Part II : Information on Trade in Banking Services

14. Information on Explicit fees and Income [Please read the instructions before filing this
information]
A. Deposit Account management services
(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

RBI
Monthly Bulletin
November 2009 2297
ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Contd.)

B. Credit related services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

C. Financial Leasing services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

D. Trade finance related services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

E. Payment and Money Transmission Services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

RBI
Monthly Bulletin
2298 November 2009
 ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Contd.)

F. Fund Management Services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

G. Financial Consultancy and Advisory services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

H. Underwriting services
(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

I. Clearing and settlement services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

RBI
Monthly Bulletin
November 2009 2299
ARTICLE
International Trade
in Banking Services,
2007-08

Annex - II (Concld.)

J. Derivative, Stock, Securities, Foreign Exchange trading services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

K. Other Financial Services

(Amount in ‘Thousands of Base Currency)
Period Resident Non Resident
India Other Countries
April-June ‘07
July-September ‘07
October-December ‘07
January-March ‘08

Part III. Comments if any, in order to enhance the transparency on the methodology used for
estimation on the data items provided in Part II

RBI
Monthly Bulletin
2300 November 2009
Other Items
Press Releases

Regulatory and Other Measures

Foreign Exchange Developments

RBI
Monthly Bulletin
November 2009
 OTHER
ITEMS
Press Releases

Press Releases RBI Efforts to improve Banking

Reach in Sikkim
October 2009 October 1, 2009
Banks will open additional currency
chests in the State of Sikkim within the next
nine months so as to cover all the district
headquarters in the State. Banks and the
State administration will also work in close
coordination to enhance credit flow in
Sikkim. Further, the functioning of State
Level Bankers Committee (SLBC) will be
strengthened with high level participation
from the State Government side. The
commercial banks and the State Cooperative
Bank of Sikkim have agreed to open new
branches in most of the unbanked blocks
in the State with banks using IT enabled
banking ser vices through Banking
Correspondents in the remaining blocks to
extend banking ser vices to promote
financial inclusion.

These were the major decisions taken

after Dr. D.Subbarao, Governor, Reserve Bank
of India met Shri Pawan Chamling, the
Hon’ble Chief Minister of Sikkim, other senior
State officials and senior bankers in the State.
The Chief Minister, in his meeting with the
Governor had expressed the need for opening
of at least one currency chest in every district
headquarter, one branch in all unbanked
blocks and enhancing credit flow in the State.

Certificate of Registration of M/s.

Bharat Finance Corporation
Private Limited - Cancelled
October 7, 2009
The Reserve Bank of India has on August
31, 2009 cancelled the certificate of
registration granted to M/s. Bharat Finance

RBI
Monthly Bulletin
November 2009 2301
OTHER
ITEMS
Press Releases
Corporation Private Limited, having its
registered office at 20/1, Asaf Ali Road, New
Delhi-110002 for carrying on the business of
a non-banking financial institution. Following
cancellation of the registration certificate the
company cannot transact the business of a
non-banking financial institution.
Certificate of Registration of M/s.
San Components Limited –
Cancelled
October 7, 2009
The Reserve Bank of India has on August
31, 2009 cancelled the certificate of
registration granted to M/s. San Components
Limited having its registered office at 1598,
Main Bazar, Paharganj, New Delhi-110055 for
carrying on the business of a non-banking
financial institution as the company has
voluntarily exited from the business of a non-
banking financial institution. Following
cancellation of the registration certificate the
company cannot transact the business of a
non-banking financial institution.
Certificate of Registration of
K.N.R. Finance & Investments
Private Limited - Cancelled
October 7, 2009
The Reserve Bank of India has on
September 14, 2009 cancelled the certificate
of registration granted to K.N.R. Finance &
Investments Private Limited, having its
registered office at No.3, First Floor, Sri Vishnu
Complex, B.M. Road, Channarayapatna-
573116 for carrying on the business of a non-
banking financial institution. Following
cancellation of the registration certificate
the company cannot transact the business
of a non-banking financial institution.
RBI
Monthly Bulletin
2302 November 2009
Investment by FIIs under PIS :
Everonn Systems India Ltd.
October 7, 2009
The Reserve Bank of India has today
notified that the aggregate share holdings in
Everonn Systems India Ltd. by Foreign
Institutional Investors (FIIs) under Portfolio
Investment Scheme (PIS) have reached the
trigger limit of their paid up capital. Therefore,
further purchases of equity shares in the
primary/secondary market of this company
would be allowed only after obtaining prior
approval of the Reserve Bank of India.
RBI provides XBRL enabled filing
of Online Returns
October 14, 2009
The Reser ve Bank of India has
implemented Online Returns Filing System
(ORFS) for banks to submit information
electronically. Keeping in line with the
emerging global standards in the area of
financial reporting, the Reserve Bank has
adopted eXtensible Business Reporting
Language (XBRL) taxonomies for reporting
the regulatory returns (RCA2) developed as
per Basel II guidelines.
In addition to the facility to submit the
ORFS/XBRL returns through hyperlinks for
banks, the ORFS page has also the
taxonomies with useful information on the
current developments in the area of XBRL
for banks and other stakeholders. At
present, banks can file returns in electronic
form as well through the Reserve Bank of
India’s secured website and now they will
also be able to file the returns through XBRL
enabled return filing system. The returns
can be filed online through a link provided
 OTHER
ITEMS
Press Releases

under the ‘For Bankers’ link on the Reserve Certificate of Registration -

Bank’s website (www.rbi.org.in). From the Cancelled
‘For Bankers’ link, a new page called “Online
October 22, 2009
Reporting” has been made available.
The Reserve Bank of India has cancelled
The Reserve Bank of India is in the the certificates of registration granted to the
process of adopting taxonomies for several following companies, having their registered
other returns, including annual and offices at the address shown against them,
quarterly financial statements. for carrying on the business of a non-banking
financial institution. Following cancellation
Certificate of Registration - of the registration certificate the companies
Cancelled cannot transact the business of a non-
October 15, 2009 banking financial institution.

The Reserve Bank of India has cancelled Company’s Address of Registration Date of
name Registered No. & Date cancellation
the certificates of registration granted to the
office
following companies, having their registered
offices at the address shown against them, M/s. Leasement 2nd Floor, 157 Kapil 14.01382 dated September 2, 2009
Investo (India) Vihar, Main Road, November 30, 1998
for carrying on the business of a non-banking Limited Pitampura,
financial institution. Following cancellation Delhi-110034.
of the registration certificate the companies M/s. Khemsons 57D, Khizrbad, 14.01259 dated August 31, 2009
cannot transact the business of a non- Global Limited Near New Friends September 22, 1998
Colony,
banking financial institution.
New Delhi-110065.

Company’s Address of Registration Date of M/s. Rex 307, Ajiesh House, B-14.00714 dated August 31, 2009
name Registered No. & Date cancellation Financial 16/3 Abdul Aziz April 30, 1998
office Services Private Road, WEA Karol
Limited Bagh,
M/s. Peekod Delhi Rohtak B-14.01890 dated August 31, 2009 New Delhi-110005.
Finance Road, Opp Tehsil, September 4, 2000
Company Bahadurgarh-124507.
Private (Haryana) Reserve Bank cancels the Licence
Limited of The Surat Mahila Nagrik
M/s. Swarn 737, 2nd Floor, B-14.02255 dated August 31, 2009 Sahakari Bank Ltd., Surat (Gujarat)
Finvest Shibsahay Building, July 24, 2002
Private Church Mission October 22, 2009
Limited Road, Fatehpuri,
Delhi-110006.
In view of the fact that The Surat Mahila
Nagrik Sahakari Bank Ltd., Surat had ceased
M/s. Utkarsh 4/3550, Gali No. 10, B-14.02070 dated September 3, 2009
Finvest Sidharth Gali, November 14, 2000 to be solvent, the affairs of the bank were
Private Vishvas Nagar, being conducted in a manner detrimental to
Limited Shahdra, the interests of the depositors and the
Delhi-110032.
depositors were being inconvenienced by
M/s. Vatika G-56, Ashok Vihar, 14.02122 dated September 3, 2009
continued uncertainty, the Reserve Bank of
Portfolio Phase-I, November 25, 2000
Private New Delhi-110052. India delivered the order cancelling its
Limited licence to the bank after the close of business

RBI
Monthly Bulletin
November 2009 2303
OTHER
ITEMS
Press Releases
on October 20,2009. The Registrar of Co-
operative Societies, Gujarat has also been
requested to issue an order for winding up
the bank and appoint a liquidator for the
bank. It may be highlighted that on
liquidation, every depositor is entitled to
repayment of his/her deposits up to a
monetary ceiling of Rs.1,00,000/- (Rupees one
lakh only) from the Deposit Insurance and
Credit Guarantee Corporation (DICGC) under
usual items and conditions.
Consequent to the cancellation of its
licence, The Surat Mahila Nagrik Sahakari
Bank Ltd., Surat, Gujarat is prohibited from
carrying on ‘banking business’ as defined
in Section 5 (b) of the Banking Regulation
Act,1949 (AACS) including acceptance and
repayment of deposits.
For any clarifications, depositors may
approach Shri C.N.Modi, Assistant General
Manager, Urban Banks Department, Reserve
Bank of India, Ahmedabad. His contact
details are as below:
Postal Address: Urban Banks
Department ,Reser ve Bank of India,
Ahmedabad Regional Office, La Gajjar
Chambers, Ashram Road, Ahmedabad-
380009; Telephone Number; (079) 26589338;
Fax Number (079) 26584853; Email.
Reserve Bank Cancels the Licence
of Suvidha Mahila Nagrik Sahakari
Bank Maryadit, Hoshangabad
(M.P.)
October 26, 2009
In view of the fact that Suvidha Mahila
Nagrik Sahakari Bank Maryadit, Hoshangabad
RBI
Monthly Bulletin
2304 November 2009
(M.P.), had ceased to be solvent, all efforts
to revive it in close consultation with the
Government of Madhya Pradesh had failed
and the depositors were being
inconvenienced by continued uncertainty,
the Reserve Bank of India delivered the
order canceling its licence to the bank after
the close of business on October 21, 2009.
The Registrar of Co-operative Societies,
Madhya Pradesh State has also been
requested to issue an order for winding up
the bank and appoint a liquidator for the
bank. It may be highlighted that on
liquidation, every depositor is entitled to
repayment of his/her deposits up to a
monetary ceiling of Rs. 1,00,000/- (Rupees
one lakh only) from the Deposit Insurance
and Credit Guarantee Corporation (DICGC)
under usual terms and conditions.
Consequent to the cancellation of its
licence, Suvidha Mahila Nagrik Sahakari
Bank Maryadit, Hoshangabad (M.P.), is
prohibited from carr ying on ‘banking
business’ as defined in Section 5(b) of the
Banking Regulation Act, 1949 (A ACS)
including acceptance and repayment of
deposits.
For any clarifications, depositors may
approach Shri. D.K. Baxi, Deputy General
Manager, Urban Banks Department, Reserve
Bank of India, Bhopal. His contact details
are as below:
Postal Address: Urban Banks Department,
Reserve Bank of India, P.B. No. 32,
Hoshangabad Road, Bhopal – 462 016.
Telephone Number : (0755) 2555072 / 2762485
Fax Number: (0755) 2554515.

Freedom to domestic Scheduled
Commercial Banks to open
branches in Tier 3 to Tier 6 centres
and rural, semi-urban and urban
centres in North Eastern States
and Sikkim recommended
October 27, 2009
A Group constituted by Reserve Bank of
India has recommended that domestic
scheduled commercial banks (other than
RRBs) may be given freedom to open
branches in Tier 3 to Tier 6 centres (centres
with population upto 49,999), without the
prior permission of Reserve Bank of India,
subject to reporting.
The Group has also recommended that
domestic scheduled commercial banks
(other than RRBs) may be given general
permission to open branches in rural, semi-
urban and urban centres in the North
Eastern States and Sikkim.
The Group further recommended that
banks would continue to approach Reserve
Bank of India for prior permission for
opening of branches in Tier 1 and Tier 2
centres (centres with population of 50,000
and above as per 2001 Census). The
number of branches which would be
authorised by RBI based on such
applications may depend, inter alia, upon
various aspects including a requirement
that banks may plan their annual branch
expansion in such a manner that at least
one-third of total number of branches
opened in a financial year are in
underbanked districts and financially
excluded districts of underbanked States as
OTHER
ITEMS
Press Releases
also upon a critical assessment of the steps
taken by the bank towards achieving the
goal of financial inclusion such as the rate
of credit growth in rural branches, growth
in number of deposit accounts in rural areas
and growth in credit accounts for less than
Rs.25,000/- etc.,
The Group has also recommended that
the branch authorisation policy in respect
of foreign banks may remain unchanged
until review of the roadmap for foreign
banks.
The Group is also of the view that the
way for ward for ensuring banking
penetration and financial inclusion would be
to have an appropriate combination of the
physical ‘brick and mortar’ branch model and
the branchless models such as Offsite ATMs/
Point of Sale terminals, Business
Correspondent model, mobile banking etc.,
and it should be basically left to the banks
themselves to decide as to which model
would be suitable for delivery of banking
services in a particular area, depending upon
the special needs of that area.
Recent relaxation
As regards Off-site ATMs, banks have
been granted general permission to install
Off-site ATMs with effect from June 12, 2009,
subject to reporting, without having the need
to take permission from the Reserve Bank
in each case. However, this is subject to any
direction which the Reserve Bank may issue,
including for closure/shifting of any such Off-
site ATMs, wherever so considered necessary
by the Reserve Bank.
RBI
Monthly Bulletin
November 2009 2305
 OTHER
ITEMS
Regulatory
and
Other
Measures

Regulatory RBI/2009-10/178 RPCD.CO RRB No. 29/

03.05.33/2009-10 dated October 6, 2009
and Other Measures RRBs - Priority Sector Lending –
October 2009 Categorisation of activities under
service under the MSMED Act, 2006
In terms of paragraphs 2.1.1 and 2.1.2
of Section I of the guidelines on lending to
priority sector enclosed to circular
RPCD.No.RRB.BC.20/ 03.05.33/2007-08 dated
August 22, 2007, credit to small enterprises
includes loans granted to micro and small
(manufacturing and service) enterprises,
provided investment in plant and
machinery [original cost excluding land and
building and the items specified by the
Ministry of Small Scale Industries vide its
notification no. S.O. 1722 (E) dated October
5, 2006] does not exceed Rs. 5 crore in
respect of manufacturing enterprises and
investment in equipment (original cost
excluding land and building and furniture,
fittings and other items not directly related
to the service rendered or as may be notified
under the MSMED Act, 2006) does not
exceed Rs. 2 crore in respect of service
enterprises. Further, in terms of paragraphs
3.1 and 3.2, Retail Trade forms a separate
category under priority sector.
2. The Government of India, vide
communication No. 5(6)/2/2009-MSME POL
dated June 12, 2009, has indicated the
categorisation of activities under services
under the Micro Small and Medium
Enterprises Development (MSMED) Act, 2006.
On examination, it has been decided to
include loans granted by Regional Rural Banks
(RRBs) in respect of following activities under
Micro and Small (Service) Enterprises within
the priority sector, provided such enterprises
satisfy the definition of Micro and Small

RBI
Monthly Bulletin
November 2009 2307
OTHER
ITEMS
Regulatory
and
Other
Measures
(Service) Enterprises in respect of investment
in equipment (original cost excluding land and
building and furniture, fittings and other
items not directly related to the service
rendered or as may be notified under the
MSMED Act, 2006) (i.e. not exceeding Rs. 10
lakh and Rs. 2 crore respectively). (a)
Consultancy Services including Management
Services; (b) Composite Broker Services in Risk
and Insurance Management; (c)Third Party
Administration (TPA) Services for Medical
Insurance Claims of Policy Holders; (d)Seed
Grading Services; (e)Training-cum-Incubator
Centre; (f) Educational Institutions; (g)
Training Institutes; (h) Retail Trade; (i) Practice
of Law, i.e. legal services; (j) Trading in medical
instruments (brand new); (k) Placement and
Management Consultancy Services; and (l)
Advertising agency and Training centres.
3. Accordingly, there will be no separate
category for “Retail Trade” under priority
sector. Loans granted by RRBs for Retail Trade
[i.e. advances granted to retail traders dealing
in essential commodities (fair price shops),
consumer co-operative stores; and advances
granted to private retail traders with credit
limits not exceeding Rs. 20 lakh] would hence
forth be part of the Small (Service) Enterprise.
4. Please acknowledge receipt to our
Regional Office concerned.
RBI/2009-10/181 RPCD.CO.RF.BC.No.31/
07.38.01/2009-10 dated Oct 12, 2009
All State and Central Co-operative Banks
StCBs/DCCBs – Payment of
Interest on Savings Bank Account
on a Daily Basis
Please refer to paragraph 3 (iii) of our
directive RPCD.No.RF.Dir.BC.53/D.1-87/88
RBI
Monthly Bulletin
2308 November 2009
dated November 2, 1987, in terms of which
interest in the case of savings deposits shall
be calculated on the minimum balance to
the credit of the deposit account during the
period from the 10th to the last day of each
calendar month.
2. On a review, it has been decided that the
interest on balances in savings bank accounts
would be calculated on a daily product basis
with effect from April 01, 2010. All State and
Central Co-operative Banks are advised to
work out modalities to effect a smooth
transition to the revised procedure.
RBI/2009-10/183 RPCD.SP.BC.No.30 /
09.16.01/ 2009 -10 dated October 12, 2009
The Chairman/Managing Director
All Scheduled Commercial Banks
(Excluding RRBs)
Swarna Jayanti Shahari Rozgar Yojana
(SJSRY) Revised Guidelines - 2009
Please refer to our Master Circular
RPCD.SP.BC.No 3/09.16.01/2009-10 dated July
1, 2009, issuing instructions/directives to
banks with regard to operationalisation of the
Swarna Jayanti Shahari Rozgar Yojana (SJSRY).
2. On a review, the Ministry of Housing
& Urban Poverty Alleviation has
comprehensively revised the SJSRY Scheme.
The revised guidelines will come in to effect
immediately.
3. However, as regards mechanism of
administering the subsidy under the revised
scheme and new reporting formats, we have
sought clarifications from the Ministry of
Housing & Urban Poverty Alleviation and,
as a result, clarifications/instructions in this
regard would be communicated as soon as
received from the Government of India.

4. In the meantime, please take appropriate
action as envisaged for banks in the said
documents and issue necessary instructions
to your branches / controlling offices for
successful implementation of the scheme.
5. Kindly acknowledge receipt.
RBI / 2009-10/186 RPCD.No.PLFS.BC. 33/
05.04.02/2009-10 dated October 22, 2009
The Chairman/Managing Director
All Public Sector Banks
2 per cent interest subvention
scheme continued/1 per cent
additional incentive subvention for
short-term crop loans in 2009-10
As you are aware, the Hon’ble Finance
Minister, in his Budget Speech (paragraph
27) for 2009-10 had announced as follows:
“I propose to continue the interest
subvention scheme for short term crop loans
to farmers for loans upto Rs.3 lakh per farmer
at the interest rate of 7 per cent per annum”.
2. In pursuance of this announcement,
Government will provide interest
subvention of 2 per cent per annum to Public
Sector Banks in respect of short-term
production credit up to Rs.3 lakh provided
to farmers. This amount of subvention will
be calculated on the crop loan amount from
the date of its disbursement/drawal up to
the date of repayment or up to the date
beyond which the outstanding loan
becomes overdue i.e. March 31, 2010 for
Kharif and June 30, 2010 for R abi,
respectively, whichever is earlier, subject to
a maximum period of one year. This
subvention will be available to Public Sector
Banks on the condition that they make
OTHER
ITEMS
Regulatory
and
Other
Measures
available short-term credit at ground level
at 7 per cent per annum.
3. Banks are advised to immediately submit
their estimates of short-term production
credit to farmers up to Rs.3.00 lakh for Kharif
and Rabi 2009-10 (separately) to enable us to
provide Government with an estimate of the
likely amount of subvention. Please note that
the estimates should be realistic in nature.
4. It is also advised as under:
i) In order to enable the Government to
provide subvention, banks are required
to submit their claims on a half-yearly
basis as at September 30, 2009 and
March 31, 2010 , and for the quarter
ending June 30, 2010 (for Rabi), within
one month from the respective dates.
ii) The claims for the half-year ending March
31, 2010 and quarter ending June 30, 2010
(for Rabi) should be accompanied by a
Statutory Auditor’s certificate certifying
that the claims for subvention for the
entire year ended March 31, 2010 and
quarter ending June 30, 2010 (as the case
may be) as true and correct. Final
settlement of the claims will be done only
on receipt of this certificate.
iii) Claims may be submitted to the Chief
General Manager-in- Charge, Rural
Planning and Credit Department,
Reserve Bank of India, Central Office,
Shahid Bhagat Singh Road, Fort, Mumbai
– 400 001.
5. Further, the Hon’ble Finance Minister,
in his Budget Speech (paragraph 27) for
2009-10 had announced as follows:
“I am also happy to announce that, for this
year, the Government shall pay
RBI
Monthly Bulletin
November 2009 2309
OTHER
ITEMS
Regulatory
and
Other
Measures
an additional subvention of 1 per cent as
an incentive to those farmers who repay
their short term crop loans on schedule.
Thus, the interest rate for these farmers will
come down to 6 per cent per annum.”
6. In pursuance of this announcement,
Government will provide additional interest
subvention of 1 per cent per annum to Public
Sector Banks in respect of those prompt
paying farmers who repay their short-term
production credit within one year of
disbursement of such loans. This
subvention will be available to such farmers
on the short-term production credit availed
by them during the year for a maximum
amount of Rs.3 lakh and the amount of
subvention will be calculated from the date
of disbursement/drawal up to the date of
repayment subject to a maximum period
of up to one year per farmer account. This
subvention will be available to Public Sector
Banks on the condition that the effective
interest rate charged to the prompt paying
farmers is 6 per cent per annum up to Rs. 3
lakh. This process is being adopted to
incentivise the prompt payers as well as the
lending institutions so that the line of credit
remains declogged, thus increasing the
availability of institutional credit to farmers
throughout the year.
7. It is therefore advised as under:
i) In order to enable the Government to
provide subvention, banks may credit
the additional 1 per cent subvention to
the farmers account only after their
prompt repayment as stated earlier and
seek reimbursement subsequently.
The banks may submit their one-time
consolidated claims for the entire year,
incorporating the claims pertaining to
RBI
Monthly Bulletin
2310 November 2009
both Kharif and Rabi disbursements for
the year 2009-10, latest by July 31,
2010.
ii) The claims should be accompanied by a
Statutory Auditor’s certificate certifying
that the claims for subvention for the
entire year ended March 31, 2010, as
true and correct.
iii) Claims may be submitted to the Chief
General Manager-in- Charge, Rural
Planning and Credit Department,
Reserve Bank of India, Central Office,
Shahid Bhagat Singh Road, Fort,
Mumbai – 400 001.
8. In case of RRBs and co-operatives, a
separate circular will be issued by NABARD
RBI/2009-10/191 UBD.BPD.No.16 / 09.22.010/
2009-10 dated October 26 , 2009
Chief Executive Officer Primary (Urban)
Cooperative Banks
UCBs - Finance for Housing Projects
– Disclosure of Information on
Mortgage of Property
Finance for Housing Projects –
incorporating clause in the terms and
conditions to disclose in pamphlets /
brochures / advertisements –
information regarding mortgage of
property to the bank
Please refer to para 9 and Annex 1 of
our circular UBD.PCB.MC.No. 2 / 09.22.010
/ 2009-10 dated July 1, 2009 (Master circular
on Housing Finance) regarding precautions
to be taken by banks while extending
finance for housing schemes.

2. In a case which came up before the
Hon’ble High Court of Judicature at Bombay,
the Hon’ble Court observed that the bank
granting finance to housing/ development
projects should insist on disclosure of the
charge / or any other liability on the plot, in
the brochure, pamphlets etc., which may be
published by developer/ owner inviting
public at large to purchase flats and
properties. The Court also added that this
obviously would be part of the terms and
conditions on which the loan may be
sanctioned by the bank.
3. Keeping in view the above observations,
while granting finance for eligible housing
schemes, Urban Cooperative Banks are
advised to stipulate as part of terms and
conditions that:
i. The builder / developer / company,
disclosed / would disclose in the
pamphlets / brochures etc., the name(s)
of the bank(s) to which the property is
mortgaged.
ii. The builder / developer / company
would append the information relating
to mortgage while publishing
advertisement of a particular scheme in
newspapers / magazines etc.
iii. The builder / developer / company
would indicate in their pamphlets/
brochures that they would provide No
Objection Certificate (NOC)/ permission
of the mortgagee bank for sale of flats /
property if required.
4. Banks are also advised to ensure
compliance of the above terms and
conditions and funds should not be released
unless the builder / developer / company
fulfils the above requirements.
OTHER
ITEMS
Regulatory
and
Other
Measures
RBI/2009-10/193 Ref. MPD. No.1437/
02.01.005/2009-10 dated October 27, 2009
Kartika 4, 1931 (S)
All Scheduled Banks [excluding Regional
Rural Banks (RRBs)]
Export Credit Refinance Facility
Please refer to our circular No.MPD.310/
07.01.279/2008-09 dated November 15, 2008
whereby the eligible limit of export credit
refinance (ECR) facility was enhanced from
the level of 15 per cent of the outstanding
rupee export credit eligible for refinance as
at the end of the second preceding fortnight
to 50 per cent.
2. As indicated in the Second Quarter Re-
view of Monetary Policy 2009-10, it has been
decided to reduce the eligible limit of ECR
facility from the level of 50 per cent of the
outstanding rupee export credit eligible for
refinance as at the end of the second preced-
ing fortnight to 15 per cent with immediate
effect.
3. Part A of the reporting format appear-
ing in Annex III of the Master Circular
No.MPD.4627/07.01.279/2009-10 dated July
1, 2009 is accordingly modified and enclosed.
Annex III
Reporting Formats
Form DAD 389
Name of the Bank
____________________
Statement showing the Export Credit
Refinance Limit for the Fortnight
ended__________________
RBI
Monthly Bulletin
November 2009 2311
OTHER
ITEMS
Regulatory
and
Other
Measures
PART – A
(Rs. In lakh)
1.
Outstanding Export Credit as on the last
Friday of the second preceding reporting
fortnight*___________________
2.
Export Credit Refinance Limit (15 per cent
of item no.1)
___________________
* Outstanding Export Credit for the purpose
of working out refinance limits will be
aggregate outstanding export credit minus
export bills rediscounted with other banks/
Exim Bank/Financial Institutions, export
credit against which refinance has been
obtained from NABARD/Exim Bank, pre-
shipment credit in foreign currency (PCFC),
export bills discounted/rediscounted under
the scheme of ‘Rediscounting of Export Bills
Abroad’, overdue rupee export credit and
other export credit not eligible for refinance.
RBI/2009-10/194 Ref.No.MPD.BC.1438/
02.01.005/2009-10 dated October 27, 2009
All Scheduled Commercial Banks
(excluding Regional Rural Banks)
Special Refiance Facility
Special Refinance Facility (SRF) under
Section 17(3B) of the Reserve Bank of
India Act, 1934
Please refer to our circulars
Ref.No.MPD.BC.309/02.01.009/2008-09 dated
November 3, 2008 and MPD.BC.322/02.01.009/
2008-09 dated April 22, 2009 regarding the
Special Refinance Facility (SRF) under Section
17(3B) of the Reserve Bank of India Act, 1934.
RBI
Monthly Bulletin
2312 November 2009
In terms of this facility all scheduled
commercial banks (excluding RRBs) are
provided refinance from the Reserve Bank
equivalent to up to 1.0 per cent of each bank’s
net demand and time liabilities (NDTL) as on
October 24, 2008 at the repo rate under the
liquidity adjustment facility (LAF) up to a
maximum period of 90 days during which
refinance can be flexibly drawn and repaid.
2. As indicated in the Second Quarter
Review of Monetary Policy 2009-10, it has
been decided to discontinue this facility with
immediate effect. Accordingly, banks cannot
avail fresh refinance from the Reserve Bank
under the facility. Outstandings under this
facility, if any, should be repaid within the
stipulated time of 90 days from the first day
of utilisation as mentioned in the circular
Ref.No.MPD BC.309/02.01.009/2008-09 dated
November 3, 2008.
MPD.BC.325/07.01.279/2009-10 dated October
27, 2009
Second Quarter Review of
Monetary Policy 2009-10
(Including Review of Developmental
and Regulatory Policies)
Please refer to Monetary Policy Statement
2009-10 section of the bulletin.
RBI/2009-10/197 MPD.BC.326 /07.01.279/
2009-10 dated October 28, 2009
Kartika 5, 1931(S)
All Scheduled Commercial Banks
Interest Rate Ceiling on Rupee
Export Credit
Please refer to our circular No.
MPD.BC.323/07.01.279/2008-09 dated April
28, 2009 in terms of which the ceiling on
 OTHER
ITEMS
Regulatory
and
Other
Measures

interest rates on pre-shipment rupee export
credit up to 270 days and post-shipment
rupee export credit up to 180 days has been
stipulated at BPLR minus 2.5 per cent, valid
up to October 31, 2009.
2. It has been decided to extend the validity
of the above dispensation up to April 30, 2010
(Annex).
3. Kindly acknowledge receipt.

Annex
Category With effect from November 1, 2009
(up to April 30, 2010)
Pre-shipment Rupee Export Credit
Up to 270 days Not exceeding BPLR minus 2.5 percentag points

Post –shipment Rupee Export Credit

(a) On demand bills for transit period Not exceeding BPLR minus 2.5 percentage points
(as specified by FEDAI)
(b) Usance bills up to 180 days Not exceeding BPLR minus 2.5 percentage points.

BPLR : Benchmark Prime Lending Rate.

Note: 1. Since these are ceiling rates, banks would be free to charge any rate below the
ceiling rates.
2. Interest rates for the above-mentioned categories beyond the tenors as prescribed
above are free.

RBI
Monthly Bulletin
November 2009 2313
 OTHER
ITEMS
Foreign
Exchange
Developments

Foreign i) Foreign Exchange Management

Act, 1999 – Advance Remittance
Exchange Developments for import of Services
October 2009 In terms of A.P.(DIR Series) Circular No.
15 dated September 8, 2008 the limit for
advance remittance for all admissible
current account transactions for import of
services without bank guarantee was raised
from USD 100,000 to USD 500,000 or its
equivalent.

It is now clarified that the increase in

the limit for advance remittance for all
admissible current account transactions for
import of services without bank guarantee
is not applicable for a Public Sector Company
or a Department/ Undertaking of the
Government of India/ State Governments.

In the case of a Public Sector Company

or a Department/ Undertaking of the
Government of India/ State Governments,
approval from the Ministry of Finance,
Government of India for advance
remittance for import of services without
bank guarantee for an amount exceeding
USD 100,000 (USD One hundred thousand)
or its equivalent would continue to be
required.

[A. P. (DIR Series) Circular No. 10

dated October 5, 2009]

ii) Issue of Bank Guarantee on

behalf of service importers
In terms of Regulation 4(3)(iv) of Foreign
Exchange Management (Guarantees)
Regulations, 2000 notified vide Notification
No. FEMA 8/2000-RB dated May 3, 2000
thereof [amended vide Notification No.
FEMA 151/2007-RB dated January 4, 2007]

RBI
Monthly Bulletin
November 2009 2315
OTHER
ITEMS
Foreign
Exchange
Developments
and A.P. (DIR Series) Circular No. 13 dated
November 17, 2006, banks were allowed to
issue guarantees in favour of a non-resident
service provider, on behalf of a resident
customer who is a service importer, for an
amount up to USD 100,000 or its equivalent,
subject to the terms and conditions
stipulated in the said circular.
2. With a view to further liberalise the
procedure (other than in respect of a Public
Sector Company or a Department/
Undertaking of the Government of India/
State Governments) for import of services,
it has been decided to increase the limit for
issue of guarantee by AD Category-I banks
from USD 100,000 to USD 500,000.
Accordingly, AD Category-I banks have now
been permitted to issue guarantee for
amount not exceeding USD 500,000 or its
equivalent in favour of a non-resident
service provider, on behalf of a resident
customer who is a ser vice importer,
provided:
(a) the AD Category-I bank is satisfied about
the bonafides of the transaction;
(b) the AD Categor y-I bank ensures
submission of documentary evidence
for import of services in the normal
course; and
(c) the guarantee is to secure a direct
contractual liability arising out of a
contract between a resident and a non-
resident.
3. In the case of a Public Sector Company or
a Department/ Undertaking of the
Government of India/ State Governments,
approval from the Ministry of Finance,
Government of India for issue of guarantee
for an amount exceeding USD 100,000 (USD
RBI
Monthly Bulletin
2316 November 2009
One hundred thousand) or its equivalent
would be required.
[A. P. (DIR Series) Circular No. 11
dated October 5, 2009]
iii) Exim Bank’s Line of Credit of
USD 20 million to the State of
Eritrea
Export-Import Bank of India (Exim
Bank) has concluded an Agreement dated
August 24, 2009 with the State of Eritrea
making available to the latter, a Line of
Credit (LoC) of USD 20 million (USD twenty
million) for financing eligible goods and
ser vices, machiner y and equipment
including consultancy services from India
for the purpose of financing multipurpose
agricultural projects not exceeding USD 10
million [ the proposed projects include
Artificial Insemination Development
Project, Poultr y Waterer and Feeder,
Establishment of Milk Collection Centers,
Pressurised Irrigation System (Drip
Irrigation System), Solar Pumps Project and
Soil Sur vey and Land Evaluation
Equipment] and multipurpose educational
projects not exceeding USD 10 million
[which include purchase of teaching
materials including books, laboratory/
educational equipment, chemicals,
computers etc. for seven Eritrean
Institutions of Higher Education established
in 2003-04 viz. Eritrean Institute of
Technology (EIT), CSH, CBE, COMSAT,
OROTTA, HAC and CASS, in addition to the
National Board of Higher Education], in
Eritrea.
[A. P. (DIR Series) Circular No. 12
dated October 23, 2009]

iv) Opening of Diamond Dollar
Accounts (DDAs) - Modification
Attention of Authorised Dealer
Category - I (AD Category-I) banks is invited
to A.P. (DIR Series) Circular No. 51 dated
February 13, 2009 delegating powers to AD
Category–I banks to open and maintain
DDAs by eligible firms and companies
subject to certain terms and conditions.
2. The Government has since relaxed the
eligibility criteria of the track record of at
least 3 years to 2 years and the average
annual turnover of Rs.5 crores or above to
Rs. 3 crores or above during preceding three
licensing years. In this regard, the
Government has issued Notification No. 96
(RE-2008)/ 2004-2009 dated March 13, 2009.
3. Authorised Dealer Category–I banks
have to note the revised eligibility criteria
notified by the Government while
permitting eligible firms and companies to
open and maintain DDAs with them. They
have also been advised to be guided by
Foreign Trade Policy (FTP) in force from time
to time, in future.
[A. P. (DIR Series) Circular No. 13 dated
October 29, 2009]
OTHER
ITEMS
Foreign
Exchange
Developments
v) Participants under ACU
Mechanism- Inclusion of
Maldives Monetary Authority
In the meeting of the Asian Clearing
Union (ACU) Board of Directors, held in
Colombo, Sri Lanka on June 16, 2009, the
Maldives Monetary Authority (MMA) was
admitted in the Asian Clearing Union as a
Member. The Maldives Monetar y
Authority will commence ACU operations
with effect from January 1, 2010. All the
provisions of ACU mechanism, as
applicable to ACU member countries,
unless otherwise specifically exempted,
would be applicable to Maldives Monetary
Authority. AD Category - I banks should
follow the provisions contained in the
Memorandum of Procedure for
Channelling Transactions through Asian
Clearing Union (ACU) [Memorandum ACM]
and the regulations contained in FEMA
Notification No. FEMA 14/2000-RB dated
May 3, 2000 [Foreign Exchange
Management (Manner of Receipt and
Payment) Regulations, 2000], as amended
from time to time, in this regard.
[A. P. (DIR Series) Circular No. 14
dated October 30, 2009]
RBI
Monthly Bulletin
November 2009 2317
Current Statistics
General

Money and Banking

Government Accounts

Government Securities Market

Production

Capital Market

Prices

Trade and Balance of Payments

RBI
Monthly Bulletin
November 2009
CURRENT
STATISTICS
Contents

Contents
Table No. Title Page
General
1. Selected Economic Indicators S 1098
Money and Banking
2. Reserve Bank of India S 1100
3. All Scheduled Banks – Business in India S 1102
4. All Scheduled Commercial Banks – Business in India S 1104
5. Scheduled Commercial Banks’ Investments in Commercial Paper, Bonds, Debentures, Shares, etc. S 1106
6. State Co-operative Banks maintaining Accounts with Reserve Bank of India S 1107
7. Reserve Bank’s Standing Facilities to Scheduled Commercial Banks S 1108
8. Cheque Clearing Data S 1109
9A. Retail Electronic Payment Systems S 1113
9B. Large Value Clearing and Settlement Systems S 1114
10. Money Stock Measures S 1116
11. Sources of Money Stock (M3 ) S 1117
11A. Commercial Bank Survey S 1119
11B. Monetary Survey S 1120
11C. Reserve Bank of India Survey S 1121
11D. Liquidity Aggregates (Outstanding Amounts) S 1122
12. Reserve Money and its Components S 1123
13. Sources of Reserve Money S 1124
14. Daily Call Money Rates S 1125
15. Average Daily Turnover in Call Money Market S 1126
16. Issue of Certificates of Deposit by Scheduled Commercial Banks S 1127
17. Issue of Commercial Paper by Companies S 1128
Government Accounts
18. Union Government Accounts at a Glance S 1129
Government Securities Market
19. Government of India : 91 – Day Treasury Bills (Outstanding at Face Value) S 1130
21. Auctions of 91 – Day Government of India Treasury Bills S 1131
22. Auctions of 182 – Day Government of India Treasury Bills S 1133
23. Auctions of 364 – Day Government of India Treasury Bills S 1134
24. Turnover in Government Securities Market (Face value) at Mumbai S 1135
25. Repo/Reverse Repo Auctions under Liquidity Adjustment Facility S 1136
26. Open Market Operations of Reserve Bank of India S 1137
27A. Secondary Market outright Transactions in Government Dated Securities (Face Value) S 1138
27B. Secondary Market outright Transactions in Treasury Bills (Face Value) S 1139
27C. Month-end Yield to Maturity of SGL Transaction in Central Government Dated
Securities for Various Residual Maturities S 1140
27D. Secondary Market Repo Transactions (Other than with RBI) S 1141
28. Redemption Yield on Government of India Securities Based on SGL Transactions S 1142
Production
29. Group-wise Index Numbers of Industrial Production S 1144
30. IIP – Seventeen Major Industry Groups of Manufacturing Sector S 1145
Capital Market
31. New Capital Issues by Non-Government Public Limited Companies S 1146
32. Index Numbers of Ordinary Share Prices S 1147

RBI
Monthly Bulletin
S 1096 November 2009
 CURRENT
STATISTICS
Contents

Table No. Title Page

33. Volume in Corporate Debt Traded at NSE S 1148

34. Assistance Sanctioned and Disbursed by All-India Financial Institutions S 1149
Prices
35. Bullion Prices (Spot) – Mumbai S 1150
36. Consumer Price Index Numbers for Industrial Workers – All-India and Selected Centres S 1151
37. Consumer Price Index Numbers for Urban Non-Manual Employees – All-India and Selected Centres S 1152
38. Consumer Price Index Numbers for Agricultural / Rural Labourers S 1153
39. Index Numbers of Wholesale Prices in India – By Groups and Sub-Groups (Averages) S 1155
40. Index Numbers of Wholesale Prices in India – By Groups and Sub-Groups (Month-end / Year-end) S 1159
Trade and Balance of Payments
41. Foreign Trade (Annual and Monthly) S 1163
42. India’s Overall Balance of Payments S 1164
43. India’s Overall Balance of Payments S 1172
44. Foreign Exchange Reserves S 1180
45. NRI Deposits – Outstandings and Inflows(+) / Outflows(–) S 1181
46. Foreign Investment Inflows S 1182
46A Outward Remittances under the Liberalised Remittance Scheme for Resident Individuals S 1183
47. Daily Foreign Exchange Spot Rates S 1184
48. Sale / Purchase of US Dollar by Reserve Bank of India S 1185
49. Turnover in Foreign Exchange Market S 1186
50. Indices of REER and NEER of the Indian Rupee (36-Currency Export and Trade Based Weights) S 1087
51. Indices of REER and NEER of the Indian Rupee (6-Currency Trade Based Weights) S 1188
Quarterly Tables
52. Savings Deposits with Commercial Banks
53. Short and Medium-Term Advances of NABARD to State Co-operative Banks
54. Small Savings
55. Details of Central Government Market Borrowings
55A. Details of State Government Market Borrowings
55B. Ownership Pattern of Government of India Dated Securities
Notes on Tables S 1189
Notes : (1) The coverage of data will be expanded from time to time to include new statistical information as and when it
becomes available.
(2) Some of the figures included in the tables are provisional and may be revised in later issues. Each issue contains
all the revisions made upto the date of publication of the Bulletin.
(3) The following symbols have been used throughout this Section :
.. = Figure is not available.
– = Figure is nil or negligible.
P = Provisional.
(4) Where necessary, each figure has been rounded off to the nearest final digit. For this reason, there may be, in
some tables, a slight discrepancy between the sum of the constituent items and the total.
(5) A line drawn across a column between two consecutive figures indicates that the figures above and below the line
have been compiled on different basis and are not strictly comparable. In each case, a suitable footnote is added.
(6) For definitions of important items, sources of data, coverage, scope, method of compilation, etc. a reference may
be made to the Explanatory Notes, issued as a supplement to the October 1978 issue of the Bulletin.
(7) 1 Lakh = 1,00,000, 1 Million = 10 lakh, 1 Crore = 10 Million.

RBI
Monthly Bulletin
November 2009 S 1097
CURRENT
STATISTICS
General

General
No. 1: Selected Economic Indicators

Item Unit / Base 1990-91 2006-07 2007-08 2008-09 2009

Jul. Aug. Sep.
1 2 3 4 5 6 7 8 9
Output
1. Gross Domestic Product at
Factor Cost (at 1999-00 prices) Rs. crore 10,83,572 28,71,120 31,29,717 (Q.E.) 33,39,375 (R.E.)
2. Index number of Triennium
Agricultural Production ended
(All crops) 1993-94=100 148.4 167.2 168.6 ($) ..
a. Foodgrains Production Million tonnes 176.4 217.3 230.8 233.9 £
3. General Index of
Industrial Production (1) 1993-94=100 212.6 * 247.1 268.0 275.4 289.7 (P) 292.3 (P)
Money and Banking
Reserve Bank of India (2)
4. Notes in Circulation Rs. crore 53,784 4,96,775 5,82,055 6,81,058 6,93,409 6,96,058 7,11,316
5. Rupee Securities (3) " 86,035 96,861 83,707 1,21,962 59,219 60,281 84,793
6. Loans and Discount " 19,900 6,585 4,579 21,562 10,652 8,966 9,734
(a) Scheduled Commercial
Banks (4) " 8,169 6,245 4.000 11,728 296 — —
(b) Scheduled State
Co-operative Banks (4) " 38 — — — — — —
(c) Bills Purchased and
Discounted (internal) " — — — — — — —
Scheduled Commercial Banks
7. Aggregate Deposits (5) Rs. crore 1,92,541 26,11,933 31,96,939 38,34,110 40,70,458 40,80,711 41,20,007 (P)
8. Bank Credit (5) " 1,16,301 19,31,189 23,61,914 27,75,549 28,05,224 28,06,741 28,73,155 (P)
9. Investment in Govt.
Securities (5) " 49,998 7,76,058 9,58,661 11,55,786 13,26,870 13,57,134 13,57,137 (P)
10. Cheque Clearances (6) Rs. thousand
crore 1,703 6,467 7,044 6,020 (P) 417 (P) 389 (P) 372 (P)
11. Money Stock Measures (7)
(a) M1 Rs. crore 92,892 9,67,955 11,55,837 12,53,184 12,66,389 12,78,842 13,07,215
(b) M3 " 2,65,828 33,10,068 40,17,883 47,64,019 50,23,552 50,43,113 50,95,812
Cash Reserve Ratio and
Interest Rates
12. Cash Reserve Ratio (2), (16) Per cent 15.00 6.50 7.50 5.00 5.00 5.00 5.00
13. Bank Rate Per cent
Per annum 10.00 6.00 6.00 6.00 6.00 6.00 6.00
14. Inter-bank Call Money Rate
(Mumbai) (8) " 4.00-70.00 0.50-4.90 6.15-9.30 2.50-5.75 1.50-3.30 1.75-3.30 2.15-4.30
15. Deposit Rate (9)
(a) 30 days and 1 year " 8.00 (11) 3.00-9.50 3.00-7.50 3.25-8.00 2.50-6.50 1.50-6.25 1.50-6.25
(b) 1 year and above " 9.00-11.00 } 7.50-9.60 8.25-9.00 8.00-8.50 6.50-7.75 6.50-7.75 6.50-7.75
Q.E. : Quick Estimate. R.E. : Revised Estimate.
* : Base : 1980-81 = 100. + : Base : Triennium ending 1981-82=100. ‡ : Base 1982=100. £ : Fourth Advance Estimates for 2008-09.
^ : Base : 2001 = 100 from January 2006 onwards. ^^ : CPI (UNME) are Linked All - India Index from the April 2008 onwards.
$ : Based on Fourth Advance Estimates for 2007-08 as released on July 9, 2008.
@ : As the security 12.50% 2004 had matured on March 23, 2004, it has been substituted by 11.40% Loan 2008, with effect from March 2004, to represent the
short-term yield.
# : As the maturity of the security 11.50% 2008, which represents the trends in long term yield, had become less than 5 years, it has been substituted by 7.40%
Loan 2012, with effect from April 2004.
Also see 'Notes on Tables'.

RBI
Monthly Bulletin
S 1098 November 2009
 CURRENT
STATISTICS
General

No. 1: Selected Economic Indicators (Concld.)

Item Unit / Base 1990-91 2006-07 2007-08 2008-09 2009

Jul. Aug. Sep.
1 2 3 4 5 6 7 8 9
16. Prime Lending Rate (10) " 12.25-12.50 12.25-12.75 11.50-12.50 11.00-12.00 11.00-12.00 11.00-12.00
17. Yield on 11.40% Loan 2008 @ " 7.22 7.26
18. Yield on 7.40% Loan 2012 # " 7.55 7.83 7.26 5.69 6.02 6.57
Government Securities Market (2)
19. Govt. of India 91-day Treasury
Bills (Total outstandings) Rs. crore 45,229 39,957 75,549 76,500 76,500 76,500

Price Indices
20. Wholesale Prices (13) 1993-94=100
(a) All Commodities " 182.7 + 206.1 215.9 233.9 238.4 .. ..
(b) Primary Articles " 184.9 + 208.6 224.8 247.3 266.7 .. ..
(c) Fuel, Power, Light and
Lubricants " 175.8 + 324.9 327.2 351.4 338.2 .. ..
(d) Manufactured Products " 182.8 + 179.0 188.0 203.1 206.4 .. ..
(e) Foodgrains
(Cereals + Pulses) " 179.2 + 205.9 215.6 234.1 259.1 .. ..
(f) Edible Oils " 223.3 + 154.6 175.4 188.1 176.4 ..
(g) Sugar, Khandsari & Gur " 152.3 + 179.8 155.2 168.7 212.6 .. ..
(h)Raw Cotton " 145.5 + 151.8 193.0 196.6 213.4 .. ..
21. Consumer Prices (All-India) (1)
(a) Industrial Workers ^ 2001=100 193 125 133 145 160 162 163
(b) Urban Non-Manual
Employees ^^ 1984-85=100 161 486 515 561 624 631 ..
(c) Agricultural Labourers July 1986-
June 1987=100 .. 388 417 462 499 508 515
Foreign Trade
22. Value of Imports U.S. $ Million 24,073 1,85,735 2,51,439 2,91,475 19,621 (P) 22,661 (P)
23. Value of Exports " 18,145 1,26,414 1,62,904 1,82,631 13,623 (P) 14,289 (P)
24. Balance of Trade " –5,927 –59,321 –88,535 –1,08,844 –5,998 (P) –8,372 (P)
25. Foreign Exchange Reserves (14)
(a) Foreign Currency Assets U.S. $ Million 2,236 1,91,924 2,99,230 2,41,426 2,60,631 2,61,247 2,64,373
(b) Gold " 3,496 6,784 10,039 9,577 9,671 9,828 10,316
(c) SDRs " 102 2 18 1 1 4,828 5,224
Employment Exchange
Statistics (15)
26. Number of Registrations Thousand 6,541 .. .. .. .. ..
27. Number of Applicants
(a) Placed in Employment " 265 .. .. .. .. ..
(b) On live Register (14) " 34,632 .. .. .. .. ..

RBI
Monthly Bulletin
November 2009 S 1099
CURRENT
STATISTICS
Money and
Banking

Money and Banking

No. 2: Reserve Bank of India
(Rs. crore)
Last Friday / 1990-91 2007-08 2008-09 2008 2009
Friday Oct. May Jun. Jul. Aug. Sep. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Issue
Department
Liabilities
Notes in
Circulation 53,784 5,82,055 6,81,058 6,38,204 7,09,339 7,04,314 6,93,409 6,96,058 7,11,316 7,11,158 7,18,714 7,34,018 7,32,961 7,25,984
Notesheld in
Banking
Department 23 20 16 26 25 26 15 15 20 19 28 30 28 23
Total Liabilities
(Total Notes
Issued) or Assets 53,807 5,82,075 6,81,074 6,38,230 7,09,364 7,04,340 6,93,423 6,96,072 7,11,336 7,11,177 7,18,742 7,34,048 7,32,989 7,26,007
Assets
Gold Coin and
Bullion 6,654 31,170 40,390 33,724 37,103 37,103 38,050 38,050 39,247 40,485 40,485 40,485 40,485 41,434
Foreign Securities 200 5,49,722 6,39,531 6,03,430 6,71,066 6,65,939 6,54,183 6,56,920 6,70,892 6,69,508 6,77,102 6,92,447 6,91,407 6,83,498
Rupee Coin (1) 29 136 106 29 149 252 144 56 150 138 109 70 51 29
Government of
India Rupee
Securities 46,924 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046
Banking
Department
Liabilities
Deposits 38,542 5,36,851 3,52,156 4,59,304 2,82,510 2,56,084 2,67,289 2,88,091 3,01,312 3,30,322 2,71,184 3,06,250 2,66,768 3,06,574
Central
Government 61 83,645 101 100 101 101 10,413 31,462 30,875 38,340 37,558 11,443 12,842 19,491
Market
Stabilisation
Scheme — 1,68,392 88,077 1,65,187 39,890 22,890 21,063 18,773 18,773 18,773 18,773 18,773 18,773 18,773
State
Governments 33 41 1,045 41 41 41 41 41 41 41 41 1,499 41 41
Scheduled
Commercial
Banks 33,484 2,57,122 2,38,195 2,65,773 2,16,462 2,06,391 2,09,614 2,10,431 2,25,681 2,46,655 1,88,727 2,45,725 2,08,972 2,42,199
Scheduled State
Co-operative
Banks 244 3,396 3,142 3,467 3,028 3,269 3,152 3,081 3,108 3,408 2,914 3,430 3,187 3,250
Non-Scheduled
State Co-operative
Banks 13 62 96 62 66 65 80 79 66 70 78 71 63 71
Other Banks 88 11,946 9,732 12,294 9,867 9,986 10,364 10,514 10,435 11,033 10,398 11,076 10,659 10,751
Others 4,619 12,247 11,768 12,380 13,055 13,341 12,563 13,711 12,333 12,003 12,694 14,234 12,232 11,998
Other
Liabilities (2) 28,342 2,14,216 3,96,402 3,40,946 3,79,037 4,16,776 4,35,589 4,28,159 4,17,787 4,14,124 3,84,634 3,91,388 3,98,795 4,04,065
Total
Liabilities
or Assets 66,884 7,51,067 7,48,557 8,00,250 6,61,547 6,72,860 7,02,878 7,16,250 7,19,100 7,44,446 6,55,818 6,97,638 6,65,563 7,10,639

See ‘Notes on Tables.’

RBI
Monthly Bulletin
S 1100 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 2: Reserve Bank of India (Concld.)

(Rs. crore)
Last Friday / 1990-91 2007-08 2008-09 2008 2009
Friday Oct. May Jun. Jul. Aug. Sep. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Assets
Notes and Coins 23 20 16 27 25 26 15 15 20 19 28 31 28 23
Balances held
Abroad (3) 4,008 6,49,661 5,82,537 5,98,272 5,19,034 5,65,905 6,01,995 6,17,249 5,94,343 5,92,407 5,55,820 5,48,055 5,56,008 5,70,194
Loans and
Advances
Central
Government — — — — 6,114 — — — — — — — — —
State
Governments (4) 916 — — 948 — — — 90 227 — — 348 512 169
Scheduled
Commercial
Banks 8,169 4,000 11,728 8,454 410 400 296 — — — — — — —
Scheduled State
Co-op.Banks 38 — — — 10 10 — — — 20 20 20 20 20
Industrial Dev.
Bank of India 3,705 — — — — — — — — — — — — —
NABARD 3,328 — — 13,329 — — — — — — — — — —
EXIMBank 745 — — — — — — — — — — — — —
Others 1,615 579 9,834 848 11,977 9,955 10,356 8,876 9,507 11,077 6,682 5,337 5,191 4,734
Bills Purchased
and Discounted
Internal — — — — — — — — — — — — — —
Government
Treasury Bills 1,384 — — — — — — — — — — — — —
Investments 40,286 85,607 1,23,891 1,58,100 96,819 68,300 61,145 62,212 86,723 1,13,654 63,552 1,17,953 76,740 1,09,771
Other Assets (5) 2,666 11,201 20,552 20,272 27,158 28,263 29,071 27,807 28,278 27,270 29,716 25,895 27,065 25,727
(–) (6,984) (9,050) (7,557) (8,314) (8,314) (8,526) (8,526) (8,794) (9,071) (9,071) (9,071) (9,071) (9,284)

RBI
Monthly Bulletin
November 2009 S 1101
CURRENT
STATISTICS
Money and
Banking

No. 3: All Scheduled Banks — Business in India

(Rs. crore)

Last Reporting Friday 1990-91 2007-08 2008-09 2008 2009

(in case of March)/
Last Friday Sep. Mar. Apr. May Jun. Jul. Aug. Sep.(P)
1 2 3 4 5 6 7 8 9 10 11 12

Number of Reporting Banks 299 239 235 234 235 235 235 235 234 234 234

Liabilities to the Banking

System(1) 6,673 1,01,724 1,04,419 1,10,040 1,04,419 1,02,166 1,00,928 95,761 89,546 92,059 81,019

Demand and Time Deposits

from Banks(2) 5,598 50,306 53,134 46,046 53,134 55,377 53,996 55,287 55,117 55,813 55,222

Borrowings from Banks (3) 998 33,034 29,504 29,090 29,504 26,958 27,744 23,803 19,799 22,782 19,576

Other Demand and

Time Liabilities (4) 77 18,385 21,780 34,904 21,780 19,830 19,188 16,671 14,631 13,464 6,222

Liabilities to Others (1) 2,13,125 37,06,404 43,79,668 39,59,768 43,79,668 44,51,340 45,16,325 45,33,347 46,25,577 46,50,953 46,70,156

Aggregate Deposits (5) 1,99,643 32,97,074 39,52,603 35,45,151 39,52,603 40,42,721 40,94,359 41,10,635 41,98,885 42,09,619 42,52,837

Demand 34,823 5,35,930 5,34,791 5,10,555 5,34,791 5,12,704 5,14,884 5,14,284 5,39,919 5,49,812 5,64,844

Time (5) 1,64,820 27,61,144 34,17,813 30,34,596 34,17,813 35,30,016 35,79,475 35,96,351 36,58,966 36,59,807 36,87,994

Borrowings (6) 645 1,07,712 1,15,355 1,14,403 1,15,355 1,05,376 1,20,525 1,13,732 1,04,054 1,19,414 96,456

Other Demand and

Time Liabilities (4) 12,838 3,01,618 3,11,709 3,00,214 3,11,709 3,03,243 3,01,442 3,08,980 3,22,638 3,21,920 3,20,863

Borrowings from
Reserve Bank (7) 3,483 4,000 11,728 6,116 11,728 2,912 420 410 296 — —

Against Usance
Bills/Promissory Notes — — — — — — — — — — —

Others (8) 3,483 4,000 11,728 6,116 11,728 2,912 420 410 296 — —

Cash in Hand and Balances

with Reserve Bank 25,995 2,83,514 2,65,699 3,52,557 2,65,699 2,53,660 2,50,487 2,39,077 2,41,116 2,41,482 2,57,893

Cash in Hand 1,847 18,593 20,825 24,089 20,825 23,924 27,512 26,009 24,530 24,167 25,273

Balances with Reserve

Bank (9) 24,147 2,64,921 2,44,874 3,28,468 2,44,874 2,29,736 2,22,975 2,13,068 2,16,586 2,17,315 2,32,620

See “Notes on Tables”

RBI
Monthly Bulletin
S 1102 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 3: All Scheduled Banks — Business in India (Concld.)

(Rs. crore)

Last Reporting Friday 1990-91 2007-08 2008-09 2008 2009

(in case of March)/
Last Friday Sep. Mar. Apr. May Jun. Jul. Aug. Sep. (P)
1 2 3 4 5 6 7 8 9 10 11 12

Assets with the Banking

System 6,848 1,03,411 1,47,546 1,18,777 1,47,546 1,45,168 1,40,348 1,35,152 1,25,985 1,26,118 1,23,036

Balances with Other Banks 3,347 41,310 59,896 41,271 59,896 59,626 57,078 58,013 57,236 55,084 57,823

In Current Account 1,926 16,553 13,280 15,436 13,280 13,615 11,816 11,869 11,568 11,080 12,269

In Other Accounts 1,421 24,757 46,616 25,835 46,616 46,011 45,262 46,144 45,668 44,004 45,554

Money at Call and

Short Notice 2,201 25,766 26,295 21,022 26,295 27,251 28,959 26,147 21,341 23,325 21,621

Advances to Banks (10) 902 4,157 3,215 2,804 3,215 2,639 2,218 2,082 1,998 1,976 2,522

Other Assets 398 32,177 58,140 53,680 58,140 55,652 52,094 48,911 45,410 45,733 41,070

Investment 76,831 10,05,952 12,05,544 10,20,670 12,05,544 12,75,702 13,06,922 13,58,687 13,80,324 14,11,565 14,18,731

Government
Securities (11) 51,086 9,91,899 11,93,456 10,07,334 11,93,456 12,64,043 12,95,153 13,46,412 13,69,489 14,00,951 14,00,912

Other Approved
Securities 25,746 14,053 12,089 13,336 12,089 11,659 11,769 12,275 10,835 10,614 17,819

Bank Credit 1,25,575 24,47,646 28,59,554 26,37,632 28,59,554 28,28,400 28,28,311 28,59,204 28,86,311 28,88,410 29,54,921

Loans, Cash-credits and

Overdrafts 1,14,982 23,45,470 27,57,577 25,29,105 27,57,577 27,29,578 27,34,645 27,63,948 27,89,002 27,89,439 28,48,656

Inland Bills-Purchased 3,532 12,988 12,470 13,872 12,470 12,328 11,554 11,326 11,939 11,184 13,058

Inland Bills-Discounted 2,409 41,400 43,987 44,334 43,987 44,750 44,059 44,033 46,034 46,261 49,749

Foreign Bills-Purchased 2,788 16,535 18,651 19,449 18,651 16,688 16,043 16,589 15,650 15,495 17,200

Foreign Bills-Discounted 1,864 31,253 26,868 30,871 26,868 25,057 22,010 23,309 23,685 26,031 26,258

Cash-Deposit Ratio 13.0 8.6 6.7 9.9 6.7 6.3 6.1 5.8 5.7 5.7 6.1

Investment-Deposit Ratio 38.5 30.5 30.5 28.8 30.5 31.6 31.9 33.1 32.9 33.5 33.4

Credit-Deposit Ratio 62.9 74.2 72.3 74.4 72.3 70.0 69.1 69.6 68.7 68.6 69.5

RBI
Monthly Bulletin
November 2009 S 1103
CURRENT
STATISTICS
Money and
Banking

No. 4: All Scheduled Commercial Banks — Business in India

(Rs. crore)

Last Reporting Friday 1990-91 2007-08 2008-09 2008 2009

(in case of March)/
Last Friday Sep. Mar. Apr. May Jun. Jul. Aug. Sep.(P)

1 2 3 4 5 6 7 8 9 10 11 12

Number of Reporting Banks 271 170 166 165 166 166 166 166 165 165 165
Liabilities to the Banking
System (1) 6,486 98,154 1,00,116 1,06,292 1,00,116 97,722 96,261 91,136 84,842 87,191 78,803
Demand and Time Deposits
from Banks (2), (12) 5,443 46,778 48,856 42,327 48,856 50,948 49,454 50,689 50,418 50,961 53,032
Borrowings from Banks (3) 967 32,996 29,487 29,064 29,487 26,947 27,663 23,799 19,796 22,769 19,553
Other Demand and Time
Liabilities (4) 76 18,379 21,773 34,902 21,773 19,828 19,145 16,648 14,628 13,461 6,218
Liabilities to Others (1) 2,05,600 36,01,799 42,55,566 38,48,201 42,55,566 43,22,602 43,86,471 44,02,631 44,91,862 45,16,406 45,31,283
Aggregate Deposits (5) 1,92,541 31,96,939 38,34,110 34,39,327 38,34,110 39,19,671 39,69,590 39,84,721 40,70,458 40,80,711 41,20,007
Demand 33,192 5,24,310 5,23,085 4,98,899 5,23,085 5,01,341 5,03,826 5,02,786 5,28,171 5,37,835 5,51,572
Time (5) 1,59,349 26,72,630 33,11,025 29,40,428 33,11,025 34,18,330 34,65,764 34,81,934 35,42,287 35,42,876 35,68,435
Borrowings (6) 470 1,06,504 1,13,936 1,12,404 1,13,936 1,04,111 1,19,493 1,12,944 1,02,799 1,18,067 94,589
Other Demand and Time
Liabilities (4), (13) 12,589 2,98,355 3,07,520 2,96,469 3,07,520 2,98,820 2,97,388 3,04,966 3,18,605 3,17,628 3,16,687
Borrowings from
Reserve Bank (7) 3,468 4,000 11,728 6,094 11,728 2,902 410 400 296 — —
Against Usance Bills/
Promissory Notes — — — — — — — — — — —
Others 3,468 4,000 11,728 6,094 11,728 2,902 410 400 296 — —
See ‘Notes on Tables’.

RBI
Monthly Bulletin
S 1104 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 4: All Scheduled Commercial Banks — Business in India (Concld.)

(Rs. crore)

Last Reporting Friday 1990-91 2007-08 2008-09 2008 2009

(in case of March)/
Last Friday Sep. Mar. Apr. May Jun. Jul. Aug. Sep.(P)

1 2 3 4 5 6 7 8 9 10 11 12

Cash in Hand and

Balances with
Reserve Bank 25,665 2,75,166 2,58,475 3,41,783 2,58,475 2,46,190 2,43,337 2,31,756 2,33,483 2,33,915 2,50,346
Cash in Hand 1,804 18,044 20,281 23,482 20,281 23,338 26,875 25,365 23,869 23,484 24,665
Balances with
Reserve Bank (9) 23,861 2,57,122 2,38,195 3,18,301 2,38,195 2,22,852 2,16,462 2,06,391 2,09,614 2,10,431 2,25,681
Assets with the
Banking System 5,582 90,877 1,22,571 1,03,184 1,22,571 1,15,754 1,11,495 1,05,126 95,142 95,388 91,405
Balances with
Other Banks 2,846 36,016 52,909 35,276 52,909 52,066 49,741 50,524 48,561 46,014 48,600
In Current Account 1,793 14,871 11,810 13,562 11,810 12,051 10,570 10,593 10,206 9,705 10,757
In Other Accounts 1,053 21,145 41,099 21,714 41,099 40,015 39,171 39,930 38,355 36,309 37,842
Money at Call and
Short Notice 1,445 19,925 15,038 15,602 15,038 14,216 16,320 12,647 8,953 11,718 9,896
Advances to Banks (10) 902 3,779 2,904 2,419 2,904 2,333 1,651 1,783 1,720 1,697 2,244
Other Assets 388 31,156 51,721 49,888 51,721 47,139 43,783 40,172 35,909 35,958 30,666
Investment 75,065 9,71,715 11,66,410 9,84,558 11,66,410 12,36,092 12,64,641 13,14,461 13,35,768 13,65,992 13,73,022
Government
Securities (11) 49,998 9,58,661 11,55,786 9,72,265 11,55,786 12,25,715 12,54,381 13,04,006 13,26,870 13,57,134 13,57,137
Other Approved Securities 25,067 13,053 10,624 12,293 10,624 10,378 10,260 10,454 8,898 8,859 15,885
Bank credit (14) 1,16,301 23,61,914 27,75,549 25,51,026 27,75,549 27,44,490 27,45,978 27,77,576 28,05,224 28,06,741 28,73,155
(4,506) (44,399) (46,211) (45,175) (46,211) (48,976) (58,780) (56,416) (48,891) (49,111) (42,418)
Loans,Cash-Credits and
Overdrafts 1,05,982 22,61,576 26,75,677 24,44,734 26,75,677 26,47,556 26,54,361 26,84,358 27,09,996 27,09,703 27,68,910
Inland Bills-Purchased 3,375 12,594 11,714 13,118 11,714 11,622 10,694 10,461 11,074 10,165 11,961
Inland Bills-Discounted 2,336 40,553 43,157 43,436 43,157 43,941 43,246 43,209 45,153 45,688 49,141
Foreign Bills-Purchased 2,758 16,499 18,522 19,416 18,522 16,661 16,013 16,557 15,625 15,452 17,170
Foreign Bills-Discounted 1,851 30,691 26,479 30,322 26,479 24,710 21,663 22,991 23,375 25,733 25,974
Cash-Deposit Ratio 13.3 8.6 6.7 9.9 6.7 6.3 6.1 5.8 5.7 5.7 6.1
Investment- Deposit Ratio 39.0 30.4 30.4 28.6 30.4 31.5 31.9 33.0 32.8 33.5 33.3
Credit-Deposit Ratio 60.4 73.9 72.4 74.2 72.4 70.0 69.2 69.7 68.9 68.8 69.7

RBI
Monthly Bulletin
November 2009 S 1105
CURRENT
STATISTICS
Money and
Banking

No. 5: Scheduled Commercial Banks' Investments

(Rs. crore)
Shares Issued by Bonds / Debentures issued by Instruments Issued by
Outstanding as on SLR Commercial PSUs Private Others PSUs Private Others Mutual Financial
Securities Paper Corporate Corporate Funds Institutions
Sector Sector
1 2 3 4 5 6 7 8 9 10 11
March 21, 2003 5,47,546 4,041 1,639 7,591 — 48,258 33,026 — 6,455 31,066
March 19, 2004 6,77,588 3,835 1,565 7,400 41 49,720 27,966 5,232 11,930 32,988
March 18, 2005 7,39,154 3,944 1,886 10,289 44 46,939 31,994 6,980 12,744 31,557
March 31, 2006 7,17,454 4,837 2,627 10,502 41 33,018 29,550 15,153 10,410 29,203
March 30, 2007 7,91,516 9,038 2,129 16,225 74 29,232 27,641 17,787 11,761 26,568
March 28, 2008 9,71,715 13,270 3,025 23,389 294 27,935 28,700 29,230 18,824 25,942
March 27, 2009 11,66,410 20,001 2,769 25,060 407 25,456 33,131 31,073 37,035 32,585

September 12, 2008 10,01,328 12,538 3,497 24,219 169 25,548 27,889 27,031 22,042 23,835
September 26, 2008 9,84,558 11,311 3,424 24,193 150 27,538 28,728 24,882 10,736 24,676
October 10, 2008 9,77,884 11,957 3,403 24,339 149 24,320 29,101 24,077 9,229 24,213
October 24, 2008 10,55,599 15,788 3,443 24,694 119 23,915 28,415 26,274 14,879 23,325
November 7, 2008 10,71,338 15,919 3,405 24,891 110 24,610 29,442 26,530 18,865 23,510
November 21, 2008 10,67,608 16,297 3,429 24,978 110 25,119 28,706 29,256 29,194 24,355
December 5, 2008 11,02,953 17,280 3,450 25,008 114 23,836 29,812 29,751 34,982 24,232
December 19, 2008 10,82,764 17,927 3,398 25,246 114 24,486 30,567 30,311 32,482 23,983
January 2, 2009 11,50,038 16,730 3,358 25,157 114 25,056 31,183 26,261 43,185 25,347
January 16, 2009 11,39,279 18,702 2,988 25,073 516 25,610 33,522 30,056 60,355 26,148
January 30, 2009 11,68,305 17,174 3,005 25,178 359 26,195 34,226 30,170 71,246 28,767
February 13, 2009 11,68,869 17,717 2,771 25,400 355 25,825 33,765 30,178 83,258 30,282
February 27, 2009 11,86,557 15,752 2,778 25,455 251 26,988 33,442 29,764 90,273 24,327
March 13, 2009 11,80,132 15,248 2,782 25,507 251 25,041 33,352 29,967 83,957 30,968
March 27, 2009 11,66,410 20,001 2,769 25,060 407 25,456 33,131 31,073 37,035 32,585
April 10, 2009 12,51,702 20,018 2,760 25,117 646 23,121 33,774 28,462 90,840 32,708
April 24, 2009 12,36,092 17,559 2,757 25,002 305 23,403 33,631 30,350 1,04,318 29,479
May 8, 2009 12,68,610 15,424 2,719 24,893 263 23,234 32,790 30,802 1,19,372 29,800
May 22, 2009 12,56,911 16,841 2,565 24,710 391 22,364 34,186 29,576 1,21,039 28,784
June 5, 2009 12,73,903 16,668 2,481 24,564 320 22,485 34,253 29,944 1,20,546 28,269
June 19, 2009 12,91,463 15,830 2,561 24,370 255 22,050 34,863 28,592 1,23,452 27,510
July 3, 2009 13,36,303 15,595 2,475 24,468 239 22,098 35,473 30,874 89,570 27,516
July 17, 2009 13,18,106 15,029 2,456 24,587 194 21,806 34,612 30,665 1,32,267 26,939
July 31, 2009 13,35,768 14,610 2,355 24,406 111 21,783 35,328 31,809 1,39,934 26,185
August 14, 2009 13,43,160 13,490 2,062 24,826 99 21,987 34,535 31,400 1,54,232 28,221
August 28, 2009 13,69,461 13,147 2,221 24,956 98 20,163 36,707 30,690 1,51,136 27,169
September 11, 2009 13,48,192 12,665 2,342 24,751 95 21,196 35,175 32,221 1,56,573 25,850
September 25, 2009 13,73,022 14,776 2,243 24,640 88 20,611 35,161 34,650 66,687 26,148
PSUs : Public Sector Undertakings.
Note : Data on Investments are based on Statutory Section 42(2) Returns.
Final data upto : Aug 14, 2009.

RBI
Monthly Bulletin
S 1106 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 6: State Co-operative Banks - Maintaining Accounts with the Reserve Bank of India
(Rs. crore)
Last Reporting Friday 1990-91 2007-08 2008-09 2008 2009
(in case of March)/ Last Friday/
Reporting Friday Jun. Jan. Feb. Mar. Apr. May Jun.05 Jun.19 Jun.26

1 2 3 4 5 6 7 8 9 10 11 12 13

Number of Reporting Banks 28 31 31 31 31 31 31 31 31 31 31 31

Demand and Time Liabilities
Aggregate Deposits (1) 2,152 19,611 22,588 20,395 21,261 21,868 22,588 23,282 23,812 23,734 23,793 24,030
Demand Liabilities 1,831 6,636 8,051 6,616 7,166 7,243 8,051 7,865 7,138 7,385 7,508 7,442
Deposits
Inter-Bank 718 1,539 1,936 1,567 1,805 1,557 1,936 1,587 1,126 1,317 1,407 1,299
Others 794 3,628 4,058 3,604 3,738 3,879 4,058 4,185 4,066 4,111 4,143 4,198
Borrowings from Banks 181 428 367 230 260 324 367 350 399 352 359 346
Others 139 1,041 1,689 1,215 1,362 1,483 1,689 1,743 1,547 1,605 1,599 1,599
Time Liabilities 3,963 47,523 59,625 50,410 54,661 56,915 59,625 63,846 64,608 64,408 64,337 64,472
Deposits
Inter-Bank 2,545 31,111 40,589 33,149 36,619 38,420 40,589 44,260 44,368 44,322 44,227 44,164
Others 1,359 15,983 18,530 16,791 17,523 17,990 18,530 19,097 19,746 19,623 19,650 19,832
Borrowings from Banks — 8 7 8 7 7 7 7 7 7 10 10
Others 59 421 500 461 512 498 500 482 488 457 451 466
Borrowing from Reserve Bank 15 — — 19 — — — 10 10 10 10 10
Borrowings from the
State Bank and / or a
Notified bank (2) and
State Government 1,861 13,988 11,879 12,703 10,338 11,462 11,879 12,312 11,165 11,118 11,282 11,309
Demand 116 3,378 3,057 3,130 2,769 3,290 3,057 3,161 2,715 2,716 2,664 2,646
Time 1,745 10,610 8,822 9,573 7,570 8,172 8,822 9,151 8,450 8,402 8,618 8,663
Assets
Cash in Hand and Balances
with Reserve Bank 334 3,639 3,387 4,215 2,824 2,845 3,387 3,339 3,247 3,382 3,538 3,496
Cash in Hand 24 143 149 149 143 145 149 149 156 149 151 161
Balance with Reserve Bank 310 3,496 3,238 4,066 2,681 2,699 3,238 3,190 3,091 3,233 3,387 3,335
Balances with Other Banks in
Current Account 93 486 554 363 473 413 554 557 435 502 472 498
Investments in Government
Securities (3) 1,058 16,806 18,432 19,214 18,567 18,940 18,432 19,314 20,561 20,677 21,003 21,148
Money at Call and Short Notice 498 7,855 15,801 7,350 10,554 13,628 15,801 17,327 17,292 17,353 17,322 17,620
Bank Credit (4) 2,553 17,345 18,501 17,832 18,461 18,901 18,501 18,996 17,956 17,743 17,605 17,451
Advances
Loans, Cash-Credits and
Overdrafts 2,528 17,336 18,490 17,822 18,451 18,891 18,490 18,987 17,947 17,734 17,598 17,441
Due from Banks (5) 5,560 32,466 27,239 30,702 27,674 27,193 27,239 26,478 25,339 25,162 25,361 25,416
Bills Purchased and Discounted 25 9 10 10 10 10 10 9 8 9 6 10
Cash - Deposit Ratio 15.5 18.6 15.0 20.7 13.3 13.0 15.0 14.3 13.6 14.2 14.9 14.5
Investment - Deposit Ratio 49.2 85.7 81.6 94.2 87.3 86.6 81.6 83.0 86.3 87.1 88.3 88.0
Credit - Deposit Ratio 118.6 88.4 81.9 87.4 86.8 86.4 81.9 81.6 75.4 74.8 74.0 72.6
See ‘Notes on Tables’.

RBI
Monthly Bulletin
November 2009 S 1107
CURRENT
STATISTICS
Money and
Banking

No. 7: Reserve Bank’s Standing Facilities to Scheduled Commercial Banks

(Rs. crore)
As on last reporting Export Credit General Special Liquidity Total
Friday of Refinance (1) Refinance (2) Support (3) Refinance (4)

Limit Outstanding Limit Outstanding Limit Outstanding Limit Outstanding

1 2 3 4 5 6 7 8 9

1996-97 6,654.40 559.97 — — 6,654.40 559.97

1997-98 2,402.96 394.52 1,115.02 0.11 3,517.98 394.63
1998-99 7,269.27 2,616.57 1,115.02 19.23 3,235.02 258.00 11,619.31 2,893.80
March 1999 7,269.27 2,616.57 1,115.02 19.23 3,235.02 258.00 11,619.31 2,893.80
April 1999 8,638.29 5,164.76 1,115.02 56.31 — — 9,753.31 5,221.07

As on last Export Credit Refinance (1) Others @ Total

reporting Standing Facility
Friday of Normal * Back Stop ** Total *** Normal * Back Stop ** Total
Limit Out- Limit Out- Limit Out- Limit Out- Limit Out- Limit Out- Limit Out-
standing standing standing standing standing standing standing

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
=(2+4) =(3+5) =(8+10) =(9+11) =(6+12) =(7+13)
2001-02 6,060.29 3,144.11 3,025.60 49.83 9,085.89 3,193.94 837.62 422.35 218.7 — 1,056.27 422.35 10,142.16 3,616.29
2002-03 2,524.13 61.51 2,524.13 23.00 5,048.26 84.51 399.66 — — — 399.66 — 5,447.92 84.51
2003-04 1,553.25 — 3,111.17 — 4,664.42 — 399.66 — — — 399.66 — 5,064.08 —
2004-05 — — — — 4,912.13 50.00 399.66 — — — 399.66 — 5,311.79 50.00
2005-06 — — — — 6,050.63 1,567.68 — — — — — — 6,050.63 1,567.68
2006-07 — — — — 8,110.33 4,984.94 — — — — — — 8,110.33 4,984.94
2007-08 — — — — 9,103.46 2,825.00 — — — — — — 9,103.46 2,825.00
2008-09 — — — — 34,951.79 3,106.62 — — — — — — 34,951.79 3,106.62

Dec. 2007 — — — — 7,818.76 779.00 — — — — — — 7,818.76 779.00

Mar. 2008 — — — — 9,103.46 2,825.00 — — — — — — 9,103.46 2,825.00
Jun. 2008 — — — — 9,052.03 1,132.14 — — — — — — 9,052.03 1,132.14

Apr. 2008 — — — — 9,509.23 474.00 — — — — — — 9,509.23 474.00

May 2008 — — — — 9,264.62 166.00 — — — — — — 9,264.62 166.00
Jun. 2008 — — — — 9,052.03 1,132.14 — — — — — — 9,052.03 1,132.14
Jul. 2008 — — — — 9,763.13 3,129.09 — — — — — — 9,763.13 3,129.09
Aug. 2008 — — — — 9,449.95 976.58 — — — — — — 9,449.95 976.58
Sep. 2008 — — — — 9,434.35 4,481.44 — — — — — — 9,434.35 4,481.44
Oct. 2008 — — — — 9,653.48 91.00 — — — — — — 9,653.48 91.00
Nov. 2008 — — — — 34,740.28 2,697.63 — — — — — — 34,740.28 2,697.63
Dec. 2008 — — — — 35,991.95 5,330.51 — — — — — — 35,991.95 5,330.51
Jan. 2009 — — — — 37,367.21 1,037.00 — — — — — — 37,367.00 1,037.00
Feb. 2009 — — — — 35,173.13 1,531.59 — — — — — — 35,173.13 1,531.59
Mar. 2009 — — — — 34,951.79 3,106.62 — — — — — — 34,951.79 3,106.62
Apr. 2009 — — — — 36,432.22 1,322.35 — — — — — — 36,432.22 1,322.35
May 2009 — — — — 34,542.21 715.18 — — — — — — 34,542.21 715.18
Jun. 2009 — — — — 33,195.57 1,800.00 — — — — — — 33,195.57 1,800.00
Jul. 2009 — — — — 33,293.12 — — — — — — — 33,293.12 —
Aug. 2009 — — — — 31,855.00 — — — — — — — 31,855.00 —
@ : ‘Others’ include Collateralised Lending Facility (CLF) (withdrawn completely effective from October 5, 2002) / Additional CLF (withdrawn effective from June 5,
2000), etc.
* : Normal Limit = 1/2 of total limit effective from November 16, 2002; 1/3 rd of the total limit effective from December 27, 2003.
** : Back-Stop Limit = 1/2 of total limit effective from November 16, 2002; 2/3 rd of the total limit effective from December 27, 2003.
*** : Total limits under Normal Facility and Back-Stop facility merged in to a single facility effective from March 29, 2004.
Also see ‘Notes on Tables’.

RBI
Monthly Bulletin
S 1108 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 8: Cheque Clearing Data

(Number in Lakhs and Amount in Rs. crore)

Month/Year Total Total MICR* Total Non-MICR** Total of RBI RBI Centres***
Centres Centres Centres
Ahmedabad Bangalore Bhopal
1 2 = (3+4) 3 = (5+22) 4 5 6 7 8
Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount
2001-02 9,015.0 1,25,75,254.0 5,377.0 1,09,47,391.0 3,638.0 16,27,863.0 5,377.0 1,09,47,391.0 414.0 2,07,524.0 445.0 2,69,346.0 — —

2002-03 10,139.0 1,34,24,313.0 5,980.0 1,09,78,762.0 4,159.0 24,45,551.0 5,980.0 1,09,78,762.0 434.0 2,25,060.0 485.0 3,07,577.0 — —

2003-04 10,228.0 1,15,95,960.0 6,241.0 91,78,751.0 3,987.0 24,17,209.0 6,241.0 91,78,751.0 473.0 2,80,649.0 547.0 3,75,885.0 — —

2004-05 11,668.5 1,04,58,894.9 9,414.6 93,56,252.2 2,253.9 11,02,642.7 7,384.8 84,93,320.7 525.5 3,52,696.6 601.6 4,77,810.1 59.3 47,188.1

2005-06 12,867.6 1,13,29,133.5 10,318.4 94,74,370.8 2,549.2 18,54,762.8 7,942.4 81,94,976.7 603.7 4,06,598.7 656.1 4,98,344.5 71.9 32,181.0

2006-07 13,672.8 1,20,42,425.7 11,441.0 1,04,35,436.1 2,231.8 16,06,989.5 8,309.9 85,99,494.3 594.4 4,29,955.8 702.5 5,58,675.6 71.7 52,224.6

2007-08 14,605.6 1,33,96,065.9 12,229.6 1,15,28,690.2 2,376.0 18,67,375.7 8,775.9 94,51,748.3 647.3 5,06,759.2 734.5 6,32,327.8 77.4 62,651.9

2008-09 (P) 13,959.1 1,24,61,201.7 11,623.4 1,04,00,308.7 2,335.7 20,60,892.9 8,332.4 82,89,452.1 570.3 4,77,112.7 687.6 5,46,017.8 74.5 70,837.6

2008-09 (P)
April 1,189.1 12,07,897.2 990.1 9,72,117.8 199.0 2,35,779.4 711.8 7,93,764.5 48.8 42,523.7 59.7 50,815.7 6.2 6,141.1
May 1,156.6 10,97,478.6 965.8 9,14,063.8 190.8 1,83,414.8 688.4 7,35,573.5 49.4 44,123.5 59.2 47,445.8 6.7 5,431.2
June 1,125.4 10,73,408.2 933.8 9,11,800.1 191.6 1,61,608.1 671.6 7,38,462.2 47.6 40,484.2 57.3 47,982.1 5.6 4,784.8
July 1,223.9 11,15,084.0 1,018.8 9,48,393.9 205.1 1,66,690.1 745.2 7,82,797.7 50.7 41,511.1 63.5 51,084.8 6.6 6,334.2
August 1,144.2 10,00,694.3 961.0 8,62,233.0 183.3 1,38,461.3 687.0 6,74,870.0 46.8 38,179.2 57.7 45,389.6 6.1 4,885.8
September 1,120.9 10,45,407.1 938.7 9,09,992.5 182.1 1,35,414.6 676.5 7,17,759.1 44.9 38,924.6 52.1 43,490.3 6.3 4,969.9
October 1,247.7 10,72,497.2 1,049.0 9,31,616.6 198.7 1,40,880.6 736.8 7,34,950.9 55.0 41,697.0 60.4 52,112.4 6.7 6,034.7
November 1,104.3 8,96,451.0 916.4 7,52,536.0 188.0 1,43,914.9 649.5 5,93,325.3 40.5 35,366.3 53.9 37,748.8 5.9 5,373.9
December 1,173.4 9,36,948.1 964.0 8,04,450.9 209.4 1,32,497.1 699.1 6,40,108.8 45.5 37,278.9 58.0 43,832.8 6.1 6,756.2
January 1,138.6 9,38,909.5 947.5 7,64,997.5 191.1 1,73,912.0 678.1 5,99,237.5 45.5 37,052.0 55.4 41,128.3 6.2 5,738.4
February 1,087.9 8,59,981.6 901.4 7,15,893.1 186.6 1,44,088.5 646.4 5,60,954.3 42.5 33,371.1 52.1 38,879.2 5.7 6,105.2
March 1,247.1 12,16,444.9 1,037.2 9,12,213.5 209.9 3,04,231.4 742.1 7,17,648.3 53.0 46,601.0 58.2 46,108.1 6.5 8,282.2

Total (upto
Mar, 09) 13,959.1 1,24,61,201.7 11,623.4 1,04,00,308.7 2,335.7 20,60,892.9 8,332.4 82,89,452.1 570.3 4,77,112.7 687.6 5,46,017.8 74.5 70,837.6

2009-10

April (P) 1,107.8 9,36,924.0 921.3 7,77,589.1 186.5 1,59,335.0 657.2 6,08,919.0 44.6 36,015.6 54.8 42,179.6 5.6 5,131.8
May (P) 1,099.4 8,48,648.0 908.1 6,89,906.5 191.4 1,58,741.5 643.2 5,32,225.1 46.2 35,614.5 54.4 35,229.2 5.5 4,726.4
June (P) 1,119.2 8,56,024.0 931.9 7,22,462.1 187.3 1,33,561.9 662.1 5,56,784.7 46.1 36,102.4 54.0 39,237.0 5.5 5,774.7
July (P) 1,197.2 8,98,532.8 999.0 7,58,196.7 198.2 1,40,336.1 711.4 5,89,480.4 50.1 35,569.2 59.2 42,623.4 6.4 5,355.0
August (P) 1110.2 8,06,839.2 923.1 6,84,420.2 187.1 1,22,419.0 671.3 5,45,345.9 49.8 35,295.9 54.7 37,459.0 6.4 5,355.0
September (P) 1,086.1 8,18,726.9 908.7 6,81,932.7 177.4 1,36,794.2 634.1 5,27,335.8 47.4 36,866.3 50.8 35,811.8 5.6 5,507.3

Total (upto
Sep, 09) 6,719.9 51,65,694.9 5,592.0 43,14,507.2 1,127.9 8,51,187.7 3,979.3 33,60,090.9 284.3 2,15,464.1 328.0 2,32,539.9 35.0 31,850.2

* : MICR - Magnetic Ink Character Recognition - automated CPC (Cheque Processing Centres).
** : Non MICR - Clearing done at the clearing house where MICR cheque processing centres have not been setup. The processing is done either using
magnetic media based clearing system (MMBCS) or is done manually.
*** : RBI Centres (MICR) refers to all centres where RBI is the manager of Clearing House.

RBI
Monthly Bulletin
November 2009 S 1109
CURRENT
STATISTICS
Money and
Banking

No. 8: Cheque Clearing Data (Contd.)

(Number in Lakhs and Amount in Rs. crore)
Month/Year RBI Centres***
Bhubaneswar Chandigarh Chennai Guwahati Hyderabad Jaipur Kanpur
1 9 10 11 12 13 14 15
Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount
2001-02 27.0 21,625.0 — — 522.0 5,00,872.0 30.0 19,592.0 305.0 1,82,764.0 123.0 54,432.0 67.0 32,369.0

2002-03 33.0 26,349.0 — — 557.0 5,52,913.0 34.0 22,436.0 337.0 2,15,035.0 130.0 58,202.0 73.0 34,532.0

2003-04 37.0 37,136.0 — — 602.0 6,12,158.0 37.0 27,840.0 369.0 2,75,503.0 148.0 70,122.0 78.0 41,397.0

2004-05 41.8 47,252.7 112.8 1,11,091.8 735.1 7,59,883.1 42.4 32,713.9 390.2 3,01,678.8 168.0 89,086.6 87.1 47,225.8

2005-06 48.6 53,649.7 123.8 1,27,037.9 813.2 6,55,277.9 48.2 39,660.5 416.8 3,63,317.1 187.4 1,13,452.5 92.7 55,328.7

2006-07 56.2 64,833.9 140.7 1,98,205.1 803.5 6,92,201.6 55.1 49,100.5 438.9 3,95,911.4 197.8 1,37,784.8 96.9 64,396.1

2007-08 60.0 80,993.5 141.4 1,61,218.5 854.1 7,78,853.6 59.5 55,169.2 454.6 4,52,498.8 219.3 1,62,021.8 100.0 69,885.1

2008-09 (P) 57.9 88,061.5 131.8 1,45,451.1 832.0 8,01,963.7 59.7 62,085.7 447.8 4,34,737.4 197.6 1,50,889.6 92.8 72,692.4

2008-09 (P)
April 4.8 7,898.6 11.1 15,341.9 70.7 72,489.2 4.9 6,274.0 38.4 40,598.4 16.6 13,502.7 8.1 6,010.4
May 4.8 8,125.9 11.4 13,000.7 69.6 69,582.6 5.1 5,392.7 38.8 38,131.8 16.6 13,568.5 8.3 6,029.0
June 4.5 6,632.5 10.2 11,862.1 68.7 71,149.3 4.6 4,930.8 37.3 38,755.0 15.6 12,802.2 7.1 5,740.4
July 5.3 8,800.5 11.4 11,275.7 75.6 78,720.8 5.1 5,111.4 41.1 41,507.0 17.3 13,557.8 8.0 5,968.0
August 4.7 6,984.8 10.7 11,619.5 70.3 70,375.1 4.6 4,265.3 36.9 36,005.4 16.0 12,053.7 7.6 5,526.9
September 4.9 6,957.5 10.5 13,186.6 70.2 72,544.8 4.8 4,809.8 37.8 36,634.4 15.8 14,134.9 6.4 4,998.1
October 5.3 7,253.1 11.9 13,155.4 72.0 71,608.6 4.9 4,905.6 38.0 36,958.1 18.4 14,329.4 8.7 7,371.3
November 4.7 6,844.5 10.7 11,879.8 63.8 61,432.9 5.0 4,954.1 37.1 34,102.3 15.7 11,459.3 8.3 5,956.9
December 4.9 7,605.8 11.1 10,674.5 69.4 61,611.0 5.2 4,780.9 35.4 32,809.5 15.8 11,200.5 7.4 6,203.8
January 4.5 6,374.5 11.1 11,166.4 64.0 57,150.4 5.0 5,294.0 35.0 31,278.3 16.4 11,180.4 7.7 6,086.7
February 4.4 6,598.2 10.0 10,250.6 65.4 52,115.5 4.9 4,834.0 33.4 31,257.2 15.1 10,078.4 6.9 5,633.2
March 5.1 7,985.6 11.7 12,037.9 72.4 63,183.7 5.7 6,533.1 38.7 36,699.8 18.2 13,021.7 8.2 7,167.7
Total (upto
Mar. 09) 57.9 88,061.5 131.8 1,45,451.1 832.0 8,01,963.7 59.7 62,085.7 447.8 4,34,737.4 197.6 1,50,889.6 92.8 72,692.4

2009-10

April (P) 4.5 5,308.6 11.5 14,123.3 64.1 63,050.0 4.6 5,704.3 34.6 32,461.9 16.0 11,286.1 6.9 6,478.5
May (P) 4.5 4,607.0 10.5 12,097.6 61.7 54,521.9 5.1 5,035.9 33.6 27,842.7 15.4 10,283.0 7.7 6,668.5
June (P) 4.3 53,30.6 10.3 11,231.1 65.7 54,603.2 5.1 47,90.2 34.7 30,336.9 15.6 10,714.8 7.2 6,535.7
July (P) 5.4 5,258.2 11.4 10,576.6 71.7 60,060.5 5.2 4,962.7 37.3 33,317.0 17.3 10,421.8 7.7 6,830.0
August (P) 5.0 4,682.1 10.5 10,176.4 66.7 51,118.9 5.3 4,342.2 33.3 27,933.7 16.8 10,087.0 7.6 5,121.6
September (P) 4.8 4,586.5 10.4 10,176.9 61.7 52,474.5 5.0 4,745.2 30.6 26,893.9 15.7 10,052.8 6.8 4,925.8

Total (upto
Sep, 09) 28.5 29,773.0 64.4 68,381.9 391.6 3,35,829.1 30.4 29,580.5 204.0 1,78,786.1 96.8 62,845.5 44.0 36,560.1

RBI
Monthly Bulletin
S 1110 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 8: Cheque Clearing Data (Contd.)

(Number in Lakhs and Amount in Rs. crore)
Month/Year RBI Centres***
Kolkata Mumbai Nagpur New Delhi Patna Thiruvananthapuram
1 16 17 18 19 20 21
Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount

2001-02 523.0 3,73,131.0 1,679.0 82,17,816.0 102.0 41,151.0 1,079.0 9,90,315.0 27.0 17,421.0 34.0 19,032.0

2002-03 531.0 4,19,164.0 2,019.0 76,94,748.0 109.0 46,924.0 1,164.0 13,19,625.0 37.0 19,506.0 37.0 36,691.0

2003-04 470.0 4,65,308.0 2,162.0 55,11,293.0 120.0 56,330.0 1,107.0 13,54,677.0 50.0 26,739.0 41.0 43,714.0

2004-05 599.9 5,60,659.9 2,304.1 37,53,670.3 124.4 63,495.1 1,479.3 17,73,610.1 65.0 30,861.7 48.2 44,396.1

2005-06 642.4 6,58,639.7 2,391.9 33,42,829.4 134.8 75,772.3 1,597.2 16,97,583.2 59.2 36,819.8 54.6 38,484.0

2006-07 684.2 6,82,358.0 2,518.3 33,19,090.1 145.6 92,546.6 1,690.9 17,73,548.3 56.8 47,968.8 56.2 40,693.0

2007-08 730.5 7,78,304.3 2,651.6 36,85,407.3 151.3 1,06,351.7 1,775.7 18,00,975.6 62.6 61,006.5 56.0 57,323.4

2008-09 (P) 692.3 7,53,067.8 2,512.7 27,99,764.9 146.2 1,06,246.5 1,726.9 16,64,709.4 62.0 67,977.2 55.0 55,769.9

2008-09 (P)
April 57.9 67,101.2 215.7 2,83,396.5 12.4 9,090.9 146.9 1,61,140.8 5.0 5,581.2 4.7 5,858.2
May 58.3 64,139.9 206.7 2,65,785.6 12.4 9,361.1 146.2 1,43,245.2 5.1 5,105.0 4.7 5,038.1
June 53.1 64,292.9 201.7 2,64,352.0 11.5 9,176.0 137.8 1,45,474.3 4.6 5,939.4 4.4 4,104.2
July 61.9 70,511.5 221.9 2,75,708.5 12.7 9,900.2 153.8 1,52,336.3 5.3 5,540.7 4.9 4,929.1
August 56.7 61,340.9 209.1 2,28,975.1 11.8 8,125.4 138.5 1,32,723.4 4.9 4,566.5 4.5 3,853.2
September 59.5 66,626.1 201.0 2,46,840.5 11.3 8,364.3 141.5 1,46,688.8 5.2 4,539.5 4.3 4,048.7
October 55.4 52,842.5 223.5 2,54,526.8 13.2 9,625.6 152.4 1,49,637.9 5.9 6,788.9 5.0 6,103.7
November 56.0 55,757.8 194.2 1,90,205.0 11.8 7,845.1 132.2 1,15,444.6 5.0 5,122.5 4.6 3,831.4
December 57.5 61,904.2 214.4 2,07,613.3 12.2 8,255.4 146.2 1,30,249.6 5.3 5,432.2 4.6 3,900.1
January 54.9 56,491.2 205.3 1,91,938.8 12.3 8,204.8 145.2 1,20,465.4 5.1 5,344.5 4.6 4,343.6
February 56.2 56,321.9 195.2 1,71,979.0 11.4 8,103.0 134.2 1,16,729.6 4.9 4,921.4 4.1 3,776.7
March 64.8 75,737.5 224.0 2,18,443.9 13.2 10,194.7 152.0 1,50,573.3 5.6 9,095.2 4.7 5,982.9
Total (upto
Mar, 09) 692.3 7,53,067.8 2,512.7 27,99,764.9 146.2 1,06,246.5 1,726.9 16,64,709.4 62.0 67,977.2 55.0 55,769.9

2009-10

April (P) 54.6 59,580.7 198.3 1,86,379.5 11.6 8,391.5 136.2 1,22,837.9 4.9 5,936.5 4.2 4,053.4
May (P) 51.6 48,641.7 194.5 1,64,609.0 11.3 7,241.1 132.1 1,07,565.6 4.7 4,388.7 4.2 3,152.3
June (P) 55.4 52,890.9 206.2 1,70,059.4 11.3 7,770.9 131.3 1,11,993.3 5.0 5,250.5 4.5 4,163.0
July (P) 57.8 56,100.5 214.5 1,86,871.2 12.2 8,357.6 144.9 1,13,810.1 5.5 5,342.2 4.7 4,024.2
August (P) 56.9 51,771.9 205.3 1,86,392.4 11.1 7,152.2 132.1 99,454.4 5.1 4,767.8 4.7 4,235.3
September (P) 52.8 51,425.9 196.1 1,73,285.5 10.9 7,388.9 126.5 95,083.7 5.2 4,974.1 3.7 3,136.7

Total (upto
Sep, 09) 329.1 3,20,411.6 1,215.0 10,67,597.1 68.4 46,302.3 803.1 6,50,745.0 30.5 30,659.7 26.1 22,765.0

RBI
Monthly Bulletin
November 2009 S 1111
CURRENT
STATISTICS
Money and
Banking

No. 8: Cheque Clearing Data (Concld.)

(Number in Lakhs and Amount in Rs. crore)
Month/Year Other MICR Centres

1 22
Number Amount
2001-02 — —

2002-03 — —

2003-04 — —

2004-05 2,029.8 8,62,931.5

2005-06 2,375.9 12,79,394.1

2006-07 3,131.1 18,35,941.8

2007-08 3,453.7 20,76,941.9

2008-09 (P) 3,291.0 21,10,856.7

2008-09 (P)
April 278.2 1,78,353.3
May 277.4 1,78,490.3
June 262.2 1,73,337.9
July 273.5 1,65,596.2
August 274.0 1,87,363.0
September 262.3 1,92,233.3
October 312.2 1,96,665.7
November 266.9 1,59,210.7
December 264.9 1,64,342.2
January 269.3 1,65,760.0
February 255.0 1,54,938.8
March 295.1 1,94,565.2
Total (upto
Mar, 09) 3,291.0 21,10,856.7

2009-10

April (P) 264.1 1,68,670.0

May (P) 264.8 1,57,681.4
June (P) 269.8 1,65,677.4
July (P) 287.6 1,68,716.3
August (P) 251.8 1,39,074.4
September (P) 274.6 1 54 597.0

Total (upto
Sep, 09) 1,612.7 9,54,416.3

RBI
Monthly Bulletin
S 1112 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 9A: Retail Electronic Payment Systems

(Number in Lakh and Amount in Rs. crore)

Year / Period Total Electronic Electronic Funds

Electronic Clearing Services (ECS) Card Payments#
Payments Transfer EFT/NEFT

ECS (Credit) ECS (Debit) Credit Debit*

1 2=(3+4+5+6+7) 3 4 5 6 7
Volume Amount Volume Amount Volume Amount Volume Amount Number Volume Amount Number Volume Amount
of of
Out- Out-
standing standing
Cards** Cards**
2003-04 1,669.55 52,142.78 203.00 10,228.00 79.00 2,253.58 8.19 17,124.81 — 1,001.79 17,662.72 — 377.57 4,873.67
2004-05 2,289.04 1,08,749.83 400.51 20,179.81 153.00 2,921.24 25.49 54,601.38 — 1,294.72 25,686.36 — 415.32 5,361.04
2005-06 2,850.13 1,46,382.68 442.16 32,324.35 359.58 12,986.50 30.67 61,288.22 173.27 1,560.86 33,886.47 497.63 456.86 5,897.14
2006-07 3,787.09 2,35,693.12 690.19 83,273.09 752.02 25,440.79 47.76 77,446.31 231.23 1,695.36 41,361.31 749.76 601.77 8,171.63
2007-08 5,353.09 10,41,991.93 783.65 7,82,222.30 1,271.20 48,937.20 133.15 1,40,326.48 275.47 2,282.03 57,984.73 1,024.37 883.06 12,521.22
2008-09 (P) 6,678.24 5,00,321.79 883.94 97,486.58 1,600.55 66,975.89 321.61 2,51,956.38 246.99 2,595.61 65,355.80 1,374.31 1,276.54 18,547.14

2008-09 (P)
April 504.99 38,723.13 60.96 8,590.47 127.11 5,009.43 17.02 18,286.34 283.12 215.45 5,611.38 1,049.91 84.44 1,225.51
May 506.95 37,466.82 47.25 5,314.57 132.70 5,129.74 18.71 20,067.09 267.34 214.96 5,581.88 1,082.53 93.33 1,373.54
June 514.71 32,493.74 64.17 7,553.91 132.26 5,196.29 19.16 13,194.69 270.16 206.21 5,261.63 1,101.52 92.91 1,287.22
July 573.60 45,791.13 92.35 10,371.04 133.35 5,447.80 22.93 22,999.52 268.68 224.47 5,578.37 1,130.39 100.49 1,394.40
August 616.33 37,792.91 121.09 9,493.34 133.94 5,546.76 22.61 15,213.86 267.33 226.28 5,801.48 1,140.63 112.41 1,737.47
September 576.27 39,119.45 96.34 9,122.00 131.57 5,627.37 25.25 17,221.08 268.20 219.16 5,635.60 1,197.44 103.96 1,513.40
October 642.60 49,765.73 121.40 9,733.60 134.92 5,906.58 30.77 25,722.44 266.75 236.47 6,442.34 1,219.60 119.03 1,960.77
November 532.91 41,524.54 57.72 6,758.28 137.13 5,755.72 27.19 22,097.04 265.74 205.74 5,355.01 1,255.11 105.13 1,558.49
December 560.72 41,535.94 48.31 7,202.24 135.93 5,901.41 31.95 21,449.44 261.53 225.97 5,311.21 1,275.33 118.56 1,671.64
January 558.77 49,523.22 52.93 9,153.85 137.01 5,845.04 32.27 27,635.01 258.71 217.87 5,171.06 1,314.18 118.69 1,718.27
February 544.10 40,681.80 75.48 8,431.26 129.05 5,688.24 33.21 20,367.58 255.12 195.98 4,659.48 1,342.36 110.38 1,535.25
March 546.29 45,903.38 45.93 5,762.04 135.58 5,921.52 40.54 27,702.30 246.99 207.04 4,946.34 1,374.31 117.21 1,571.18
Total (upto
Mar. 09) 6,678.24 5,00,321.79 883.94 97,486.58 1,600.55 66,975.89 321.61 2,51,956.38 246.99 2,595.61 65,355.80 1,374.31 1,276.54 18,547.14

2009-10
April (P) 505.71 55,380.45 38.20 11,134.18 122.17 5,807.17 39.42 31,728.54 243.67 185.44 4,932.37 1,405.51 120.47 1,778.20
May (P) 520.52 42,635.99 51.19 6,665.42 121.27 5,792.75 38.94 23,474.15 240.54 182.04 4,815.94 1,430.33 127.08 1,887.71
June (P) 550.17 51,609.91 60.72 8,668.65 127.46 5,750.13 45.04 30,513.06 228.44 191.02 4,863.35 1,463.92 125.93 1,814.71
July (P) 637.01 63,785.64 115.45 12,797.93 126.22 5,671.51 50.97 38,261.03 222.56 202.11 4,957.33 1,512.59 142.27 2,097.84
August (P) 633.43 57,344.37 118.95 15,037.64 117.64 5,714.31 52.22 29,400.62 219.49 196.68 4,858.34 1,550.99 147.94 2,333.46
September (P) 592.04 53,843.63 114.20 11,420.36 116.13 6,069.78 49.49 29,582.34 212.92 191.16 4,902.85 1,561.90 121.06 1,868.30
Total (upto
Sep, 09) 3,438.88 3,24,599.98 498.71 65,724.17 730.90 34,805.65 276.07 1,82,959.75 212.92 1,148.46 29,330.19 1,561.90 784.74 11,780.23
# : Card Payments figures pertain only to Point of Sale (POS) transactions.
* : Debit Cards figures for 2003-04 and 2004-05 are estimated based on 2005-06 figures.
** : Cards issued by banks (excluding those withdrawn/blocked).

RBI
Monthly Bulletin
November 2009 S 1113
CURRENT
STATISTICS
Money and
Banking

No. 9B: Large Value Clearing and Settlement Systems

(Number in Lakh and Amount in Rs. crore)

Year / Period Real Time Gross Settlement System

Total Customer Remittance Inter-Bank Remittance Inter-bank Clearing Total Inter-bank

Settlement**

1 2=(3+4+5) 3 4 5 6=(4+5)
Number Amount Number Amount Number Amount Number Amount Number Amount

2003-04 0.001 1,965.49 0.00 0.00 0.001 1,965.49 — — 0.001 1,965.49

2004-05 4.604 40,66,184.00 0.68 2,49,662.00 3.92 38,16,522.00 — — 3.92 38,16,522.00

2005-06 17.670 1,15,40,836.25 7.13 25,70,212.29 10.54 89,70,623.96 — — 10.54 89,70,623.96
2006-07 38.80 2,46,19,179.99 24.82 71,67,807.91 13.94 1,13,13,346.69 0.04 61,38,025.39 13.98 1,74,51,372.08
2007-08 58.54 4,82,94,558.97 41.46 1,61,00,172.88 16.94 1,12,18,157.41 0.14 2,09,76,228.68 17.08 3,21,94,386.10
2008-09 133.84 6,11,39,912.44 112.34 2,00,04,107.80 21.32 1,22,75,773.49 0.19 2,88,60,031.15 21.50 4,11,35,804.65

2008-09
April 6.78 48,47,956.95 5.19 15,95,777.62 1.57 8,53,187.78 0.011 23,98,991.55 1.58 32,52,179.34
May 7.63 44,48,417.00 5.95 15,80,007.83 1.67 8,85,628.25 0.012 19,82,780.92 1.68 28,68,409.17
June 7.87 45,13,960.83 6.21 16,46,155.13 1.65 9,51,811.99 0.012 19,15,993.71 1.66 28,67,805.70
July 8.70 49,62,469.06 6.92 15,87,652.09 1.76 11,00,562.35 0.016 22,74,254.62 1.78 33,74,816.97
August 8.52 41,00,796.82 6.86 14,36,487.67 1.64 9,70,634.47 0.014 16,93,674.67 1.65 26,64,309.14
September 9.50 54,67,011.33 7.83 18,56,151.15 1.66 11,07,216.33 0.016 25,03,643.85 1.67 36,10,860.18
October 10.91 57,09,503.32 9.17 16,00,262.02 1.72 11,38,951.40 0.019 29,70,289.89 1.74 41,09,241.29
November 11.39 40,13,012.27 9.64 13,33,676.48 1.73 10,05,503.61 0.018 16,73,832.18 1.75 26,79,335.79
December 13.72 52,94,123.86 11.76 17,33,974.18 1.94 10,71,438.17 0.017 24,88,711.51 1.96 35,60,149.68
January 14.39 56,25,933.45 12.44 16,17,258.72 1.93 10,07,993.11 0.018 30,00,681.62 1.95 40,08,674.73
February 15.00 55,82,079.52 13.15 15,88,921.37 1.84 9,62,785.66 0.015 30,30,372.49 1.85 39,93,158.15
March (P) 19.43 65,74,648.05 17.22 24,27,783.53 2.20 12,20,060.37 0.020 29,26,804.14 2.22 41,46,864.51
Total (upto
Mar, 09) 133.84 6,11,39,912.44 112.34 2,00,04,107.80 21.32 1,22,75,773.49 0.19 2,88,60,031.15 21.50 4,11,35,804.65

2009-10
April 18.15 74,83,009.75 16.20 18,82,570.44 1.94 9,38,518.59 0.014 46,61,920.71 1.95 56,00,439.31
May 19.81 93,67,548.14 17.72 20,05,120.69 2.07 9,26,922.08 0.017 64,35,505.38 2.09 73,62,427.46
June 22.32 1,00,45,166.89 20.10 24,14,892.93 2.20 9,32,255.88 0.017 66,98,018.08 2.22 76,30,273.96
July 23.48 99,66,068.81 21.24 23,61,696.14 2.23 8,17,679.51 0.015 67,86,693.16 2.25 76,04,372.67
August 23.24 92,48,113.39 21.13 24,51,621.30 2.10 7,44,363.88 0.008 60,52,128.20 2.11 67,96,492.08
September 24.34 92,58,141.64 22.18 26,39,052.07 2.16 8,39,448.23 0.008 57,79,641.34 2.16 66,19,089.57
Total (upto
Sep, 09) 131.34 5,53,68,048.62 118.56 1,37,54,953.58 12.69 51,99,188.17 0.08 3,64,13,906.87 12.77 4,16,13,095.05

* : Inter-Bank Clearing Settlement pertains to the MNSB batches. MNSB settlement in RTGS started from 12 August, 2006.
** : The MNSB Settlement relates to the settlement of ECS, EFT, NEFT, REPO, Outright, FOREX, CBLO and Cheque Clearing at Mumbai.

RBI
Monthly Bulletin
S 1114 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 9B: Large Value Clearing and Settlement Systems (Concld.)

(Number in Lakh and Amount in Rs. crore)

Year / Period CCIL Operated Systems

Government Securities Settlement Forex Settlement CBLO Settlement

Outright Repo

1 7 8 9 10
Number of Value Number of Value Number of Value Number of Value
Trades Trades Trades Trades
2003-04 2.44 15,75,133.00 0.21 9,43,189.00 3.31 23,18,530.80 0.03 76,850.70
2004-05 1.61 11,34,222.08 0.24 15,57,906.55 4.66 40,42,434.86 0.29 9,76,757.10
2005-06 1.25 8,64,751.40 0.25 16,94,508.70 4.90 52,39,673.90 0.68 29,53,133.90
2006-07 1.37 10,21,535.70 0.30 25,56,501.50 6.06 80,23,078.00 0.86 47,32,271.30
2007-08 1.89 16,53,851.30 0.27 39,48,750.70 7.57 1,27,26,831.90 1.13 81,10,828.60
2008-09 2.46 21,60,233.30 0.24 40,94,285.90 8.38 1,69,37,488.60 1.19 88,24,784.30

2008-09
April 0.12 1,08,602.80 0.02 3,44,220.20 0.56 12,06,935.70 0.11 8,93,038.50
May 0.17 1,42,728.70 0.02 3,68,236.20 0.75 12,28,186.00 0.11 9,08,156.90
June 0.10 1,09,956.10 0.02 2,81,545.80 0.69 13,67,490.70 0.11 8,94,344.20
July 0.10 93,002.60 0.01 2,23,370.40 0.83 15,57,981.60 0.10 6,15,406.80
August 0.16 1,21,961.30 0.01 2,50,899.70 0.76 14,50,096.30 0.09 5,30,643.70
September 0.22 1,66,720.60 0.01 2,55,691.60 0.81 17,15,233.60 0.09 4,93,139.60
October 0.18 1,42,787.80 0.02 2,10,993.60 0.76 17,12,726.60 0.08 3,69,994.30
November 0.23 1,92,139.70 0.02 3,49,388.60 0.69 14,66,754.00 0.09 5,60,709.60
December 0.44 3,76,930.40 0.02 4,23,566.00 0.69 14,83,818.30 0.11 8,06,517.70
January 0.37 3,17,482.70 0.02 4,51,316.30 0.64 12,40,573.00 0.10 7,94,849.10
February 0.21 1,91,203.20 0.03 4,38,427.00 0.51 9,99,461.50 0.09 8,46,655.30
March (P) 0.17 1,96,717.40 0.03 4,96,630.50 0.68 15,08,231.30 0.11 11,11,328.60
Total (upto
Mar, 09) 2.46 21,60,233.30 0.24 40,94,285.90 8.38 1,69,37,488.60 1.19 88,24,784.30

2009-10
April 0.30 2,84,512.00 0.02 4,10,899.00 0.59 12,26,979.40 0.09 8,79,157.70
May 0.27 2,59,204.90 0.03 5,38,787.60 0.72 13,15,408.80 0.11 11,64,123.10
June 0.27 2,49,716.30 0.03 5,64,048.70 0.74 12,61,790.90 0.12 13,92,384.30
July 0.35 3,04,702.70 0.03 5,26,596.50 0.78 11,98,562.10 0.12 12,09,014.80
August 0.19 1,70,488.90 0.02 5,59,288.90 0.66 10,21,144.80 0.12 13,70,383.70
September 0.29 2,82,081.60 0.03 6,43,526.40 0.68 10,77,227.40 0.12 14,34,930.10
Total (upto
Sep, 09) 1.67 15,50,706.40 0.16 32,43,147.10 4.16 71,01,113.40 0.68 74,49,993.70

RBI
Monthly Bulletin
November 2009 S 1115
CURRENT
STATISTICS
Money and
Banking

No. 10: Money Stock Measures

(Rs. crore)

March 31/ Currency with the Public Deposit money of the Public M1 Post M2 Time M3 Total M4
Reporting (6+9) Office (10+11) Deposits (10+13) Post (14+15)
Fridays of Notes Circulation of Cash Total Demand ‘Other’ Total Savings with Office
in Rupee Small on (2+3+ Deposits Deposits (7+8) Bank Banks Deposits
the month/ Hand 4-5) with with
Circula- Coins Coins Depos-
Last reporting with Banks Reserve
tion(1) (2) (2) its
Friday Banks Bank (3)
of the month

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

2006-2007 4,95,938 6,684 1,477 21,244 4,82,854 4,77,604 7,496 4,85,100 9,67,955 5,041 9,72,996 23,42,113 33,10,068 25,969 33,36,037

2007-2008 5,81,577 7,656 1,567 22,390 5,68,410 5,78,372 9,054 5,87,427 11,55,837 5,041 11,60,878 28,62,046 40,17,883 25,969 40,43,852

2008-2009 6,81,099 8,487 1,567 24,790 6,66,364 5,81,247 5,573 5,86,820 12,53,184 5,041 12,58,225 35,10,835 47,64,019 25,969 47,89,988

September 12, 2008 6,07,669 8,057 1,567 23,712 5,93,581 5,18,774 4,958 5,23,732 11,17,312 5,041 11,22,353 31,21,852 42,39,165 25,969 42,65,134

September 26, 2008 6,03,489 8,088 1,567 26,998 5,86,146 5,51,818 5,459 5,57,276 11,43,422 5,041 11,48,463 31,40,123 42,83,545 25,969 43,09,514

May 2009 7,14,410 8,644 1,567 29,520 6,95,101 5,67,086 4,726 5,71,812 12,66,913 5,041 12,71,954 36,68,456 49,35,368 25,969 49,61,337

June 2009 7,10,537 8,741 1,567 30,081 6,90,763 5,46,839 9,616 5,56,455 12,47,219 5,041 12,52,260 36,87,186 49,34,404 25,969 49,60,373

July 2009 6,93,409 8,849 1,567 27,503 6,76,322 5,85,816 4,251 5,90,067 12,66,389 5,041 12,71,430 37,57,163 50,23,552 25,969 50,49,521

August 2009 6,96,058 8,937 1,567 27,043 6,79,519 5,93,884 5,439 5,99,324 12,78,842 5,041 12,83,883 37,64,270 50,43,113 25,969 50,69,082

September 11, 2009 7,05,900 8,937 1,567 25,949 6,90,455 5,83,377 14,994 5,98,371 12,88,826 5,041 12,93,867 37,83,493 50,72,319 25,969 50,98,288

September 25, 2009 7,11,316 8,937 1,567 28,375 6,93,445 6,09,708 4,061 6,13,770 13,07,215 5,041 13,12,256 37,88,598 50,95,812 25,969 51,21,781

Note : Monetary aggregates as at end-March incorporate data on i) scheduled commercial banks as on last reporting Friday and ii) the Reserve Bank of India
pertaining to the last working day of the fiscal year.
Also see ‘Notes on Tables’.

RBI
Monthly Bulletin
S 1116 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 11: Sources of Money Stock (M3)

(Rs.crore)
Outstandings as on March 31/Reporting Fridays of the Month/Last Reporting Friday of the Month
Source 2006-07 2007-08 2008-09 September 12, September 26,
2008 2008

1 2 3 4 5 6

1. Net Bank Credit to Government (A+B) 8,27,626 8,99,518 12,77,199 9,70,501 9,67,296
A. RBI’s net credit to Government (i-ii) 2,423 -1,13,209 61,580 -71,788 -61,862
(i) Claims on Government (a+b) 97,512 1,16,194 1,59,166 1,04,020 1,32,442
(a) Central Government (1) 97,184 1,14,725 1,57,488 1,03,623 1,32,435
(b) State Governments 328 1,468 1,678 397 7
(ii) Government deposits with RBI (a+b) 95,089 2,29,403 97,586 1,75,808 1,94,303
(a) Central Government 95,048 2,29,361 95,727 1,75,767 1,94,262
(b) State Governments 41 41 1,859 41 41
B. Other Banks’ Credit to Government 8,25,204 10,12,727 12,15,619 10,42,288 10,29,158
2. Bank Credit to Commercial Sector (A+B) 21,28,862 25,78,990 30,13,337 27,06,605 27,72,938
A. RBI’s credit to commercial sector (2) 1,537 1,788 13,820 1,463 1,867
B. Other banks’ credit to commercial sector
(i+ii+iii) 21,27,325 25,77,201 29,99,517 27,05,142 27,71,071
(i) Bank credit by commercial banks 19,31,189 23,61,914 27,75,549 24,95,558 25,51,026
(ii) Bank credit by co-operative banks 1,77,344 1,98,816 2,09,828 1,93,791 2,03,788
(iii) Investments by commercial and
co-operative banks in other securities 18,792 16,472 14,139 15,793 16,258
3. Net Foreign Exchange Assets of
Banking Sector (A+B) 9,13,179 12,95,131 13,52,184 13,42,916 13,69,260
A. RBI’s net foreign exchange assets (i-ii)(3) 8,66,153 12,36,130 12,80,116 13,20,988 13,50,398
(i) Gross foreign assets 8,66,170 12,36,147 12,80,133 13,21,005 13,50,416
(ii) Foreign liabilities 17 17 17 17 17
B. Other banks’ net foreign exchange assets 47,026 59,001 72,068 21,928 18,862
4. Government’s Currency Liabilities to the Public 8,161 9,224 10,054 9,624 9,655
5. Banking Sector’s net Non-monetary
Liabilities Other than Time Deposits (A+B) 5,67,761 7,64,980 8,88,754 7,90,481 8,35,605
A. Net non-monetary liabilities of RBI(3) 1,77,019 2,10,221 3,87,927 3,04,537 3,49,238
B. Net non-monetary liabilities of
other banks(residual) 3,90,742 5,54,759 5,00,828 4,85,944 4,86,367
M3 (1+2+3+4-5) 33,10,068 40,17,883 47,64,019 42,39,165 42,83,545

RBI
Monthly Bulletin
November 2009 S 1117
CURRENT
STATISTICS
Money and
Banking

No. 11: Sources of Money Stock (M3) (Concld.)

(Rs.crore)
Outstandings as on March 31/Reporting Fridays of the Month/Last Reporting Friday of the Month
Source May June July August September 11, September 25,
2009 2009 2009 2009 2009 2009

1 8 9 10 11 12 13

1. Net Bank Credit to Government (A+B) 13,66,856 13,96,260 14,13,086 14,30,263 14,41,037 14,59,606
A. RBI’s net credit to Government (i-ii) 57,275 50,435 27,846 10,151 41,861 35,482
(i) Claims on Government (a+b) 97,306 73,466 59,363 60,427 60,775 85,171
(a) Central Government (1) 97,306 73,255 59,363 60,337 60,133 84,944
(b) State Governments — 212 — 90 642 227
(ii) Government deposits with RBI (a+b) 40,032 23,032 31,517 50,276 18,915 49,689
(a) Central Government 39,990 22,991 31,476 50,235 18,874 49,648
(b) State Governments 41 41 41 41 41 41
B. Other Banks’ Credit to Government 13,09,582 13,45,826 13,85,241 14,20,112 13,99,177 14,24,124
2. Bank Credit to Commercial Sector (A+B) 29,76,520 30,05,600 30,50,229 30,53,215 30,71,518 31,21,225
A. RBI’s credit to commercial sector (2) 12,995 12,745 11,656 10,176 9,726 10,807
B. Other banks’ credit to commercial sector
(i+ii+iii) 29,63,525 29,92,855 30,38,573 30,43,039 30,61,792 31,10,418
(i) Bank credit by commercial banks 27,36,452 27,67,986 28,07,033 28,07,583 28,25,957 28,73,155
(ii) Bank credit by co-operative banks 2,12,802 2,11,282 2,10,956 2,15,453 2,15,507 2,17,125
(iii) Investments by commercial and
co-operative banks in other securities 14,270 13,587 20,584 20,003 20,328 20,137
3. Net Foreign Exchange Assets of
Banking Sector (A+B) 13,00,114 13,14,261 13,53,854 13,71,850 13,83,523 13,64,380
A. RBI’s net foreign exchange assets (i-ii)(3) 12,28,046 12,63,366 13,02,959 13,20,955 13,32,628 13,13,485
(i) Gross foreign assets 12,28,063 12,63,383 13,02,977 13,20,973 13,32,646 13,13,503
(ii) Foreign liabilities 17 17 17 17 17 17
B. Other banks’ net foreign exchange assets 72,068 50,895 50,895 50,895 50,895 50,895
4. Government’s Currency Liabilities to the Public 10,212 10,308 10,417 10,504 10,504 10,504
5. Banking Sector’s net Non-monetary
Liabilities Other than Time Deposits (A+B) 7,18,333 7,92,025 8,04,034 8,22,720 8,34,264 8,59,904
A. Net non-monetary liabilities of RBI(3) 3,53,105 3,89,591 4,21,889 4,15,682 4,22,871 4,05,107
B. Net non-monetary liabilities of
other banks(residual) 3,65,227 4,02,434 3,82,146 4,07,039 4,11,393 4,54,796
M3 (1+2+3+4-5) 49,35,368 49,34,404 50,23,552 50,43,113 50,72,319 50,95,812

Notes : 1. Monetary aggregates as at end-March incorporate data on i) scheduled commercial banks as on last reporting Friday and ii) the Reserve
Bank of India pertaining to the last working day of the fiscal year.
2. Net Foreign Exchange Assets of the RBI includes investment in foreign currency denominated bonds issued by IIFC (UK) since March 20, 2009.
Also see ‘Notes on Tables’.

RBI
Monthly Bulletin
S 1118 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 11A: Commercial Bank Survey

(Rs. crore)

Outstanding as on

Item Mar. 30, Mar. 28, Sep. 12, Sep. 26, Mar. 27, Sep. 11, Sep. 25,
2007 2008 2008 2008 2009 2009 2009

1 2 3 4 5 6 7 8

Components
C.I Aggregate Deposits of Residents 25,44,473 31,40,004 33,41,778 33,76,446 37,66,842 40,19,766 40,51,569
(C.I.1+C.I.2)
C.I.1 Demand Deposits 4,29,731 5,24,310 4,67,569 4,98,899 5,23,085 5,25,671 5,51,572
C.I.2 Time Deposits of Residents 21,14,742 26,15,695 28,74,210 28,77,547 32,43,757 34,94,095 34,99,997
(C.I.2.1+C.I.2.2 )
C.I.2.1 Short-term Time Deposits 9,51,634 11,77,063 12,93,394 12,94,896 14,59,691 15,72,343 15,74,999
C.I.2.1.1 Certificates of Deposits (CDs) 97,442 1,66,642 1,77,394 1,67,532 1,98,931 2,26,903 2,19,934
C.I.2.2 Long-term Time Deposits 11,63,108 14,38,632 15,80,815 15,82,651 17,84,067 19,21,752 19,24,998
C.II Call/Term Funding from Financial Institutions 85,836 1,06,504 1,07,219 1,12,404 1,13,936 1,05,762 94,589

Sources
S.I Domestic Credit (S.I.1+S.I.2) 28,65,959 35,07,759 36,65,165 36,92,771 41,51,147 44,85,851 44,76,094
S.I.1 Credit to the Government 7,76,058 9,58,661 9,88,848 9,72,265 11,55,786 13,32,172 13,57,137
S.I.2 Credit to the Commercial Sector 20,89,901 25,49,097 26,76,316 27,20,506 29,95,361 31,53,678 31,18,957
(S.I.2.1+S.I.2.2+S.I.2.3+S.I.2.4)
S.I.2.1 Bank Credit 19,31,189 23,61,914 24,95,558 25,51,026 27,75,549 28,25,957 28,73,155
S.I.2.1.1 Non-food Credit 18,84,669 23,17,515 24,50,368 25,05,850 27,29,338 27,78,185 28,30,737
S.I.2.2 Net Credit to Primary Dealers 2,799 3,521 1,509 1,550 1,671 832 4,915
S.I.2.3 Investments in Other Approved Securities 15,458 13,053 12,480 12,293 10,624 16,020 15,885
S.I.2.4 Other Investments (in non-SLR Securities) 1,40,455 1,70,609 1,66,769 1,55,637 2,07,517 3,10,869 2,25,002
S.II Net Foreign Currency Assets of
Commercial Banks (S.II.1-S.II.2-S.II.3) -40,612 -70,196 -85,734 -95,685 -53,359 -56,255 -51,870
S.II.1 Foreign Currency Assets 58,754 31,189 25,955 25,740 55,312 41,804 44,301
S.II.2 Non-resident Foreign Currency Repatriable
Fixed Deposits 67,461 56,935 60,764 62,881 67,268 70,026 68,438
S.II.3 Overseas Foreign Currency Borrowings 31,905 44,451 50,925 58,544 41,404 28,033 27,732
S.III Net Bank Reserves (S.III.1+S.III.2-S.III.3) 1,90,116 2,71,166 3,33,802 3,35,688 2,46,748 2,48,501 2,50,346
S.III.1 Balances with the RBI 1,80,222 2,57,122 3,16,128 3,18,301 2,38,195 2,26,207 2,25,681
S.III.2 Cash in Hand 16,139 18,044 20,346 23,482 20,281 22,294 24,665
S.III.3 Loans and Advances from the RBI 6,245 4,000 2,671 6,094 11,728 0 0
S.IV Capital Account 2,02,800 2,72,622 3,22,882 3,25,171 3,32,444 3,76,251 3,76,284
S.V. Other items (net) (S.I+S.II+S.III-S.IV-C.I-C.II) 1,82,354 1,89,598 1,41,353 1,18,753 1,31,313 1,76,317 1,52,129
S.V.1 Other Demand & Time Liabilities (net of S.II.3) 2,10,329 2,53,905 2,41,417 2,37,925 2,66,116 3,04,042 2,88,955
S.V.2 Net Inter-Bank Liabilities (other than to PDs) 13,903 10,797 3,210 4,658 -20,785 -7,279 -7,686
Note : Data provisional.

RBI
Monthly Bulletin
November 2009 S 1119
CURRENT
STATISTICS
Money and
Banking

No. 11B: Monetary Survey

(Rs. crore)

Outstanding as on

Item Mar. 31, Mar. 31, Sep. 12, Sep. 26, Mar. 31, Sep. 11, Sep. 25,
2007 2008 2008 2008 2009 2009 2009

1 2 3 4 5 6 7 8
Monetary Aggregates
M1 (C.I+C.II.1+C.III) 9,69,509 11,54,454 11,16,840 11,41,271 12,51,143 12,85,086 13,03,218
NM2 (M1+C.II.2.1) 19,90,818 24,06,796 24,87,447 25,13,457 27,88,457 29,37,421 29,58,342
NM3 (NM2+C.II.2.2+C.IV = S.I+S.II+S.III-S.IV-S.V) 33,24,921 40,43,940 42,69,853 43,02,978 47,81,333 50,62,705 50,75,859
Components
C.I Currency with the Public 4,82,859 5,68,401 5,93,520 5,86,198 6,66,383 6,90,565 6,93,561
C.II Aggregate Deposits of Residents 27,48,730 33,59,981 35,64,156 35,98,918 39,95,441 42,51,383 42,83,649
(C.II.1+C.II.2)
C.II.1 Demand Deposits 4,79,154 5,76,999 5,18,362 5,49,615 5,79,188 5,79,526 6,05,597
C.II.2 Time Deposits of Residents 22,69,576 27,82,982 30,45,794 30,49,303 34,16,254 36,71,857 36,78,052
(C.II.2.1+C.II.2.2)
C.II.2.1 Short-term Time Deposits 10,21,309 12,52,342 13,70,607 13,72,186 15,37,314 16,52,335 16,55,123
C.II.2.1.1 Certificates of Deposits (CDs) 97,442 1,66,642 1,77,394 1,67,532 1,98,931 2,26,903 2,19,934
C.II.2.2 Long-term Time Deposits 12,48,267 15,30,640 16,75,187 16,77,117 18,78,940 20,19,521 20,22,929
C.III ‘Other’ Deposits with RBI 7,496 9,054 4,958 5,459 5,573 14,994 4,061
C.IV Call/Term Funding from Financial Institutions 85,836 1,06,504 1,07,219 1,12,404 1,13,936 1,05,762 94,589
Sources
S.I Domestic Credit (S.I.1+S.I.2) 30,97,537 36,38,516 38,39,774 38,79,060 44,76,836 47,92,696 47,78,850
S.I.1 Net Bank Credit to the Government 8,25,770 8,94,995 9,68,127 9,61,688 12,68,805 14,28,754 14,47,291
(S.I.1.1+S.I.1.2)
S.I.1.1 Net RBI credit to the Government 2,423 -1,13,209 -71,788 -61,862 61,580 41,861 35,482
S.I.1.2 Credit to the Government by 8,23,347 10,08,204 10,39,915 10,23,550 12,07,225 13,86,893 14,11,809
the Banking System
S.I.2 Bank Credit to the Commercial Sector 22,71,767 27,43,521 28,71,648 29,17,372 32,08,032 33,63,943 33,31,559
(S.I.2.1+S.I.2.2)
S.I.2.1 RBI Credit to the Commercial Sector 1,537 1,788 1,463 1,867 13,820 9,726 10,807
S.I.2.2 Credit to the Commercial Sector by 22,70,230 27,41,733 28,70,185 29,15,505 31,94,212 33,54,216 33,20,752
the Banking System
S.I.2.2.1 Other Investments ( Non-SLR Securities) 1,49,417 1,79,572 1,75,731 1,64,600 2,16,479 3,19,832 2,33,964
S.II Government’s Currency Liabilities to the Public 8,161 9,224 9,624 9,655 10,054 10,504 10,504
S.III Net Foreign Exchange Assets of
the Banking Sector (S.III.1+S.III.2) 8,25,541 11,65,934 12,35,254 12,54,713 12,26,757 12,76,373 12,61,616
S.III.1 Net Foreign Exchange Assets of the RBI 8,66,153 12,36,130 13,20,988 13,50,398 12,80,116 13,32,628 13,13,485
S.III.2 Net Foreign Currency Assets of -40,612 -70,196 -85,734 -95,685 -53,359 -56,255 -51,870
the Banking System
S.IV Capital Account 3,84,250 4,75,973 6,56,574 6,95,516 7,16,693 8,15,629 7,94,237
S.V Other items (net) 2,22,067 2,93,760 1,58,226 1,44,933 2,15,622 2,01,240 1,80,874
Notes : 1. Data are provisional.
2. Monetary Aggregates as at end-march incorporate data on i) scheduled commercial banks as on Last Reporting Friday and ii) the Reserve Bank of
India pertaining to the last working day of the fiscal year.

RBI
Monthly Bulletin
S 1120 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 11C: Reserve Bank of India Survey

(Rs. crore)

Outstanding as on

Item Mar. 31, Mar. 31, Sep. 12, Sep. 26, Mar. 31, Sep. 11, Sep. 25,
2007 2008 2008 2008 2009 2009 2009

1 2 3 4 5 6 7 8

Components
C.I Currency in Circulation 5,04,099 5,90,801 6,17,293 6,13,144 6,91,153 7,16,404 7,21,820
C.II Bankers’ Deposits with the RBI 1,97,295 3,28,447 3,36,184 3,38,334 2,91,275 2,40,451 2,39,290
C.II.1 Scheduled Commercial Banks 1,86,322 3,11,880 3,16,128 3,18,301 2,77,462 2,26,207 2,25,681
C.III ‘Other’ Deposits with the RBI 7,496 9,054 4,958 5,459 5,573 14,994 4,061
C.IV Reserve Money (C.I+C.II+C.III = 7,08,890 9,28,302 9,58,435 9,56,936 9,88,001 9,71,849 9,65,172
S.I + S.II + S.III - S.IV - S.V)

Sources
S.I RBI’s Domestic Credit (S.I.1+S.I.2+S.I.3) 11,596 -1,06,831 -67,640 -53,879 85,757 51,587 46,289
S.I.1 Net RBI credit to the Government (S.I.1.1+S.I.1.2) 2,423 -1,13,209 -71,788 -61,862 61,580 41,861 35,482
S.I.1.1 Net RBI credit to the Central Government 2,136 -1,14,636 -72,144 -61,827 61,761 41,260 35,296
(S.I.1.1.1+S.I.1.1.2+S.I.1.1.3+S.I.1.1.4-S.I.1.1.5)
S.I.1.1.1 Loans and Advances to the Central Government — — 965 — — — —
S.I.1.1.2 Investments in Treasury Bills — — — — — — —
S.I.1.1.3 Investments in dated Government Securities 97,172 1,14,593 1,02,521 1,32,329 1,57,389 59,930 84,793
S.I.1.1.3.1 Central Government Securities 96,125 1,13,547 1,01,475 1,31,283 1,56,343 58,883 83,747
S.I.1.1.4 Rupee Coins 12 132 136 105 99 204 150
S.I.1.1.5 Deposits of the Central Government 95,048 2,29,361 1,75,767 1,94,262 95,727 18,874 49,648
S.I.1.2 Net RBI credit to State Governments 287 1,427 356 -34 -181 601 186
S.I.2 RBI’s Claims on Banks 7,635 4,590 2,685 6,116 10,357 — —
S.I.2.1 Loans and Advances to Scheduled Commercial Banks 6,310 4,571 2,671 6,094 10,164 — —
S.I.3 RBI’s Credit to Commercial Sector 1,537 1,788 1,463 1,867 13,820 9,726 10,807
S.I.3.1 Loans and Advances to Primary Dealers 153 405 82 352 750 — —
S.I.3.2 Loans and Advances to NABARD — — — — — — —
S.II Government’s Currency Liabilities to the Public 8,161 9,224 9,624 9,655 10,054 10,504 10,504
S.III Net Foreign Exchange Assets of the RBI 8,66,153 12,36,130 13,20,988 13,50,398 12,80,116 13,32,628 13,13,485
S.III.1 Gold 29,573 40,124 38,064 38,064 48,793 48,041 48,041
S.III.2 Foreign Currency Assets 8,36,597 11,96,023 12,82,942 13,12,352 12,31,340 12,84,605 12,65,462
S.IV Capital Account 1,57,279 1,79,181 3,09,521 3,46,174 3,60,078 4,15,207 3,93,782
S.V Other Items (net) 19,740 31,040 -4,984 3,064 27,849 7,664 11,325
Note: 1. Data provisional.

RBI
Monthly Bulletin
November 2009 S 1121
CURRENT
STATISTICS
Money and
Banking

No. 11D: Liquidity Aggregates (Outstanding Amounts)

(Rs. crore)
Liabilities of Financial Institutions Public Deposits
with
Month/Year NM3 Postal L1 Term Money CDs Term Total L2 L3
NBFCs
Deposits Borrowings Deposits
1 2 3 4=(2+3) 5 6 7 8=(5+6+7) 9=(4+8) 10 11=(9+10)

2007- 08
April 33,28,404 1,15,589 34,43,993 2,656 31 245 2,932 34,46,925
May 33,43,424 1,16,135 34,59,559 2,656 31 245 2,932 34,62,491
June 33,96,545 1,16,573 35,13,118 2,656 31 245 2,932 35,16,050 24,215 35,40,265
July 34,63,324 1,16,874 35,80,198 2,656 31 245 2,932 35,83,130
August 34,97,908 1,16,886 36,14,794 2,656 31 245 2,932 36,17,726
September 35,97,030 1,16,882 37,13,912 2,656 31 245 2,932 37,16,844 24,663 37,41,507
October 36,22,614 1,16,886 37,39,500 2,656 31 245 2,932 37,42,432
November 36,89,321 1,16,994 38,06,315 2,656 31 245 2,932 38,09,247
December 37,23,960 1,16,901 38,40,861 2,656 31 245 2,932 38,43,793 24,670 38,68,463
January 38,22,313 1,15,871 39,38,184 2,656 31 245 2,932 39,41,116
February 39,11,566 1,14,579 40,26,145 2,656 31 245 2,932 40,29,077
March 40,43,940 1,14,851 41,58,791 2,656 31 245 2,932 41,61,723 24,852 41,86,575

2008 - 09
April 40,60,194 1,14,497 41,74,691 2,656 31 245 2,932 41,77,623
May 41,10,950 1,15,131 42,26,081 2,656 31 245 2,932 42,29,013
June 41,28,575 1,15,471 42,44,046 2,656 31 245 2,932 42,46,978 24,647 42,71,625
July 41,65,104 1,15,714 42,80,818 2,656 31 245 2,932 42,83,750
August 42,47,373 1,15,507 43,62,880 2,656 31 245 2,932 43,65,812
September 43,02,978 1,15,451 44,18,429 2,656 31 245 2,932 44,21,361 24,647 44,46,008
October 43,78,543 1,15,441 44,93,984 2,656 31 245 2,932 44,96,916
November 44,14,019 1,15,157 45,29,176 2,656 31 245 2,932 45,32,108
December 44,63,077 1,14,988 45,78,065 2,656 31 245 2,932 45,80,997 24,647 46,05,644
January 45,86,826 1,13,965 47,00,791 2,656 31 245 2,932 47,03,723
February 46,69,549 1,13,471 47,83,020 2,656 31 245 2,932 47,85,952
March 47,81,333 1,14,076 48,95,409 2,656 31 245 2,932 48,98,341 24,647 49,22,988

2009-10
April 48,82,191 1,13,894 49,96,085 2,656 31 245 2,932 49,99,017
May 49,35,157 1,14,140 50,49,297 2,656 31 245 2,932 50,52,229
June 49,27,474 1,14,429 50,41,903 2,656 31 245 2,932 50,44,835 24,647 50,69,482
July 50,16,577 1,14,309 51,30,886 2,656 31 245 2,932 51,33,818
Aug 50,47,129 1,14,199 51,61,328 2,656 31 245 2,932 51,64,260
September 50,75,859 1,14,199 51,90,058 2,656 31 245 2,932 51,92,990 24,647 52,17,637

CDs: Certificates of Deposits; L1, L2 and L3: Liquidity Aggregates; NBFCs: Non-Banking Financial Companies.
Notes: 1. Postal Deposits comprise post office savings bank deposits, post office time deposits, post office recurring deposits, other deposits and post
office cumulative time deposits.
2. Financial Institutions (FIs), here, comprise IFCI, EXIM Bank, IIBI, SIDBI, NABARD, NHB, TFCI and IDFC. Since October 2004, data on FIs do
not include that of IDBI reflecting its conversion into a banking entity.
3. Since July 2001, the term money borrowings of the FIs comprise borrowings from corporates and others.
4. Since August 2002, Term Deposits include CPs and Others.
5. Estimates of public deposits are generated on the basis of returns received from all NBFCs with public deposits of Rs. 20 crore and more as
had been recommended by the Working Group.
6. While L1 and L2 are compiled on a monthly basis, L3 is compiled on a quarterly basis.
7. Data are provisional. Wherever data are not available, the estimates for the last available month have been repeated.

RBI
Monthly Bulletin
S 1122 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 12: Reserve Money and its Components

(Rs. crore)
Outstandings as on March 31/each Friday/ Currency in Circulation ‘Other’ Deposits Bankers’ Deposits Reserve Money
last reporting Friday of the month with RBI with RBI (2+4+5)
Total o / w cash
with banks
1 2 3 4 5 6

2006-2007 5,04,099 21,244 7,496 1,97,295 7,08,890

2007-2008 5,90,801 22,390 9,054 3,28,447 9,28,302

2008-2009 6,91,153 24,790 5,573 2,91,275 9,88,001

September 5, 2008 6,15,548 — 5,014 3,57,921 9,78,483

September 12, 2008 6,17,293 23,712 4,958 3,36,184 9,58,435

September 19, 2008 6,14,954 — 5,552 3,60,766 9,81,272

September 26, 2008 6,13,144 26,998 5,459 3,38,334 9,56,936

May 2009 7,24,621 29,520 4,726 2,28,434 9,57,781

June 2009 7,20,845 30,081 9,616 2,18,611 9,49,072

July 2009 7,03,825 27,503 4,251 2,23,209 9,31,285

August 2009 7,06,562 27,043 5,439 2,24,104 9,36,105

September 4, 2009 7,10,955 — 4,068 2,22,727 9,37,750

September 11, 2009 7,16,404 25,949 14,994 2,40,451 9,71,849

September 18, 2009 7,19,013 — 14,264 2,21,607 9,54,883

September 25, 2009 7,21,820 28,375 4,061 2,39,290 9,65,172

See ‘Notes on Table’.

RBI
Monthly Bulletin
November 2009 S 1123
CURRENT
STATISTICS
Money and
Banking

No. 13: Sources of Reserve Money

(Rs. crore)
Outstanding as on Reserve Bank’s claims on Net Foreign Government’s Net Non- Reserve
March 31/each Friday/ Exchange Currency Monetary Money
last reporting Government Commercial National Commercial Assets of Liabilities Liabilities (2+3+4+5
Friday of the month (net)(1) & Co-operative Bank for sector(2) RBI (3) to the Public of RBI (3) +6+7–8)
banks Agriculture
and Rural
Development

1 2 3 4 5 6 7 8 9

2006-2007 2,423 7,635 — 1,537 8,66,153 8,161 1,77,019 7,08,890

2007-2008 -1,13,209 4,590 — 1,788 12,36,130 9,224 2,10,221 9,28,302

2008-2009 61,580 10,357 — 13,820 12,80,116 10,054 3,87,927 9,88,001

September 5, 2008 -57,376 3,673 — 1,507 12,78,748 9,624 2,57,694 9,78,483

September 12, 2008 -71,788 2,685 — 1,463 13,20,988 9,624 3,04,537 9,58,435

September 19, 2008 -44,244 8,227 — 1,733 13,48,025 9,624 3,42,093 9,81,272

September 26, 2008 -61,862 6,116 — 1,867 13,50,398 9,655 3,49,238 9,56,936

May 2009 57,275 2,360 — 12,995 12,28,046 10,212 3,53,105 9,57,781

June 2009 50,435 1,810 — 12,745 12,63,366 10,308 3,89,591 9,49,072

July 2009 27,846 296 — 11,656 13,02,959 10,417 4,21,889 9,31,285

August 2009 10,151 — — 10,176 13,20,955 10,504 4,15,682 9,36,105

September 4, 2009 4,755 — — 9,266 13,28,485 10,504 4,15,261 9,37,750

September 11, 2009 41,861 — — 9,726 13,32,628 10,504 4,22,871 9,71,849

September 18, 2009 27,357 — — 8,552 13,22,881 10,504 4,14,412 9,54,883

September 25, 2009 35,482 — — 10,807 13,13,485 10,504 4,05,107 9,65,172

See ‘Notes on Tables’.

Note : 1. Net Foreign Exchange Assets of the RBI includes investments in foreign currency denominated bonds issued by IIFC(UK) since March 20, 2009.

RBI
Monthly Bulletin
S 1124 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 14: Daily Call Money Rates

As on Range of Rates Weighted Average Rates

Borrowings Lendings Borrowings Lendings

1 2 3 4 5

September 1, 2009 2.00 — 3.30 2.00 — 3.30 3.24 3.24

September 2, 2009 2.00 — 3.30 2.00 — 3.30 3.23 3.23
September 3, 2009 1.75 — 3.30 1.75 — 3.30 3.22 3.22
September 4, 2009 1.75 — 3.30 1.75 — 3.30 3.24 3.24
September 5, 2009 2.00 — 3.47 2.00 — 3.47 3.33 3.33
September 7, 2009 1.50 — 3.30 1.50 — 3.30 3.23 3.23
September 8, 2009 1.50 — 3.30 1.50 — 3.30 3.22 3.22
September 9, 2009 2.00 — 3.30 2.00 — 3.30 3.21 3.21
September 10, 2009 2.00 — 3.30 2.00 — 3.30 3.23 3.23
September 11, 2009 1.75 — 3.30 1.75 — 3.30 3.21 3.21
September 12, 2009 1.75 — 3.35 1.75 — 3.35 3.26 3.26
September 14, 2009 1.75 — 3.30 1.75 — 3.30 3.25 3.25
September 15, 2009 1.75 — 3.30 1.75 — 3.30 3.24 3.24
September 16, 2009 2.25 — 3.35 2.25 — 3.35 3.27 3.27
September 17, 2009 2.00 — 3.30 2.00 — 3.30 3.26 3.26
September 18, 2009 2.00 — 4.00 2.00 — 4.00 3.27 3.27
September 19, 2009 2.00 — 4.25 2.00 — 4.25 3.71 3.71
September 21, 2009 2.00 — 4.25 2.00 — 4.25 3.71 3.71
September 22, 2009 1.50 — 3.30 1.50 — 3.30 3.25 3.25
September 23, 2009 1.70 — 3.50 1.70 — 3.50 3.26 3.26
September 24, 2009 1.75 — 3.35 1.75 — 3.35 3.24 3.24
September 25, 2009 1.75 — 3.35 1.75 — 3.35 3.23 3.23
September 26, 2009 2.15 — 3.50 2.15 — 3.50 3.35 3.35
September 28, 2009 2.15 — 3.50 2.15 — 3.50 3.35 3.35
September 29, 2009 2.15 — 4.30 2.15 — 4.30 3.38 3.38

October 1, 2009 2.15 — 3.30 2.15 — 3.30 3.24 3.24

October 2, 2009 2.15 — 3.30 2.15 — 3.30 3.24 3.24
October 3, 2009 1.50 — 3.30 1.50 — 3.30 1.96 1.96
October 5, 2009 2.00 — 3.30 2.00 — 3.30 3.13 3.13
October 6, 2009 1.85 — 3.50 1.85 — 3.50 3.21 3.21
October 7, 2009 2.15 — 3.50 2.15 — 3.50 3.23 3.23
October 8, 2009 2.00 — 3.35 2.00 — 3.35 3.24 3.24
October 9, 2009 2.00 — 3.30 2.00 — 3.30 3.14 3.14
October 10, 2009 2.10 — 4.40 2.10 — 4.40 3.89 3.89
October 12, 2009 2.15 — 3.35 2.15 — 3.35 3.28 3.28
October 13, 2009 2.15 — 3.35 2.15 — 3.35 3.28 3.28
October 14, 2009 2.00 — 3.35 2.00 — 3.35 3.27 3.27
October 15, 2009 2.00 — 3.30 2.00 — 3.30 3.27 3.27

RBI
Monthly Bulletin
November 2009 S 1125
CURRENT
STATISTICS
Money and
Banking

No. 15: Average Daily Turnover in Call Money Market

(Rs. crore)

Fortnight ended Average Daily Call Money Turnover

Banks Primary Dealers Total

Borrowings Lendings Borrowings Lendings

1 2 3 4 5 6

August 1, 2008 11,185 11,475 347 57 23,063

August 15. 2008 12,401 12,661 313 53 25,428
August 29. 2008 11,321 11,692 411 41 23,466
September 12, 2008 11,812 12,389 587 9 24,797
September 26, 2008 10,756 11,205 472 22 22,455
October 10, 2008 12,426 12,909 510 28 25,873
October 24, 2008 12,500 13,288 1,022 234 27,044
November 7, 2008 12,473 13,338 914 48 26,773
November 21, 2008 9,655 10,713 1,069 11 21,449
December 5, 2008 10,090 11,106 1,040 24 22,260
December 19, 2008 11,001 12,170 1,175 6 24,353
January 2, 2009 7,749 8,747 1,005 8 17,508
January 16, 2009 8,907 10,280 1,376 4 20,567
January 30, 2009 7,129 8,802 1,682 9 17,622
February 13, 2009 8,838 10,548 1,711 2 21,099
February 27, 2009 9,637 11,534 1,906 9 23,087
March 13, 2009 10,473 12,600 2,127 — 25,199
March 27, 2009 10,610 12,154 1,551 6 24,320
April 10, 2009 7,658 9,807 2,148 — 19,613
April 24, 2009 8,647 10,227 1,595 15 20,484
May 8, 2009 10,052 11,550 1,513 14 23,129
May 22, 2009 8,874 10,120 1,264 18 20,275
June 5, 2009 8,050 8,867 824 7 17,748
June 19, 2009 7,974 9,096 1,122 — 18,192
July 3, 2009 6,576 7,487 913 2 14,978
July 17, 2009 4,854 5,966 1,112 — 11,932
July 31, 2009 7,078 8,175 1,096 — 16,349
August 14, 2009 4,636 5,413 781 4 10,835
August 28, 2009 8,669 9,997 1,334 6 20,005
September 11, 2009 6,860 7,855 1,028 32 15,774
September 25, 2009 8,051 8,816 766 1 17,634
October 9, 2009 5,198 6,034 835 — 12,067

Notes : 1. Data are provisional.

2. Since August 6, 2005 eligible participants are Banks and Primary Dealers.

RBI
Monthly Bulletin
S 1126 November 2009
 CURRENT
STATISTICS
Money and
Banking

No. 16: Issue of Certificates of Deposit by Scheduled Commercial Banks

(Amount in Rs. crore)

Fortnight ended Total Range of Fortnight ended Total Range of Fortnight ended Total Range of
Amount Discount Rate Amount Discount Rate Amount Discount Rate
Outstanding (per cent) @ Outstanding (per cent) @ Outstanding (per cent) @

1 2 3 1 2 3 1 2 3

2007-08 2008-09 2009-10

April 13 93,808 9.50–11.50 April 11 1,49,986 8.00–9.72 April 10 1,98,497 5.90-11.50

27 95,980 9.40–11.50 25 1,50,865 7.70–9.96 24 2,10,954 3.90-11.50

May 11 97,292 10.05–11.50 May 9 1,53,410 7.75–10.20 May 8 2,11,370 3.75-6.20

25 99,715 7.00–10.82 23 1,56,780 8.00–10.20 22 2,18,437 3.65-7.60

June 8 99,287 6.13–10.95 June 6 1,59,696 8.60–10.20 June 5 2,18,079 3.90-6.60

22 98,337 7.00–10.20 20 1,63,143 8.62–9.79 19 2,21,491 3.60-8.00

July 6 1,02,992 6.25–9.69 July 4 1,64,557 8.30–10.60 July 3 2,28,638 3.34-8.25

20 1,05,317 5.50–10.82 18 1,64,892 8.92–10.95 17 2,35,715 3.34-8.00

August 3 1,03,750 6.05–10.75 August 1 1,63,546 8.92–11.05 31 2,40,395 3.55-8.00

17 1,06,350 6.87–8.91 15 1,66,996 8.92–11.11 August 14 2,30,198 3.75-8.00

31 1,09,224 6.87–10.75 29 1,71,966 10.00–11.57 28 2,32,522 3.60-8.00

September 14 1,13,892 6.87–10.00 September 12 1,78,280 8.92–12.00

28 1,18,481 6.87–10.00 26 1,75,522 8.92–12.35

October 12 1,22,142 6.87–10.00 October 10 1,74,975 8.92-21.00

26 1,24,232 6.85–10.00 24 1,58,562 8.80-12.90

November 9 1,25,653 6.87–9.00 November 7 1,54,172 8.92-11.50

23 1,27,143 6.87–9.03 21 1,51,493 8.80-11.75

December 7 1,25,327 8.05–9.25 December 5 1,50,779 8.50-11.00

21 1,23,466 8.05–10.00 19 1,51,214 7.00-11.50

January 4 1,27,154 6.87–9.82 January 2 1,52,901 7.00-11.50

18 1,29,123 7.90–9.21 16 1,62,883 6.10-11.50

February 1 1,32,395 7.90–9.85 30 1,64,979 5.25-11.50

14 1,35,097 6.83–9.75 February 13 1,74,088 5.40-11.50

29 1,39,160 9.22–10.27 27 1,75,057 5.40-11.50

March 14 1,43,714 7.00–10.48 March 13 1,67,320 5.45-11.50

28 1,47,792 9.00–10.75 27 1,92,867 6.00-11.50

@ : Effective discount rate range per annum.

RBI
Monthly Bulletin
November 2009 S 1127
CURRENT
STATISTICS
Money and
Banking

No. 17: Issue of Commercial Paper* By Companies

(Amount in Rs. crore)

Fortnight ended Total Rate of Fortnight ended Total Rate of Fortnight ended Total Rate of
Amount Interest Amount Interest Amount Interest
Outstanding (per cent) @ Outstanding (per cent) @ Outstanding (per cent) @

1 2 3 1 2 3 1 2 3

2007-08 2008-09 2009-10

April 15 19,012.70 10.00–14.00 April 15 35,793.55 7.74–10.25 April 15 46,550.90 6.00–12.50

30 18,759.00 9.65–11.75 30 37,583.55 7.35–10.10 30 52,880.90 3.30–10.25

May 15 19,288.00 9.25–11.45 May 15 41,005.55 7.15–10.75 May 15 57,844.90 2.83-9.90

31 22,024.00 8.71–12.00 31 42,031.55 7.70–10.50 31 60,739.90 3.32-9.00

June 15 25,499.75 7.00–10.80 June 15 45,982.80 8.25–11.60 June 15 67,238.75 3.50-9.15

30 26,256.25 7.35–12.00 30 46,847.30 9.00–12.25 30 68,720.55 3.20-12.00

July 15 28,129.25 4.00–11.50 July 15 48,342.30 9.50–12.25 July 15 77,559.58 3.04-8.85

31 30,631.25 7.05–11.50 31 51,569.30 9.60–12.00 31 79,582.05 3.25-8.90

August 15 31,784.25 7.59–13.50 August 15 52,830.55 9.54–12.50 August 15 77,352.05 3.43-9.20

31 31,527.00 8.30–10.25 31 55,035.55 10.20–14.75 31 83,025.90 3.05-9.35

September 15 33,227.00 6.35–10.90 September 15 54,181.95 10.25–14.25 September 15 88,161.00 3.20-9.05

30 33,614.05 7.70–12.00 30 52,037.60 11.40–13.95

October 15 38,494.55 7.00–13.00 October 15 49,359.00 11.90–17.75

31 42,182.55 6.70–12.00 31 48,442.00 11.55–16.90

November 15 41,677.55 7,50–12,00 November 15 45,382.10 11.50–15.50

30 41,307.55 8.05–11.50 30 44,487.10 9.00–15.50

December 15 40,913.55 8.22–11.50 December 15 40,166.00 10.40-16.00

31 40,231.17 8.40–11.70 31 38,055.00 8.96-14.00

January 15 42,391.55 7.35–12.50 January 15 48,802.60 7.75-14.00

31 50,063.05 7.55–16.00 31 51,668.00 6.75-13.00

February 15 43,920.58 6.95–11.00 February 15 53,614.60 5.25-12.50

29 40,642.05 7.40–11.00 28 52,559.60 5.80-11.75

March 15 37,282.76 9.50–11.00 March 15 49,952.75 7.50-12.50

31 32,591.55 9.50–14.25 31 44,171.25 6.40-12.50

* : Issued at face value by companies.

@ : Typical effective discount rate range per annum on issues during the fortnight.

RBI
Monthly Bulletin
S 1128 November 2009
 CURRENT
STATISTICS
Government
Accounts

Government Accounts
No. 18: Union Government Accounts at a Glance
(Amount in Rs. crore)

Item Financial Year April-September- 2009

2009-10 2008-09 2009-10 Percentage to Budget Estimates

(Budget Estimates) (Actuals) (Actuals)
2008-09 2009-10

1 2 3 4 5 6

1. Revenue Receipts 6,14,497 2,44,898 2,44,471 40.6 39.8

2. Tax Revenue (Net) 4,74,218 2,02,247 1,85,669 39.9 39.2

3. Non-Tax Revenue 1,40,279 42,651 58,802 44.5 41.9

4. Capital Receipts 4,06,341 1,04,183 2,04,377 70.4 50.3

5. Recovery of Loans 4,225 1,486 2,302 33.0 54.5

6. Other Receipts 1,120 43 4,300 0.4 383.9

7. Borrowings and Other Liabilities 4,00,996 1,02,654 1,97,775 77.0 49.3

8. Total Receipts (1+4) 10,20,838 3,49,081 4,48,848 46.5 44.0

9. Non-Plan Expenditure 6,95,689 2,40,629 3,22,070 47.4 46.3

10. On Revenue Account 6,18,834 2,29,484 3,01,291 51.2 48.7

of which :
( i ) Interest Payments 2,25,511 86,061 86,669 45.1 38.4

11. On Capital Account 76,855 11,145 20,779 18.8 27.0

12. Plan Expenditure 3,25,149 1,08,452 1,26,778 44.6 39.0

13. On Revenue Account 2,78,398 93,727 1,08,163 44.7 38.9

14. On Capital Account 46,751 14,725 18,615 43.8 39.8

15. Total Expenditure (9+12) 10,20,838 3,49,081 4,48,848 46.5 44.0

16. Revenue Expenditure (10+13) 8,97,232 3,23,211 4,09,454 49.1 45.6

17. Capital Expenditure (11+14) 1,23,606 25,870 39,394 27.9 31.9

18. Revenue Deficit (16-1) 2,82,735 78,313 1,64,983 141.9 58.4

19. Fiscal Deficit {15-(1+5+6)} 4,00,996 1,02,654 1,97,775 77.0 49.3

20. Gross Primary Deficit [19-10(i)] 1,75,485 16,593 1,11,106 -28.8 63.3

Notes : 1. Financial year runs from “April to March”.

2. Actuals are unaudited figures.
Source : Controller General of Accounts, Ministry of Finance, Government of India.

RBI
Monthly Bulletin
November 2009 S 1129
CURRENT
STATISTICS
Government
Securities
Market

Government Securities Market

No. 19: Government of India : 91 Day Treasury Bills
(Outstanding at Face Value)
(Rs. crore)

March 31/ Last Reserve Bank of India Banks State Governments Others Foreign Central Banks
Friday/ Friday Tap*
Auction Tap* Auction Tap* Auction Tap* Auction Tap* Auction
Re-discounted Ad hocs

1 2 3 4 5 6 7 8 9 10 11 12

Mar. 31, 2000 — — 288 — 557 — — — 455 — 220

Mar. 31, 2001 — — 67 — 868 — — — 153 — 630
Mar. 31 2002 — — 154 — 2,292 — 450 — 360 — 1,301
Mar. 31, 2003 — — — — 6,427 — 800 — 780 — 700
Mar. 31, 2004 — — — — 3,948 — 600 — 1,452 — 39
Mar. 31, 2005 — — — — 21,176 — 1,755 — 4,829 — 32
Mar. 31, 2006 — — — — 5,943 — 9,762 — 576 — 37
Mar. 31, 2007 — — — — 12,684 — 24,250 — 6,743 — 5
Mar. 31, 2008 — — — — 6,057 — 23,825 — 10,075 — —
Mar. 31, 2009 — — — — 49,914 — 544 — 25,092 — —

Jan. 2008 — — — — 11,143 — 23,278 — 6,946 — 20

Feb. 2008 — — — — 8,503 — 26,135 — 8,629 — —
Mar. 2008 — — — — 6,057 — 23,825 — 10,075 — —
Apr. 2008 — — — — 7,596 — 23,547 — 10,946 — —
May 2008 — — — — 10,949 — 24,951 — 16,051 — —
Jun. 2008 — — — — 15,065 — 26,704 — 18,435 — —
Jul. 2008 — — — — 12,320 — 27,131 — 16,181 — —
Aug. 2008 — — — — 12,874 — 28,939 — 16,626 — —
Sep. 2008 — — — — 18,140 — 23,706 — 18,110 — —
Oct. 2008 — — — — 28,100 — 20,456 — 18,650 — —
Nov. 2008 — — — — 33,507 — 16,029 — 22,243 — —
Dec. 2008 — — — — 36,193 — 15,846 — 17,807 — —
Jan. 2009 — — — — 40,741 — 10,446 — 25,261 — —
Feb. 2009 — — — — 43,910 — 7,020 — 25,094 — —
Mar. 2009 — — — — 49,914 — 544 — 25,092 — —
Apr. 2009 — — — — 44,190 — 5,544 — 30,814 — —
May 2009 — — — — 39,653 — 5,000 — 35,347 — —
Jun. 2009 — — — — 38,979 — 5,000 — 36,021 — —
Jul. 2009 — — — — 25,841 — — — 50,309 — 350
Aug. 2009 — — — — 26,840 — — — 49,185 — 475

Week Ended
Sep. 4, 2009 — — — — 27,468 — — — 48,557 — 475
Sep. 11, 2009 — — — — 28,765 — — — 47,260 — 475
Sep. 18, 2009 — — — — 32,760 — — — 43,265 — 475
Sep. 25, 2009 — — — — 37,133 — — — 38,892 — 475

* : The rate of discount is 4.60 per cent —per annum.

RBI
Monthly Bulletin
S 1130 November 2009
 CURRENT
STATISTICS
Government
Securities
Market

No. 21: Auctions of 91 Day Government of India Treasury Bills

(Amount in Rs. crore)

Date of Date of Notified Bids Received Bids Accepted Devolve- Total Cut-off Implicit Amount
Auction Issue Amount ment on Issue Price Yield at Out-
Total Face Value Total Face Value
Number Number PDs/ (8+9+10) Cut-off standing
Com- Non- Com- Non- SDs* Price as on the
petitive Com- petitive Com- (per cent) Date of
petitive petitive Issue (Face
Value)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2008-09
Oct. 1 Oct. 3 5,000 109 7,752.00 500.00 10 500.00 500.00 — 1,000.00 97.84 8.8550 59,705.71
Oct. 8 Oct. 10 5,000 147 9,520.27 500.00 94 5,000.00 500.00 — 5,500.00 97.93 8.4782 60,605.71
Oct. 15 Oct. 17 5,000 138 9,103.80 2,000.00 91 5,000.00 2,000.00 — 7,000.00 97.88 8.6875 62,355.71
Oct. 22 Oct. 24 5,000 169 13,426.53 1,000.00 29 5,000.00 1,000.00 — 6,000.00 98.24 7.1858 64,605.71
Oct. 29 Oct. 31 5,000 158 8,835.26 1,400.00 106 5,000.00 1,400.00 — 6,400.00 98.18 7.4353 67,205.71

Nov. 5 Nov. 7 5,000 123 12,732.65 141.19 62 5,000.00 141.19 — 5,141.19 98.19 7.3937 66,708.80
Nov. 12 Nov. 14 5,000 133 8,873.07 753.00 89 5,000.00 753.00 — 5,753.00 98.20 7.3521 67,311.80
Nov. 19 Nov. 21 5,000 136 14,842.52 1,762.00 85 5,000.00 1,762.00 — 6,762.00 98.21 7.3105 69,073.80
Nov. 26 Nov. 28 5,000 157 11,617.88 1,313.79 70 5,000.00 1,313.79 — 6,313.79 98.25 7.1443 71,779.50

Dec. 3 Dec. 5 3,000 179 15,189.80 150.00 20 3,000.00 150.00 — 3,150.00 98.38 6.6048 68,929.50
Dec. 10 Dec. 12 5,000 183 15,176.55 5,275.00 114 5,000.00 5,275.00 — 10,275.00 98.61 5.6539 69,368.50
Dec. 17 Dec. 19 5,000 164 13,297.72 932.37 47 5,000.00 932.37 — 5,932.37 98.66 5.4477 69,727.39
Dec. 24 Dec. 26 500 72 5,340.91 119.00 8 500.00 119.00 — 619.00 98.76 5.0361 69,846.35

Dec. 31 Jan. 2 500 85 6,796.87 — 8 500.00 — — 500.00 98.84 4.7074 69,346.35

Jan. 7 Jan. 9 8,000 194 23,148.72 — 21 8,000.00 — — 8,000.00 98.84 4.7074 71,846.35
Jan. 14 Jan. 16 8,000 156 18,212.00 1.00 73 8,000.00 1.00 — 8,001.00 98.87 4.5842 72,847.35
Jan. 21 Jan. 23 8,000 143 18,886.80 0.30 66 8,000.00 0.30 — 8,000.30 98.85 4.6663 74,847.65
Jan. 28 Jan. 30 8,000 153 13,498.65 0.50 107 8,000.00 0.50 — 8,000.50 98.82 4.7895 76,448.15

Feb. 4 Feb. 6 8,000 157 16,458.20 543.72 81 8,000.00 543.72 — 8,543.72 98.81 4.8306 79,850.68
Feb. 11 Feb. 13 5,000 134 16,067.99 0.50 72 5,000.00 0.50 — 5,000.50 98.82 4.7895 79,098.18
Feb. 18 Feb. 21 5,000 131 15,552.04 2.30 37 5,000.00 2.30 — 5,002.30 98.83 4.7484 77,338.48
Feb. 25 Feb. 27 5,000 107 14,373.88 0.23 46 5,000.00 0.23 — 5,000.23 98.83 4.7484 76,024.92

Mar. 4 Mar 6 4,500 111 16,008.35 0.30 41 4,500.00 0.30 — 4,500.30 98.85 4.6663 77,375.22
Mar. 12 Mar. 13 5,000 99 8,467.05 — 66 5,000.00 — — 5,000.00 98.87 4.5842 72,100.22
Mar. 18 Mar. 20 5,000 136 12,741.75 — 58 5,000.00 — — 5,000.00 98.80 4.8716 71,167.85
Mar 25 Mar 26 5,000 123 13,051.57 0.15 50 5,000.00 0.15 — 5,000.15 98.78 4.9538 75,549.00

RBI
Monthly Bulletin
November 2009 S 1131
CURRENT
STATISTICS
Government
Securities
Market

No. 21: Auctions of 91 Day Government of India Treasury Bills (Concld.)

(Amount in Rs. crore)

Date of Date of Notified Bids Received Bids Accepted Devolve- Total Cut-off Implicit Amount
Auction Issue Amount ment on Issue Price Yield at Out-
Total Face Value Total Face Value
Number Number PDs/ (8+9+10) Cut-off standing
Com- Non- Com- Non- SDs* Price as on the
petitive Com- petitive Com- (per cent) Date of
petitive petitive Issue (Face
Value)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2009-10
Apr. 2 Apr. 6 500 51 1,974.00 5000.00 17 500.00 5000.00 — 5,500.00 98.89 4.5022 80,549.00
Apr. 8 Apr. 9 8,000 183 25,567.22 — 60 8,000.00 — — 8,000.00 98.99 4.0924 80,549.00
Apr. 15 Apr. 17 8,000 135 22,989.28 — 53 8,000.00 — — 8,000.00 99.06 3.8061 80,548.00
Apr. 22 Apr. 24 8,000 137 26,201.45 — 72 8,000.00 — — 8,000.00 99.17 3.3570 80,547.70
Apr. 28 Apr. 29 8,000 99 22,553.60 — 48 8,000.00 — — 8,000.00 99.18 3.3162 80,547.20

May 6 May 8 8,000 124 30,163.75 — 49 8,000.00 — — 8,000.00 99.22 3.1532 80,003.48
May 13 May 15 5,000 85 17,295.42 — 58 5,000.00 — — 5,000.00 99.19 3.2754 80,002.98
May 20 May 22 5,000 72 14,652.35 — 35 5,000.00 — — 5,000.00 99.19 3.2754 80,000.68
May 27 May 29 5,000 71 12,755.00 — 41 5,000.00 — — 5,000.00 99.18 3.3162 80,000.45

Jun. 3 Jun. 5 4,500 74 12,343.10 — 39 4,500.00 — — 4,500.00 99.17 3.3570 80,000.15

Jun. 10 Jun. 12 5,000 77 15,594.06 — 22 5,000.00 — — 5,000.00 99.17 3.3570 80,000.15
Jun. 17 Jun. 19 5,000 81 20,012.75 — 42 5,000.00 — — 5,000.00 99.17 3.3570 80,000.15
Jun. 24 Jun. 26 5,000 61 18,082.10 — 19 5,000.00 — — 5,000.00 99.18 3.3162 80,000.00

Jul. 1 Jul. 3 2,000 44 12,557.00 — 1 2,000.00 — — 2,000.00 99.23 3.1124 76,500.00

Jul. 8 Jul. 10 8,000 82 25,695.00 — 37 8,000.00 — — 8,000.00 99.20 3.2347 76,500.00
Jul. 15 Jul. 17 8,000 77 24,462.18 — 61 8,000.00 — — 8,000.00 99.19 3.2754 76,500.00
Jul. 22 Jul. 24 8,000 68 29,287.85 — 41 8,000.00 — — 8,000.00 99.19 3.2754 76,500.00
Jul. 29 Jul. 31 8,000 61 26,942.55 — 19 8,000.00 — — 8,000.00 99.20 3.2347 76,500.00

Aug. 5 Aug. 7 8,000 63 21,896.20 — 29 8,000.00 — — 8,000.00 99.19 3.2754 76,500.00

Aug. 12 Aug. 14 5,000 81 12,680.75 — 55 5,000.00 — — 5,000.00 99.17 3.3570 76,500.00
Aug. 18 Aug. 21 5,000 62 17,015.62 — 29 5,000.00 — — 5,000.00 99.17 3.3570 76,500.00
Aug. 26 Aug. 28 5,000 72 17,504.25 — 55 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00

Sep. 2 Sep. 4 4,500 72 15,258.50 — 33 4,500.00 — — 4,500.00 99.16 3.3978 76,500.00

Sep . 9 Sep. 11 5,000 69 18,112.76 — 18 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00
Sep. 16 Sep. 18 5,000 55 15,635.00 — 22 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00
Sep. 23 Sep. 25 5,000 55 14,990.00 — 22 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00

* : Effective from auction dated May 14,1999, devolvement would be on RBI only.
Note : The presentation of implicit yield at cut-off price has been changed from actual/364-day count convention to actual/365-day count convention from
auction dated October 27, 2004.

RBI
Monthly Bulletin
S 1132 November 2009
 CURRENT
STATISTICS
Government
Securities
Market

No. 22: Auctions of 182-day Government of India Treasury Bills

(Amount in Rs. crore)

Date of Date of Notified Bids Received Bids Accepted Devolve- Total Cut-off Implicit Amount
Auction Issue Amount ment on Issue Price Yield at Out-
Total Face Value Total Face Value
Number Number PDs (8+9+10) Cut-off standing
Com- Non- Com- Non- Price as on the
petitive Com- petitive Com- (per cent) Date of
petitive petitive Issue (Face
Value)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2008-09
Jun. 25 Jun. 27 500 41 1,393.00 1,000.00 18 500.00 1,000.00 — 1,500.00 95.63 9.1645 19,788.00
Jul. 9 Jul. 11 1,500 84 3,923.46 500.00 44 1,500.00 500.00 — 2,000.00 95.55 9.3401 20,288.00
Jul. 23 Jul. 25 1,500 83 4,232.25 — 23 1,500.00 — — 1,500.00 95.56 9.3181 19,683.00
Aug. 6 Aug. 8 1,500 91 4,666.50 1,000.00 39 1,500.00 1,000.00 — 2,500.00 95.57 9.2962 20,683.00
Aug. 20 Aug. 22 1,500 86 3,915.65 1,000.00 32 1,500.00 1,000.00 — 2,500.00 95.56 9.3181 22,683.00
Sep. 2 Sep. 5 2,500 96 8,519.50 — 17 2,500.00 — — 2,500.00 95.67 9.0768 23,828.00
Sep. 17 Sep. 19 2,000 94 5,328.50 — 31 2,000.00 — — 2,000.00 95.81 8.7705 24,128.00
Oct. 1 Oct. 3 2,000 77 3,252.00 175.00 11 500.00 175.00 — 675.00 95.70 9.0111 24,303.00
Oct. 15 Oct. 17 2,000 128 4,592.47 — 64 2,000.00 — — 2,000.00 95.85 8.6832 24,303.00
Oct. 29 Oct. 31 2,000 146 6,649.00 — 32 2,000.00 — — 2,000.00 96.45 7.3816 24,553.00
Nov. 12 Nov. 14 2,000 102 5,322.25 — 21 2,000.00 — — 2,000.00 96.53 7.2092 24,000.00
Nov. 26 Nov. 28 2,000 94 6,566.00 — 27 2,000.00 — — 2,000.00 96.60 7.0587 24,800.00
Dec. 10 Dec. 12 500 59 1,773.70 — 30 500.00 — — 500.00 97.28 5.6075 23,675.00
Dec. 24 Dec. 26 500 59 2,891.20 — 7 500.00 — — 500.00 97.52 5.1001 22,675.00
Jan. 7 Jan. 9 1,500 90 5,331.00 — 6 1,500.00 — — 1,500.00 97.74 4.6372 22,175.00
Jan. 21 Jan. 23 1,500 74 4,321.00 — 23 1,500.00 — — 1,500.00 97.78 4.5533 22,175.00
Feb. 4 Feb. 6 1,500 51 2,820.00 — 20 1,500.00 — — 1,500.00 97.71 4.7002 21,175.00
Feb. 18 Feb. 21 1,500 63 2,760.00 — 40 1,500.00 — — 1,500.00 97.70 4.7212 20,175.00
Mar. 4 Mar 6 1,500 51 4,925.00 — 16 1,500.00 — — 1,500.00 97.75 4.6162 19,175.00
Mar. 18 Mar 20 3,000 99 6,166.00 — 59 3,000.00 — — 3,000.00 97.52 5.1001 20,175.00

2009-10
Apr. 2 Apr. 6 500 35 1,510.00 375.00 11 500.00 375.00 — 875.00 97.71 4.7002 20,375.00
Apr. 15 Apr. 17 2,000 85 5,149.00 — 50 2,000.00 — — 2,000.00 98.01 4.0720 20,375.00
Apr. 28 Apr. 29 2,000 78 5,530.00 — 37 2,000.00 — — 2,000.00 98.26 3.5514 20,375.00
May 13 May 15 2,000 63 4,955.00 — 19 2,000.00 — — 2,000.00 98.29 3.4891 20,375.00
May 27 May 29 2,000 52 4,045.00 — 23 2,000.00 — — 2,000.00 98.24 3.5929 20,375.00
Jun. 10 Jun. 12 500 35 2,645.00 — 5 500.00 — — 500.00 98.24 3.5929 20,375.00
Jun. 24 Jun. 26 500 36 3,000.00 — 2 500.00 — — 500.00 98.27 3.5306 20,375.00
Jul. 8 Jul. 10 1,500 52 4,717.00 — 5 1,500.00 — — 1,500.00 98.32 3.4268 20,375.00
Jul. 22 Jul. 24, 1,500 47 3,870.00 — 28 1,500.00 — — 1,500.00 98.30 3.4683 20,375.00
Aug. 5 Aug. 7 1,500 45 2,745.00 — 31 1,500.00 — — 1,500.00 98.16 3.7593 20,375.00
Aug. 18, Aug. 21 1,500 67 3,800.00 — 16 1,500.00 — — 1,500.00 98.08 3.9259 20,375.00
Sep. 2 Sep. 4 1,500 62 7,365.00 — 11 1,500.00 — — 1,500.00 98.05 3.9885 20,375.00
Sep. 16 Sep. 18 3,000 77 13,615.00 — 21 3,000.00 — — 3,000.00 98.03 4.0302 20,375.00

Notes : 1. Outstanding amount is net of redemption during the week.

2. The presentation of implicit yield at cut-off price has been changed from actual/ 364-day count convention to actual/365-day count convention from
auction dated April 6, 2005.
3. The auctions of 182-day Treasury Bills (TBs) which were discontinued effective May 14, 2001 have been reintroduced from April 6, 2005 onwards.

RBI
Monthly Bulletin
November 2009 S 1133
CURRENT
STATISTICS
Government
Securities
Market

No. 23: Auctions of 364-day Government of India Treasury Bills

(Amount in Rs. crore)

Date of Date of Notified Bids Received Bids Accepted Devolve- Total Cut-off Implicit Amount
Auction Issue Amount ment on Issue Price Yield at Out-
Total Face Value Total Face Value
Number Number PDs/ (8+9+10) Cut-off standing
Com- Non- Com- Non- SDs* Price as on the
petitive Com- petitive Com- (per cent) Date of
petitive petitive Issue (Face
Value)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2008-09
Sep. 10 Sep. 12 4,000 194 15,037.00 — 46 4,000 — — 4,000.00 91.88 8.8619 57,416.05
Sep. 24 Sep. 26 1,000 87 3,383.98 — 36 1,000 — — 1,000.00 91.93 8.8025 55,041.05
Oct. 8 Oct. 10 2,000 131 7,344.00 — 38 2,000 — — 2,000.00 92.23 8.4477 54,041.05
Oct. 22 Oct. 24 2,000 153 8,652.50 32.00 14 2,000 32.00 — 2,032.00 93.13 7.3971 53,049.05
Nov. 5 Nov. 7 2,000 85 5,310.00 — 16 2,000 — — 2,000.00 93.15 7.3739 52,049.05
Nov. 19 Nov. 21 2,000 136 8,735.00 — 22 2,000 — — 2,000.00 93.40 7.0858 53,049.05
Dec. 3 Dec. 5 1,000 118 6,471.00 — 4 1,000 — — 1,000.00 94.09 6.2985 52,049.05
Dec. 17 Dec. 19 1,000 83 2,987.00 250.00 33 1,000 250.00 — 1,250.00 94.93 5.3554 52,049.05
Dec. 31 Jan. 2 1,000 74 7,301.00 — 6 1,000 — — 1,000.00 95.45 4.7800 52,049.05
Jan. 14 Jan. 16 1,000 69 4,235.00 — 19 1,000 — — 1,000.00 95.70 4.5056 49,930.30
Jan. 28 Jan. 30 1,000 69 2,850.50 13.50 30 1,000 13.50 — 1,013.50 95.62 4.5932 48,943.80
Feb 11 Feb. 13 3,000 116 9,810.00 — 22 3,000 — — 3,000.00 95.63 4.5822 48,440.10
Feb. 25 Feb. 27 3,000 70 5,915.00 108.50 34 3,000 108.50 — 3,108.50 95.57 4.6481 50,548.60
Mar. 12 Mar. 13 3,000 58 3,985.00 250.00 50 3,000 250.00 — 3,250.00 95.26 4.9895 52,525.95
Mar. 25 Mar. 26 3.000 88 4,645.00 23.85 78 3,000 23.85 — 3,023.85 94.80 5.5003 54,549.80

2009-10
Apr. 8 Apr. 9 1,000 76 5,875.00 — 4 1,000 — — 1,000.00 95.80 4.3962 53,549.80
Apr. 22 Apr. 24 1,000 60 4,266.00 — 7 1,000 — — 1,000.00 96.39 3.7555 52,549.80
May 6 May 8 1,000 58 4,330.00 — 12 1,000 — — 1,000.00 96.63 3.4971 49,399.80
May 20 May 22 1,000 37 1,955.30 — 28 1,000 — — 1,000.00 96.46 3.6800 47,899.80
Jun. 3 Jun. 5 1,000 39 2,160.50 — 27 1,000 — — 1,000.00 96.16 4.0043 46,499.80
Jun. 17 Jun. 19 1,000 59 3,565.00 — 18 1,000 — — 1,000.00 96.17 3.9935 46,499.80
Jul. 1 Jul. 3 1,000 56 3,650.00 — 8 1,000 — — 1,000.00 96.34 3.8095 46,491.05
Jul. 15 Jul. 17 1,000 81 4,965.00 259.42 18 1,000 259.42 — 1,259.42 96.45 3.6908 45,500.47
Jul. 29 Jul. 31 1,000 46 3,070.00 — 24 1,000 — — 1,000.00 96.35 3.7987 44,463.92
Aug. 12 Aug. 14 1,000 74 4,200.00 42.37 34 1,000 42.37 — 1,042.37 96.01 4.1672 43,006.29
Aug. 26 Aug. 28 1,000 51 3,315.00 — 23 1,000 — — 1,000.00 95.85 4.3416 41,979.64
Sep. 9 Sep. 11 4,000 128 12,380.00 — 39 4,000.00 — — 4,000.00 95.61 4.6042 41,979.64
Sep. 23 Sep. 25 1,000 55 5,000.00 33.30 3 1,000.00 33.30 — 1,033.30 95.86 4.3307 42,012.94

* : Effective from auction dated May 19, 1999, devolvement would be on RBI only.
Notes : 1. Outstanding amount is net of redemption during the week.
2. The presentation of implicit yield at cut-off price has been changed from actual/364-day count convention to actual/365-day count convention from
auction dated October 27, 2004.

RBI
Monthly Bulletin
S 1134 November 2009
 CURRENT
STATISTICS
Government
Securities
Market

No. 24: Turnover in Government Securities Market (Face Value) at Mumbai @

(Rs. crore)

Week / Month + Govt. of India State Govt. Treasury Bills RBI*

Dated Securities Securities
91 Day 182 Day 364 Day

1 2 3 4 5 6 7
2006-07
April 1,10,559.28 851.16 2,193.88 2,046.40 16,666.50 922.00
May 1,00,542.72 4,781.64 6,217.52 4,076.30 10,766.88 1,453.00
June 77,255.06 2,395.66 5,996.84 8,689.56 12,871.16 883.00
July 65,538.70 1,376.06 5,206.80 3,761.72 8,127.34 387.88
August 1,48,081.02 1,048.40 10,290.66 8,646.20 12,898.72 166.48
September 2,84,464.66 1,893.48 8,821.54 6,014.18 17,127.28 279.19
October 1,22,101.80 776.32 5,898.98 3,134.06 9,134.16 233.42
November 2,57.667.60 1,358.46 4,857.48 8,209.80 13,484.26 151.08
December 2,39,765.16 3,072.80 6,087.18 2,928.06 9,965.98 58.44
January 1,40,660.36 1,319.26 6,006.94 3,306.44 6,204.12 551.14
February 1,13,360.08 1,362.28 4,998.06 2,854.74 4,948.44 72.88
March 1,10,983.52 4,861.96 5,968.82 4,739.42 6,464.76 1,405.99
2007-08
April 1,29,393.26 3,090.88 9,866.80 2,869.22 5,782.54 333.23
May 1,14,658.96 2,481.32 7,160.10 1,498.68 3,183.70 680.35
June 2,20,172.02 2,078.77 29,236.33 7,998.44 10,091.95 266.57
July 3,83,106.46 1,906.39 19,820.37 3,291.27 22,143.25 715.20
August 2,41,706.99 2,514.20 11,899.43 6,877.99 13,643.66 482.50
September 1,74,533.46 1,201.42 5,521.11 8,768.86 10,539.40 428.36
October 1,45,814.85 1,714.00 22,191.32 13,299.05 20,733.58 531.41
November 1,73,573.07 3,058.32 8,788.56 6,219.26 14,338.14 193.03
December 2,12,467.87 2,344.34 5,998.32 2,498.72 13,450.44 5,372.60
January 5,54,272.55 4,412.28 5,581.92 6,000.66 21,903.31 5,344.63
February 4,34,802.32 4,730.56 2,810.06 4,485.10 11,915.60 2,998.80
March 1,72,568.68 1,962.38 2,892.25 2,054.68 8,168.54 3,429.97
2008-09
April 1,63,277.17 2,403.36 8,859.66 2,530.12 8,201.96 1,590.93
May 3,18,354.85 11,798.94 11,537.89 2,526.64 4,653.10 350.87
June 1,95,337.16 1,445.24 10,065.13 1,546.76 4,919.92 13,982.55
July 1,44,355.59 4,278.14 4,681.45 2,666.96 7,285.49 7,236.53
August 2,67,462.66 1,453.34 14,490.31 2,031.75 6,843.56 8,110.26
September 2,98,155.18 658.34 16,333.94 2,676.00 5,348.22 2,680.46
October 2,81,273.77 3,210.06 12,052.81 2,694.73 6,280.86 1,264.93
November 3,52,322.10 2,854.11 20,603.48 3,193.06 11,987.06 883.69
December 6,07,851.56 8,459.43 28,399.05 2,698.80 8,698.45 9,436.27
January 6,95,344.05 5,979.19 28,907.53 3,098.29 12,589.53 5,833.07
February 3,31,881.02 3,012.96 39,519.13 5,003.80 8,568.70 6,254.99
March 2,73,558.86 24,942.96 29,000.26 4,899.04 9,781.90 54,278.76
2009-2010
April 4,39,334.81 13,969.46 49,924.92 8,997.86 17,185.16 22,578.72
May 5,44,075.82 19,920.06 49,034.98 6,473.99 10,832.37 17,388.35
June 3,89,434.91 8,234.85 33,481.31 4,614.14 13,476.32 6,859.93
July 5,97,737.07 11,736.36 54,879.39 6,226.76 9,033.52 10,426.58
August 2,80,993.15 13,700.45 24,210.32 6,638.70 7,161.74 14,030.00
Week Ended
Sep. 4, 2009 86,236.37 439.43 4,592.02 1,363.34 2,182.67 3,574.93
Sep. 11, 2009 1,03,495.53 3,752.71 6,128.48 1,963.34 3,335.81 4,497.07
Sep. 18, 2009 1,81,780.83 3,676.78 13,683.80 908.00 1,034.20 4,725.00
Sep. 25, 2009 1,27,296.18 2,619.93 13,444.74 1,990.00 3,069.16 1,972.46
@ : Based on SGL outright transactions in government securities in secondary market at Mumbai. It excludes repo transactions.
+ : Turnover upto the last Friday of the month over the last Friday of preceding month.
* : RBI's Sales and Purchases include transactions in other offices and transactions on behalf of the State Governments and others. It excludes
transactions relating to the Government of India and the Welfare Commissioner, Bhopal.

RBI
Monthly Bulletin
November 2009 S 1135
CURRENT
STATISTICS
Government
Securities
Market

No. 25: Repo / Reverse Repo Auctions under Liquidity Adjustment Facility
(Amount in Rs. crore)

LAF Repo/ REPO (INJECTION) REVERSE REPO (ABSORPTION) Net Injection Outstanding
Date Reverse (+)/ Amount @
Repo Bids Received Bids Accepted Cut-off Bids Received Bids Accepted Cut-off Absorption (–)
Period Rate (%) Rate (%) of liquidity
(Day(s)) Number Amount Number Amount Number Amount Number Amount [ (6) — (11) ]
1 2 3 4 5 6 7 8 9 10 11 12 13 14

Sep. 1, 2009 1 — — — — — 57 1,41,840 57 1,41,840 3.25 –1,41,840 1,41,485

Sep. 2, 2009 1 — — — — — 57 1,42,060 57 1,42,060 3.25 –1,42,060 1,41,705

Sep. 3, 2009 1 — — — — — 60 1,58,290 60 1,58,290 3.25 –1,58,290 1,57,935

Sep. 4, 2009 3 — — — — — 56 1,68,570 56 1,68,570 3.25 –1,68,570 1,68,215

Sep. 7, 2009 1 — — — — — 52 1,47,765 52 1,47,765 3.25 –1,47,765

Sep. 7, 2009 # 15 — — — — — — — — — — — 1,47,410

Sep. 8, 2009 1 — — — — — 55 1,49,240 55 1,49,240 3.25 –1,49,240 1,48,885

Sep. 9, 2009 1 — — — — — 56 1,20,235 56 1,20,235 3.25 –1,20,235 1,19,880

Sep. 10, 2009 1 — — — — — 56 1,31,695 56 1,31,695 3.25 –1,31,695 1,31,340

Sep. 11, 2009 3 — — — — — 46 92,810 46 92,810 3.25 –92,810

Sep. 11, 2009 $ 3 — — — — — 48 45,915 48 45,915 3.25 –45,915 1,38,370

Sep. 14, 2009 1 — — — — — 51 1,22,775 51 1,22,775 3.25 –1,22,775

Sep. 14, 2009 # 15 — — — — — — — — — — — 1,22,420

Sep. 15, 2009 1 — — — — — 48 1,30,575 48 1,30,575 3.25 –1,30,575 1,30,220

Sep. 16, 2009 1 — — — — — 47 1,25,770 47 1,25,770 3.25 –1,25,770 1,25,415

Sep. 17, 2009 1 — — — — — 40 88,535 40 88,535 3.25 –88,535 88,180

Sep. 18, 2009 4 — — — — — 43 1,13,740 43 1,13,740 3.25 –1,13,740 1,13,385

Sep. 22, 2009 1 — — — — — 39 91,755 39 91,755 3.25 –91,755

Sep. 22, 2009 # 14 — — — — — — — — — — — 91,400

Sep. 23, 2009 1 — — — — — 47 1,00,610 47 1,00,610 3.25 –1,00,610 1,00,255

Sep. 24, 2009 1 — — — — — 35 71,520 35 71,520 3.25 –71,520 71,165

Sep. 25, 2009 4 — — — — — 35 61,035 35 61,035 3.25 –61,035

Sep. 25, 2009 $ 4 — — — — — 47 45,320 47 45,320 3.25 –45,320 1,06,115

Sep. 29, 2009 2 1 2,000 1 2,000 4.75 27 60,760 27 60,760 3.25 –58,760

Sep. 29, 2009 # 14 — — — — — — — — — — — 58,520

$ : Second LAF # : Special Fixed Rate Repo under LAF.

@ : Net of Repo. ‘—’ No bid was received in the auction.
Note: The second LAF is being conducted on Reporting Fridays with effect from May 8, 2009.

RBI
Monthly Bulletin
S 1136 November 2009
 CURRENT
STATISTICS
Government
Securities
Market

No. 26: Open Market Operations of Reserve Bank of India*

(Rs. crore)
Month End Government of India Dated Securities – Face Value Treasury Bills
Purchase Sale Net Purchases (+) Purchase Sale Net Purchases (+)
/ Net Sales (–) / Net Sales (–)
1 2 3 4 5 6 7
2006-07
April 2006 405.00 516.80 –111.80 — — —
May 2006 85.00 1,386.74 –1,301.74 — — —
June 2006 55.00 809.88 –754.88 — — —
July 2006 25.00 374.36 –349.36 — — —
August 2006 80.00 127.64 –47.64 — — —
September 2006 40.00 237.24 –197.24 — — —
October 2006 — 191.10 –191.10 — — —
November 2006 10.00 140.20 –130.20 — — —
December 2006 15.00 36.41 –21.41 — — —
January 2007 — 571.36 –571.36 — — —
February 2007 — 118.09 –118.09 — — —
March 2007 5.00 1,335.56 –1,330.56 — — —

Year / Month Government of India Dated Securities – Face Value Treasury bills
Purchase Sale Net Purchase Sale Net
purchase purchase
Market State Market State (+)/net Market State Market State (+)/net
Government Government sale (-) Government Government sale (-)
and others and others and others and others
1 2 3 4 5 6 7 8 9 10 11
2007-08
April 10.00 — — 332.24 –322.24 — — — — —
May — — — 742.80 –742.80 — — — — —
June — — — 254.86 –254.86 — — — — —
July 25.00 — — 656.74 –631.74 — — — — —
August — — — 456.28 –456.28 — — — — —
September 15.00 — — 413.35 –398.35 — — — — —
October — — — 539.93 –539.93 — — — — —
November — — — 184.51 –184.51 — — — — —
December 5,485.00 — — 167.44 5,317.56 — — — — —
January 2,535.00 — — 2,577.82 –42.82 — — — — —
February 2,660.00 — — 290.27 2,369.73 — — — — —
March 2,780.00 — — 970.93 1,809.07 — — — — —
2008-09
April 745.58 — — 861.19 –115.61 — — — — —
May 127.50 — — 216.63 –89.13 — — — — —
June 15,238.80 — — 310.18 14,928.62 — — — — —
July 5,218.50 — — 701.20 4,517.30 — — — — —
August 4,338.00 — — 4,446.59 –108.59 — — — — —
September 922.17 — — 930.92 –8.75 — — — — —
October 627.75 — — 530.30 97.46 — — — — —
November 757.20 — — 127.51 629.69 — — — — —
December 11,901.38 — — 295.74 11,605.64 — — — — —
January 2,568.00 — — 504.21 2,063.79 — — — — —
February 6,027.80 — — 236.59 5,791.22 — — — — —
March 56,007.66 — — 770.98 55,236.68 — — — — —
2009-10
April 21,130.00 — — 747.03 20,382.97 — — — — —
May 15,374.40 — — 207.91 15,166.49 — — — — —
June 6,765.60 — — 315.25 6,450.35 — — — — —
July 7,724.37 — — 2,479.71 5,244.66 — — — — —
August 13,462.09 — — 982.68 12,479.41 — — — — —
September 14,111.64 + — — 243.85 13,867.79 — — — — —
* : Excluding transactions of RBI with the Government of India and the Welfare Commissioner, Bhopal.
+ : Includes purchase of Oil Marketing Companies Government of India Special Bonds (Oil Bonds) of Rs.NIL (face value) under Special Market
Operations (SMOs).

RBI
Monthly Bulletin
November 2009 S 1137
CURRENT
STATISTICS
Government
Securities
Market

No. 27 A: Secondary Market Outright Transactions in Government Dated Securities (Face Value)
(Amount in Rs. crore)
Week ended Government of India Dated Securities — Maturing in the year State Govt.
Securities
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-18 2018-19 2019-20 Beyond 2020

1 2 3 4 5 6 7 8 9 10 11 12

I September 4, 2009
a. Amount 1,084.00 1,601.82 1,530.00 679.00 924.00 2,042.01 19,415.35 82.51 6,863.30 8,896.22 219.75
b. YTM *
Min. 3.7229 4.5442 5.8300 6.3000 6.8100 6.9479 7.1301 7.3909 7.1514 7.8320 7.1000
Max. 3.9635 5.7172 6.8800 6.5033 7.1595 7.2619 7.6036 7.5800 7.7354 8.3487 8.2986

II September 11, 2009

a. Amount 685.01 1,708.50 1,080.29 718.07 66.10 1,600.00 19,773.85 55.18 23,038.20 3,022.56 1,876.36
b. YTM *
Min. 3.7412 4.4172 5.8700 6.4000 6.9781 7.0979 7.1113 7.5517 7.2725 7.7665 7.1000
Max. 4.1351 5.7700 6.5195 7.0000 7.1228 7.3202 7.5700 8.0274 7.9840 8.2544 8.2986

III September 18, 2009

a. Amount 1,720.00 2,759.71 2,315.76 4,762.00 730.00 1,663.00 25,690.53 15.70 43,788.30 7,445.43 1,838.39
b. YTM *
Min. 3.7169 4.3070 5.9262 6.5500 6.7434 6.8291 6.9161 7.3964 7.0143 7.6110 7.2548
Max. 3.9157 6.0433 6.9100 6.8474 7.2209 7.3380 8.1974 7.8924 7.8843 8.2789 8.2703

IV September 25, 2009

a. Amount 1,780.00 3,944.50 3,650.30 3,914.20 795.22 322.07 17,790.08 44.60 25,103.66 6,303.46 1,309.97
b. YTM *
Min. 3.7182 4.3450 5.8399 6.4440 6.7848 6.9226 6.9801 7.2375 6.9592 7.5979 7.2344

Max. 3.7396 5.7342 6.0113 6.9462 7.2000 7.2700 7.6210 7.5928 7.5881 8.2500 8.3422

* : Minimum and maximum YTMs (% PA) indicative have been given excluding transactions of non-standard lot size (less than Rs.5 crore).

RBI
Monthly Bulletin
S 1138 November 2009
 CURRENT
STATISTICS
Government
Securities
Market

No. 27 B: Secondary Market Outright Transactions in Treasury Bills

(Amount in Rs. crore, YTM in per cent per annum)
Week ended Treasury Bills Residual Maturity in Days

up to 14 days 15 - 91 days 92 - 182 days 183 - 364 days

1 2 3 4 5

I. September 4, 2009
a. Amount 383.65 2,662.06 424.67 607.64
b. YTM *
Min. 2.8000 2.6493 3.4499 3.8500
Max. 3.3586 3.4000 3.8001 4.2129

II. September 11, 2009

a. Amount 373.00 4,064.15 826.67 450.00
b. YTM *
Min. 2.6999 2.6493 3.5299 3.8500
Max. 3.2497 3.4000 3.7800 4.5932

III. September 18, 2009

a. Amount 216.43 6,960.57 526.00 110.00
b. YTM *
Min. 2.6478 2.6493 3.8199 4.2500
Max. 3.3951 3.4000 4.0302 4.4600

IV. September 25, 2009

a. Amount 2,635.00 4,282.82 1,650.00 684.13
b. YTM *
Min. 3.0000 2.6493 3.6500 3.9000
Max. 3.5009 3.4000 3.9886 4.3025

* : Minimum and maximum YTMs (% PA) indicative have been given excluding transactions of non-standard lot size (less than Rs.5 crore).

RBI
Monthly Bulletin
November 2009 S 1139
CURRENT
STATISTICS
Government
Securities
Market

No. 27 C: Month-end Yield to Maturity of SGL Transactions in Central Government

Dated Securities for Various Residual Maturities
(Per cent)
Term to 2008 2009
Maturity
(in years) Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11 12 13

1 7.3525 6.6751 5.0196 4.7313 4.8830 5.1071 4.0065 4.0090 4.4459 4.1763 5.0370 4.8045

2 7.3839 6.8129 5.0690 4.9309 5.0359 5.5078 4.8017 4.9398 5.3876 5.2010 5.9969 6.0172

3 7.4717 6.8821 5.1735 5.4289 5.5459 6.0823 5.4287 5.8083 5.7660 6.2130 6.4633 6.6367

4 7.4991 6.9298 5.2876 5.7794 5.7366 6.4506 5.8113 6.0580 6.1519 6.5599 6.8698 6.8584

5 7.5285 6.9775 5.3499 5.9753 5.8351 6.6508 6.0037 6.3117 6.4988 6.7343 7.1895 7.0280

6 7.5343 7.0371 5.3238 6.0544 6.0582 6.7343 6.2194 6.6305 6.5920 6.8389 7.2960 7.1484

7 7.5962 7.2363 5.4210 6.3367 6.5500 6.9420 6.5487 6.8951 6.9382 6.9924 7.3850 7.1568

8 7.6254 7.3178 5.5435 6.3718 6.6358 7.1882 6.5640 6.9630 6.9917 7.0673 7.4468 7.1533

9 7.5558 7.2131 5.3842 6.2495 6.4542 7.1149 6.3958 6.8291 6.9899 7.0873 7.4272 7.1497

10 7.4808 7.1197 5.3028 6.0041 6.5711 7.0414 6.2923 6.7528 6.9536 6.9926 7.4969 7.3377

11 7.5441 7.1987 5.3868 6.2591 6.7800 7.2481 6.5485 6.9918 7.0107 7.2360 7.8458 7.6011

12 7.6074 7.2777 5.4708 6.5171 6.9889 7.4548 6.8046 7.3127 7.2511 7.3409 7.9966 7.6414

13 7.7548 7.5245 5.7983 6.7750 7.1978 7.6518 7.0182 7.4377 7.4029 7.4557 8.0248 7.6817

14 7.8462 7.6298 6.0418 6.7933 7.2728 7.6873 7.0669 7.4915 7.4148 7.4416 8.0530 7.7219

15 7.8706 7.6530 6.1420 6.8161 7.3114 7.7006 7.1156 7.5453 7.4206 7.4426 8.0812 7.7889

16 7.8950 7.6761 6.2423 6.8631 7.3500 7.7138 7.1644 7.5991 7.5399 7.5687 8.1095 7.9280

17 7.9194 7.6993 6.3426 6.9102 7.3886 7.7270 7.2131 7.6529 7.7222 7.6947 8.1377 8.0672

18 7.9438 7.7225 6.4428 6.9572 7.4272 7.7403 7.2548 7.6946 7.7408 7.7681 8.1561 8.1285

19 7.9571 7.7214 6.4318 7.0042 7.4658 7.7535 7.2692 7.7067 7.7595 7.7800 8.1664 8.1425

20 7.9659 7.7136 6.4053 7.0512 7.5044 7.7667 7.2836 7.7188 7.7781 7.7919 8.1766 8.1565

21 7.9747 7.7059 6.3788 7.0982 7.5430 7.7800 7.2980 7.7309 7.7967 7.8038 8.1869 8.1705

22 7.9834 7.6982 6.3522 7.1453 7.5815 7.7932 7.3125 7.7430 7.8154 7.8158 8.1971 8.1845

23 7.9922 7.6904 6.3257 7.1923 7.6201 7.8065 7.3231 7.7551 7.8340 7.8277 8.1854 8.1985

24 8.0002 7.6896 6.3287 7.2270 7.6459 7.8008 7.3016 7.7672 7.8526 7.8396 8.1553 —

25 8.0048 7.7097 6.3887 7.2448 7.6588 7.7822 7.2713 7.7793 7.8713 7.8515 8.1252 —

26 8.0094 7.7296 6.4570 7.2546 7.6651 7.7780 7.2603 7.7914 7.8899 7.8587 — —

27 8.0139 7.7624 6.4797 7.2554 7.6661 7.7840 7.2569 7.8035 7.9085 7.8658 — —

28 8.0185 7.8415 6.3722 7.2208 7.6444 7.7915 7.2534 — — — — —

29 — — — 7.1673 7.6140 7.7990 7.2500 — — — — —

30 — — — 7.1138 7.5836 7.8065 7.2465 — — — — —

RBI
Monthly Bulletin
S 1140 November 2009
 CURRENT
STATISTICS
Government
Securities
Market

No. 27 D: Secondary Market Repo Transactions# (Other than with RBI)

(Amount in Rs. crore)

Week ended Govt. Of India State Govt. 91 Day 182 Day 364 Day
Dated Securities Securities Treasury Bills Treasury Bills Treasury Bills
1 2 3 4 5 6

I. September 4, 2009
Amount 1,48,196 658 3,472 51 5,650
Repo Rate Min 0.10 2.00 2.10 2.50 2.00
Repo Rate Max 5.00 2.80 3.10 2.50 3.05
Repo Period Min 1 1 1 3 1
Repo Period Max 6 3 3 3 3

II. September 11, 2009

Amount 1,74,143 912 3,751 597 8,781
Repo Rate Min 0.50 1.20 1.05 2.25 1.35
Repo Rate Max 5.00 3.00 3.05 2.90 3.00
Repo Period Min 1 1 1 1 1
Repo Period Max 13 3 3 3 3

III. September 18, 2009

Amount 1,64,295 626 2,605 126 8,651
Repo Rate Min 1.00 2.40 2.00 2.65 2.65
Repo Rate Max 5.00 3.00 3.20 2.75 3.00
Repo Period Min 1 1 1 1 1
Repo Period Max 9 4 4 1 1

IV. September 25, 2009

Amount 1,26,612 426 1,304 401 11,558
Repo Rate Min 1.00 2.40 2.95 2.90 2.95
Repo Rate Max 3.50 3.20 3.50 2.95 3.50
Repo Period Min 1 1 1 1 1
Repo Period Max 6 4 6 4 6

# Represent the First Leg of Transactions.

Note : Repo rate in per cent per annum and repo period in days.

RBI
Monthly Bulletin
November 2009 S 1141
CURRENT
STATISTICS
Government
Securities
Market

No. 28: Redemption Yield on Government of India Securities Based on SGL Transactions*
(Per cent per annum)
Sr. Nomenclature 2006-07 2007-08 2008-09 2008 2009
No. of the loan
Aug. Sep. June July Aug. Sep.
1 2 3 4 5 6 7 8 9 10 11
Terminable under 5 years
1 5.48% 2009 6.88 7.63 7.28 9.17 8.71 5.23 .. .. ..
2 6.65% 2009 7.51 7.66 6.62 9.30 8.89 .. .. .. ..
3 6.99% 2009 .. .. .. .. .. .. .. .. ..
4 7.00% 2009 7.50 8.09 7.75 11.10 8.82 .. .. .. ..
5 11.50% 2009 7.52 7.95 7.31 .. 9.98 .. .. .. ..
6 11.99% 2009 7.25 7.65 7.40 9.14 8.68 .. .. .. ..
7 5.87% 2010 .. 7.63 7.48 9.18 8.69 3.96 3.70 3.84 3.88
8 6.00% 2010 .. .. .. .. .. .. .. .. ..
9 6.20% 2010 .. .. .. .. .. .. .. .. ..
10 7.50% 2010 7.77 7.35 7.61 9.62 8.85 7.15 4.45 4.51 4.54
11 7.55% 2010 7.42 7.69 6.57 8.12 8.41 4.10 3.97 4.59 4.48
12 8.75% 2010 7.98 .. 7.52 9.26 8.62 .. .. .. ..
13 11.30% 2010 7.39 7.70 7.64 9.11 8.90 4.19 4.04 4.54 4.63
14 11.50% 2010 7.43 7.70 6.39 7.97 .. 4.19 4.02 .. 4.54
15 12.25% 2010 7.45 7.55 6.90 9.24 8.91 4.22 4.09 4.66 4.69
16 12.29% 2010 7.50 7.78 7.66 9.61 8.84 4.11 3.78 4.17 3.93
17 5.03% 2011 .. .. .. .. .. .. .. .. ..
18 6.57% 2011 .. 7.37 7.24 9.19 8.44 5.18 4.84 5.52 5.72
19 8.00% 2011 7.86 7.93 7.11 9.58 .. .. .. 5.88 ..
20 9.39% 2011 7.52 7.78 7.09 8.07 8.64 5.28 5.03 5.58 5.98
21 10.95% 2011 7.33 7.94 6.86 .. 8.62 .. 4.96 5.58 5.94
22 11.50% 2011 7.43 7.82 6.37 9.23 8.75 8.28 5.12 5.40 5.57
23 12.00% 2011 7.97 7.95 6.92 .. .. 5.43 5.23 .. 6.11
24 12.32% 2011 7.59 7.85 7.09 9.32 .. 5.18 4.93 5.30 ..
25 6.72% 2012 6.93 7.87 7.75 .. .. .. .. .. ..
26 6.85% 2012 7.58 7.80 6.32 .. .. 6.36 5.64 6.23 6.58
27 7.40% 2012 7.55 7.83 7.26 8.33 8.96 5.82 5.69 6.02 6.57
28 9.40% 2012 7.60 7.87 7.10 .. .. 6.80 .. 6.42 6.70
29 10.25% 2012 7.88 8.08 8.36 .. 8.69 5.90 .. .. ..
30 11.03% 2012 7.81 8.10 6.63 7.16 .. 6.71 .. .. 6.71
31 7.27% 2013 7.58 7.66 7.21 9.17 8.53 6.39 6.30 6.82 6.90
32 9.00% 2013 7.86 8.25 7.61 9.18 8.65 .. .. .. ..
33 9.81% 2013 7.85 8.11 6.92 .. .. .. .. .. 7.10
34 12.40% 2013 7.93 7.99 7.90 9.14 8.66 6.53 6.37 6.85 7.12
Between 5 to 10 years
35 6.07% 2014 .. .. 6.52 6.65 .. 6.59 6.47 6.90 7.10
36 6.72% 2014 8.05 7.89 6.63 .. .. 6.71 .. .. 7.16
37 7.37% 2014 7.74 7.86 7.39 9.18 8.55 6.52 6.65 6.93 ..
38 7.56% 2014 .. .. 6.29 .. .. 6.60 6.71 6.99 7.09
39 10.00% 2014 7.71 8.09 7.96 9.82 .. 7.35 .. .. ..
40 10.50% 2014 7.83 7.85 7.86 9.15 8.20 6.77 .. .. 7.10
41 11.83% 2014 7.84 7.94 7.85 9.22 8.45 .. .. 7.07 7.25
42 6.49% 2015 .. .. 6.68 7.07 .. 6.61 6.60 6.96 7.19
43 7.38% 2015 7.70 7.95 7.66 9.00 8.38 6.79 6.94 7.02 7.28
44 9.85% 2015 7.76 8.01 7.69 .. 9.00 .. .. .. 7.23
45 10.47% 2015 7.59 8.06 7.49 9.28 8.76 .. .. 6.74 ..
46 10.79% 2015 7.65 8.02 8.37 9.39 8.51 .. .. .. ..
47 11.43% 2015 7.92 8.06 6.96 .. .. 7.35 .. 7.02 ..
48 11.50% 2015 7.91 8.12 7.46 9.31 8.84 6.78 6.55 .. ..
49 5.59% 2016 7.66 8.18 7.13 9.40 .. .. .. 7.27 7.40
50 7.02% 2016 .. .. .. .. .. .. .. 7.16 7.24

RBI
Monthly Bulletin
S 1142 November 2009
 CURRENT
STATISTICS
Government
Securities
Market

No. 28: Redemption Yield on Government of India Securities Based on SGL Transactions*(Concld.)
(Per cent per annum)
Sr. Nomenclature 2006-07 2007-08 2008-09 2008 2009
No. of the loan
Aug. Sep. June July Aug. Sep.
1 2 3 4 5 6 7 8 9 10 11
51 7.59% 2016 7.79 7.91 7.32 8.84 8.42 6.90 6.79 7.20 7.29
52 10.71% 2016 7.95 7.89 6.44 .. .. 7.40 .. .. ..
53 12.30% 2016 8.21 8.41 8.04 9.14 8.68 7.15 7.03 7.08 7.50
54 7.46% 2017 7.81 7.88 7.00 9.50 8.71 7.14 7.03 7.27 7.54
55 7.49% 2017 7.82 7.87 7.56 9.05 8.58 7.06 7.12 7.24 7.50
56 7.99% 2017 .. 7.85 7.84 9.10 8.36 7.00 7.09 7.23 7.45
57 8.07% 2017 7.80 7.93 7.28 9.14 8.50 7.07 7.05 7.30 7.66
58 5.69% 2018 7.95 7.99 7.53 9.34 8.58 6.95 7.02 .. 7.55
59 6.25% 2018 7.91 8.03 7.14 .. 8.54 6.88 6.98 7.21 ..
60 8.24% 2018 .. .. 7.60 9.02 8.41 6.85 7.09 7.25 7.42
61 10.45% 2018 8.05 8.19 7.00 .. .. .. .. .. ..
62 12.60% 2018 7.91 .. 7.74 9.29 8.45 .. 7.17 .. 7.38
Between 10 to 15 years
63 5.64% 2019 8.12 8.07 7.63 9.44 8.76 6.74 7.17 7.75 7.26
64 6.05% 2019 7.91 8.11 7.05 9.22 8.99 6.78 6.95 7.26 7.42
65 6.90% 2019 .. .. 6.98 6.98 .. .. 6.87 7.15 7.25
66 10.03% 2019 7.83 8.22 6.90 10.30 .. .. .. .. ..
67 6.35% 2020 7.95 8.12 7.17 .. .. 6.84 7.01 7.59 7.59
68 10.70% 2020 8.00 8.48 7.54 10.70 .. 7.45 .. .. ..
69 11.60% 2020 7.73 8.00 7.91 .. 8.66 .. .. .. ..
70 7.94% 2021 8.07 8.11 7.51 9.00 8.98 7.33 7.23 7.65 7.82
71 10.25% 2021 8.07 8.11 7.81 9.35 9.36 7.77 7.44 8.00 7.84
72 5.87% 2022 8.02 6.87 7.48 .. .. .. .. .. ..
73 8.08% 2022 .. 7.90 .. .. .. 7.46 .. .. ..
74 8.13% 2022 .. 7.90 .. .. .. .. .. 7.50 ..
75 8.20% 2022 .. 7.95 7.82 7.53 8.70 7.44 7.36 7.71 7.99
76 8.35% 2022 8.02 7.99 7.90 9.36 9.10 7.55 7.26 7.50 ..
77 6.17% 2023 8.01 8.18 7.44 9.76 9.03 7.09 7.40 7.78 7.63
78 6.30% 2023 8.01 8.08 6.85 .. .. 7.98 7.22 7.71 7.73
79 7.35% 2024 .. .. 7.39 7.42 .. 7.41 7.40 7.85 7.77
Over 15 years
80 10.18% 2026 7.86 8.26 8.00 .. .. 7.75 .. 8.05 8.17
81 8.24% 2027 8.19 8.06 8.31 9.49 8.93 7.68 7.73 7.99 8.12
82 8.26% 2027 .. 8.21 8.34 .. .. .. .. .. ..
83 8.28% 2027 .. .. .. .. .. .. .. .. 8.07
84 6.01% 2028 8.02 8.28 7.81 8.87 9.08 7.35 7.56 7.83 ..
85 6.13% 2028 8.02 8.31 7.58 .. 9.04 7.46 7.66 .. ..
86 7.95% 2032 8.07 8.19 8.18 9.74 8.97 7.70 7.83 8.06 8.10
87 8.28% 2032 .. .. 8.27 9.61 8.98 7.75 .. 8.04 8.20
88 8.32% 2032 .. 7.94 .. .. .. .. .. .. ..
89 8.33% 2032 .. .. 8.26 .. 8.26 .. .. .. ..
90 7.5% 2034 8.19 8.38 7.64 .. 8.82 7.74 7.82 8.04 8.06
91 7.40% 2035 8.14 8.27 7.55 7.86 8.97 7.74 7.83 8.02 8.10
92 8.33% 2036 8.13 8.28 8.05 9.52 8.97 7.89 .. 8.06 8.08
93 6.83% 2039 .. .. 7.39 .. .. 7.64 7.84 7.93 ..

* : Monthly redemption yield is computed from April 2000 as the mean of the daily weighted average yields of the transactions in each traded
security. The weight is calculated as the share of the transaction in a given security in the aggregated value of transactions in the said security.
Prior to April 2000, the redemption yield was not weighted and was computed as an average of daily prices of each security.
@ : GOI Securities issued with call and put options exercisable on or after 5 years from the date of issue.
.. : Indicates that the relevant security was not available for trading.
.. : Indicates that trading in the relevant security was nil/negligible during the month.

RBI
Monthly Bulletin
November 2009 S 1143
CURRENT
STATISTICS
Production

Production
No. 29: Group-wise Index Number of Industrial Production
(Base: 1993-94=100)

Sr. Industry Weight Annual Cumulative Monthly

No.
2006-07 2007-08 2008-09 April - August August

2008-09 2009-10 P 2008 2009 P

1 2 3 4 5 6 7 8 9 10

General Index 100.00 247.1 268.0 275.4 269.2 284.8 264.7 292.3

I. Sectoral Classification

1 Mining and Quarrying 10.47 163.2 171.6 176.0 165.8 179.7 160.4 181.1

2 Manufacturing 79.36 263.5 287.2 295.1 288.8 304.8 284.0 313.0

3 Electricity 10.17 204.7 217.7 223.7 222.6 237.2 221.6 245.1

II. Use-Based Classification

1 Basic Goods 35.57 209.3 223.9 229.7 225.3 240.4 226.0 248.6

2 Capital Goods 9.26 314.2 370.8 397.9 358.9 370.4 372.0 402.7

3 Intermediate Goods 26.51 242.4 264.1 259.0 264.7 289.1 258.3 295.2

4 Consumer Goods 28.66 276.8 293.6 307.5 298.8 308.2 283.9 308.0

4(a) Consumer Durables 5.36 382.0 378.0 395.0 382.7 452.0 394.5 482.3

4(b) Consumer Non-Durables 23.30 252.6 274.2 287.3 279.4 275.1 258.4 267.9

Source : Central Statistical Organisation, Government of India.

RBI
Monthly Bulletin
S 1144 November 2009
 CURRENT
STATISTICS
Production

No. 30: IIP — Seventeen Major Industry Groups of Manufacturing Sector

(Base : 1993-94 = 100 )
Industry Industry Weight Annual Cumulative Monthly
Group
2006-07 2007-08 2008-09 April - August August

2008-09 2009-10 P 2008 2009 P

1 2 3 4 5 6 7 8 9 10

Manufacturing Index 79.36 263.5 287.2 295.1 288.8 304.8 284.0 313.0
20-21 Food Products 9.08 185.2 198.2 178.9 151.3 132.2 135.0 122.0
22 Beverages, Tobacco and Related Products 2.38 444.5 498.0 578.5 587.9 568.6 500.6 505.9
23 Cotton Textiles 5.52 157.3 164.0 160.9 165.7 166.8 160.9 168.9
24 Wool, Silk and Man-made Fibre Textiles 2.26 268.4 281.2 281.2 275.7 308.5 257.3 297.7
25 Jute and Other Vegetable Fibre Textiles (Except Cotton) 0.59 90.7 120.7 108.6 111.9 93.5 116.6 104.7
26 Textile Products (Including Wearing Apparel) 2.54 285.0 295.5 312.5 309.3 338.6 285.6 332.4
27 Wood and Wood Products, Furniture and Fixtures 2.70 91.0 127.9 115.6 120.9 135.2 146.4 141.2
28 Paper and Paper Products and Printing,
Publishing and Allied Industries 2.65 248.6 255.3 260.0 257.5 264.5 268.0 273.1
29 Leather and Leather & Fur Products 1.14 150.2 167.8 156.3 165.5 167.7 156.0 157.9
30 Chemicals and Chemical Products (Except Products
Of Petroleum and Coal) 14.00 283.4 313.4 326.3 341.7 358.8 327.0 375.2
31 Rubber, Plastic, Petroleum and Coal Products 5.73 226.3 246.4 242.6 237.0 268.2 233.5 283.6
32 Non-metallic Mineral Products 4.40 305.8 323.2 327.0 322.1 346.6 313.0 336.1
33 Basic Metal and Alloy Industries 7.45 278.9 312.7 325.1 319.8 342.4 335.8 364.5
34 Metal Products and Parts, Except
Machinery and Equipment 2.81 183.2 172.9 165.9 158.6 158.3 149.0 154.0
35-36 Machinery and Equipment Other Than
Transport Equipment 9.57 357.1 394.4 429.1 400.4 438.5 411.5 469.8
37 Transport Equipment and Parts 3.98 367.7 378.4 387.9 393.7 429.5 404.0 459.6
38 Other Manufacturing Industries 2.56 298.4 357.4 358.9 301.7 334.3 317.5 351.0

Source : Central Statistical Organisation, Government of India.

RBI
Monthly Bulletin
November 2009 S 1145
CURRENT
STATISTICS
Capital Market

Capital Market
No. 31: New Capital Issues By Non-Government Public Limited Companies
(Amount in Rs. crore)
Security & Type of Issue 2007-08 2008-09 April-August 2008 April-August 2009
(April-March) (April-March)
No. of Amount No. of Amount No. of Amount No. of Amount
Issues Issues Issues Issues
1 2 3 4 5 6 7 8 9

1) Equity Shares (a+b) 111 56,848.3 45 14,670.6 25 2,661.0 13 7,806.6

(103) (54,732.4) (39) (13,022.0) (23) (2,335.0) (12) (6,259.3)

a) Prospectus 85 47,477.5 25 2,673.3 17 1,949.5 8 7,579.4

(83) (46,138.8) (24) (1,966.5) (16) (1,719.0) (8) (6,109.5)

b) Rights 26 9,370.8 20 11,997.3 8 711.5 5 227.2

(20) (8,593.6) (15) (11,055.5) (7) (616.0) (4) (149.8)

2) Preference Shares (a+b) 1 5,480.8 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 1 5,480.8 — — — — — —

3) Debentures (a+b) 2 808.8 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 2 808.8 — — — — — —

of which:

I) Convertible (a+b) 1 205.9 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 1 205.9 — — — — — —

II) Non Convertible (a+b) 1 602.9 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 1 602.9 — — — — — —

4) Bonds (a+b) 1 500.0 — — — — — —

a) Prospectus 1 500.0 — — — — — —

b) Rights — — — — — — — —

5) TOTAL (1+2+3+4) 115 63,637.9 45 14,670.6 25 2,661.0 13 7,806.6

a) Prospectus 86 47,977.5 25 2,673.3 17 1,949.5 8 7,579.4

b) Rights 29 15,660.4 20 11,997.3 8 711.5 5 227.2

Note : Figures in brackets indicate data in respect of premium on capital issues which are included in respective totals.
Source : Data are compiled from prospectus/circulars/advertisements issued by companies, replies given by the companies to the Reserve Bank’s questionnaire,
information received from SEBI, stock exchanges, press reports, etc.
Also see ‘Notes on Tables’.

RBI
Monthly Bulletin
S 1146 November 2009
 CURRENT
STATISTICS
Capital Market

No. 32: Index Numbers of Ordinary Share Prices

Year / Month BSE Sensitive Index BSE - 100 S & P CNX Nifty
(Base : 1978 - 79 = 100) (Base : 1983 - 84 = 100) (Base : November 3, 1995 = 1000)
Average High Low Average High Low Average High Low

1 2 3 4 5 6 7 8 9 10

2005-06 8280.08 11307.04 6134.86 4393.54 5904.17 3310.14 2513.44 3418.95 1902.50

2006-07 12277.33 14652.09 8929.44 6242.73 7413.22 4535.00 3572.44 4224.25 2632.80

2007-08 16568.89 20873.33 12455.37 8691.47 11509.96 6287.69 4896.60 6287.85 3633.60

2008-09 12365.55 17600.12 8160.40 6433.13 9348.64 4160.43 3731.03 5228.20 2524.20

September 2008 13942.81 15049.86 12595.75 7276.35 7860.87 6564.06 4206.69 4504.00 3850.05

October 2008 10549.65 13055.67 8509.56 5432.92 6776.87 4343.21 3210.22 3950.75 2524.20

November 2008 9453.96 10631.12 8451.01 4823.36 5396.09 4332.17 2834.79 3148.25 2553.15

December 2008 9513.58 10099.91 8739.24 4864.55 5181.94 4443.50 2895.80 3077.50 2656.45

January 2009 9350.42 10335.93 8674.35 4802.01 5328.95 4441.84 2854.36 3121.45 2678.55

February 2009 9188.03 9647.47 8822.06 4668.37 4900.74 4484.30 2819.21 2948.35 2733.90

March 2009 8995.45 10048.49 8160.40 4569.09 5091.61 4160.43 2802.27 3108.65 2573.15

April 2009 10911.20 11403.25 9901.99 5574.43 5814.66 5028.39 3359.83 3484.15 3060.35

May 2009 13046.14 14625.25 11682.99 6714.15 7620.13 5965.67 3957.96 4448.95 3554.60

June 2009 14782.47 15466.81 14265.53 7718.53 8050.77 7435.17 4436.37 4655.25 4235.25

July 2009 14635.19 15670.31 13400.32 7657.54 8176.54 6983.12 4343.10 4636.45 3974.05

August 2009 15414.67 15924.23 14784.92 8052.66 8322.22 7737.74 4571.11 4732.35 4387.90

September 2009 16338.45 17126.84 15398.33 8546.26 8930.31 8093.88 4859.31 5083.95 4593.55

Sources : 1. Bombay Stock Exchange Ltd.

2. National Stock Exchange of India Ltd.

RBI
Monthly Bulletin
November 2009 S 1147
CURRENT
STATISTICS
Capital Market

No. 33: Volume in Corporate Debt Traded at NSE*

(Rs. crore)

Week / Month / Year (April-March) Volume

1 2

2005-06 10,619.36
2006-07 6,639.78
2007-08 8,576.11
2008-09 11,934.44

2008-09
April 2008 443.76
May 2008 530.84
June 2008 1,053.75
July 2008 1,225.27
August 2008 237.06
September 2008 756.89
October 2008 384.25
November 2008 633.13
December 2008 1,901.88
January 2009 1,208.92
February 2009 2,067.15
March 2009 1,491.54

2009-10
April 2009 4,178.12
May 2009 2,703.44
June 2009 2,168.95
July 2009 3,876.68
August 2009 4,388.71
September 2009 4,405.57

Week ended
August 7, 2009 588.53
August 14, 2009 646.29
August 21, 2009 541.45
August 28, 2009 1,900.09
September 4, 2009 2,103.77
September 11, 2009 1,085.68
September 18, 2009 1,139.74
September 25 , 2009 480.74

* : Excluding trade in commercial papers.

Source : National Stock Exchange of India Ltd.

RBI
Monthly Bulletin
S 1148 November 2009
 CURRENT
STATISTICS
Capital Market

No. 34: Assistance Sanctioned and Disbursed by All - India Financial Institutions
(Rs. crore)
April-September April-March
2003-04 2004-05 2002-03 2003-04
1 2 3 4 5

Sanctions
All-India Development Banks 9,831.9 12,860.0 22,318.1 23,444.3
1. IDBI 2,860.2 6,314.4 5,898.2 5,630.8
2. IFCI 132.1 — 2,005.8 1,451.9
3. SIDBI 2,607.9 2,991.8 10,903.7 8,223.7
4. IIBI 1,392.8 0.9 1,206.4 2,411.9
5. IDFC 2,838.9 3,552.9 2,304.0 5,726.0

Investment Institutions 13,025.1 7,805.5 5,666.5 29,479.2

6. LIC 12,291.1 7,135.3 4,341.5 27,748.0
7. GIC 324.3 93.0 369.3 674.0
8. National Ins. Co. Ltd. 115.6 87.3 200.0 373.0
9. New India Ass. Co Ltd. 84.1 179.3 138.0 199.1
10. Oriental Ins. Co. Ltd. 93.3 28.2 123.9 134.8
11. United India Ins. Co. Ltd. 116.7 282.4 493.8 350.3
Total 22,857.0 20,665.5 27,984.6 52,923.5

Disbursements
All India Development Banks 5,750.2 5,027.1 17,225.2 14,056.6
1. IDBI 637.2 2,085.1 6,614.9 4,409.1
2. IFCI 176.3 43.8 1,779.9 279.0
3. SIDBI 1,742.2 1,358.3 6,789.5 4,412.7
4. IIBI 1,216.5 7.6 1,091.9 2,251.8
5. IDFC 978.0 1,532.3 949.0 2,704.0

Investment Institutions 4,615.6 5,421.3 7,487.6 17,400.2

6. LIC 3,829.2 4,871.0 6,205.7 15,781.6
7. GIC 328.4 108.0 328.4 657.7
8. National Ins. Co. Ltd. 118.4 17.3 177.6 224.4
9. New India Ass. Co Ltd. 85.6 115.2 78.0 195.6
10. Oriental Ins. Co. Ltd. 135.0 27.4 241.5 187.1
11. United India Ins. Co. Ltd. 119.0 282.4 456.4 353.8
Total 10,365.8 10,448.4 24,712.8 31,456.8

Note : Data are provisional. Monthly data are not adjusted for inter-institutional flows.
Source : Industrial Development Bank of India.

RBI
Monthly Bulletin
November 2009 S 1149
CURRENT
STATISTICS
Prices

Prices
No. 35: Monthly Average price of Gold and Silver in Mumbai

Month / Year Standard Gold Silver

(Rs. per 10 grams) (Rs. per kilogram)
1 2 3

2000-01 4,474 7,868

2001-02 4,579 7,447
2002-03 5,332 7,991
2003-04 5,719 8,722
2004-05 6,145 10,681
2005-06 6,901 11,829
2006-07 9,240 19,057
2007-08 9,996 19,427
2008-09 12,905 21,272

October 2007 9,691 18,385

November 2007 10,340 19,573
December 2007 10,311 19,056
January 2008 11,291 20,405
February 2008 11,888 21,979
March 2008 12,632 24,357
April 2008 11,810 23,474
May 2008 12,143 23,796
June 2008 12,369 24,213
July 2008 13,055 25,269
August 2008 11,855 22,265
September 2008 12,214 20,191
October 2008 12,766 18,687
November 2008 12,207 17,174
December 2008 12,897 17,327
January 2009 13,508 19,115
February 2009 14,781 21,442
March 2009 15,255 22,311
April 2009 14,501 21,336
May 2009 14,610 22,553
June 2009 14,620 23,069
July 2009 14,749 22,334
August 2009 14,996 23,646
September 2009 15,723 26,323
October 2009 15,864 27,360
Source : Bombay Bullion Association Ltd.
Also see ‘Notes on Tables’.

RBI
Monthly Bulletin
S 1150 November 2009
 CURRENT
STATISTICS
Prices

No. 36: Consumer Price Index Numbers for Industrial Workers — All-India and Selected Centres
(Base : 2001 = 100)
Centre New 1990-91 2007-08 2008-09 2009
Linking @
Factor (1) Mar. Apr. May Jun. Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11 12

All India (2) 4.63 193 133 145 148 150 151 153 160 162 163
Ahmedabad 4.62 196 131 141 143 145 145 147 153 158 156
Alwaye (Ernakulam) 4.52 176 133 145 146 147 151 150 155 155 155
Asansol 4.37 189 141 155 161 163 164 165 176 176 177
Bangalore 4.51 183 138 154 160 161 164 165 169 170 171
Bhavnagar 4.76 198 131 137 137 139 141 141 151 153 154
Bhopal 4.83 196 136 148 150 153 153 155 170 171 169
Chandigarh 5.26 189 132 143 146 149 149 149 158 158 162
Chennai 4.95 189 126 139 142 143 145 147 150 151 153
Coimbatore 4.49 178 129 140 144 145 146 148 151 153 156
Delhi 5.60 201 130 140 141 143 143 144 150 151 152
Faridabad 4.79 187 133 149 152 154 155 156 163 164 164
Guwahati 4.80 195 120 132 135 136 139 140 140 147 148
Howrah 5.42 212 132 142 144 145 147 150 156 158 162
Hyderabad 4.79 182 125 139 145 146 149 150 154 155 154
Jaipur 4.25 190 136 148 151 151 152 154 161 165 167
Jamshedpur 4.23 187 134 145 145 150 151 152 165 166 165
Kolkata 5.12 203 134 145 147 148 150 152 157 160 163
Ludhiana 4.12 193 136 149 151 154 154 157 163 165 166
Madurai 4.51 192 123 137 139 140 145 148 149 150 150
Monghyr-Jamalpur 4.30 189 136 148 153 158 158 160 166 166 167
Mumbai 5.18 201 136 148 153 154 153 155 160 161 162
Mundakayam 4.37 184 132 150 153 156 158 159 159 158 159
Nagpur 4.68 201 142 155 160 162 165 168 186 185 186
Pondicherry 4.88 204 133 151 157 158 158 164 164 165 166
Rourkela 4.03 179 140 153 155 157 159 160 172 174 175
Kanpur 4.50 195 133 144 148 149 149 151 164 166 167
Solapur 4.73 197 141 151 152 155 155 155 160 165 164
Srinagar 5.62 184 126 137 138 140 143 143 144 148 148

@ Base 1982=100.
Note : New series of Consumer Price Index for Industrial Workers with base 2001 = 100 was released in January 2006 by Labour Bureau, Shimla.
Linking Factors between old and new series as published by the Labour Bureau are reproduced in column 2.
For (1) and (2) See ‘Notes on Tables’.
Source : Labour Bureau, Ministry of Labour, Government of India.

RBI
Monthly Bulletin
November 2009 S 1151
CURRENT
STATISTICS
Prices

No. 37: Consumer Price Index Numbers for Urban Non-manual

Employees — All-India and Selected Centres
(Base : 1984 – 85 = 100)
Centre 1990-91 2006-07 2007-08 2007 2008

Mar. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

1 2 3 4 5 6 7 8 9 10 11 12
All India (1) 161 486 515 498 516 520 519 518 520 523 528
Mumbai 154 478 504 490 502 506 508 510 509 510 513
Delhi 156 499 521 508 522 528 523 523 525 529 532
Kolkata 164 439 476 449 481 486 480 479 479 482 484
Chennai 168 569 605 585 606 607 609 607 610 611 618
Hyderabad 164 526 560 541 558 561 565 564 564 568 574
Bangalore 161 513 546 527 545 544 547 551 559 563 566
Lucknow 158 465 484 471 488 487 482 480 480 486 492
Ahmedabad 153 426 449 435 450 454 453 454 452 453 459
Jaipur 165 477 515 491 517 519 521 519 527 532 545
Patna 167 451 484 466 490 494 495 492 496 496 501
Srinagar 150 475 513 496 511 517 515 513 524 528 538
Thiruvananthapuram 152 507 535 512 528 530 535 542 548 552 555
Cuttack 154 479 507 492 507 511 512 510 510 509 510
Bhopal 166 458 482 461 481 488 490 488 490 493 502
Chandigarh 176 637 665 649 672 672 669 666 668 671 678
Shillong 179 499 565 528 566 571 572 571 580 582 584
Shimla 163 490 511 506 517 519 511 508 507 508 513
Jammu 161 480 511 492 512 514 512 507 515 523 533
Amritsar 152 402 423 412 431 433 425 422 423 427 431
Kozhikode (Calicut) 150 447 465 452 462 464 469 469 473 475 483
Kanpur 165 450 481 462 490 489 483 479 478 483 489
Indore 170 485 507 490 513 515 510 507 510 516 526
Pune 162 509 547 517 546 549 555 555 554 560 563
Jabalpur 164 437 467 452 473 476 473 471 467 471 478
Jodhpur 168 465 487 476 490 492 489 490 489 492 501

Linked All-India Consumer Price Index Number for Urban Non-Manual Employees (UNME)
(Base : 1984 – 85 = 100)

2008 2009
Aug. May Jun. Jul. Aug.
1 2 3 4 5 6
General Index 559 589 595 624 631

Note : The CPI (UNME) for base 1984-85 = 100 has been discontinued due to outdated base year with effect from April 2008 onwards. Linked all-India CPI
(UNME) number are available for meeting the requirement of users.
See ‘Notes on Tables’.
Source : Central Statistical Organisation, Government of India.

RBI
Monthly Bulletin
S 1152 November 2009
 CURRENT
STATISTICS
Prices

No. 38: Consumer Price Index Numbers for Agricultural / Rural Labourers
A : Consumer Price Index Numbers for Agricultural Labourers
(Base : July 1986 - June 1987 = 100)
State 1990-91(1) Linking 2007-08 2008-09 2008 2009
Factor (2)
Sep. Apr. May Jun. Jul. Aug. Sep.
1 2 3 4 5 6 7 8 9 10 11 12

All India 830 5.89 417 462 455 468 475 484 499 508 515

Andhra Pradesh 657 4.84 430 484 478 489 497 509 520 532 534

Assam 854 (3) 417 451 444 454 462 480 492 505 512

Bihar 858 6.22 411 446 443 454 458 462 478 482 490

Gujarat 742 5.34 424 459 450 468 476 486 501 517 525

Haryana (5) 447 498 489 508 518 525 537 552 563

Himachal Pradesh (5) 376 406 407 407 412 419 421 437 447

Jammu & Kashmir 843 5.98 413 453 440 468 475 474 486 489 497

Karnataka 807 5.81 406 458 446 464 476 478 501 514 523

Kerala 939 6.56 403 454 442 460 463 469 473 476 477

Madhya Pradesh 862 6.04 412 459 450 466 480 491 505 509 512

Maharashtra 801 5.85 432 475 469 479 485 499 526 540 551

Manipur (5) 367 407 396 416 421 432 434 438 444

Meghalaya (5) 439 484 475 496 506 511 525 528 538

Orissa 830 6.05 400 438 435 444 452 462 485 485 486

Punjab 930 (4) 448 501 497 507 523 529 541 558 569

Rajasthan 885 6.15 439 490 477 502 515 523 534 553 558

Tamil Nadu 784 5.67 403 455 446 459 465 474 483 492 497

Tripura (5) 407 433 425 440 444 447 449 460 465

Uttar Pradesh 960 6.60 433 469 467 477 483 490 506 515 524

West Bengal 842 5.73 395 432 428 437 445 449 459 468 481

See ‘Notes on Tables’.

RBI
Monthly Bulletin
November 2009 S 1153
CURRENT
STATISTICS
Prices

No. 38: Consumer Price Index Numbers for Agricultural / Rural Labourers
B : Consumer Price Index Numbers for Rural Labourers
(Base : July 1986 - June 1987 = 100)
State 1995-96 (7) 2007-08 2008-09 2008 2009
Sep. Mar. Apr. May Jun. Jul. Aug. Sep.
1 2 3 4 5 6 7 8 9 10 11 12

All India 240 418 462 455 464 468 475 484 498 507 514

Andhra Pradesh 244 429 482 475 484 487 495 507 518 529 532

Assam 243 419 454 446 453 457 465 482 494 508 514

Bihar 223 412 447 444 447 454 458 463 479 483 491

Gujarat 241 425 460 450 466 469 477 488 502 517 525

Haryana 237 445 495 487 500 505 514 521 533 547 558

Himachal Pradesh 221 388 420 419 419 423 427 436 438 454 463

Jammu & Kashmir 225 413 451 440 459 465 473 471 482 486 492

Karnataka 250 407 459 446 465 466 477 479 500 512 522

Kerala 260 404 456 444 459 462 466 472 477 481 482

Madhya Pradesh 239 415 463 453 468 471 484 495 510 514 518

Maharashtra 247 428 470 465 469 474 479 494 521 535 546

Manipur 245 368 407 397 414 416 422 433 435 439 445

Meghalaya 250 436 481 472 485 493 502 507 521 524 533

Orissa 236 400 439 435 439 445 452 462 485 485 486

Punjab 247 449 501 495 503 508 523 528 539 554 568

Rajasthan 239 438 486 474 493 498 510 517 528 547 552

Tamil Nadu 244 402 452 444 458 457 462 471 479 488 493

Tripura 219 399 429 420 432 436 440 443 445 458 462

Uttar Pradesh 231 434 469 468 469 477 481 488 503 512 521

West Bengal 232 398 435 431 435 442 449 453 462 472 485

Source: Labour Bureau, Ministry of Labour, Government of India.

RBI
Monthly Bulletin
S 1154 November 2009
 CURRENT
STATISTICS
Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages)
(Base : 1993-94 = 100)
Average of months/Average of Weight 1994-95 2007-08 2008-09 2008 2009
weeks ended Saturday April-March Jul. Feb. Mar. Apr. May Jun. Jul.
1 2 3 4 5 6 7 8 9 10 11 12

ALL COMMODITIES 100.000 112.6 215.9 233.9 240.0 227.6 228.2 231.5 234.3 235.0 238.4
I. PRIMARY ARTICLES 22.025 115.8 224.8 247.3 248.7 246.4 248.2 254.4 257.2 259.8 266.7
(A) Food Articles 15.402 112.8 222.1 239.8 236.7 242.9 243.8 250.2 252.9 257.6 268.1
a. Foodgrains
(Cereals+Pulses) 5.009 114.7 215.6 234.1 228.2 248.0 248.1 250.6 254.3 256.0 259.1
a1. Cereals 4.406 113.6 211.8 230.5 224.7 244.7 244.9 246.5 250.4 251.6 252.4
a2. Pulses 0.603 122.2 243.2 259.8 253.3 272.1 271.3 280.1 282.7 288.1 307.5
b. Fruits & Vegetables 2.917 108.0 236.5 255.5 252.0 241.4 241.0 271.2 272.2 274.0 291.0
b1. Vegetables 1.459 110.4 224.4 232.9 259.8 193.5 192.3 262.6 270.5 299.5 333.1
b2. Fruits 1.458 105.7 248.6 278.2 244.3 289.2 289.7 279.8 273.8 248.5 248.8
c. Milk 4.367 110.3 212.6 228.5 225.0 234.2 235.8 234.2 235.8 241.1 246.4
d. Eggs, Meat & Fish 2.208 116.1 238.7 249.8 252.8 250.7 249.7 250.0 250.0 263.9 297.3
e. Condiments & Spices 0.662 126.2 239.3 267.7 268.8 257.9 275.7 274.3 277.5 286.2 291.2
f. Other Food Articles 0.239 111.6 155.4 204.7 200.7 198.7 194.4 214.2 260.0 254.5 241.5
(B) Non-Food Articles 6.138 124.2 212.2 235.8 246.7 226.4 225.6 231.7 238.7 241.5 239.5
a. Fibres 1.523 150.0 179.1 217.2 233.2 204.1 196.2 203.3 207.9 208.0 211.7
b. Oil seeds 2.666 118.5 218.3 245.9 259.8 235.4 237.0 243.9 253.2 254.3 252.0
c. Other Non-Food Articles 1.949 112.0 229.7 236.5 239.4 231.4 233.0 237.4 243.0 250.0 244.0
(C) Minerals 0.485 104.9 469.5 631.6 656.2 612.2 675.3 675.4 629.9 562.4 564.4
a. Metallic Minerals 0.297 103.8 687.7 943.1 979.5 921.8 1024.2 1024.2 949.9 839.4 842.3
b. Other Minerals 0.188 106.7 124.8 139.6 145.5 123.3 124.2 124.5 124.6 125.0 125.6

II. Fuel, Power, Light & Lubricants 14.226 108.9 327.2 351.4 377.2 323.9 321.0 323.4 325.7 327.5 338.2
a. Coal Mining 1.753 105.1 238.0 253.5 254.4 251.8 251.8 251.8 251.8 251.8 251.8
b. Minerals Oils 6.990 106.1 392.0 435.2 487.0 379.1 378.9 383.9 388.7 392.2 414.0
c. Electricity 5.484 113.6 273.1 275.9 276.5 276.5 269.2 269.2 269.2 269.2 269.2

RBI
Monthly Bulletin
November 2009 S 1155
CURRENT
STATISTICS
Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages) (Contd.)
(Base : 1993-94 = 100)
Average of months/Average of Weight 1994-95 2007-08 2008-09 2008 2009
weeks ended Saturday April-March Jul. Feb. Mar. Apr. May Jun. Jul.
1 2 3 4 5 6 7 8 9 10 11 12

III.MANUFACTURED PRODUCTS 63.749 112.3 188.0 203.1 206.4 199.5 200.6 203.0 205.9 205.8 206.4
(A) Food Products 11.538 114.1 190.4 209.4 212.5 216.0 219.7 228.1 233.2 234.1 233.6
a. Dairy Products 0.687 117.0 232.6 248.4 249.0 249.1 251.2 252.3 254.7 255.6 256.8
b. Canning, Preserving &
Processing of Fish 0.047 100.0 293.8 327.8 293.8 419.4 419.4 419.4 419.4 419.4 419.4
c. Grain Mill Products 1.033 103.7 230.4 240.5 237.3 244.0 243.5 240.8 240.8 236.4 237.8
d. Bakery Products 0.441 107.7 195.5 201.3 201.3 201.3 201.3 201.7 203.0 203.0 203.0
e. Sugar, Khandsari & Gur 3.929 119.1 155.2 168.7 158.0 187.2 189.6 201.2 206.3 212.1 212.6
f. Manufacture of
common Salts 0.021 104.8 222.4 253.2 231.1 259.4 259.4 267.5 272.6 276.9 264.4
g. Cocoa, Chocolate, Sugar &
Confectionery 0.087 118.3 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1
h. Edible Oils 2.775 110.9 175.4 188.1 201.3 178.7 178.7 177.9 179.4 177.0 176.4
i. Oil Cakes 1.416 121.6 256.6 323.4 360.4 323.5 346.4 384.6 406.8 404.6 398.7
j. Tea & Coffee Proccessing 0.967 104.4 193.8 201.0 195.8 221.9 221.9 221.9 223.4 224.3 224.3
k. Other Food Products n.e.c. 0.154 111.6 218.9 240.5 238.1 243.1 247.0 250.9 250.9 250.9 250.9
(B) Beverages, Tobacco &
Tobacco Products 1.339 118.3 268.5 294.0 289.8 301.5 301.9 302.4 301.6 302.7 305.6
a. Wine Industries 0.269 150.2 309.3 309.9 310.9 311.7 311.9 313.9 309.6 309.6 310.1
b. Malt liquor 0.043 109.1 198.0 235.8 215.7 270.5 270.5 270.5 270.5 305.2 305.2
c. Soft drinks &
Carbonated Water 0.053 109.1 187.6 189.1 188.1 188.6 198.9 202.3 202.6 203.0 203.0
d. Manufacture of Bidi,
Cigarettes, Tobacco & Zarda 0.975 110.4 264.8 297.8 292.7 306.1 306.1 306.1 306.1 306.1 309.9

RBI
Monthly Bulletin
S 1156 November 2009
 CURRENT
STATISTICS
Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages) (Contd.)
(Base : 1993-94 = 100)
Average of months/Average of Weight 1994-95 2007-08 2008-09 2008 2009
weeks ended Saturday April-March Jul. Feb. Mar. Apr. May Jun. Jul.
1 2 3 4 5 6 7 8 9 10 11 12
(C) Textiles 9.800 118.2 130.9 138.8 140.8 139.8 139.8 140.7 141.6 143.1 143.7
a. Cotton Textiles 4.215 132.7 156.3 168.6 170.8 173.1 171.7 173.1 173.1 176.4 177.1
a1. Cotton Yarn 3.312 136.2 153.0 167.1 170.7 171.5 169.8 171.5 171.5 175.8 176.6
a2. Cotton Cloth (Mills) 0.903 119.9 168.4 174.2 171.3 178.8 178.8 178.8 178.8 178.8 178.8
b. Man Made Textiles 4.719 105.9 97.4 100.3 103.5 96.3 97.4 97.5 98.5 97.5 97.7
b1. Man Made Fibre 4.406 105.6 94.8 97.7 101.3 93.2 94.4 94.5 95.6 94.5 94.8
b2. Man Made Cloth 0.313 109.9 134.4 137.0 134.5 139.4 139.4 139.4 139.4 139.4 139.4
c. Woolen Textiles 0.190 132.6 170.6 176.7 178.6 178.2 172.0 172.0 172.4 172.5 174.0
d. Jute, Hemp & Mesta Textiles 0.376 110.3 205.6 227.6 212.9 248.5 252.7 259.1 269.7 284.0 289.6
e. Other Misc. Textiles 0.300 109.0 182.7 192.1 191.8 196.1 196.1 196.1 196.1 196.1 196.1
(D) Wood & Wood Products 0.173 110.9 215.9 233.9 237.0 232.5 232.6 237.6 237.6 237.6 237.6
(E) Paper & Paper Products 2.044 106.1 194.2 202.7 200.2 204.2 203.9 204.0 205.0 204.7 204.2
a. Paper & pulp 1.229 108.7 175.5 189.1 185.4 190.7 190.1 189.6 190.0 189.4 188.6
b. Manufacture of boards 0.237 110.9 164.3 165.7 166.6 164.3 165.3 166.2 166.7 166.8 166.8
c. Printing & publishing of
newspapers,periodicals etc. 0.578 98.5 246.2 246.8 245.6 249.1 249.1 250.0 252.7 252.7 252.7
(F) Leather & Leather Products 1.019 109.7 166.1 167.9 168.3 167.4 167.1 166.2 166.2 166.2 166.2
(G) Rubber & Plastic Products 2.388 106.4 159.0 166.3 164.9 167.4 167.5 167.9 170.2 169.4 169.1
a. Tyres & Tubes 1.286 104.1 156.8 167.2 163.2 170.1 170.0 172.0 175.2 175.3 175.2
a1. Tyres 1.144 103.4 143.5 150.2 149.3 151.0 151.0 153.9 154.9 155.0 154.9
a2. Tubes 0.142 110.0 264.2 303.9 275.7 324.4 322.9 317.8 338.9 338.9 338.9
b. Plastic Products 0.937 106.8 154.2 158.7 160.4 157.4 157.9 156.0 155.9 153.4 152.7
c. Other Rubber &
Plastic Products 0.165 121.0 203.0 202.8 202.8 202.8 202.8 202.8 212.2 214.5 214.5
(H) Chemicals & Chemical
Products 11.931 116.6 204.8 219.5 222.2 214.3 215.1 220.3 229.6 226.3 228.4
a. Basic heavy Inorganic
Chemicals 1.446 112.2 190.3 226.2 240.2 191.9 192.6 186.5 183.6 183.5 183.6
b. Basic Heavy Organic
Chemicals 0.455 118.7 176.4 180.0 219.9 139.5 145.9 152.2 166.6 165.6 174.1
c. Fertilisers & Pesticides 4.164 117.7 173.7 188.3 189.3 188.5 187.8 187.8 192.0 190.2 186.6
c1. Fertilisers 3.689 115.8 180.8 196.5 197.6 196.9 196.1 196.1 197.3 195.4 191.3
c2. Pesticides 0.475 132.5 118.5 124.4 124.8 122.9 122.9 122.9 150.5 150.5 150.5
d. Paints, Varnishes & Lacquers 0.496 101.3 143.0 157.3 155.3 166.3 166.3 166.3 166.3 166.3 165.7
e. Dyestuffs & Indigo 0.175 108.4 111.2 118.6 120.4 112.9 112.8 112.4 112.4 112.4 112.4
f. Drugs & Medicines 2.532 129.4 314.9 320.8 316.4 326.9 331.7 357.1 382.4 382.4 382.4
g. Perfumes, Cosmetics,
Toiletries etc. 0.978 118.0 239.7 258.2 258.6 259.0 259.0 259.0 259.0 259.0 288.3
h. Turpentine, Synthetic
Resins, Plastic Materials etc. 0.746 107.6 143.4 152.2 158.2 131.2 131.0 135.6 171.7 129.4 138.8
i. Matches, Explosives &
Other Chemicals n.e.c. 0.940 98.3 144.3 158.0 154.5 159.4 155.9 155.9 157.0 157.0 157.0

RBI
Monthly Bulletin
November 2009 S 1157
CURRENT
STATISTICS
Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages) (Concld.)
(Base : 1993-94 = 100)
Average of months/Average of Weight 1994-95 2007-08 2008-09 2008 2009
weeks ended Saturday April-March Jul. Feb. Mar. Apr. May Jun. Jul.
1 2 3 4 5 6 7 8 9 10 11 12
(I) Non-Metallic Mineral
Products 2.516 110.9 208.8 216.6 215.4 217.2 218.4 220.4 220.6 221.9 225.7
a. Structural Clay Products 0.230 100.0 212.8 221.4 219.4 224.0 224.0 226.2 227.2 227.2 227.2
b. Glass, Earthernware,
Chinaware & their Products 0.237 113.3 167.9 166.4 166.4 166.4 166.4 166.4 166.4 166.4 172.5
c. Cement 1.731 112.4 217.5 223.3 222.0 223.6 225.4 227.9 228.1 230.0 230.8
d. Cement, Slate & Graphite
Products 0.319 108.8 189.1 214.2 213.2 215.1 215.1 215.1 215.1 215.1 236.0
(J) Basic Metals Alloys &
Metals Products 8.342 108.4 249.8 285.3 300.2 255.1 256.4 255.0 254.9 255.0 254.7
a. Basic Metals & Alloys 6.206 107.0 256.3 307.8 326.5 271.6 273.0 270.8 270.7 270.7 270.4
a1. Iron & Steel 3.637 106.0 280.0 336.6 362.6 286.6 288.4 285.8 286.3 286.4 286.5
a2. Foundries for Casting,
Forging & Structurals 0.896 106.7 245.2 301.3 301.9 296.5 296.5 296.5 292.1 292.1 292.1
a3. Pipes, Wires Drawing &
Others 1.589 109.5 213.5 253.3 265.9 230.3 231.7 229.0 229.7 229.5 230.0
a4. Ferro Alloys 0.085 104.5 155.5 159.7 175.3 142.2 142.2 142.2 142.2 142.2 103.5
b. Non-Ferrous Metals 1.466 115.9 265.1 248.2 254.2 228.7 230.3 232.0 232.2 232.6 233.2
b1. Aluminium 0.853 114.7 248.7 245.3 250.8 225.8 225.8 225.8 225.8 225.8 225.8
b2. Other Non-Ferrous
Metals 0.613 117.7 288.0 252.1 258.9 232.8 236.5 240.7 241.2 242.1 243.4
c. Metal Products 0.669 105.0 155.9 158.0 157.4 159.1 159.1 159.0 158.7 158.7 156.7
(K) Machinery & Machine Tools 8.363 106.0 166.6 174.5 176.1 172.2 172.4 171.8 172.0 171.9 172.2
a. Non-Electrical Machinery
& Parts 3.379 108.6 199.5 210.0 210.0 209.7 209.4 209.2 209.2 209.9 210.8
a1. Heavy Machinery
& Parts 1.822 111.0 207.3 222.5 222.6 222.1 222.1 221.8 221.6 222.7 224.6
a2. Industrial Machinery
for Textiles, etc. 0.568 108.5 260.5 258.6 259.0 257.4 257.4 258.1 258.4 258.4 257.9
a3. Refrigeration & Other
Non-electrical
Machinery 0.989 104.3 150.2 159.0 158.6 159.3 158.5 157.9 158.0 158.6 158.5
b. Electrical Machinery 4.985 104.2 144.3 150.4 153.2 146.7 147.3 146.5 146.7 146.2 146.1
b1. Electrical Industrial
Machinery 1.811 105.2 160.9 169.6 168.3 174.8 173.9 172.1 172.1 171.9 172.0
b2. Wires & Cables 1.076 109.0 230.3 237.8 251.2 212.5 214.9 214.2 215.5 213.6 212.8
b3. Dry & Wet Batteries 0.275 105.8 163.3 175.8 177.4 175.5 175.5 175.5 175.6 175.6 174.5
b4. Electrical Apparatus &
Appliances 1.823 100.1 74.2 75.9 76.6 75.7 76.6 76.6 76.6 76.6 76.6
(L) Transport Equipment & Parts 4.295 107.4 166.9 175.5 174.8 175.6 175.4 175.1 175.1 175.3 175.9
a. Locomotives, Railway
Wagons & Parts 0.318 105.3 131.6 142.1 141.8 144.9 144.9 144.2 143.9 143.9 143.9
b. Motor Vehicles, Motorcycles,
Scooters, Bicycles & Parts 3.977 107.6 169.7 178.2 177.4 178.1 177.8 177.6 177.6 177.8 178.5
Source : Office of the Economic Adviser, Ministry of Commerce & Industry, Government of India.

RBI
Monthly Bulletin
S 1158 November 2009
 CURRENT
STATISTICS
Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups
(Month-end/Year-end)
(Base : 1993-94 = 100)
Last Week of month / year Weight 1994-95 2007-08 2008-09 2008 2009
ended Saturday April-March Sep. Apr. May Jun. Jul. Aug.(P) Sep.(P)
1 2 3 4 5 6 7 8 9 10 11 12

ALL COMMODITIES 100.000 117.1 216.2 234.0 241.3 233.1 234.4 235.8 239.0 241.1 243.0

I. PRIMARY ARTICLES 22.025 120.8 225.5 247.7 252.8 255.6 257.4 263.6 269.5 271.2 276.8
(A) Food Articles 15.402 114.9 222.5 240.0 244.0 251.9 253.9 262.8 272.7 273.8 281.7
a. Foodgrains
(Cereals+Pulses) 5.009 118.9 216.1 234.9 229.5 253.1 255.8 255.9 260.7 261.4 262.6
a1. Cereals 4.406 118.2 212.3 231.4 224.6 249.0 251.7 250.9 253.1 253.1 254.8
a2. Pulses 0.603 123.9 243.2 260.4 265.0 283.2 285.6 292.8 316.3 322.4 319.2
b. Fruits & Vegetables 2.917 103.1 237.3 253.9 278.0 272.9 270.7 287.3 297.1 320.6 341.3
b1. Vegetables 1.459 95.0 226.3 230.7 256.6 270.5 271.3 318.6 343.5 360.6 366.9
b2. Fruits 1.458 111.2 248.4 277.1 299.4 275.3 270.1 256.0 250.6 280.6 315.7
c. Milk 4.367 111.3 213.1 229.2 229.4 235.8 235.8 246.4 246.4 249.4 249.4
d. Eggs, Meat & Fish 2.208 122.1 238.5 250.1 252.3 250.0 253.0 271.2 317.2 283.4 304.5
e. Condiments & Spices 0.662 131.6 239.2 268.4 277.0 269.6 283.1 292.1 293.4 304.0 316.4
f. Other Food Articles 0.239 127.4 155.8 206.1 233.6 232.4 264.9 251.3 237.1 237.6 239.5
(B) Non-Food Articles 6.138 136.9 212.6 236.6 246.8 231.9 242.2 242.0 238.3 241.4 239.9
a. Fibres 1.523 168.7 179.3 218.4 237.1 200.9 209.8 208.5 213.1 212.0 208.7
b. Oil seeds 2.666 127.8 219.2 246.8 249.5 245.3 255.3 255.1 249.9 250.1 254.5
c. Other Non-Food
Articles 1.949 124.4 229.9 236.8 250.7 237.9 249.5 250.2 242.1 252.5 244.2
(C) Minerals 0.485 104.2 481.7 631.9 610.1 675.4 561.7 564.4 564.4 564.4 587.0
a. Metallic Minerals 0.297 102.5 707.9 945.4 897.5 1024.2 838.4 842.3 842.3 842.3 879.4
b. Other Minerals 0.188 107.0 124.6 136.9 156.2 124.5 124.8 125.6 125.6 125.6 125.3

II. Fuel, Power, Light

& Lubricants 14.226 109.1 327.4 350.4 375.3 324.0 326.1 327.9 338.0 343.3 345.6
a. Coal Mining 1.753 106.2 238.6 253.5 254.4 251.8 251.8 251.8 251.8 251.8 251.8
b. Minerals Oils 6.990 106.2 392.3 433.1 483.2 385.1 389.4 393.0 413.6 414.5 419.2
c. Electricity 5.484 113.6 273.0 275.9 276.5 269.2 269.2 269.2 269.2 281.9 281.9

III. Manufactured
Products 63.749 117.6 188.1 203.4 207.5 205.0 206.0 205.7 206.4 207.9 208.5
(A) Food Products 11.538 113.2 190.8 210.3 213.6 233.2 232.8 234.0 232.4 240.9 238.1
a. Dairy Products 0.687 129.0 233.4 249.2 248.9 252.9 255.2 255.9 258.3 259.1 262.3
b. Canning, Preserving
& Processing of Fish 0.047 100.0 293.8 329.5 293.8 419.4 419.4 419.4 419.4 419.4 419.4
c. Grain Mill Products 1.033 109.0 230.5 240.6 237.8 240.8 240.8 236.4 237.8 237.8 241.6
d. Bakery Products 0.441 111.0 195.6 201.3 201.3 203.0 203.0 203.0 203.0 203.0 203.0

See ‘Notes on Tables’.

RBI
Monthly Bulletin
November 2009 S 1159
CURRENT
STATISTICS
Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups
(Month-end/Year-end) (Contd.)
(Base : 1993-94 = 100)
Last Week of month / year Weight 1994-95 2007-08 2008-09 2008 2009
ended Saturday April-March Sep. Apr. May Jun. Jul. Aug.(P) Sep.(P)
1 2 3 4 5 6 7 8 9 10 11 12

e. Sugar, Khandsari & Gur 3.929 109.5 155.4 169.6 168.1 208.1 207.7 213.8 213.6 229.5 237.7
f. Manufacture of
Common Salts 0.021 114.1 222.4 253.1 273.8 273.7 276.9 276.9 264.4 264.4 270.2
g. Cocoa, Chocolate, Sugar
& Confectionery 0.087 124.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1
h. Edible Oils 2.775 118.4 175.8 188.4 191.6 180.4 177.8 175.8 176.8 179.1 177.9
i. Oil Cakes 1.416 118.3 257.9 326.6 358.0 401.4 402.1 401.3 384.8 405.0 358.1
j. Tea & Coffee Processing 0.967 99.5 194.4 202.4 197.1 221.9 223.8 224.3 224.3 224.3 224.3
k. Other Food
Products n.e.c. 0.154 117.3 219.0 240.9 239.5 250.9 250.9 250.9 250.9 250.9 249.6
(B) Beverages, Tobacco &
Tobacco Products 1.339 124.3 269.2 294.7 296.6 302.4 301.6 302.7 305.9 305.5 305.9
a. Wine Industries 0.269 163.5 309.4 311.4 310.9 313.9 309.6 309.6 311.7 309.6 311.7
b. Malt Liquor 0.043 125.5 198.1 238.5 215.7 270.5 270.5 305.2 305.2 305.2 305.2
c. Soft Drinks &
Carbonated Water 0.053 109.1 187.6 189.4 188.1 202.3 203.0 203.0 203.0 203.0 203.0
d. Manufacture of Bidi,
Cigarettes, Tobacco &
Zarda 0.975 114.2 265.6 298.3 302.1 306.1 306.1 306.1 309.9 309.9 309.9
(C) Textiles 9.800 128.1 130.6 139.3 140.8 141.1 142.6 143.4 143.8 143.2 144.7
a. Cotton Textiles 4.215 148.3 155.6 169.7 169.8 173.0 174.7 176.3 177.6 177.8 179.0
a1. Cotton Yarn 3.312 152.1 152.1 168.4 168.7 171.4 173.6 175.6 177.3 177.5 179.1
a2. Cotton Cloth (Mills) 0.903 134.4 168.4 174.6 173.7 178.8 178.8 178.8 178.8 178.8 178.8
b. Man Made Textiles 4.719 110.9 97.4 100.2 102.8 97.9 99.1 97.1 98.1 97.9 97.8
b1. Man Made Fibre 4.406 110.6 94.8 97.5 100.2 95.0 96.2 94.1 95.2 94.9 94.8
b2. Man Made Cloth 0.313 114.7 134.4 137.6 139.4 139.4 139.4 139.4 139.4 139.4 139.4
c. Woolen Textiles 0.190 139.9 170.7 177.3 180.2 172.0 172.5 172.5 174.5 174.5 174.5
d. Jute, Hemp & Mesta
Textiles 0.376 120.5 204.0 228.2 230.8 265.5 270.3 299.7 280.3 264.7 293.0
e. Other Misc. Textiles 0.300 117.9 182.8 192.5 191.8 196.1 196.1 196.1 196.1 196.1 196.1
(D) Wood & Wood Products 0.173 113.3 215.9 232.0 237.0 237.6 237.6 237.6 237.6 237.6 237.6
(E) Paper & Paper Products 2.044 117.0 194.3 202.7 203.9 204.8 205.0 204.7 204.2 204.0 204.0
a. Paper & pulp 1.229 122.9 175.7 189.1 191.4 189.7 190.0 189.4 188.6 188.2 188.2
b. Manufacture of Boards 0.237 113.0 164.3 165.6 167.0 166.2 166.8 166.8 166.8 166.8 166.8
c. Printing & Publishing
of Newspapers,
Periodicals etc. 0.578 106.2 246.2 247.0 245.6 252.7 252.7 252.7 252.7 252.7 252.7

RBI
Monthly Bulletin
S 1160 November 2009
 CURRENT
STATISTICS
Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups
(Month-end/Year-end) (Contd.)
(Base : 1993-94 = 100)
Last Week of month / year Weight 1994-95 2007-08 2008-09 2008 2009
ended Saturday April-March Sep. Apr. May Jun. Jul. Aug.(P) Sep.(P)
1 2 3 4 5 6 7 8 9 10 11 12

(F) Leather & Leather Products 1.019 117.8 166.1 167.9 168.3 166.2 166.2 166.2 166.2 166.2 166.2
(G) Rubber & Plastic Products 2.388 117.0 159.1 166.4 169.2 168.1 170.2 169.3 169.0 169.6 169.4
a. Tyres & Tubes 1.286 119.6 156.9 167.3 170.5 172.9 175.2 175.2 175.2 175.2 175.2
a1. Tyres 1.144 120.3 143.6 150.3 151.0 154.9 154.9 154.9 154.9 154.9 154.9
a2. Tubes 0.142 114.1 256.2 305.1 327.5 317.8 338.9 338.9 338.9 338.9 338.9
b. Plastic Products 0.937 108.8 154.3 158.6 161.6 155.3 155.6 153.3 152.5 154.0 153.4
c. Other Rubber & Plastic
Products 0.165 143.9 203.0 202.8 202.8 202.8 214.5 214.5 214.5 214.5 214.5
(H) Chemicals &
Chemical Products 11.931 121.6 205.0 219.7 224.7 225.7 229.4 225.1 229.1 229.4 229.7
a. Basic Heavy Inorganic
Chemicals 1.446 125.6 191.7 226.4 251.9 186.5 183.5 183.5 183.6 184.1 184.4
b. Basic Heavy Organic
Chemicals 0.455 131.4 176.4 180.5 208.1 153.2 166.4 167.2 174.5 182.9 184.6
c. Fertilisers & Pesticides 4.164 123.0 173.8 188.2 189.4 187.8 191.4 186.6 186.6 186.6 186.6
c1. Fertilisers 3.689 121.8 180.9 196.4 197.5 196.1 196.7 191.3 191.3 191.3 191.3
c2. Pesticides 0.475 132.5 118.5 124.4 126.6 122.9 150.5 150.5 150.5 150.5 150.5
d. Paints, Varnishes &
Lacquers 0.496 101.4 143.1 157.6 155.3 166.3 166.3 166.3 163.9 166.3 164.0
e. Dyestuffs & Indigo 0.175 115.0 111.2 118.1 120.4 112.4 112.4 112.4 112.4 112.4 112.4
f. Drugs & Medicines 2.532 132.9 314.9 321.6 321.5 382.4 382.4 382.4 382.5 382.4 382.5
g. Perfumes, Cosmetics,
Toiletries, etc. 0.978 119.0 239.7 258.9 259.2 259.0 259.0 259.0 298.0 298.0 298.0
h. Turpentine, Synthetic
Resins, Plastic Materials
etc. 0.746 111.9 143.7 152.0 157.9 135.9 171.7 129.6 138.8 135.8 139.1
i. Matches, Explosives &
Other Chemicals n.e.c. 0.940 96.3 144.2 157.7 160.0 155.9 157.0 157.0 157.0 157.4 157.6
(I) Non-Metallic Mineral
Products 2.516 122.4 209.0 216.7 217.9 220.6 220.6 222.8 228.1 224.1 226.2
a. Structural Clay Products 0.230 101.4 213.5 221.5 220.2 227.2 227.2 227.2 227.2 227.2 227.2
b. Glass, Earthernware,
Chinaware &
Their Products 0.237 126.3 167.9 166.4 166.4 166.4 166.4 166.4 190.6 166.4 190.6
c. Cement 1.731 126.9 217.6 223.4 225.2 228.1 228.1 231.3 230.6 228.1 228.1
d. Cement, Slate &
Graphite Products 0.319 110.3 189.7 214.2 215.1 215.1 215.1 215.1 242.9 242.9 242.0

RBI
Monthly Bulletin
November 2009 S 1161
CURRENT
STATISTICS
Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups
(Month-end/Year-end) (Concld.)
(Base : 1993-94 = 100)
Last Week of month / year Weight 1994-95 2007-08 2008-09 2008 2009
ended Saturday April-March Sep. Apr. May Jun. Jul. Aug.(P) Sep.(P)
1 2 3 4 5 6 7 8 9 10 11 12

(J) Basic Metals Alloys &

Metals Products 8.342 115.6 250.0 284.5 298.1 255.0 254.9 254.9 254.3 255.4 260.4
a. Basic Metals & Alloys 6.206 112.7 256.7 306.9 323.7 270.7 270.7 270.5 270.4 270.3 277.8
a1. Iron & Steel 3.637 112.6 280.6 335.4 359.4 285.6 286.4 286.1 286.6 286.6 297.5
a2. Foundries for Casting,
Forging & Structurals 0.896 113.5 245.6 301.2 301.9 296.4 292.1 292.1 292.1 292.1 292.1
a3. Pipes, Wires
Drawing & Others 1.589 112.9 213.8 252.8 263.5 229.0 229.7 229.5 229.9 229.8 233.8
a4. Ferro Alloys 0.085 102.9 155.5 158.7 152.9 142.2 142.2 142.2 103.5 103.5 103.5
b. Non-Ferrous Metals 1.466 130.8 264.5 247.8 254.1 232.3 231.9 232.7 233.5 236.6 237.2
b1. Aluminium 0.853 132.4 248.2 245.0 250.8 225.8 225.8 225.8 225.8 227.1 227.1
b2. Other Non-Ferrous
Metals 0.613 128.6 287.2 251.7 258.8 241.3 240.4 242.3 244.1 249.9 251.3
c. Metal Products 0.669 108.7 155.9 158.1 157.4 158.7 158.7 158.7 150.7 158.4 150.5
(K) Machinery & Machine Tools 8.363 109.0 166.7 174.6 176.5 171.5 172.0 172.3 172.2 172.2 173.2
a. Non-Electrical
Machinery & Parts 3.379 111.1 199.6 210.1 211.2 209.1 209.3 210.9 210.8 210.7 210.8
a1. Heavy Machinery
& Parts 1.822 114.8 207.3 222.7 223.8 221.6 221.8 224.6 224.7 224.1 224.5
a2. Industrial Machinery
for Textiles, etc. 0.568 108.4 260.6 258.6 258.8 258.0 258.4 258.4 257.4 258.4 257.4
a3. Refrigeration &
Other Non-Electrical
Machinery 0.989 106.0 150.4 159.1 160.6 157.9 158.0 158.5 158.5 158.5 158.7
b. Electrical Machinery 4.985 107.5 144.5 150.5 153.0 146.0 146.8 146.2 146.1 146.1 147.7
b1. Electrical Industrial
Machinery 1.811 108.8 161.1 169.8 168.4 172.1 172.1 171.8 172.0 172.2 172.0
b2. Wires & Cables 1.076 119.0 230.6 237.4 249.5 212.1 215.8 213.6 212.8 212.8 220.5
b3. Dry & Wet Batteries 0.275 109.7 163.5 176.5 177.4 175.5 175.6 175.6 174.5 174.5 174.5
b4. Electrical Apparatus
& Appliances & Parts 1.823 99.2 74.2 76.0 77.1 76.6 76.6 76.6 76.6 76.6 76.6
(L) Transport Equipment
& Parts 4.295 110.6 166.8 175.7 177.1 175.4 175.3 175.3 175.8 176.0 175.8
a. Locomotives, Railway
Wagons & Parts 0.318 105.4 131.9 142.5 141.8 143.9 143.9 143.9 143.9 143.9 143.9
b. Motor Vehicles,
Motorcycles, Scooters,
Bicycles & Parts 3.977 111.0 169.6 178.3 179.9 177.9 177.8 177.8 178.4 178.6 178.4

Source : Office of the Economic Adviser, Ministry of Commerce & Industry, Government of India.

RBI
Monthly Bulletin
S 1162 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

Trade and Balance of Payments

No. 41: Foreign Trade (Annual and Monthly)
Year/ Month Rupees crore US dollar million SDR million
Export Import Balance Export Import Balance Export Import Balance
1 2 3 4 5 6 7 8 9 10
2003-04 2,93,367 3,59,108 -65,741 63,843 78,149 -14,307 44,663 54,672 -10,009
2004-05 3,75,340 5,01,065 -1,25,725 83,536 1,11,517 -27,981 56,081 74,866 -18,785
2005-06 4,56,418 6,60,409 -2,03,991 1,03,091 1,49,166 -46,075 70,774 1,02,405 -31,632
2006-07 5,71,779 8,40,506 -2,68,727 1,26,414 1,85,735 -59,321 84,996 1,24,928 -39,932
2007-08 6,55,864 10,12,312 -3,56,448 1,62,904 2,51,439 -88,535 1,04,537 1,60,854 -56,317
2008-09 8,39,978 13,40,588 -5,00,610 1,82,631 2,91,475 -1,08,844 1,10,766 1,82,863 -72,097
2007-08
April 47,741 77,429 -29,688 11,327 18,371 -7,044 7,442 12,069 -4,628
May 50,796 86,251 -35,455 12,456 21,150 -8,694 8,208 13,937 -5,729
June 49,340 81,612 -32,272 12,101 20,016 -7,915 8,007 13,245 -5,237
July 50,571 85,389 -34,818 12,513 21,129 -8,615 8,183 13,817 -5,634
August 51,600 83,136 -31,536 12,641 20,366 -7,725 8,263 13,312 -5,050
September 50,511 73,489 -22,978 12,521 18,217 -5,696 8,112 11,802 -3,690
October 57,982 86,264 -28,282 14,675 21,833 -7,158 9,415 14,008 -4,592
November 50,910 87,171 -36,261 12,909 22,104 -9,195 8,137 13,933 -5,796
December 57,682 79,340 -21,658 14,625 20,117 -5,491 9,273 12,755 -3,482
January 58,624 89,947 -31,323 14,889 22,844 -7,955 9,400 14,423 -5,023
February 60,061 82,661 -22,601 15,116 20,804 -5,688 9,534 13,122 -3,588
March 69,630 95,134 -25,504 17,254 23,574 -6,320 10,563 14,432 -3,869
2008-09 R
April 64,340 99,347 -35,007 16,076 24,823 -8,747 9,825 15,171 -5,346
May 65,506 1,12,405 -46,899 15,550 26,684 -11,133 9,576 16,433 -6,856
June 75,930 1,14,995 -39,065 17,732 26,855 -9,123 10,952 16,587 -5,635
July 81,548 1,33,609 -52,061 19,036 31,189 -12,153 11,673 19,125 -7,452
August 76,103 1,43,890 -67,787 17,724 33,512 -15,787 11,173 21,125 -9,952
September 65,147 1,35,422 -70,275 14,298 29,722 -15,424 9,190 19,104 -9,914
October 62,578 1,19,212 -56,634 12,861 24,501 -11,640 8,491 16,175 -7,684
November 50,507 1,10,059 -59,552 10,308 22,461 -12,154 6,958 15,163 -8,205
December 61,715 89,579 -27,864 12,690 18,419 -5,729 8,335 12,098 -3,763
January 60,460 90,125 -29,665 12,381 18,455 -6,075 8,200 12,223 -4,023
February 56,321 64,736 -8,415 11,433 13,141 -1,708 7,699 8,849 -1,150
March 66,093 82,188 -16,095 12,902 16,043 -3,142 8,693 10,811 -2,117
2009-10 P
April 53,779 78,832 -25,053 10,743 15,747 -5,004 7,199 10,553 -3,354
May 53,435 78,682 -25,247 11,010 16,212 -5,202 7,235 10,654 -3,419
June 61,217 90,657 -29,440 12,815 18,977 -6,163 8,294 12,283 -3,989
July 66,041 95,118 -29,077 13,623 19,621 -5,998 8,771 12,633 -3,862
August 69,066 1,09,533 -40,467 14,289 22,661 -8,372 9,156 14,521 -5,365
R: Revised. P: Provisional. Source : DGCI & S and Ministry of Commerce & Industry.
Notes: 1. Data conversion has been done using period average exchange rates. 2. Monthly data may not add up to the annual data on account of revision in monthly figures.
Also see ‘Notes on Tables’

RBI
Monthly Bulletin
November 2009 S 1163
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments

(Rs. crore)
Items 2005-06 2006-07
Credit Debit Net Credit Debit Net
1 2 3 4 5 6 7
A. CURRENT ACCOUNT
I. Merchandise 4,65,748 6,95,412 –2,29,664 5,82,871 8,62,833 –2,79,962
II. Invisibles (a+b+c) 3,97,660 2,11,733 1,85,927 5,17,146 2,81,567 2,35,579
a) Services 2,55,668 1,53,057 1,02,611 3,33,093 2,00,029 1,33,064
i) Travel 34,871 29,432 5,439 41,127 30,249 10,878
ii) Transportation 28,023 36,928 –8,905 36,049 36,504 –455
iii) Insurance 4,694 4,965 –271 5,403 2,903 2,500
iv) G.n.i.e. 1,396 2,343 –947 1,143 1,825 –682
v) Miscellaneous 1,86,684 79,389 1,07,295 2,49,371 1,28,548 1,20,823
of which
Software Services 1,04,632 5,954 98,678 1,41,356 10,212 1,31,144
Business Services 41,356 34,428 6,928 65,738 71,500 –5,762
Financial Services 5,355 4,265 1,090 14,010 13,460 550
Communication Services 7,000 1,285 5,715 10,227 3,589 6,638
b) Transfers 1,13,566 4,134 1,09,432 1,42,037 6,288 1,35,749
i) Official 2,970 2,103 867 2,864 1,723 1,141
ii) Private 1,10,596 2,031 1,08,565 1,39,173 4,565 1,34,608
c) Income 28,426 54,542 –26,116 42,016 75,250 –33,234
i) Investment Income 27,633 51,112 –23,479 40,297 70,955 –30,658
ii) Compensation of Employees 793 3,430 –2,637 1,719 4,295 –2,576
Total Current Account (I+II) 8,63,408 9,07,145 –43,737 11,00,017 11,44,400 –44,383
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 3,42,778 2,73,996 68,782 6,00,951 5,34,160 66,791
a) Foreign Direct Investment (i+ii) 40,690 27,265 13,425 1,06,464 71,554 34,910
i) In India 39,730 273 39,457 1,03,037 385 1,02,652
Equity 26,512 273 26,239 74,354 385 73,969
Reinvested Earnings 12,220 — 12,220 26,371 — 26,371
Other Capital 998 — 998 2,312 — 2,312
ii) Abroad 960 26,992 –26,032 3,427 71,169 –67,742
Equity 960 17,678 –16,718 3,427 60,138 –56,711
Reinvested Earnings — 4,834 –4,834 — 4,868 –4,868
Other Capital — 4,480 –4,480 — 6,163 –6,163
b) Portfolio Investment 3,02,088 2,46,731 55,357 4,94,487 4,62,606 31,881
i) In India 3,02,088 2,46,731 55,357 4,94,102 4,62,472 31,630
of which
FIIs 2,90,648 2,46,736 43,912 4,77,132 4,62,472 14,660
GDRs/ADRs 11,438 — 11,438 16,961 — 16,961
ii) Abroad — — — 385 134 251
2. Loans (a+b+c) 1,74,729 1,40,332 34,397 2,46,525 1,36,091 1,10,434
a) External Assistance 16,133 8,541 7,592 16,978 9,005 7,973
i) By India 106 390 –284 90 144 –54
ii) To India 16,027 8,151 7,876 16,888 8,861 8,027
b) Commercial Borrowings 63,476 52,971 10,505 93,932 21,567 72,365
i) By India — 1,105 –1,105 2,837 4,361 –1,524
ii) To India 63,476 51,866 11,610 91,095 17,206 73,889
c) Short Term To India 95,120 78,820 16,300 1,35,615 1,05,519 30,096
i) Suppliers’ Credit >180 days & Buyers’ Credit 85,766 78,114 7,652 1,15,125 1,00,196 14,929
ii) Suppliers’ Credit up to 180 days 9,354 706 8,648 20,490 5,323 15,167
3. Banking Capital (a+b) 95,988 90,193 5,795 1,67,494 1,59,017 8,477
a) Commercial Banks 91,200 89,569 1,631 1,65,656 1,58,660 6,996
i) Assets 3,369 17,711 –14,342 64,972 80,726 –15,754
ii) Liabilities 87,831 71,858 15,973 1,00,684 77,934 22,750
of which: Non-Resident Deposits 79,190 66,733 12,457 89,950 70,376 19,574
b) Others 4,788 624 4,164 1,838 357 1,481
4. Rupee Debt Service — 2,557 –2,557 — 725 –725
5. Other Capital 26,451 20,903 5,548 36,797 18,101 18,696
Total Capital Account (1 to 5) 6,39,946 5,27,981 1,11,965 10,51,767 8,48,094 2,03,673
C. ERRORS & OMISSIONS — 2,332 –2,332 4,344 — 4,344
D. OVERALL BALANCE (Total Current Account, Capital 15,03,354 14,37,458 65,896 21,56,128 19,92,494 1,63,634
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 65,896 –65,896 — 1,63,634 –1,63,634
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 65,896 –65,896 — 1,63,634 –1,63,634

P : Preliminary. PR : Partially Revised.

RBI
Monthly Bulletin
S 1164 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments (Contd.)

(Rs. crore)
Items 2007-08 PR 2008-09 P
Credit Debit Net Credit Debit Net
1 8 9 10 11 12 13
A. CURRENT ACCOUNT
I. Merchandise 6,67,757 10,36,289 –3,68,532 798,956 13,41,069 –5,42,113
II. Invisibles (a+b+c) 5,96,954 2,97,336 2,99,618 746,036 3,36,194 4,09,842
a) Services 3,61,932 2,10,873 1,51,059 465,795 2,37,017 2,28,778
i) Travel 45,524 37,173 8,351 50,226 43,371 6,855
ii) Transportation 40,200 46,277 –6,077 50,923 58,326 –7,403
iii) Insurance 6,587 4,194 2,393 6,474 5,235 1,239
iv) G.n.i.e. 1,330 1,520 –190 1,773 3,767 –1,994
v) Miscellaneous 2,68,291 1,21,709 1,46,582 356,399 1,26,318 2,30,081
of which
Software Services 1,62,020 12,299 1,49,721 215,588 12,698 2,02,890
Business Services 67,424 67,105 319 74,699 70,711 3,988
Financial Services 12,918 12,581 337 18,021 13,576 4,445
Communication Services 9,683 3,459 6,224 9,893 4,574 5,319
b) Transfers 1,77,737 9,290 1,68,447 214,736 12,556 2,02,180
i) Official 3,025 2,073 952 3,031 1,901 1,130
ii) Private 1,74,712 7,217 1,67,495 211,705 10,655 2,01,050
c) Income 57,285 77,173 –19,888 65,505 86,621 –21,116
i) Investment Income 55,438 72,769 –17,331 61,717 80,557 –18,840
ii) Compensation of Employees 1,847 4,404 –2,557 3,788 6,064 –2,276
Total Current Account (I+II) 12,64,711 13,33,625 –68,914 15,44,992 16,77,263 –1,32,271
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 10,92,961 9,12,173 1,80,788 7,43,485 7,31,725 11,760
a) Foreign Direct Investment (i+ii) 1,47,951 86,158 61,793 1,64,473 87,651 76,822
i) In India 1,37,935 501 1,37,434 1,59,354 775 1,58,579
Equity 1,07,753 433 1,07,320 1,26,137 775 1,25,362
Reinvested Earnings 28,859 — 28,859 29,705 — 29,705
Other Capital 1,323 68 1,255 3,512 — 3,512
ii) Abroad 10,016 85,657 –75,641 5,119 86,876 –81,757
Equity 10,016 67,952 –57,936 5,119 68,597 –63,478
Reinvested Earnings — 4,363 –4,363 — 4,985 –4,985
Other Capital — 13,342 –13,342 — 13,294 –13,294
b) Portfolio Investment 9,45,010 8,26,015 1,18,995 5,79,012 6,44,074 –65,062
i) In India 9,44,066 8,25,718 1,18,348 5,78,342 6,42,548 –64,206
of which
FIIs 9,07,934 8,25,718 82,216 5,73,451 6,42,548 –69,097
GDRs/ADRs 34,937 — 34,937 4,890 — 4,890
ii) Abroad 944 297 647 670 1,526 –856
2. Loans (a+b+c) 3,35,600 1,67,077 1,68,523 2,76,833 2,57,549 19,284
a) External Assistance 17,022 8,557 8,465 23,535 11,100 12,435
i) By India 97 113 –16 110 147 –37
ii) To India 16,925 8,444 8,481 23,425 10,953 12,472
b) Commercial Borrowings 1,22,270 31,090 91,180 71,626 33,617 38,009
i) By India 6,407 6,537 –130 9,265 3,653 5,612
ii) To India 1,15,863 24,553 91,310 62,361 29,964 32,397
c) Short Term To India 1,96,308 1,27,430 68,878 1,81,672 2,12,832 –31,160
i) Suppliers’ Credit >180 days & Buyers’ Credit 1,71,182 1,27,430 43,752 1,77,840 1,77,677 163
ii) Suppliers’ Credit up to 180 days 25,126 — 25,126 3,832 35,155 –31,323
3. Banking Capital (a+b) 2,23,977 1,76,829 47,148 2,94,488 3,14,356 –19,868
a) Commercial Banks 2,23,661 1,75,115 48,546 2,93,926 3,11,612 –17,686
i) Assets 78,365 50,733 27,632 1,14,095 1,30,578 –16,483
ii) Liabilities 1,45,296 1,24,382 20,914 1,79,831 1,81,034 –1,203
of which: Non-Resident Deposits 1,18,079 1,17,373 706 1,70,788 1,50,357 20,431
b) Others 316 1,714 –1,398 562 2,744 –2,182
4. Rupee Debt Service — 488 –488 — 476 –476
5. Other Capital 83,687 45,885 37,802 58,878 37,197 21,681
Total Capital Account (1 to 5) 17,36,225 13,02,452 4,33,773 13,73,684 13,41,303 32,381
C. ERRORS & OMISSIONS 4,830 — 4,830 2,775 — 2,775
D. OVERALL BALANCE (Total Current Account, Capital 30,05,766 26,36,077 3,69,689 29,21,451 30,18,566 –97,115
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 3,69,689 –3,69,689 97,115 — 97,115
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 3,69,689 –3,69,689 97,115 — 97,115

RBI
Monthly Bulletin
November 2009 S 1165
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments (Contd.)

(Rs. crore)
Items Apr-Jun 2006 Jul-Sep 2006
Credit Debit Net Credit Debit Net
1 14 15 16 17 18 19
A. CURRENT ACCOUNT
I. Merchandise 1,34,880 2,11,953 –77,073 1,51,636 225,903 –74,267
II. Invisibles (a+b+c) 1,13,377 56,479 56,898 1,15,305 67,687 47,618
a) Services 72,944 38,537 34,407 76,122 46,213 29,909
i) Travel 7,766 6,766 1,000 8,328 8,398 –70
ii) Transportation 7,798 9,081 –1,283 9,149 9,172 –23
iii) Insurance 1,082 587 495 1,461 714 747
iv) G.n.i.e. 182 359 –177 283 566 –283
v) Miscellaneous 56,116 21,744 34,372 56,901 27,363 29,538
of which
Software Services 32,007 1,887 30,120 33,020 1,878 31,142
Business Services 15,396 12,032 3,364 15,933 15,302 631
Financial Services 2,314 1,446 868 3,320 3,260 60
Communication Services 2,160 491 1,669 2,638 835 1,803
b) Transfers 32,603 1,314 31,289 28,833 1,674 27,159
i) Official 314 373 –59 552 464 88
ii) Private 32,289 941 31,348 28,281 1,210 27,071
c) Income 7,830 16,628 –8,798 10,350 19,800 –9,450
i) Investment Income 7,544 15,737 –8,193 10,016 18,743 –8,727
ii) Compensation of Employees 286 891 –605 334 1,057 –723
Total Current Account (I+II) 2,48,257 2,68,432 –20,175 2,66,941 2,93,590 –26,649
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 1,55,960 1,50,357 5,603 1,04,262 84,482 19,780
a) Foreign Direct Investment (i+ii) 15,810 7,906 7,904 21,074 11,263 9,811
i) In India 15,519 36 15,483 20,402 9 20,393
Equity 8,849 36 8,813 13,382 9 13,373
Reinvested Earnings 6,625 — 6,625 6,756 — 6,756
Other Capital 45 — 45 264 — 264
ii) Abroad 291 7,870 –7,579 672 11,254 –10,582
Equity 291 5,406 –5,115 672 8,662 –7,990
Reinvested Earnings — 1,223 –1,223 — 1247 –1,247
Other Capital — 1,241 –1,241 — 1,345 –1,345
b) Portfolio Investment 1,40,150 1,42,451 –2,301 83,188 73,219 9,969
i) In India 1,40,055 1,42,446 –2,391 83,137 73,214 9,923
of which
FIIs 1,34,321 1,42,446 –8,125 81,004 73,214 7,790
GDRs/ADRs 5,734 — 5,734 2,133 — 2,133
ii) Abroad 95 5 90 51 5 46
2. Loans (a+b+c) 52,288 28,591 23,697 52,065 29,890 22,175
a) External Assistance 2,624 2,391 233 3,654 2,082 1,572
i) By India 23 36 –13 23 37 –14
ii) To India 2,601 2,355 246 3,631 2,045 1,586
b) Commercial Borrowings 22,968 4,879 18,089 12,428 4,266 8,162
i) By India 396 1,014 –618 529 788 –259
ii) To India 22,572 3,865 18,707 11,899 3,478 8,421
c) Short Term To India 26,696 21,321 5,375 35,983 23,542 12,441
i) Suppliers’ Credit >180 days & Buyers’ Credit 23,108 21,321 1,787 30,507 23,542 6,965
ii) Suppliers’ Credit up to 180 days 3,588 — 3,588 5,476 — 5,476
3. Banking Capital (a+b) 45,057 22,044 23,013 26,682 34,648 –7,966
a) Commercial Banks 44,730 22,044 22,686 26,682 34,444 –7,762
i) Assets 23,904 8,535 15,369 7,271 16,475 –9,204
ii) Liabilities 20,826 13,509 7,317 19,411 17,969 1,442
of which: Non-Resident Deposits 19,307 13,387 5,920 19,406 15,196 4,210
b) Others 327 — 327 — 204 –204
4. Rupee Debt Service — 305 –305 — — —
5. Other Capital 1,555 4,793 –3,238 5,027 2,569 2,458
Total Capital Account (1 to 5) 2,54,860 2,06,090 48,770 1,88,036 1,51,589 36,447
C. ERRORS & OMISSIONS 411 — 411 728 — 728
D. OVERALL BALANCE (Total Current Account, Capital 5,03,528 4,74,522 29,006 4,55,705 4,45,179 10,526
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 29,006 –29,006 — 10,526 –10,526
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 29,006 –29,006 — 10,526 –10,526

RBI
Monthly Bulletin
S 1166 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments (Contd.)

(Rs. crore)
Items Oct-Dec 2006 Jan-Mar 2007
Credit Debit Net Credit Debit Net
1 20 21 22 23 24 25
A. CURRENT ACCOUNT
I. Merchandise 1,38,660 2,12,583 –73,923 1,57,695 2,12,394 –54,699
II. Invisibles (a+b+c) 1,33,622 75,911 57,711 1,54,842 81,490 73,352
a) Services 83,001 55,650 27,351 1,01,026 59,629 41,397
i) Travel 11,790 7,368 4,422 13,243 7,717 5,526
ii) Transportation 9,411 9,456 –45 9,691 8,795 896
iii) Insurance 1,296 904 392 1,564 698 866
iv) G.n.i.e. 391 436 –45 287 464 –177
v) Miscellaneous 60,113 37,486 22,627 76,241 41,955 34,286
of which
Software Services 34,197 3,077 31,120 42,132 3,370 38,762
Business Services 16,599 19,195 –2,596 17,810 24,971 –7,161
Financial Services 3,725 2,910 815 4,651 5,844 –1,193
Communication Services 2,686 1,075 1,611 2,743 1,188 1,555
b) Transfers 40,311 1,498 38,813 40,290 1,802 38,488
i) Official 1,291 400 891 707 486 221
ii) Private 39,020 1,098 37,922 39,583 1,316 38,267
c) Income 10,310 18,763 –8,453 13,526 20,059 –6,533
i) Investment Income 9,865 17,706 –7,841 12,872 18,769 –5,897
ii) Compensation of Employees 445 1,057 –612 654 1,290 –636
Total Current Account (I+II) 2,72,282 2,88,494 –16,212 3,12,537 2,93,884 18,653
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 1,73,846 1,44,755 29,091 1,66,883 1,54,566 12,317
a) Foreign Direct Investment (i+ii) 45,020 31,983 13,037 24,560 20,402 4,158
i) In India 44,332 31 44,301 22,784 309 22,475
Equity 36,901 31 36,870 15,222 309 14,913
Reinvested Earnings 6,554 — 6,554 6,436 — 6,436
Other Capital 877 — 877 1,126 — 1,126
ii) Abroad 688 31,952 –31,264 1,776 20,093 –18,317
Equity 688 29,033 –28,345 1,776 17,037 –15,261
Reinvested Earnings — 1,210 –1,210 — 1,188 –1,188
Other Capital — 1,709 –1,709 — 1,868 –1,868
b) Portfolio Investment 1,28,826 1,12,772 16,054 1,42,323 1,34,164 8,159
i) In India 1,28,768 1,12,745 16,023 1,42,142 1,34,067 8,075
of which 1,27,837 1,12,745 15,092 1,33,970 1,34,067 –97
FIIs 931 — 931 8,163 — 8,163
GDRs/ADRs 58 27 31 181 97 84
ii) Abroad 66,266 37,112 29,154 75,906 40,498 35,408
2. Loans (a+b+c) 5,006 2222 2,784 5,694 2,310 3,384
a) External Assistance 22 36 –14 22 35 –13
i) By India 4,984 2,186 2,798 5,672 2,275 3,397
ii) To India 24,373 6,158 18,215 34,163 6,264 27,899
b) Commercial Borrowings 1,912 1,552 360 — 1,007 –1,007
i) By India 22,461 4,606 17,855 34,163 5,257 28,906
ii) To India 36,887 28,732 8,155 36,049 31,924 4,125
c) Short Term To India 25,461 28,732 –3,271 36,049 26,601 9,448
i) Suppliers’ Credit >180 days & Buyers’ Credit 11,426 — 11,426 — 5,323 –5,323
ii) Suppliers’ Credit up to 180 days 32,209 46,213 –14,004 63,546 56,112 7,434
3. Banking Capital (a+b) 31,237 46,060 –14,823 63,007 56,112 6,895
a) Commercial Banks 2,501 20,378 –17,877 31,296 35,338 –4,042
i) Assets 28,736 25,682 3,054 31,711 20,774 10,937
ii) Liabilities 28,453 21,871 6,582 22,784 19,922 2,862
of which: Non-Resident Deposits 972 153 819 539 — 539
b) Others — 9 –9 — 411 –411
4. Rupee Debt Service 8,889 4471 4,418 21,326 6,268 15,058
5. Other Capital 281,210 2,32,560 48,650 3,27,661 2,57,855 69,806
Total Capital Account (1 to 5) 1323 — 1,323 1,882 — 1,882
C. ERRORS & OMISSIONS 5,54,815 5,21,054 33,761 6,42,080 5,51,739 90,341
D. OVERALL BALANCE (Total Current Account, Capital
Account and Errors & Omissions (A+B+C)) — 33,761 –33,761 — 90,341 –90,341
E. MONETARY MOVEMENTS (i+ii) — — — — — —
i) I.M.F. — 33,761 –33,761 — 90,341 –90,341
ii) Foreign Exchange Reserves (Increase – / Decrease +)

RBI
Monthly Bulletin
November 2009 S 1167
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments (Contd.)

(Rs. crore)
Items Apr-Jun 2007 PR Jul-Sep 2007 PR
Credit Debit Net Credit Debit Net
1 26 27 28 29 30 31
A. CURRENT ACCOUNT
I. Merchandise 1,41,665 2,32,339 –90,674 1,55,101 2,41,164 –86,063
II. Invisibles (a+b+c) 1,23,208 60,079 63,129 1,37,838 69,189 68,649
a) Services 77,892 40,889 37,003 83,430 46,964 36,466
i) Travel 8,610 7,859 751 9,110 8,295 815
ii) Transportation 8,053 10,416 –2,363 8,474 10,370 –1,896
iii) Insurance 1,538 763 775 1,382 1,151 231
iv) G.n.i.e. 388 454 –66 276 519 –243
v) Miscellaneous 59,303 21,397 37,906 64,188 26,629 37,559
of which
Software Services 36,435 2,800 33,635 36,675 3,246 33,429
Business Services 15,496 13,042 2,454 15,780 14,334 1,446
Financial Services 2,177 1,851 326 3,712 2,845 867
Communication Services 2,115 953 1,162 2,484 729 1,755
b) Transfers 35,577 1,781 33,796 39,341 1,654 37,687
i) Official 631 680 –49 640 454 186
ii) Private 34,946 1,101 33,845 38,701 1,200 37,501
c) Income 9,739 17,409 –7,670 15,067 20,571 –5,504
i) Investment Income 9,397 16,593 –7,196 14,621 19,363 –4,742
ii) Compensation of Employees 342 816 –474 446 1,208 –762
Total Current Account (I+II) 2,64,873 2,92,418 –27,545 2,92,939 3,10,353 –17,414
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 1,77,448 1,35,067 42,381 2,19,666 1,66,874 52,792
a) Foreign Direct Investment (i+ii) 34,101 22,818 11,283 22,297 13,673 8,624
i) In India 30,831 82 30,749 19,160 77 19,083
Equity 22,984 82 22,902 11,436 77 11,359
Reinvested Earnings 7,389 — 7,389 7,262 — 7,262
Other Capital 458 — 458 462 — 462
ii) Abroad 3,270 22,736 –19,466 3,137 13,596 –10,459
Equity 3,270 19,619 –16,349 3,137 10,192 –7,055
Reinvested Earnings — 1,117 –1,117 — 1,098 –1,098
Other Capital — 2,000 –2,000 — 2,306 –2,306
b) Portfolio Investment 1,43,347 1,12,249 31,098 1,97,369 1,53,201 44,168
i) In India 1,43,108 1,12,224 30,884 1,97,349 1,53,108 44,241
of which
FIIs 1,41,455 1,12,224 29,231 1,87,221 1,53,108 34,113
GDRs/ADRs 1,303 — 1,303 10,038 — 10,038
ii) Abroad 239 25 214 20 93 –73
2. Loans (a+b+c) 69,064 31,311 37,753 80,003 42,296 37,707
a) External Assistance 3,019 2,025 994 3,983 2,087 1,896
i) By India 25 29 –4 24 28 –4
ii) To India 2,994 1,996 998 3,959 2,059 1,900
b) Commercial Borrowings 34,187 5,518 28,669 25,490 8,429 17,061
i) By India 1,480 1,423 57 1,795 2,038 –243
ii) To India 32,707 4,095 28,612 23,695 6,391 17,304
c) Short Term To India 31,858 23,768 8,090 50,530 31,780 18,750
i) Suppliers’ Credit >180 days & Buyers’ Credit 28,382 23,768 4,614 44,626 31,780 12,846
ii) Suppliers’ Credit up to 180 days 3,476 — 3,476 5,904 — 5,904
3. Banking Capital (a+b) 35,297 39,086 –3,789 55,576 28,656 26,920
a) Commercial Banks 35,297 39,061 –3,764 55,479 28,368 27,111
i) Assets 10,486 11,797 –1,311 17,847 1,451 16,396
ii) Liabilities 24,811 27,264 –2,453 37,632 26,917 10,715
of which: Non-Resident Deposits 21,656 23,499 –1,843 28,266 26,771 1,495
b) Others — 25 –25 97 288 –191
4. Rupee Debt Service — 177 –177 — 8 –8
5. Other Capital 4,746 7,550 –2,804 29,899 12,952 16,947
Total Capital Account (1 to 5) 2,86,555 2,13,191 73,364 3,85,144 2,50,786 1,34,358
C. ERRORS & OMISSIONS 364 — 364 1,535 — 1,535
D. OVERALL BALANCE (Total Current Account, Capital 5,51,792 5,05,609 46,183 6,79,618 5,61,139 1,18,479
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 46,183 –46,183 — 1,18,479 –1,18,479
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 46,183 –46,183 — 1,18,479 –1,18,479

RBI
Monthly Bulletin
S 1168 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments (Contd.)

(Rs. crore)
Items Oct-Dec 2007 PR Jan-Mar 2008PR
Credit Debit Net Credit Debit Net
1 32 33 34 35 36 37
A. CURRENT ACCOUNT
I. Merchandise 1,61,737 2,64,548 –1,02,811 2,09,254 2,98,238 –88,984
II. Invisibles (a+b+c) 1,56,086 71,154 84,932 1,79,823 96,914 82,909
a) Services 97,149 49,691 47,458 1,03,462 73,329 30,133
i) Travel 13,397 9,941 3,456 14,407 11,078 3,329
ii) Transportation 11,046 12,008 –962 12,627 13,483 –856
iii) Insurance 1,728 1,030 698 1,939 1,250 689
iv) G.n.i.e. 355 296 59 311 251 60
v) Miscellaneous 70,622 26,416 44,206 74,178 47,267 26,911
of which
Software Services 37,915 3,362 34,553 50,995 2,891 48,104
Business Services 18,105 16,752 1,353 18,043 22,977 –4,934
Financial Services 3,481 3,011 470 3,548 4,874 –1,326
Communication Services 2,372 722 1,650 2,712 1,055 1,657
b) Transfers 45,098 1,945 43,153 57,721 3,910 53,811
i) Official 770 477 293 984 462 522
ii) Private 44,328 1,468 42,860 56,737 3,448 53,289
c) Income 13,839 19,518 –5,679 18,640 19,675 –1,035
i) Investment Income 13,421 18,464 –5,043 17,999 18,349 –350
ii) Compensation of Employees 418 1,054 –636 641 1,326 –685
Total Current Account (I+II) 3,17,823 3,35,702 –17,879 3,89,077 3,95,152 –6,075
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 3,41,473 2,74,812 66,661 3,54,374 3,35,420 18,954
a) Foreign Direct Investment (i+ii) 32,817 24,762 8,055 58,736 24,905 33,831
i) In India 31,239 170 31,069 56,705 172 56,533
Equity 23,764 170 23,594 49,569 104 49,465
Reinvested Earnings 7,072 — 7,072 7,136 — 7,136
Other Capital 403 — 403 — 68 –68
ii) Abroad 1,578 24,592 –23,014 2,031 24,733 –22,702
Equity 1,578 20,544 –18,966 2,031 17,597 –15,566
Reinvested Earnings — 1,069 –1,069 — 1,079 –1,079
Other Capital — 2,979 –2,979 — 6,057 –6,057
b) Portfolio Investment 3,08,656 2,50,050 58,606 2,95,638 3,10,515 –14,877
i) In India 3,08,186 2,49,975 58,211 2,95,423 3,10,411 –14,988
of which
FIIs 2,85,349 2,49,975 35,374 2,93,909 3,10,411 –16,502
GDRs/ADRs 22,087 — 22,087 1,509 — 1,509
ii) Abroad 470 75 395 215 104 111
2. Loans (a+b+c) 85,014 41,834 43,180 1,01,519 51,636 49,883
a) External Assistance 4,377 2,147 2,230 5,643 2,298 3,345
i) By India 24 28 –4 24 28 –4
ii) To India 4,353 2,119 2,234 5,619 2,270 3,349
b) Commercial Borrowings 33,341 8,689 24,652 29,252 8,454 20,798
i) By India 1,432 1,515 –83 1,700 1,561 139
ii) To India 31,909 7,174 24,735 27,552 6,893 20,659
c) Short Term To India 47,296 30,998 16,298 66,624 40,884 25,740
i) Suppliers’ Credit >180 days & Buyers’ Credit 40,374 30,998 9,376 57,800 40,884 16,916
ii) Suppliers’ Credit up to 180 days 6,922 — 6,922 8,824 — 8,824
3. Banking Capital (a+b) 49,675 48,858 817 83,429 60,229 23,200
a) Commercial Banks 49,663 47,469 2,194 83,222 60,217 23,005
i) Assets 22,241 15,544 6,697 27,791 21,941 5,850
ii) Liabilities 27,422 31,925 –4,503 55,431 38,276 17,155
of which: Non-Resident Deposits 25,477 28,843 –3,366 42,680 38,260 4,420
b) Others 12 1,389 –1,377 207 12 195
4. Rupee Debt Service — — — — 303 –303
5. Other Capital 26,093 14,349 11,744 22,949 11,034 11,915
Total Capital Account (1 to 5) 5,02,255 3,79,853 1,22,402 5,62,271 4,58,622 1,03,649
C. ERRORS & OMISSIONS 992 — 992 1,938 — 1,938
D. OVERALL BALANCE (Total Current Account, Capital 8,21,070 7,15,555 1,05,515 9,53,286 8,53,774 99,512
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 1,05,515 –1,05,515 — 99,512 –99,512
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 1,05,515 –1,05,515 — 99,512 –99,512

RBI
Monthly Bulletin
November 2009 S 1169
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments (Contd.)

(Rs. crore)
Items Apr-Jun 2008 PR Jul-Sep 2008 PR
Credit Debit Net Credit Debit Net
1 38 39 40 41 42 43
A. CURRENT ACCOUNT
I. Merchandise 2,04,614 3,35,517 –1,30,903 2,14,463 3,83,785 –1,69,322
II. Invisibles (a+b+c) 1,62,205 68,870 93,335 2,00,056 85,511 1,14,545
a) Services 96,055 47,658 48,397 1,21,848 60,307 61,541
i) Travel 10,431 9,014 1,417 12,197 11,838 359
ii) Transportation 10,876 13,863 –2,987 12,976 16,391 –3,415
iii) Insurance 1,458 950 508 1,607 1,340 267
iv) G.n.i.e. 542 458 84 355 416 –61
v) Miscellaneous 72,748 23,373 49,375 94,713 30,322 64,391
of which
Software Services 50,637 3,570 47,067 53,499 4,045 49,454
Business Services 14,788 13,051 1,737 21,189 17,442 3,747
Financial Services 2,537 2,616 –79 7,311 4,225 3,086
Communication Services 2,124 941 1,183 3,240 1,296 1,944
b) Transfers 51,266 2,725 48,541 60,061 3,630 56,431
i) Official 617 446 171 223 425 –202
ii) Private 50,649 2,279 48,370 59,838 3,205 56,633
c) Income 14,884 18,487 –3,603 18,147 21,574 –3,427
i) Investment Income 14,238 17,112 –2,874 16,877 20,121 –3,244
ii) Compensation of Employees 646 1,375 –729 1,270 1,453 –183
Total Current Account (I+II) 3,66,819 4,04,387 –37,568 4,14,519 4,69,296 –54,777
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 2,20,364 2,00,553 19,811 2,26,665 2,10,948 15,717
a) Foreign Direct Investment (i+ii) 50,558 13,205 37,353 40,028 18,576 21,452
i) In India 49,562 92 49,470 38,636 228 38,408
Equity 42,656 92 42,564 31,977 228 31,749
Reinvested Earnings 6,215 — 6,215 6,532 — 6,532
Other Capital 691 — 691 127 — 127
ii) Abroad 996 13,113 –12,117 1,392 18,348 –16,956
Equity 996 9,772 –8,776 1,392 14,999 –13,607
Reinvested Earnings — 1,129 –1,129 — 1,186 –1,186
Other Capital — 2,212 –2,212 — 2,163 –2,163
b) Portfolio Investment 1,69,806 1,87,348 –17,542 1,86,637 1,92,372 –5,735
i) In India 1,69,727 1,87,131 –17,404 1,86,580 1,92,276 –5,696
of which
FIIs 1,65,566 1,87,131 –21,565 1,85,984 1,92,276 –6,292
GDRs/ADRs 4,161 — 4,161 595 — 595
ii) Abroad 79 217 –138 57 96 –39
2. Loans (a+b+c) 57,673 40,114 17,559 71,282 55,958 15,324
a) External Assistance 3,787 2,324 1,463 4,794 2,526 2,268
i) By India 25 33 –8 26 35 –9
ii) To India 3,762 2,291 1,471 4,768 2,491 2,277
b) Commercial Borrowings 11,497 5,386 6,111 15,664 8,265 7,399
i) By India 1,683 804 879 2,329 604 1,725
ii) To India 9,814 4,582 5,232 13,335 7,661 5,674
c) Short Term To India 42,389 32,404 9,985 50,824 45,167 5,657
i) Suppliers’ Credit >180 days & Buyers’ Credit 38,557 32,404 6,153 50,824 42,755 8,069
ii) Suppliers’ Credit up to 180 days 3,832 — 3,832 — 2,412 –2,412
3. Banking Capital (a+b) 91,443 80,212 11,231 70,958 61,659 9,299
a) Commercial Banks 91,443 79,583 11,860 70,958 61,646 9,312
i) Assets 47,725 43,876 3,849 28,220 22,564 5,656
ii) Liabilities 43,718 35,707 8,011 42,738 39,082 3,656
of which: Non-Resident Deposits 37,753 34,362 3,391 40,163 39,030 1,133
b) Others — 629 –629 — 13 –13
4. Rupee Debt Service — 125 –125 — 13 –13
5. Other Capital 9,064 11,155 –2,091 3,345 10,551 –7,206
Total Capital Account (1 to 5) 378,544 3,32,159 46,385 3,72,250 3,39,129 33,121
C. ERRORS & OMISSIONS 493 — 493 931 — 931
D. OVERALL BALANCE (Total Current Account, Capital 745,856 7,36,546 9,310 7,87,700 8,08,425 –20,725
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 9,310 –9,310 20,725 — 20,725
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 9,310 –9,310 20,725 — 20,725

RBI
Monthly Bulletin
S 1170 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 42: India's Overall Balance of Payments (Concld.)

(Rs. crore)
Items Oct-Dec 2008 PR Jan-Mar 2009 P Apr-Jun 2009 P
Credit Debit Net Credit Debit Net Credit Debit Net
1 44 45 46 47 48 49 50 51 52
A. CURRENT ACCOUNT
I. Merchandise 1,81,677 3,50,904 -1,69,227 1,98,202 2,70,863 -72,661 1,89,246 3,16,030 -1,26,785
II. Invisibles (a+b+c) 1,96,319 90,646 1,05,673 1,87,456 91,167 96,289 1,88,733 90,284 98,449
a) Services 1,27,149 63,016 64,133 1,20,743 66,036 54,707 1,09,235 65,139 44,096
i) Travel 14,258 9,523 4,735 13,340 12,996 344 11,155 9,779 1,376
ii) Transportation 12,542 15,653 -3,111 14,529 12,419 2,110 12,147 13,548 -1,402
iii) Insurance 1,677 1,312 365 1,732 1,633 99 1,888 1,532 356
iv) G.n.i.e. 473 1,136 -663 403 1,757 -1,354 487 501 -14
v) Miscellaneous 98,199 35,392 62,807 90,739 37,231 53,508 83,558 39,778 43,780
of which
Software Services 55,804 2,828 52,976 55,648 2,255 53,393 52,517 1,909 50,608
Business Services 19,564 17,262 2,302 19,158 22,956 -3,798 12,619 17,785 -5,166
Financial Services 4,335 3,584 751 3,838 3,151 687 5,447 4,526 921
Communication Services 2,399 1,058 1,341 2,130 1,279 851 2,039 1,523 516
b) Transfers 53,610 4,116 49,494 49,799 2,085 47,714 65,102 2,274 62,828
i) Official 1,390 478 912 801 552 249 222 520 -298
ii) Private 52,220 3,638 48,582 48,998 1,533 47,465 64,880 1,754 63,126
c) Income 15,560 23,514 -7,954 16,914 23,046 -6,132 14,395 22,871 -8,476
i) Investment Income 14,629 21,851 -7,222 15,973 21,473 -5,500 13,287 21,224 -7,937
ii) Compensation of Employees 931 1,663 -732 941 1,573 -632 1,109 1,647 -538
Total Current Account (I+II) 3,77,996 4,41,550 -63,554 3,85,658 3,62,030 23,628 3,77,979 4,06,315 -28,336
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 1,61,708 1,87,922 -26,214 1,34,748 1,32,302 2,446 2,35,346 1,61,668 73,678
a) Foreign Direct Investment (i+ii) 32,008 29,842 2,166 41,879 26,028 15,851 46,898 13,560 33,338
i) In India 30,974 141 30,833 40,182 314 39,868 46,289 141 46,149
Equity 20,037 141 19,896 31,467 314 31,153 36,109 141 35,968
Reinvested Earnings 8,392 — 8,392 8,566 — 8,566 8,274 — 8,274
Other Capital 2,545 — 2,545 149 — 149 1,907 — 1,907
ii) Abroad 1,034 29,701 -28,667 1,697 25,714 -24,017 608 13,419 -12,811
Equity 1,034 21,890 -20,856 1,697 21,936 -20,239 608 10,017 -9,409
Reinvested Earnings — 1,321 -1,321 — 1,349 -1,349 — 1,322 -1,322
Other Capital — 6,490 -6,490 — 2,429 -2,429 — 2,080 -2,080
b) Portfolio Investment 1,29,700 1,58,080 -28,380 92,869 1,06,274 -13,405 1,88,449 1,48,108 40,340
i) In India 1,29,554 1,57,773 -28,219 92,481 1,05,368 -12,887 1,88,337 1,47,987 40,350
of which
FIIs 1,29,520 1,57,773 -28,253 92,381 1,05,368 -12,987 1,88,127 1,47,987 40,140
GDRs/ADRs 34 — 34 100 — 100 210 — 210
ii) Abroad 146 307 -161 388 906 -518 112 121 -9
2. Loans (a+b+c) 77,133 72,823 4,310 70,745 88,654 -17,909 63,611 79,990 -16,378
a) External Assistance 8,070 3,233 4,837 6,884 3,017 3,867 4,004 3,593 411
i) By India 29 39 -10 30 40 -10 64 568 -504
ii) To India 8,041 3,194 4,847 6,854 2,977 3,877 3,940 3,025 915
b) Commercial Borrowings 26,566 7,627 18,939 17,899 12,339 5,560 10,205 11,943 -1,737
i) By India 3,262 727 2,535 1,991 1,518 473 1,190 1,624 -434
ii) To India 23,304 6,900 16,404 15,908 10,821 5,087 9,015 10,318 -1,303
c) Short Term To India 42,497 61,963 -19,466 45,962 73,298 -27,336 49,401 64,454 -15,052
i) Suppliers’ Credit >180 days & Buyers’ Credit 42,497 50,504 -8,007 45,962 52,014 -6,052 49,401 46,787 2,614
ii) Suppliers’ Credit up to 180 days — 11,459 -11,459 — 21,284 -21,284 — 17,666 -17,666
3. Banking Capital (a+b) 72,219 96,385 -24,166 59,868 76,100 -16,232 75,997 92,417 -16,420
a) Commercial Banks 72,209 94,283 -22,074 59,316 76,100 -16,784 75,996 91,253 -15,256
i) Assets 25,318 36,772 -11,454 12,832 27,366 -14,534 21,310 33,889 -12,579
ii) Liabilities 46,891 57,511 -10,620 46,484 48,734 -2,250 54,686 57,364 -2,678
of which: Non-Resident Deposits 46,437 41,356 5,081 46,435 35,609 10,826 54,504 45,639 8,866
b) Others 10 2,102 -2,092 552 — 552 1 1,165 -1,163
4. Rupee Debt Service — — — — 338 -338 — 110 -110
5. Other Capital 27,649 2,380 25,269 18,820 13,111 5,709 7,982 15,888 -7,905
Total Capital Account (1 to 5) 3,38,709 3,59,510 -20,801 2,84,181 3,10,505 -26,324 3,82,937 3,50,073 32,864
C. ERRORS & OMISSIONS — 2,838 -2,838 4,189 — 4,189 — 3,967 -3,967
D. OVERALL BALANCE (Total Current Account, Capital 7,16,705 8,03,898 -87,193 6,74,028 6,72,535 1,493 7,60,916 7,60,355 561
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) 87,193 — 87,193 — 1,493 -1,493 — 561 -561
i) I.M.F. — — - — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) 87,193 — 87,193 — 1,493 -1,493 — 561 -561

RBI
Monthly Bulletin
November 2009 S 1171
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments

(US $ million)
Items 2005-06 2006-07
Credit Debit Net Credit Debit Net
1 2 3 4 5 6 7
A. CURRENT ACCOUNT
I. Merchandise 105,152 157,056 –51,904 128,888 190,670 –61,782
II. Invisibles (a+b+c) 89,687 47,685 42,002 114,558 62,341 52,217
a) Services 57,659 34,489 23,170 73,780 44,311 29,469
i) Travel 7,853 6,638 1,215 9,123 6,684 2,439
ii) Transportation 6,325 8,337 –2,012 7,974 8,068 –94
iii) Insurance 1,062 1,116 –54 1,195 642 553
iv) G.n.i.e. 314 529 –215 253 403 –150
v) Miscellaneous 42,105 17,869 24,236 55,235 28,514 26,721
of which
Software Services 23,600 1,338 22,262 31,300 2,267 29,033
Business Services 9,307 7,748 1,559 14,544 15,866 –1,322
Financial Services 1,209 965 244 3,106 2,991 115
Communication Services 1,575 289 1,286 2,262 796 1,466
b) Transfers 25,620 933 24,687 31,470 1,391 30,079
i) Official 669 475 194 635 381 254
ii) Private 24,951 458 24,493 30,835 1,010 29,825
c) Income 6,408 12,263 –5,855 9,308 16,639 –7,331
i) Investment Income 6,229 11,491 –5,262 8,926 15,688 –6,762
ii) Compensation of Employees 179 772 –593 382 951 –569
Total Current Account (I+II) 194,839 204,741 –9,902 243,446 253,011 –9,565
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 77,298 61,770 15,528 133,210 118,457 14,753
a) Foreign Direct Investment (i+ii) 9,178 6,144 3,034 23,590 15,897 7,693
i) In India 8,962 61 8,901 22,826 87 22,739
Equity 5,976 61 5,915 16,481 87 16,394
Reinvested Earnings 2,760 — 2,760 5,828 — 5,828
Other Capital 226 — 226 517 — 517
ii) Abroad 216 6,083 –5,867 764 15,810 –15,046
Equity 216 3,982 –3,766 764 13,368 –12,604
Reinvested Earnings — 1,092 –1,092 — 1,076 –1,076
Other Capital — 1,009 –1,009 — 1,366 –1,366
b) Portfolio Investment 68,120 55,626 12,494 109,620 102,560 7,060
i) In India 68,120 55,626 12,494 109,534 102,530 7,004
of which
FIIs 65,552 55,626 9,926 105,756 102,530 3,226
GDRs/ADRs 2,552 — 2,552 3,776 — 3,776
ii) Abroad — — — 86 30 56
2. Loans (a+b+c) 39,479 31,570 7,909 54,642 30,152 24,490
a) External Assistance 3,631 1,929 1,702 3,767 1,992 1,775
i) By India 24 88 –64 20 32 –12
ii) To India 3,607 1,841 1,766 3,747 1,960 1,787
b) Commercial Borrowings 14,343 11,835 2,508 20,883 4,780 16,103
i) By India — 251 –251 626 966 –340
ii) To India 14,343 11,584 2,759 20,257 3,814 16,443
c) Short Term To India 21,505 17,806 3,699 29,992 23,380 6,612
i) Suppliers’ Credit >180 days & Buyers’ Credit 19,372 17,647 1,725 25,482 22,175 3,307
ii) Suppliers’ Credit up to 180 days 2,133 159 1,974 4,510 1,205 3,305
3. Banking Capital (a+b) 21,658 20,285 1,373 37,209 35,296 1,913
a) Commercial Banks 20,586 20,144 442 36,799 35,218 1,581
i) Assets 772 3,947 –3,175 14,466 17,960 –3,494
ii) Liabilities 19,814 16,197 3,617 22,333 17,258 5,075
of which: Non-Resident Deposits 17,835 15,046 2,789 19,914 15,593 4,321
b) Others 1,072 141 931 410 78 332
4. Rupee Debt Service — 572 –572 — 162 –162
5. Other Capital 5,941 4,709 1,232 8,230 4,021 4,209
Total Capital Account (1 to 5) 144,376 118,906 25,470 233,291 188,088 45,203
C. ERRORS & OMISSIONS — 516 –516 968 — 968
D. OVERALL BALANCE (Total Current Account, Capital 339,215 324,163 15,052 477,705 441,099 36,606
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 15,052 –15,052 — 36,606 –36,606
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 15,052 –15,052 — 36,606 –36,606
P : Preliminary. PR : Partially Revised.

RBI
Monthly Bulletin
S 1172 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments (Contd.)

(US $ million)
2007-08 PR 2008-09 P
Items
Credit Debit Net Credit Debit Net
1 8 9 10 11 12 13
A. CURRENT ACCOUNT
I. Merchandise 166,163 257,789 –91,626 175,184 294,587 –119,403
II. Invisibles (a+b+c) 148,604 74,012 74,592 162,556 72,970 89,586
a) Services 90,077 52,512 37,565 101,224 51,406 49,818
i) Travel 11,349 9,254 2,095 10,894 9,432 1,462
ii) Transportation 10,014 11,514 –1,500 11,066 12,777 –1,711
iii) Insurance 1,639 1,044 595 1,409 1,131 278
iv) G.n.i.e. 330 376 –46 389 791 –402
v) Miscellaneous 66,745 30,324 36,421 77,466 27,275 50,191
of which
Software Services 40,300 3,058 37,242 47,000 2,814 44,186
Business Services 16,771 16,715 56 16,251 15,269 982
Financial Services 3,217 3,138 79 3,939 2,961 978
Communication Services 2,408 859 1,549 2,170 996 1,174
b) Transfers 44,259 2,315 41,944 47,025 2,746 44,279
i) Official 753 514 239 645 413 232
ii) Private 43,506 1,801 41,705 46,380 2,333 44,047
c) Income 14,268 19,185 –4,917 14,307 18,818 –4,511
i) Investment Income 13,808 18,089 –4,281 13,482 17,499 –4,017
ii) Compensation of Employees 460 1,096 –636 825 1,319 –494
Total Current Account (I+II) 314,767 331,801 –17,034 337,740 367,557 –29,817
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 272,762 227,805 44,957 164,909 161,447 3,462
a) Foreign Direct Investment (i+ii) 36,838 21,437 15,401 36,258 18,762 17,496
i) In India 34,361 125 34,236 35,148 166 34,982
Equity 26,866 108 26,758 27,975 166 27,809
Reinvested Earnings 7,168 — 7,168 6,426 — 6,426
Other Capital 327 17 310 747 — 747
ii) Abroad 2,477 21,312 –18,835 1,110 18,596 –17,486
Equity 2,477 16,898 –14,421 1,110 14,668 –13,558
Reinvested Earnings — 1,084 –1,084 — 1,084 –1,084
Other Capital — 3,330 –3,330 — 2,844 –2,844
b) Portfolio Investment 235,924 206,368 29,556 128,651 142,685 –14,034
i) In India 235,688 206,294 29,394 128,511 142,366 –13,855
of which
FIIs 226,621 206,294 20,327 127,349 142,366 –15,017
GDRs/ADRs 8,769 — 8,769 1,162 — 1,162
ii) Abroad 236 74 162 140 319 –179
2. Loans (a+b+c) 83,528 41,598 41,930 60,158 55,157 5,001
a) External Assistance 4,241 2,127 2,114 5,042 2,404 2,638
i) By India 24 28 –4 24 32 –8
ii) To India 4,217 2,099 2,118 5,018 2,372 2,646
b) Commercial Borrowings 30,376 7,743 22,633 15,382 7,224 8,158
i) By India 1,592 1,624 –32 2,005 785 1,220
ii) To India 28,784 6,119 22,665 13,377 6,439 6,938
c) Short Term To India 48,911 31,728 17,183 39,734 45,529 –5,795
i) Suppliers’ Credit >180 days & Buyers’ Credit 42,641 31,728 10,913 38,814 38,352 462
ii) Suppliers’ Credit up to 180 days 6,270 — 6,270 920 7,177 –6,257
3. Banking Capital (a+b) 55,813 44,056 11,757 64,998 68,395 –3,397
a) Commercial Banks 55,734 43,624 12,110 64,885 67,810 –2,925
i) Assets 19,562 12,668 6,894 25,673 28,726 –3,053
ii) Liabilities 36,172 30,956 5,216 39,212 39,084 128
of which: Non-Resident Deposits 29,401 29,222 179 37,089 32,799 4,290
b) Others 79 432 –353 113 585 –472
4. Rupee Debt Service — 121 –121 — 101 –101
5. Other Capital 20,904 11,434 9,470 12,391 8,210 4,181
Total Capital Account (1 to 5) 433,007 325,014 107,993 302,456 293,310 9,146
C. ERRORS & OMISSIONS 1205 — 1,205 591 — 591
D. OVERALL BALANCE (Total Current Account, Capital 748,979 656,815 92,164 640,787 660,867 –20,080
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 92,164 –92,164 20,080 — 20,080
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 92164 –92,164 20,080 — 20,080

RBI
Monthly Bulletin
November 2009 S 1173
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments (Contd.)

(US $ million)
Items Apr-Jun 2006 Jul-Sep 2006
Credit Debit Net Credit Debit Net
1 14 15 16 17 18 19
A. CURRENT ACCOUNT
I. Merchandise 29,663 46,613 –16,950 32,701 48,717 –16,016
II. Invisibles (a+b+c) 24,934 12,421 12,513 24,866 14,597 10,269
a) Services 16,042 8,475 7,567 16,416 9,966 6,450
i) Travel 1,708 1,488 220 1,796 1,811 –15
ii) Transportation 1,715 1,997 –282 1,973 1,978 –5
iii) Insurance 238 129 109 315 154 161
iv) G.n.i.e. 40 79 –39 61 122 –61
v) Miscellaneous 12,341 4,782 7,559 12,271 5,901 6,370
of which
Software Services 7,039 415 6,624 7,121 405 6,716
Business Services 3,386 2,646 740 3,436 3,300 136
Financial Services 509 318 191 716 703 13
Communication Services 475 108 367 569 180 389
b) Transfers 7,170 289 6,881 6,218 361 5,857
i) Official 69 82 –13 119 100 19
ii) Private 7,101 207 6,894 6,099 261 5,838
c) Income 1,722 3,657 –1,935 2,232 4,270 –2,038
i) Investment Income 1,659 3,461 –1,802 2,160 4,042 –1,882
ii) Compensation of Employees 63 196 –133 72 228 –156
Total Current Account (I+II) 54,597 59,034 –4,437 57,567 63,314 –5,747
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 34,299 33,067 1,232 22,485 18,219 4,266
a) Foreign Direct Investment (i+ii) 3,477 1,739 1,738 4,545 2,429 2,116
i) In India 3,413 8 3,405 4,400 2 4,398
Equity 1,946 8 1,938 2,886 2 2,884
Reinvested Earnings 1,457 — 1,457 1,457 — 1,457
Other Capital 10 — 10 57 — 57
ii) Abroad 64 1,731 –1,667 145 2,427 –2,282
Equity 64 1,189 –1,125 145 1,868 –1,723
Reinvested Earnings — 269 –269 — 269 –269
Other Capital — 273 –273 — 290 –290
b) Portfolio Investment 30,822 31,328 –506 17,940 15,790 2,150
i) In India 30,801 31,327 –526 17,929 15,789 2,140
of which
FIIs 29,540 31,327 –1,787 17,469 15,789 1,680
GDRs/ADRs 1,261 — 1261 460 — 460
ii) Abroad 21 1 20 11 1 10
2. Loans (a+b+c) 11,499 6,288 5,211 11,228 6,446 4,782
a) External Assistance 577 526 51 788 449 339
i) By India 5 8 –3 5 8 –3
ii) To India 572 518 54 783 441 342
b) Commercial Borrowings 5,051 1,073 3,978 2,680 920 1,760
i) By India 87 223 –136 114 170 –56
ii) To India 4,964 850 4,114 2,566 750 1,816
c) Short Term To India 5,871 4,689 1,182 7,760 5,077 2,683
i) Suppliers’ Credit >180 days & Buyers’ Credit 5,082 4,689 393 6,579 5,077 1,502
ii) Suppliers’ Credit up to 180 days 789 — 789 1,181 — 1,181
3. Banking Capital (a+b) 9,909 4,848 5,061 5,754 7,472 –1,718
a) Commercial Banks 9,837 4,848 4,989 5,754 7,428 –1,674
i) Assets 5,257 1,877 3,380 1,568 3,553 –1,985
ii) Liabilities 4,580 2,971 1,609 4,186 3,875 311
of which: Non-Resident Deposits 4,246 2,944 1,302 4,185 3,277 908
b) Others 72 — 72 — 44 –44
4. Rupee Debt Service — 67 –67 — — —
5. Other Capital 342 1,054 –712 1,084 554 530
Total Capital Account (1 to 5) 56,049 45,324 10,725 40,551 32,691 7,860
C. ERRORS & OMISSIONS 91 — 91 157 — 157
D. OVERALL BALANCE (Total Current Account, Capital 110,737 104,358 6,379 98,275 96,005 2,270
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 6,379 –6,379 — 2,270 –2,270
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase — / Decrease +) — 6,379 –6,379 — 2,270 –2,270

RBI
Monthly Bulletin
S 1174 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments (Contd.)

(US $ million)
Oct-Dec 2006 Jan-Mar 2007
Items
Credit Debit Net Credit Debit Net
1 20 21 22 23 24 25
A. CURRENT ACCOUNT
I. Merchandise 30,824 47,257 –16,433 35,700 48,083 –12,383
II. Invisibles (a+b+c) 29,704 16,875 12,829 35,054 18,448 16,606
a) Services 18,451 12,371 6,080 22,871 13,499 9,372
i) Travel 2,621 1,638 983 2,998 1,747 1,251
ii) Transportation 2,092 2,102 –10 2,194 1,991 203
iii) Insurance 288 201 87 354 158 196
iv) G.n.i.e. 87 97 –10 65 105 –40
v) Miscellaneous 13,363 8,333 5,030 17,260 9,498 7,762
of which
Software Services 7,602 684 6,918 9,538 763 8,775
Business Services 3,690 4,267 –577 4,032 5,653 –1,621
Financial Services 828 647 181 1,053 1,323 –270
Communication Services 597 239 358 621 269 352
b) Transfers 8,961 333 8,628 9,121 408 8,713
i) Official 287 89 198 160 110 50
ii) Private 8,674 244 8,430 8,961 298 8,663
c) Income 2,292 4,171 –1,879 3,062 4,541 –1,479
i) Investment Income 2,193 3,936 –1,743 2,914 4,249 –1,335
ii) Compensation of Employees 99 235 –136 148 292 –144
Total Current Account (I+II) 60,528 64,132 –3,604 70,754 66,531 4,223
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 38,646 32,179 6,467 37,780 34,992 2,788
a) Foreign Direct Investment (i+ii) 10,008 7,110 2,898 5,560 4,619 941
i) In India 9,855 7 9,848 5,158 70 5,088
Equity 8,203 7 8,196 3,446 70 3,376
Reinvested Earnings 1,457 — 1,457 1,457 — 1,457
Other Capital 195 — 195 255 — 255
ii) Abroad 153 7,103 –6,950 402 4,549 –4,147
Equity 153 6,454 –6,301 402 3,857 –3,455
Reinvested Earnings — 269 –269 — 269 –269
Other Capital — 380 –380 — 423 –423
b) Portfolio Investment 28,638 25,069 3,569 32,220 30,373 1,847
i) In India 28,625 25,063 3,562 32,179 30,351 1,828
of which
FIIs 28418 25063 3355 30329 30351 –22
GDRs/ADRs 207 — 207 1848 — 1848
ii) Abroad 13 6 7 41 22 19
2. Loans (a+b+c) 14,731 8,250 6,481 17,184 9,168 8,016
a) External Assistance 1,113 494 619 1,289 523 766
i) By India 5 8 –3 5 8 –3
ii) To India 1,108 486 622 1,284 515 769
b) Commercial Borrowings 5,418 1,369 4,049 7,734 1,418 6,316
i) By India 425 345 80 — 228 –228
ii) To India 4,993 1,024 3,969 7,734 1,190 6,544
c) Short Term To India 8,200 6,387 1,813 8,161 7,227 934
i) Suppliers’ Credit >180 days & Buyers’ Credit 5,660 6,387 –727 8,161 6,022 2,139
ii) Suppliers’ Credit up to 180 days 2,540 — 2,540 — 1,205 -1,205
3. Banking Capital (a+b) 7,160 10,273 –3,113 14,386 12,703 1,683
a) Commercial Banks 6,944 10,239 –3,295 14,264 12,703 1,561
i) Assets 556 4,530 –3,974 7,085 8,000 –915
ii) Liabilities 6,388 5,709 679 7,179 4,703 2,476
of which: Non-Resident Deposits 6,325 4,862 1,463 5,158 4,510 648
b) Others 216 34 182 122 — 122
4. Rupee Debt Service — 2 –2 — 93 –93
5. Other Capital 1,976 994 982 4,828 1,419 3,409
Total Capital Account (1 to 5) 62,513 51,698 10,815 74,178 58,375 15,803
C. ERRORS & OMISSIONS 294 — 294 426 — 426
D. OVERALL BALANCE (Total Current Account, Capital 123,335 115,830 7,505 145,358 124,906 20,452
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 7,505 –7,505 — 20,452 –20,452
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 7,505 –7,505 — 20,452 –20,452

RBI
Monthly Bulletin
November 2009 S 1175
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments (Contd.)

(US $ million)
Items Apr-Jun 2007 PR Jul-Sep 2007 PR
Credit Debit Net Credit Debit Net
1 26 27 28 29 30 31
A. CURRENT ACCOUNT
I. Merchandise 34,356 56,346 –21,990 38,273 59,510 –21,237
II. Invisibles (a+b+c) 29,880 14,570 15,310 34,013 17,073 16,940
a) Services 18,890 9,916 8,974 20,587 11,589 8,998
i) Travel 2,088 1,906 182 2,248 2,047 201
ii) Transportation 1,953 2,526 –573 2,091 2,559 –468
iii) Insurance 373 185 188 341 284 57
iv) G.n.i.e. 94 110 –16 68 128 –60
v) Miscellaneous 14,382 5,189 9,193 15,839 6,571 9,268
of which
Software Services 8,836 679 8,157 9,050 801 8,249
Business Services 3,758 3,163 595 3,894 3,537 357
Financial Services 528 449 79 916 702 214
Communication Services 513 231 282 613 180 433
b) Transfers 8,628 432 8,196 9,708 408 9,300
i) Official 153 165 –12 158 112 46
ii) Private 8,475 267 8,208 9,550 296 9,254
c) Income 2,362 4,222 –1,860 3,718 5,076 –1,358
i) Investment Income 2,279 4,024 –1,745 3,608 4,778 –1,170
ii) Compensation of Employees 83 198 –115 110 298 –188
Total Current Account (I+II) 64,236 70,916 –6,680 72,286 76,583 –4,297
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 43,034 32,756 10,278 54,205 41,178 13,027
a) Foreign Direct Investment (i+ii) 8,270 5,534 2,736 5,502 3,374 2,128
i) In India 7,477 20 7,457 4,728 19 4,709
Equity 5,574 20 5,554 2,822 19 2,803
Reinvested Earnings 1,792 — 1,792 1,792 — 1,792
Other Capital 111 — 111 114 — 114
ii) Abroad 793 5,514 –4,721 774 3,355 –2,581
Equity 793 4,758 –3,965 774 2,515 –1,741
Reinvested Earnings — 271 –271 — 271 –271
Other Capital — 485 –485 — 569 –569
b) Portfolio Investment 34,764 27,222 7,542 48,703 37,804 10,899
i) In India 34,706 27,216 7,490 48,698 37,781 10,917
of which
FIIs 34,305 27,216 7,089 46,199 37,781 8,418
GDRs/ADRs 316 — 316 2,477 — 2,477
ii) Abroad 58 6 52 5 23 –18
2. Loans (a+b+c) 16,749 7,593 9,156 19,742 10,437 9,305
a) External Assistance 732 491 241 983 515 468
i) By India 6 7 –1 6 7 –1
ii) To India 726 484 242 977 508 469
b) Commercial Borrowings 8,291 1,338 6,953 6,290 2,080 4,210
i) By India 359 345 14 443 503 –60
ii) To India 7,932 993 6,939 5,847 1,577 4,270
c) Short Term To India 7,726 5,764 1,962 12,469 7,842 4,627
i) Suppliers’ Credit >180 days & Buyers’ Credit 6,883 5,764 1,119 11,012 7,842 3,170
ii) Suppliers’ Credit up to 180 days 843 — 843 1,457 — 1,457
3. Banking Capital (a+b) 8,560 9,479 –919 13,714 7,071 6,643
a) Commercial Banks 8,560 9,473 –913 13,690 7,000 6,690
i) Assets 2,543 2,861 –318 4,404 358 4,046
ii) Liabilities 6,017 6,612 –595 9,286 6,642 2,644
of which: Non-Resident Deposits 5,252 5,699 –447 6,975 6,606 369
b) Others — 6 –6 24 71 –47
4. Rupee Debt Service — 43 –43 — 2 –2
5. Other Capital 1,151 1,831 –680 7,378 3,196 4,182
Total Capital Account (1 to 5) 69,494 51,702 17,792 95,039 61,884 33,155
C. ERRORS & OMISSIONS 88 — 88 378 — 378
D. OVERALL BALANCE (Total Current Account, Capital 133,818 122,618 11,200 167,703 138,467 29,236
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 11,200 –11,200 — 29,236 –29,236
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 11,200 –11,200 — 29,236 –29,236

RBI
Monthly Bulletin
S 1176 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments (Contd.)

(US $ million)
Oct-Dec 2007 PR Jan-Mar 2008 PR
Items
Credit Debit Net Credit Debit Net
1 32 33 34 35 36 37
A. CURRENT ACCOUNT
I. Merchandise 40,985 67,038 –26,053 52,549 74,895 –22,346
II. Invisibles (a+b+c) 39,553 18,031 21,522 45,158 24,338 20,820
a) Services 24,618 12,592 12,026 25,982 18,415 7,567
i) Travel 3,395 2,519 876 3,618 2,782 836
ii) Transportation 2,799 3,043 –244 3,171 3,386 –215
iii) Insurance 438 261 177 487 314 173
iv) G.n.i.e. 90 75 15 78 63 15
v) Miscellaneous 17,896 6,694 11,202 18,628 11,870 6,758
of which
Software Services 9,608 852 8,756 12,806 726 12,080
Business Services 4,588 4,245 343 4,531 5,770 –1,239
Financial Services 882 763 119 891 1,224 –333
Communication Services 601 183 418 681 265 416
b) Transfers 11,428 493 10,935 14,495 982 13,513
i) Official 195 121 74 247 116 131
ii) Private 11,233 372 10,861 14,248 866 13,382
c) Income 3,507 4,946 –1,439 4,681 4,941 –260
i) Investment Income 3,401 4,679 –1,278 4,520 4,608 –88
ii) Compensation of Employees 106 267 –161 161 333 –172
Total Current Account (I+II) 80,538 85,069 –4,531 97,707 99,233 –1,526
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 86,531 69,639 16,892 88,992 84,232 4,760
a) Foreign Direct Investment (i+ii) 8,316 6,275 2,041 14,750 6,254 8,496
i) In India 7,916 43 7,873 14,240 43 14,197
Equity 6,022 43 5,979 12,448 26 12,422
Reinvested Earnings 1,792 — 1,792 1,792 — 1,792
Other Capital 102 — 102 — 17 –17
ii) Abroad 400 6,232 –5,832 510 6,211 –5,701
Equity 400 5,206 –4,806 510 4,419 –3,909
Reinvested Earnings — 271 –271 — 271 –271
Other Capital — 755 –755 — 1,521 –1,521
b) Portfolio Investment 78,215 63,364 14,851 74,242 77,978 –3,736
i) In India 78,096 63,345 14,751 74,188 77,952 –3,764
of which
FIIs 72,309 63,345 8,964 73,808 77,952 –4,144
GDRs/ADRs 5,597 — 5,597 379 — 379
ii) Abroad 119 19 100 54 26 28
2. Loans (a+b+c) 21,543 10,601 10,942 25,494 12,967 12,527
a) External Assistance 1,109 544 565 1,417 577 840
i) By India 6 7 –1 6 7 –1
ii) To India 1,103 537 566 1,411 570 841
b) Commercial Borrowings 8,449 2,202 6,247 7,346 2,123 5,223
i) By India 363 384 –21 427 392 35
ii) To India 8,086 1,818 6,268 6,919 1,731 5,188
c) Short Term To India 11,985 7,855 4,130 16,731 10,267 6,464
i) Suppliers’ Credit >180 days & Buyers’ Credit 10,231 7,855 2,376 14,515 10,267 4,248
ii) Suppliers’ Credit up to 180 days 1,754 — 1,754 2,216 — 2,216
3. Banking Capital (a+b) 12,588 12,381 207 20,951 15,125 5,826
a) Commercial Banks 12,585 12,029 556 20,899 15,122 5,777
i) Assets 5,636 3,939 1,697 6,979 5,510 1,469
ii) Liabilities 6,949 8,090 –1,141 13,920 9,612 4,308
of which: Non-Resident Deposits 6,456 7,309 –853 10,718 9,608 1,110
b) Others 3 352 –349 52 3 49
4. Rupee Debt Service — — — — 76 –76
5. Other Capital 6,612 3,636 2,976 5,763 2,771 2,992
Total Capital Account (1 to 5) 127,274 96,257 31,017 141,200 115,171 26,029
C. ERRORS & OMISSIONS 252 — 252 487 — 487
D. OVERALL BALANCE (Total Current Account, Capital 208,064 181,326 26,738 239,394 214,404 24,990
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 26,738 –26,738 — 24,990 –24,990
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 26,738 –26,738 — 24,990 –24,990

RBI
Monthly Bulletin
November 2009 S 1177
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments (Contd.)

(US $ million)
Items Apr-Jun 2008 PR Jul-Sep 2008 PR
Credit Debit Net Credit Debit Net
1 38 39 40 41 42 43
A. CURRENT ACCOUNT
I. Merchandise 49,120 80,545 –31,425 48,987 87,663 –38,676
II. Invisibles (a+b+c) 38,939 16,533 22,406 45,696 19,532 26,164
a) Services 23,059 11,441 11,618 27,832 13,775 14,057
i) Travel 2,504 2,164 340 2,786 2,704 82
ii) Transportation 2,611 3,328 –717 2,964 3,744 –780
iii) Insurance 350 228 122 367 306 61
iv) G.n.i.e. 130 110 20 81 95 –14
v) Miscellaneous 17,464 5,611 11,853 21,634 6,926 14,708
of which
Software Services 12,156 857 11,299 12,220 924 11,296
Business Services 3,550 3,133 417 4,840 3,984 856
Financial Services 609 628 –19 1,670 965 705
Communication Services 510 226 284 740 296 444
b) Transfers 12,307 654 11,653 13,719 829 12,890
i) Official 148 107 41 51 97 –46
ii) Private 12,159 547 11,612 13,668 732 12,936
c) Income 3,573 4,438 –865 4,145 4,928 –783
i) Investment Income 3,418 4,108 –690 3,855 4,596 –741
ii) Compensation of Employees 155 330 –175 290 332 –42
Total Current Account (I+II) 88,059 97,078 –9,019 94,683 107,195 –12,512
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 52,901 48,145 4,756 51,774 48,184 3,590
a) Foreign Direct Investment (i+ii) 12,137 3,170 8,967 9,143 4,243 4,900
i) In India 11,898 22 11,876 8,825 52 8,773
Equity 10,240 22 10,218 7,304 52 7,252
Reinvested Earnings 1,492 — 1,492 1,492 — 1,492
Other Capital 166 — 166 29 — 29
ii) Abroad 239 3,148 –2,909 318 4,191 –3,873
Equity 239 2,346 –2,107 318 3,426 –3,108
Reinvested Earnings — 271 –271 — 271 –271
Other Capital — 531 –531 — 494 –494
b) Portfolio Investment 40,764 44,975 –4,211 42,631 43,941 –1,310
i) In India 40,745 44,923 –4,178 42,618 43,919 –1,301
of which
FIIs 39,746 44,923 –5,177 42,482 43,919 –1,437
GDRs/ADRs 999 — 999 136 — 136
ii) Abroad 19 52 –33 13 22 –9
2. Loans (a+b+c) 13,845 9,630 4,215 16,282 12,782 3,500
a) External Assistance 909 558 351 1,095 577 518
i) By India 6 8 –2 6 8 –2
ii) To India 903 550 353 1,089 569 520
b) Commercial Borrowings 2,760 1,293 1,467 3,578 1,888 1,690
i) By India 404 193 211 532 138 394
ii) To India 2,356 1,100 1,256 3,046 1,750 1,296
c) Short Term To India 10,176 7,779 2,397 11,609 10,317 1,292
i) Suppliers’ Credit >180 days & Buyers’ Credit 9,256 7,779 1,477 11,609 9,766 1,843
ii) Suppliers’ Credit up to 180 days 920 — 920 — 551 –551
3. Banking Capital (a+b) 21,952 19,256 2,696 16,208 14,084 2,124
a) Commercial Banks 21,952 19,105 2,847 16,208 14,081 2,127
i) Assets 11,457 10,533 924 6,446 5,154 1,292
ii) Liabilities 10,495 8,572 1,923 9,762 8,927 835
of which: Non-Resident Deposits 9,063 8,249 814 9,174 8,915 259
b) Others — 151 –151 — 3 –3
4. Rupee Debt Service — 30 –30 — 3 –3
5. Other Capital 2,176 2,678 –502 764 2,410 –1,646
Total Capital Account (1 to 5) 90,874 79,739 11,135 85,028 77,463 7,565
C. ERRORS & OMISSIONS 119 — 119 213 — 213
D. OVERALL BALANCE (Total Current Account, Capital 179,052 176,817 2,235 179,924 184,658 –4,734
Account and Errors & Omissions (A+B+C))
E. MONETARY MOVEMENTS (i+ii) — 2,235 –2,235 4,734 — 4,734
i) I.M.F. — — — — — —
ii) Foreign Exchange Reserves (Increase – / Decrease +) — 2,235 –2,235 4,734 — 4,734

RBI
Monthly Bulletin
S 1178 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 43: India's Overall Balance of Payments (Concld.)

(US $ million)
Oct-Dec 2008 PR Jan-Mar 2009 P Apr-Jun 2009 P
Items
Credit Debit Net Credit Debit Net Credit Debit Net
1 44 45 46 47 48 49 50 51 52
A. CURRENT ACCOUNT
I. Merchandise 37,257 71,961 -34,704 39,820 54,418 -14,598 38,789 64,775 -25,986
II. Invisibles (a+b+c) 40,260 18,589 21,671 37,661 18,316 19,345 38,684 18,505 20,179
a) Services 26,075 12,923 13,152 24,258 13,267 10,991 22,389 13,351 9,038
i) Travel 2,924 1,953 971 2,680 2,611 69 2,286 2,004 282
ii) Transportation 2,572 3,210 -638 2,919 2,495 424 2,490 2,777 -287
iii) Insurance 344 269 75 348 328 20 387 314 73
iv) G.n.i.e. 97 233 -136 81 353 -272 100 103 -3
v) Miscellaneous 20,138 7,258 12,880 18,230 7,480 10,750 17,127 8,153 8,973
of which
Software Services 11,444 580 10,864 11,180 453 10,727 10,764 391 10,373
Business Services 4,012 3,540 472 3,849 4,612 -763 2,586 3,645 -1,059
Financial Services 889 735 154 771 633 138 1,116 928 189
Communication Services 492 217 275 428 257 171 418 312 106
b) Transfers 10,994 844 10,150 10,005 419 9,586 13,344 466 12,878
i) Official 285 98 187 161 111 50 46 107 -61
ii) Private 10,709 746 9,963 9,844 308 9,536 13,298 360 12,939
c) Income 3,191 4,822 -1,631 3,398 4,630 -1,232 2,951 4,688 -1,737
i) Investment Income 3,000 4,481 -1,481 3,209 4,314 -1,105 2,723 4,350 -1,627
ii) Compensation of Employees 191 341 -150 189 316 -127 227 338 -110
Total Current Account (I+II) 77,517 90,550 -13,033 77,481 72,734 4,747 77,473 83,280 -5,808
B. CAPITAL ACCOUNT
1. Foreign Investment (a+b) 33,162 38,538 -5,376 27,072 26,580 492 48,238 33,136 15,101
a) Foreign Direct Investment (i+ii) 6,564 6,120 444 8,414 5,229 3,185 9,612 2,779 6,833
i) In India 6,352 29 6,323 8,073 63 8,010 9,488 29 9,459
Equity 4,109 29 4,080 6,322 63 6,259 7,401 29 7,372
Reinvested Earnings 1,721 — 1,721 1,721 — 1,721 1,696 — 1,696
Other Capital 522 — 522 30 — 30 391 — 391
ii) Abroad 212 6,091 -5,879 341 5,166 -4,825 125 2,750 -2,626
Equity 212 4,489 -4,277 341 4,407 -4,066 125 2,053 -1,928
Reinvested Earnings — 271 -271 — 271 -271 — 271 -271
Other Capital — 1,331 -1,331 — 488 -488 — 426 -426
b) Portfolio Investment 26,598 32,418 -5,820 18,658 21,351 -2,693 38,625 30,357 8,268
i) In India 26,568 32,355 -5,787 18,580 21,169 -2,589 38,602 30,332 8,270
of which 26,561 32,355 -5,794 18,560 21,169 -2,609 38,559 30,332 8,227
FIIs 7 — 7 20 — 20 43 — 43
GDRs/ADRs 30 63 -33 78 182 -104 23 25 -2
ii) Abroad 15,818 14,934 884 14,213 17,811 -3,598 13,038 16,395 -3,357
2. Loans (a+b+c) 1,655 663 992 1,383 606 777 821 737 84
a) External Assistance 6 8 -2 6 8 -2 13 116 -103
i) By India 1,649 655 994 1,377 598 779 808 620 188
ii) To India 5,448 1,564 3,884 3,596 2,479 1,117 2,092 2,448 -356
b) Commercial Borrowings 669 149 520 400 305 95 244 333 -89
i) By India 4,779 1,415 3,364 3,196 2,174 1,022 1,848 2,115 -267
ii) To India 8,715 12,707 -3,992 9,234 14,726 -5,492 10,126 13,211 -3,085
c) Short Term To India 8,715 10,357 -1,642 9,234 10,450 -1,216 10,126 9,590 536
i) Suppliers’ Credit >180 days & Buyers’ Credit — 2,350 -2,350 — 4,276 -4,276 — 3,621 -3,621
ii) Suppliers’ Credit up to 180 days 14,810 19,766 -4,956 12,028 15,289 -3,261 15,577 18,942 -3,365
3. Banking Capital (a+b) 14,808 19,335 -4,527 11,917 15,289 -3,372 15,577 18,704 -3,127
a) Commercial Banks 5,192 7,541 -2,349 2,578 5,498 -2,920 4,368 6,946 -2,578
i) Assets 9,616 11,794 -2,178 9,339 9,791 -452 11,209 11,758 -549
ii) Liabilities 9,523 8,481 1,042 9,329 7,154 2,175 11,172 9,354 1,817
of which: Non-Resident Deposits 2 431 -429 111 — 111 — 239 -238
b) Others — — — — 68 -68 — 23 -23
4. Rupee Debt Service 5,670 488 5,182 3,781 2,634 1,147 1,636 3,256 -1,620
5. Other Capital 69,460 73,726 -4,266 57,094 62,382 -5,288 78,489 71,753 6,736
Total Capital Account (1 to 5) — 582 -582 841 — 841 — 813 -813
C. ERRORS & OMISSIONS 146,977 164,858 -17,881 135,416 135,116 300 155,961 155,846 115
D. OVERALL BALANCE (Total Current Account, Capital
Account and Errors & Omissions (A+B+C)) 17,881 — 17,881 — 300 -300 — 115 -115
E. MONETARY MOVEMENTS (i+ii) — — — — — — — — —
i) I.M.F. 17,881 — 17,881 — 300 -300 — 115 -115
ii) Foreign Exchange Reserves (Increase – / Decrease +)

RBI
Monthly Bulletin
November 2009 S 1179
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 44: Foreign Exchange Reserves

End of Foreign Currency Gold SDRs # Reserve Tranche Total
Assets* Position in IMF
Rupees In millions Rupees In millions In millions Rupees In millions Rupees In millions Rupees In millions
crore of US $ crore of US $ of SDRs crore of US $ crore of US $ crore of US $
1 2 3 4 5 6 7 8 9 10 11=(2+4+ 12=(3+5+
7+9) 8+10)
2002-03 3,41,476 71,890 16,785 3,534 3 19 4 3,190 672 3,61,470 76,100
2003-04 4,66,215 1,07,448 18,216 4,198 2 10 2 5,688 1,311 4,90,129 1,12,959
2004-05 5,93,121 1,35,571 19,686 4,500 3 20 5 6,289 1,438 6,19,116 1,41,514
2005-06 6,47,327 1,45,108 25,674 5,755 2 12 3 3,374 756 6,76,387 1,51,622
2006-07 8,36,597 1,91,924 29,573 6,784 1 8 2 2,044 469 8,68,222 1,99,179
2007-08 11,96,023 2,99,230 40,124 10,039 11 74 18 1,744 436 12,37,965 3,09,723
2008-09 12,30,066 2,41,426 48,793 9,577 1 6 1 5,000 981 12,83,865 2,51,985
2007-08
April 8,12,995 1,96,899 29,051 7,036 7 45 11 1,910 463 8,44,001 2,04,409
May 8,17,440 2,00,697 28,147 6,911 1 6 1 1,870 459 8,47,463 2,08,068
June 8,39,913 2,06,114 27,655 6,787 1 6 1 1,875 460 8,69,449 2,13,362
July 8,88,680 2,19,753 27,850 6,887 8 49 12 1,840 455 9,18,419 2,27,107
August 9,07,301 2,21,509 28,186 6,881 1 9 2 1,866 455 9,37,362 2,28,847
September 9,53,581 2,39,955 29,275 7,367 1 8 2 1,740 438 9,84,604 2,47,762
October 10,08,271 2,56,427 30,712 7,811 8 52 13 1,735 441 10,40,770 2,64,692
November 10,50,165 2,64,725 33,151 8,357 2 13 3 1,727 435 10,85,056 2,73,520
December 10,50,485 2,66,553 32,819 8,328 2 13 3 1,703 432 10,85,020 2,75,316
January 11,17,080 2,83,595 36,236 9,199 6 36 9 1,720 437 11,55,072 2,93,240
February 11,62,671 2,91,250 38,154 9,558 - 1 - 1,705 427 12,02,531 3,01,235
March 11,96,023 2,99,230 40,124 10,039 11 74 18 1,744 436 12,37,965 3,09,723
2008-09
April 12,30,896 3,04,225 38,141 9,427 11 74 18 1,961 485 12,71,072 3,14,155
May 12,98,464 3,04,875 39,190 9,202 7 47 11 2,242 526 13,39,943 3,14,614
June 12,98,552 3,02,340 39,548 9,208 7 48 11 2,269 528 13,40,417 3,12,087
July 12,57,357 2,95,918 41,366 9,735 7 47 11 2,177 512 13,00,947 3,06,176
August 12,52,904 2,86,117 38,064 8,692 2 16 4 2,173 496 12,93,157 2,95,309
September 13,01,645 2,77,300 40,205 8,565 2 17 4 2,194 467 13,44,061 2,86,336
October 12,01,920 2,44,045 41,281 8,382 6 43 9 2,200 447 12,45,444 2,52,883
November 11,91,016 2,38,968 39,177 7,861 2 13 3 4,254 854 12,34,460 2,47,686
December 11,94,790 2,46,603 41,110 8,485 2 13 3 4,248 877 12,40,161 2,55,968
January 11,71,060 2,38,894 43,549 8,884 2 15 3 4,068 830 12,18,692 2,48,611
February 12,11,002 2,38,715 49,440 9,746 1 6 1 4,141 816 12,64,589 2,49,278
March 12,30,066 2,41,426 48,793 9,577 1 6 1 5,000 981 12,83,865 2,51,985
2009-10
April 12,12,747 2,41,487 46,357 9,231 1 6 1 4,938 983 12,64,048 2,51,702
May 11,89,136 2,51,456 45,417 9,604 - 2 1 5,886 1,245 12,40,441 2,62,306
June 12,16,345 2,54,093 46,914 9,800 - 2 1 5,974 1,248 12,69,235 2,65,142
July 12,55,197 2,60,631 46,576 9,671 - 3 1 6,444 1,338 13,08,220 2,71,641
August 12,76,976 2,61,247 48,041 9,828 30,82.66 23,597 4,828 6,595 1,349 13,55,209 2,77,252
September 12,70,049 2,64,373 49,556 10,316 32,97.23 25,096 5,224 6,557 1,365 13,51,258 2,81,278
September 4, 2009 12,79,240 2,61,657 48,041 9,828 30,82.66 23,554 4,818 6,583 1,346 13,57,418 2,77,649
September 11, 2009 12,83,392 2,64,562 48,041 9,828 32,97.23 25,336 5,223 6,620 1,365 13,63,389 2,80,978
September 18, 2009 12,73,653 2,64,353 48,041 9,828 32,97.23 25,171 5,224 6,577 1,365 13,53,442 2,80,770
September 25, 2009 12,64,262 2,63,498 48,041 9,828 32,97.23 25,047 5,220 6,544 1,364 13,43,894 2,79,910
October 2, 2009 12,60,943 2,63,465 49,556 10,316 32,97.23 24,886 5,200 6,502 1,359 13,41,887 2,80,340
October 9, 2009 12,31,979 2,64,942 49,556 10,316 32,97.23 24,345 5,235 6,361 1,368 13,12,241 2,81,861
— : Negligible. See ‘Notes on tables’.
* : FCA excludes US $ 250.00 millon (as also its equivalent value in Indian Rupee) invested in foreign currency denominated bonds issued by IIFC (UK) since March 20, 2009.
#: Includes SDRs 3,082.5 million allocated under general allocation and SDRs 214.6 million allocated under special allocation by the IMF done on August 28, 2009 and
Sepetember 9, 2009, respectively.

RBI
Monthly Bulletin
S 1180 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 45: NRI Deposits- Outstanding and Inflows (+) /Outflows (–) @
(As at End March) (US $ million)
Scheme 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1. FCNR(A) * 7,051 4,255 2,306 1 — — — — — — — — — — —
2. FCNR(B) ** 3,063 5,720 7,496 8,467 7,835 8,172 9,076 9,673 10,199 10,961 11,452 13,064 15,129 14,168 13,211
3. NR(E)RA 4,556 3,916 4,983 5,637 6,045 6,758 7,147 8,449 14,923 20,559 21,291 22,070 24,495 26,716 23,570
4. NR(NR)RD + 2,486 3,542 5,604 6,262 6,618 6,754 6,849 7,052 3,407 1,746 232 — — — —
5. NRO — — — — — — — — — — — 1,148 1,616 2,788 4,773
Total 17,156 17,433 20,389 20,367 20,498 21,684 23,072 25,174 28,529 33,266 32,975 36,282 41,240 43,672 41,554
(US $ million)
Scheme 2008-09 (End Month)
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
1 2 3 4 5 6 7 8 9 10 11 12 13
1. FCNR(B) ** 14,028 13,877 14,001 13,766 13,475 13,504 12,694 12,733 12,936 12,981 13,114 13,211
2. NR(E)RA 26,592 25,544 25,585 25,866 24,761 23,880 22,811 22,992 23,226 22,959 22,778 23,570
3. NRO 2,986 2,963 3,026 3,230 3,243 3,238 3,302 3,749 4,134 4,366 4,125 4,773
Total 43,606 42,384 42,612 42,862 41,479 40,622 38,807 39,474 40,296 40,306 40,017 41,554
(US $ million)
2009-10 (P) End Month
Scheme Apr. May Jun. Jul. Aug. Sep.
1 2 3 4 5 6 7
1. FCNR(B) ** 13,384 14,017 14,014 14,156 14,053 14,186
2. NR(E)RA 23,935 25,418 24,952 25,369 24,931 25,331
3. NRO 5,063 5,613 5,613 5,971 6,003 6,327
Total 42,382 45,048 44,579 45,496 44,987 45,844
Inflow (+) /Outflow (–) During the Month (US $ million)
Scheme 2008-09
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.- Mar.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1. FCNR(B) –140 –151 124 –235 –291 29 –809 39 202 45 133 97 –957
(41) (–46) (195) (78) (–163) (128) (24) (–125) (–503) (–299) (–174) (–116) (–960)
2. NR(E)RA –71 462 160 –39 –205 527 645 124 –220 –192 607 710 2,508
(–320) (–265) (–167) (187) (–122) (126) (–40) (–205) (–154) (587) (45) (437) (109)
3. NRO 204 148 77 163 128 182 302 445 314 246 –98 627 2,738
(22) (9) (85) (29) (269) (–164) (19) (49) (82) (237) (216) (177) (1,030)
Total –7 459 361 –111 –368 738 138 608 296 99 642 1,434 4,289
(–257) (–302) (113) (294) (–16) (90) (3) (–281) (–575) (525) (87) (498) (179)
Inflow (+) /Outflow (–) During the Month
(US $ million)
2009-10 (P)
Scheme Apr. May Jun. Jul. Aug. Sep. Apr.- Sep.
1 2 3 4 5 6 7 8
1. FCNR(B) 173 633 -3 142 -103 133 975
-(140) -(151) (124) -(235) -(291) (29) -(664)
2. NR(E)RA 67 128 187 234 -68 -64 484
-(71) (462) (160) -(39) -(205) (527) (834)
3. NRO 229 257 146 316 120 210 1,278
(204) (148) (77) (163) (128) (182) (902)
Total 469 1,018 330 692 -51 279 2,737
-(7) (459) (361) -(111) -(368) (738) 1,072
P : Provisional. * : Withdrawn effective August 1994. ** : Introduced in May 1993.
@ : All figures are inclusive of accrued interest. + : Introduced in June 1992 and discontinued w.e.f April 2002. — : Not available.
Notes : 1. FCNR(A) : Foreign Currency Non-Resident (Accounts). 2. FCNR(B) : Foreign Currency Non-Resident (Banks).
3. NR(E)RA : Non-Resident (External) Rupee Accounts. 4. NR(NR)RD : Non-Resident (Non-Repatriable) Rupee Deposits.
5. NRO : Non-Resident Ordinary Rupee Account.
6. Figures in the brackets represent inflows (+)/outflows(–) during the corresponding month/period of the previous year.

RBI
Monthly Bulletin
November 2009 S 1181
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 46: Foreign Investment Inflows

(US $ million)
Item 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (P) 2008-09 (P)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A. Direct Investment (I+II+III) 2,144 2,821 3,557 2,462 2,155 4,029 6,130 5,035 4,322 6,051 8,961 22,826 34,362 35,168
I. Equity (a+b+c+d+e) 2,144 2,821 3,557 2,462 2,155 2,400 4,095 2,764 2,229 3,778 5,975 16,481 26,867 27,995
a. Government (SIA/FIPB) 1,249 1,922 2,754 1,821 1,410 1,456 2,221 919 928 1,062 1,126 2,156 2,298 4,699
b. RBI 169 135 202 179 171 454 767 739 534 1,258 2,233 7,151 17,129 17,998
c. NRI 715 639 241 62 84 67 35 — — — — — — —
d. Acquisition of shares * 11 125 360 400 490 362 881 916 735 930 2,181 6,278 5,148 4,632
e. Equity capital of
unincorporated bodies # .. .. .. .. .. 61 191 190 32 528 435 896 2,292 666
II. Reinvested earnings + .. .. .. .. .. 1,350 1,645 1,833 1,460 1,904 2,760 5,828 7,168 6,426
III. Other capital ++ .. .. .. .. .. 279 390 438 633 369 226 517 327 747
B. Portfolio Investment (a+b+c) 2,748 3,312 1,828 -61 3,026 2,760 2,021 979 11,377 9,315 12,492 7,003 27,271 -13,855
a. GDRs/ADRs # # 683 1,366 645 270 768 831 477 600 459 613 2,552 3,776 6,645 1,162
b. FIIs ** 2,009 1,926 979 -390 2,135 1,847 1,505 377 10,918 8,686 9,926 3,225 20,328 -15,017
c. Offshore funds and others 56 20 204 59 123 82 39 2 — 16 14 2 298 —
Total (A+B) 4,892 6,133 5,385 2,401 5,181 6,789 8,151 6,014 15,699 15,366 21,453 29,829 61,633 21,313
(US $ million)
2008-09 (P)
Item Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.- Mar.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
A. Direct Investment (I+II+III) 3,749 3,932 2,392 2,247 2,328 2,562 1,497 1,083 1,362 2,733 1,488 1,956 35,168
I. Equity (a+b+c+d) 3,749 3,932 2,392 2,247 2,328 2,562 1,497 1,083 1,362 2,733 1,488 1,956 27,995
a. Government (SIA/FIPB) 851 65 806 321 255 28 178 90 91 1,102 207 705 4,699
b. RBI 1,819 3,091 1,188 1,497 1,324 2,345 1,117 900 1,189 1,471 981 1,076 17,998
c. Acquisition of shares * 1,079 776 398 429 749 189 202 93 82 160 300 175 4,632
d. Equity capital of
unincorporated bodies # .. .. .. .. .. .. .. .. .. .. .. .. 666
II. Reinvested earnings + .. .. .. .. .. .. .. .. .. .. .. .. 6,426
III. Other capital ++ .. .. .. .. .. .. .. .. .. .. .. .. 747
B. Portfolio Investment (a+b+c) –880 –288 –3,010 –492 593 –1,403 –5,243 –574 30 –614 –1,085 –889 –13,855
a. GDRs/ADRs # # 552 446 1 7 129 — 7 — — — — 20 1,162
b. FIIs ** –1,432 –734 –3,011 –499 464 –1,403 –5,250 –574 30 –614 – 1,085 –909 –15,017
c. Offshore funds and others — — — — — — — — — — — — —
Total (A+B) 2,869 3,644 –618 1,755 2,921 1,159 –3,746 509 1,392 2,119 403 1,067 21,313

(US $ million)
2009-10 (P)
Item Apr. May Jun. Jul. Aug. Sep. Apr.- Sep.
1 2 3 4 5 6 7 8
A. Direct Investment (I+II+III) 2,339 2,095 2,582 3,476 3,268 1,512 17,744
I. Equity (a+b+c+d) 2,339 2,095 2,582 3,476 3,268 1,512 15,657
a. Government (SIA/FIPB) 925 101 85 248 666 111 2,136
b. RBI 1,156 1,916 2,448 1,757 2,548 1,355 11,180
c. Acquisition of shares * 258 78 49 1,471 54 46 1,956
d. Equity capital of
unincorporated bodies # .. .. .. .. .. .. 385
II. Reinvested earnings + .. .. .. .. .. .. 1,696
III. Other capital++ .. .. .. .. .. .. 391
B. Portfolio Investment (a+b+c) 2,278 5,639 353 3,032 1,574 4,999 17,875
a. GDRs/ADRs # # 33 - 10 965 1,603 - 2,611
b. FIIs** 2,245 5,639 343 2,067 -29 4,999 15,264
c. Offshore funds and others - - - - - - -
Total (A+B) 4,617 7,734 2,935 6,508 4,842 6,511 35,619
* : Relates to acquisition of shares of Indian companies by non-residents under Section 6 of FEMA, 1999. Data on such acquisitions have been included as part of FDI
since January 1996.
** : Represents inflow of funds (net) by Foreign Institutional Investors (FIIs).
# : Figures for equity capital of unincorporated bodies for 2007-08 and 2008-09 are estimates.
## : Represents the amount raised by Indian Corporates through Global Depository Receipts (GDRs) and American Depository Receipts (ADRs).
+ : Data for 2007-08 and 2008-09 are estimated as average of previous two years.
++ : Data pertain to inter company debt transactions of FDI entities.
Notes : 1. Data for equity capital of unincorporated bodies reinvested earnings and other capital in the column of the monthly table, pertain to the April-June, 2009,
which are included in the last column (cumulative FDI). As a result, the monthy total of FDI may not match with the cumulative FDI given in the last column.
2. Data on FDI have been revised since 2000-01 with expanded coverage to approach international best practices.
3. These data, therefore, are not comparable with FDI data for previous years.Also see ‘Notes on Tables’ of Table No 42&43.
4. Monthly data on components of FDI as per expanded coverage are not available.
RBI
Monthly Bulletin
S 1182 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 46A: Outward Remittances under the Liberalised Remittance

Scheme for Resident Individuals
(US $ million)
Purpose 2004-05 2005-06 2006-07 2007-08 2008-09
1 2 3 4 5 6
1. Deposit 9.1 23.2 19.7 24.0 30.4
2. Purchase of immovable property 0.5 1.9 8.5 39.5 55.9
3. Investment in equity/debt — — 20.7 144.7 151.4
4. Gift — — 7.4 70.3 133.0
5. Donations — — 0.1 1.6 1.4
6. Others** — — 16.4 160.4 436.0
Total (1 to 6) 9.6 25.0 72.8 440.5 808.1

(US $ million)
Purpose 2008-09
April May June July August September October November December January February March
1 2 3 4 5 6 7 8 9 10 11 12 13
1. Deposit 3.4 3.0 4.1 2.3 2.6 1.6 1.2 1.4 1.6 1.7 1.8 5.7
2. Purchase of
immovable property 7.7 7.0 6.5 5.7 4.6 5.7 3.1 2.6 2.5 2.6 2.7 5.2
3. Investment in
equity/debt 13.3 13.7 14.9 12.5 12.7 9.8 8.7 12.4 11.2 10.4 6.8 25.0
4. Gift 8.8 10.9 10.2 12.7 16.0 7.9 8.6 23.2 9.7 7.6 8.5 8.9
5. Donations 0.2 0.1 — 0.2 0.2 — 0.1 0.2 — 0.1 0.1 0.2
6. Others** 17.1 18.5 20.5 27.4 123.6 26.0 19.2 19.0 32.7 33.1 19.3 79.6
Total ( 1 to 6) 50.5 53.2 56.2 60.8 159.7 51.0 40.9 58.8 57.7 55.5 39.2 124.6

(US $ million)
Purpose 2009-10
April May June July
1 2 3 4 5
1. Deposit 2.3 2.8 3.2 1.9
2. Purchase of
immovable property 4.2 3.8 3.4 2.5
3. Investment in
equity/debt 12.6 12.2 14.8 10.7
4. Gift 13.6 11.7 13.7 13.0
5. Donations 0.1 0.2 0.6 0.1
6. Travels 1.4 1.5 1.1 2.5
7. Maintenance of
close relatives 10.5 10.0 8.8 9.7
8. Medical Treatment 1.3 2.3 2.4 2.3
9. Studies Abroad 6.1 6.8 89.3 12.7
10. Others 6.0 6.4 7.6 9.5
Total ( 1 to 10) 58.1 57.7 145.0 64.9

— : Not available.
** : Include items such as Education, Tours and Travels.
Notes : (i) The data from 2004 to 2007 are on calendar basis.
(ii) Under Liberalised Remittance Scheme (LRS), currently, the residents are permitted to remit up to an amount of US $ 2, 00,000 per financial year
(April-March) for any permitted current or capital account transactions or a combination of both with effect from September 26, 2007. The LRS
Scheme was introduced in February 2004 to facilitate resident individuals to freely remit up to US $ 25,000 per calendar year, which was
enhanced to US $ 50,000 per financial year in December 2006; to US $ 1, 00,000 per financial year in May 2007; and to US $ 2, 00,000 per financial
year in September 2007.

RBI
Monthly Bulletin
November 2009 S 1183
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 47: Daily Foreign Exchange Spot Rates

(Rupees per Unit of Foreign Currency)

Date RBI’s Reference Rate FEDAI Indicative Rates

Rs. Per Foreign Currency
US Dollar Pound Sterling Euro One Hundred
US Dollar Euro Japanese Yen

Buying Selling Buying Selling Buying Selling Buying Selling

1 2 3 4 5 6 7 8 9 10 11

September 1, 2009 48.7300 69.9900 48.7300 48.7400 79.5675 79.6075 69.9850 70.0050 52.3425 52.3750

September 2, 2009 49.0600 69.7800 49.0500 49.0600 79.3475 79.3850 69.7675 69.8025 52.7825 52.8275

September 3, 2009 48.8800 69.8100 48.8750 48.8850 79.6700 79.6975 69.7925 69.8225 52.9125 52.9450

September 4, 2009 48.8900 69.7600 48.8750 48.8850 79.8175 79.8500 69.7250 69.7500 52.7575 52.7750

September 7, 2009 48.7500 69.9000 48.7450 48.7550 79.9650 79.9975 69.8750 69.9050 52.2725 52.3000

September 8, 2009 48.6500 69.9300 48.6500 48.6600 79.6850 79.7100 69.9250 69.9475 52.5200 52.5650

September 9, 2009 48.4700 70.2900 48.4600 48.4700 80.0850 80.1200 70.2375 70.2875 52.3950 52.4175

September 10, 2009 48.3700 70.5200 48.3700 48.3800 80.0275 80.0550 70.5150 70.5375 52.5125 52.5300

September 11, 2009 48.5100 70.8700 48.5000 48.5100 81.0725 81.1125 70.8525 70.8775 53.2025 53.2250

September 14, 2009 48.7000 70.7300 48.6850 48.6950 80.6075 80.6450 70.6850 70.7050 53.7075 53.7350

September 15, 2009 48.5700 71.0600 48.5600 48.5700 80.8125 80.8400 71.0000 71.0375 53.3275 53.3625

September 16, 2009 48.3600 71.0200 48.3600 48.3700 79.6300 79.6750 71.0025 71.0350 53.3900 53.4125

September 17, 2009 47.9700 70.7600 47.9700 47.9800 79.3675 79.3925 70.8075 70.8275 52.7675 52.7950

September 18, 2009 48.1800 70.9200 48.1750 48.1850 78.8200 78.8600 70.8500 70.8850 52.8400 52.8750

September 21, 2009 +

September 22, 2009 48.1700 70.9500 48.1700 48.1800 78.3925 78.4175 70.9300 70.9550 52.6625 52.6900

September 23, 2009 47.9600 70.9900 47.9550 47.9650 78.5400 78.5775 70.9650 70.9875 52.8025 52.8425

September 24, 2009 48.1000 70.8800 48.1100 48.1200 78.6700 78.7150 70.8750 70.9050 52.9725 53.0125

September 25, 2009 47.9800 70.5300 47.9700 47.9800 76.7700 76.8075 70.4975 70.5200 52.9050 52.9525

September 28, 2009 +

September 29, 2009 48.0400 70.2400 48.0350 48.0450 76.4100 76.4400 70.2075 70.2475 53.3300 53.3725

September 30, 2009 +

FEDAI : Foreign Exchange Dealers’ Association of India.

+ : Market closed.
Note : Euro Reference rate was announced by RBI with effect from January 1, 2002.
Source : FEDAI for FEDAI rates.

RBI
Monthly Bulletin
S 1184 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 48: Sale/Purchase of U.S. Dollar by The Reserve Bank of India

Month Foreign Currency Rs. equivalent Cumulative Outstanding Net

(US $ million) at contract rate (over end-April 2008) Forward Sales (–)/
(Rs. crore) Purchase (+)
Purchase Sale Net (US $ million) (Rs. crore) at the end of
(+) (–) (+/–) month
(US $ million)

1 2 3 4 5 6 7 8

20008-09
April 2008 4,325.00 — (+) 4,325.00 (+) 17,237.89 (+) 4,325.00 (+) 17,237.89 (+) 17,095.00
May 2008 1,625.00 1,477.00 (+) 148.00 (+) 118.51 (+) 4,473.00 (+) 17,356.40 (+) 15,470.00
June 2008 1,770.00 6,999.00 (—) 5,229.00 (—) 22,970.78 (—) 756.00 (—) 5,614.37 (+) 13,700.00
July 2008 3,580.00 9,900.00 (—) 6,320.00 (—) 27,829.05 (—) 7,076.00 (—) 33,443.43 (+) 11,910.00
August 2008 3,770.00 2,560.00 (+) 1,210.00 (+) 4,557.53 (—) 5,866.00 (—) 28,885.89 (+) 9,925.00
September 2008 2,695.00 6,479.00 (—) 3,784.00 (—) 18,396.49 (—) 9,650.00 (—) 47,282.38 (+) 2,300.00
October 2008 1,960.00 20,626.00 (—) 18,666.00 (—) 92,925.06 (—) 28,316.00 (—) 1,40,207.44 (+) 90.00
November 2008 2,355.00 5,456.00 (—) 3,101.00 (—) 16,252.20 (—) 31,417.00 (—) 1,56,459.64 (—) 487.00
December 2008 2,005.00 2,323.00 (—) 318.00 (—) 3,524.72 (—) 31,735.00 (—) 1,59,984.36 (—) 1,752.00
January 2009 1,055.00 1,084.00 (—) 29.00 (—) 1,116.19 (—) 3,1764.00 (—) 1,61,100.55 (—) 1,723.00
February 2009 1,063.00 833.00 (+) 230.00 (+) 335.79 (—) 31,534.00 (—) 1,60,764.76 (—) 1,953.00
March 2009 360.00 3,748.00 (—) 3,388.00 (—) 17,826.91 (—) 34,922.00 (—) 1,78,591.67 (—) 2,042.00

Month Foreign Currency Rs. equivalent Cumulative Outstanding Net

(US $ million) at contract rate (over end-April 2009) Forward Sales (–)/
(Rs. crore) Purchase (+)
Purchase Sale Net (US $ million) (Rs. crore) at the end of
(+) (–) (+/–) month
(US $ million)

1 2 3 4 5 6 7 8
2009-10
April 2009 204.00 2,691.00 (—) 2,487.00 (—) 12,063.87 (—) 2,487.00 (—) 12,063.87 (—) 1,071.00
May 2009 923.00 2,360.00 (—) 1,437.00 (—) 6,902.22 (—) 3,924.00 (—) 18,966.08 131.00
June 2009 1,279.00 235.00 1,044.00 4,974.19 (—) 2,880.00 (—) 13,991.90 745.00
July 2009 570.00 625.00 (—) 55.00 (—) 217.19 (—) 2,935.00 (—) 14,209.09 800.00
August 2009 415.00 234.00 181.00 837.52 (—) 2,754.00 (—) 13,371.58 619.00
September 2009 260.00 180.00 80.00 377.37 (—) 2,674.00 (—) 12,994.21 539.00

(+) : Implies Purchase including purchase leg under swaps and outright forwards.
(–) : Implies Sales including sale leg under swaps and outright forwards.
Note : This table is based on value dates.

RBI
Monthly Bulletin
November 2009 S 1185
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 49: Turnover in Foreign Exchange Market

(US $ million)
Position Date Merchant Inter-bank
FCY / INR FCY / FCY FCY/INR FCY/FCY
Spot Forward Forward Spot Forward Forward Spot Swap Forward Spot Swap Forward
Cancellation Cancellation
1 2 3 4 5 6 7 8 9 10 11 12 13

Purchases
Sep. 1 2009 1,530 928 448 220 513 500 4,331 4,752 225 3,167 1,397 74
Sep. 2 2009 1,595 934 342 234 765 428 5,157 4,798 196 3,598 1,500 88
Sep. 3 2009 1,050 474 221 187 588 619 3,378 3,241 341 2,583 1,494 234
Sep. 4 2009 1,951 521 253 129 410 344 3,161 3,020 179 2,322 1,091 36
Sep. 7 2009 1,327 501 165 205 435 500 2,878 1,645 82 2,331 501 61
Sep. 8 2009 1,679 1,401 465 327 666 624 5,949 4,848 163 4,085 1,640 57
Sep. 9 2009 2,470 707 436 288 622 392 5,010 4,966 323 4,459 1,736 114
Sep. 10 2009 2,171 835 497 142 459 463 5,306 4,078 385 3,324 1,337 99
Sep. 11 2009 1,700 816 362 150 579 486 5,213 3,495 695 4,204 1,603 122
Sep. 14 2009 1,730 696 471 292 619 448 4,522 3,435 266 3,458 992 100
Sep. 15 2009 1,481 1,129 275 277 632 616 4,473 3,623 187 3,515 1,425 40
Sep. 16 2009 1,793 1,212 841 252 594 552 6,199 3,498 188 3,385 1,188 155
Sep. 17 2009 2,157 1,247 745 228 558 695 5,369 4,046 842 2,996 1,485 510
Sep. 18 2009 1,849 662 309 342 493 480 4,127 3,083 782 2,753 1,224 312
Sep. 21 2009+ — — — — — — — — — — — —
Sep. 22 2009 2,472 994 609 461 652 651 4,973 4,492 185 3,001 1,067 594
Sep. 23 2009 2,113 1,558 1,317 761 568 573 6,373 5,246 459 2,784 1,834 154
Sep. 24 2009 3,069 1,586 1,489 1,110 719 683 5,964 6,310 597 3,686 2,223 381
Sep. 25 2009 2,743 2,449 727 523 722 857 6,417 5,326 1,299 3,818 2,069 206
Sep. 28 2009+ — — — — — — — — — — — —
Sep. 29 2009 3,147 1,398 1,332 429 800 1,022 5,737 4,587 367 4,817 2,875 590
Sep. 30 2009 12 49 — 68 96 109 — 72 — 582 220 12
Sales
Sep. 1 2009 1,678 1,130 291 209 500 508 4,184 4,052 227 3,145 1,483 75
Sep. 2 2009 1,451 823 394 227 646 439 5,092 4,536 219 3,592 1,676 111
Sep. 3 2009 1,209 534 219 195 550 674 3,120 3,008 551 2,566 1,624 200
Sep. 4 2009 1,774 588 325 127 395 365 2,758 2,935 533 2,331 1,211 36
Sep. 7 2009 889 868 284 200 433 503 2,751 1,303 102 2,355 506 60
Sep. 8 2009 2,002 1,242 806 318 668 619 5,621 4,636 190 4,154 1,702 57
Sep. 9 2009 1,679 1,216 492 278 733 437 4,753 5,108 305 4,343 1,798 158
Sep. 10 2009 1,910 1,395 443 137 474 474 4,924 3,652 579 3,340 1,474 89
Sep. 11 2009 1,727 1,044 394 157 600 470 4,927 3,651 867 4,196 1,673 119
Sep. 14 2009 1,749 997 411 292 623 453 4,413 3,255 146 3,438 1,030 126
Sep. 15 2009 1,644 867 478 279 635 613 4,299 3,407 270 3,422 1,469 126
Sep. 16 2009 1,867 1,811 1,012 245 647 522 5,759 3,709 225 3,400 1,325 156
Sep. 17 2009 1,718 1,752 782 222 607 699 5,360 3,703 694 3,016 1,446 526
Sep. 18 2009 1,542 1,089 352 336 544 507 3,692 3,032 1,119 2,699 1,355 367
Sep. 21 2009 + — — — — — — — — — — — —
Sep. 22 2009 2,401 1,256 444 457 851 678 4,910 3,968 259 3,009 1,282 594
Sep. 23 2009 2,479 1,882 745 756 591 558 6,193 4,755 435 2,792 2,062 154
Sep. 24 2009 2,331 2,481 1,008 1,103 793 760 5,516 5,287 885 3,747 2,164 380
Sep. 25 2009 2,773 2,137 1,103 556 840 872 6,386 4,475 1,294 3,758 2,517 198
Sep. 28 2009+ — — — — — — — — — — — —
Sep. 29 2009 3,384 1,805 1,134 418 871 1,078 5,572 4,484 494 4,803 3,255 576
Sep. 30 2009 22 46 24 68 96 108 11 74 — 582 407 12
NIR : Indian Rupees. + : Market Closed
Note :Data relate to sales and purchases of foreign exchange on account of merchant and inter-bank transactions. Data are provisional.

RBI
Monthly Bulletin
S 1186 November 2009
 CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 50: Indices of Real Effective Exchange Rate (REER) and Nominal Effective
Exchange Rate (NEER) of the Indian Rupee
(36-Currency Export and Trade Based Weights)
(Base: 1993-94=100)*
Year Trade Based Weights Export Based Weights Year Trade Based Weights Export Based Weights
REER NEER REER NEER REER NEER REER NEER
1 2 3 4 5 1 2 3 4 5
1993-94 100.00 100.00 100.00 100.00 2006-07 April 98.16 87.73 97.11 89.18
May 96.43 85.43 95.67 87.12
June 96.60 85.11 95.61 86.61
1994-95 104.32 98.91 104.88 98.18 July 95.75 84.22 94.80 85.74
August 95.64 83.61 94.66 85.13
September 98.00 84.65 96.78 86.05
1995-96 98.19 91.54 100.10 90.94 October 99.96 86.18 98.64 87.53
November 100.35 86.50 99.31 88.12
1996-97 96.83 89.27 98.95 89.03 December 99.14 85.89 98.25 87.68
January 100.69 87.05 99.53 88.72
February 100.55 87.21 99.39 88.87
1997-98 100.77 92.04 103.07 91.97 March 100.53 87.11 99.35 88.85
2007-08 April 102.60 91.80 101.88 92.89
May 106.01 94.69 105.24 95.83
1998-99 93.04 89.05 94.34 90.34 June 105.92 94.97 105.03 96.07
July 105.99 94.84 105.19 96.08
1999-00 95.99 91.02 95.28 90.42 August 105.34 94.38 104.47 95.52
September 105.90 94.65 105.12 95.91
October 106.09 95.29 105.35 96.73
2000-01 100.09 92.12 98.67 90.12 November 104.63 94.27 104.01 95.83
December 104.94 94.68 104.19 96.11
January 104.85 94.29 104.26 95.91
2001-02 100.86 91.58 98.59 89.08 February 103.51 93.11 103.04 94.82
March 101.94 90.01 101.72 91.92
2002-03 98.18 89.12 95.99 87.01 2008-09 (P) April 101.67 91.51 101.60 91.92
May 97.55 87.39 97.33 87.69
June 97.58 86.03 97.49 86.36
2003-04 99.56 87.14 99.07 87.89 July 97.22 85.41 97.34 85.83
August 99.45 87.04 99.47 87.27
September 95.69 83.96 95.68 84.06
2004-05 100.09 87.31 98.30 88.41 October 92.01 81.91 91.99 81.81
November 92.17 83.39 92.04 83.16
2005-06 102.35 89.85 100.54 91.17 December 90.01 82.47 89.81 82.25
January 89.80 82.27 89.28 81.85
February 90.59 83.84 90.14 83.47
2006-07 98.48 85.89 97.42 87.46 March 88.04 80.67 87.27 80.36
2009-10 (P) April 87.67 83.61 87.14 80.72
May 89.76 84.42 89.14 81.58
2007-08 104.81 93.91 104.12 95.30 June 90.28 84.77 89.63 81.85
July 89.82 83.39 89.15 80.48
2008-09 (P) 94.31 84.66 94.12 84.67 August 90.22 83.08 89.57 80.20
September 90.14 82.14 89.46 79.37
* : For “Note on Methodology” and time series data on the indices presented here, please see December 2005 issue of this Bulletin.

RBI
Monthly Bulletin
November 2009 S 1187
CURRENT
STATISTICS
Trade and
Balance of
Payments

No. 51: Indices of Real Effective Exchange Rate (REER) and Nominal Effective
Exchange Rate (NEER) of the Indian Rupee
(6-Currency Trade Based Weights)
Year/Month/Day Base: 1993-94 (April-March) =100 Base: 2007-08 (April-March) =100
NEER REER NEER REER
1993-94 100.00 100.00 133.82 87.58
1994-95 96.96 105.82 129.69 92.63
1995-96 88.56 101.27 118.46 88.65
1996-97 86.85 101.11 116.17 88.51
1997-98 87.94 104.41 117.63 91.40
1998-99 77.49 96.14 103.65 84.16
1999-00 77.16 97.69 103.21 85.51
2000-01 77.43 102.82 103.57 90.01
2001-02 76.04 102.71 101.72 89.91
2002-03 71.27 97.68 95.33 85.51
2003-04 69.97 99.17 93.59 86.81
2004-05 69.58 101.78 93.07 89.10
2005-06 72.28 107.30 96.69 93.93
2006-07 69.49 105.57 92.96 92.41
2007-08 74.76 114.23 100.00 100.00
2008-09 (P) 64.87 104.47 86.78 91.45

2007-08 April 73.33 111.87 98.09 97.93

May 75.79 116.00 101.38 101.55
June 75.95 115.38 101.59 101.01
July 75.75 115.20 101.33 100.85
August 75.03 114.20 100.36 99.97
September 75.24 115.18 100.64 100.83
October 76.08 115.98 101.76 101.53
November 74.97 114.11 100.29 99.89
December 75.25 114.72 100.66 100.42
January 74.88 114.25 100.16 100.01
February 73.96 113.03 98.93 98.95
March 70.94 110.98 94.89 97.15
2008-09 (P) April 71.18 112.23 95.21 98.25
May 67.98 108.34 90.94 94.84
June 66.85 108.22 89.42 94.74
July 66.30 107.91 88.69 94.46
August 67.64 111.20 90.48 97.34
September 64.81 106.96 86.70 93.63
October 62.34 102.09 83.38 89.37
November 63.25 102.45 84.61 89.68
December 62.35 99.93 83.40 87.47
January 62.49 99.23 83.59 86.86
February 62.97 99.43 84.23 87.04
March (P) 60.35 95.68 80.73 83.76
2009-10 (P) April (P) 61.49 98.58 82.25 86.30
May (P) 62.31 101.37 83.35 88.74
June (P) 62.43 101.11 83.51 88.51
July (P) 61.36 100.64 82.08 88.10
August (P) 61.22 100.77 81.90 88.21
September (P) 60.61 101.56 81.08 88.91
As on
September 25, 2009 (P) 61.12 102.66 81.75 89.87
October 1, 2009 (P) 61.27 102.78 81.95 89.97
October 9, 2009 (P) 62.87 104.99 84.10 91.91
October 16, 2009 (P) 62.83 104.92 84.04 91.85
Notes : 1. Rise in indices indicate appreciation of rupee and vice versa.
2. For “Note on Methodology” on the indices presented here, please see December 2005 issue of this Bulletin.
3. Base year 2007-08 is a moving one, which gets updated every year.

RBI
Monthly Bulletin
S 1188 November 2009
 CURRENT
STATISTICS
Notes on
Tables

Notes on Tables

Table No. 1
(1) Annual data are averages of the months.
(2) Figures relate to last Friday of the month / year.
(3) Total of Rupee Securities held in Issue and Banking Departments.
(4) Relates to loans and advances only.
(5) Figures relate to the last Friday / last reporting Friday (in case of March).
(6) Total for Mumbai, Chennai, Kolkata and New Delhi only.
(7) Figures relate to last reporting Friday / March 31.
(8) Rates presented as low / high for the period indicated. The source of data prior to April 2000 issue of
the Bulletin has been DFHI. The data from April 2000 issue of the Bulletin are not strictly comparable
with that pertaining to earlier periods due to wider coverage of Call Market business.
(9) Relating to major banks.
(10) Relating to five major banks. PLR concept was introduced with effect from October 1994.
(11) Monthly data are averages of the weeks and annual data are averages of the months.
(12) Figures relate to the end of the month / year.
(13) Data relate to January – December.
(14) Cash Reserve Ratio of Scheduled Commercial Banks (excluding Regional Rural Banks).
Table No. 2
The gold reserves of Issue Department were valued at Rs.84.39 per 10 grams up to October 16, 1990
and from October 17, 1990 they are valued close to international market prices.
(1) Includes Government of India one rupee notes issued from July 1940.
(2) Includes (i) Paid-up Capital of Rs.5 crore (ii) Reserve Fund of Rs.6,500 crore (iii) National Industrial
Credit (Long-Term Operations): Fund of Rs.16 crore and (iv) National Housing Credit (Long-Term
Operations) Fund of Rs.190 crore from the week ended November 30, 2007.
(3) Includes cash, short-term securities and fixed deposits. This also includes investment in foreign currency
denominated bonds issued by IIFC(UK) since March 20, 2009.
(4) Includes temporary overdrafts to State Governments.
(5) Figures in bracket indicate the value of gold held under other assets.
Table Nos. 3 & 4
The expression ‘Banking System’ or ‘Banks’ means (a) State Bank of India and its associates (b)
Nationalised Banks (c) Banking companies as defined in clause ‘C’ of Section 5 of the Banking Regulation
Act, 1949 (d) Co-operative banks (as far as scheduled co-operative banks are concerned) (e) Regional
Rural Banks and (f) any other financial institution notified by the Central Government in this regard.
(1) Excludes borrowings of any scheduled state co-operative bank from the State Government and any
Reserve Fund deposit required to be maintained with such bank by any co-operative society within the
area of operation of such bank.
(2) Deposits of co-operative banks with scheduled state co-operative banks are excluded from this item
but are included under ‘Aggregate deposits’.
(3) Excludes borrowings of regional rural banks from their sponsor banks.

RBI
Monthly Bulletin
November 2009 S 1189
CURRENT
STATISTICS
Notes on
Tables

(4) Wherever it has not been possible to provide the data against the item ‘Other demand and time
liabilities’ under ‘Liabilities to the Banking System’ separately, the same has been included in the item
‘Other demand and time liabilities’ under ‘Liabilities to others’.
(5) Data reflect redemption of India Millennium Deposits (IMDs) on December 29, 2005.
(6) Other than from the Reserve Bank of India, NABARD and Export-Import Bank of India.
(7) Figures relating to scheduled banks’ borrowings in India are those shown in the statement of affairs of
the Reserve Bank of India. Borrowings against usance bills and/or promissory notes are under section
17(4) of the Reserve Bank of India Act, 1934.
(8) Includes borrowings by scheduled state co-operative banks under Section 17(4AA) of the Reserve Bank
of India Act, 1934.
(9) As per the Statement of Affairs of the Reserve Bank of India.
(10) Advances granted by scheduled state co-operative banks to co-operative banks are excluded from this
item but included under ‘Loans, cash-credits and overdrafts’.
(11) At book value; it includes treasury bills and treasury receipts, treasury savings certificates and postal
obligations.
(12) Includes participation certificates (PCs) issued by scheduled commercial banks to other banks and
financial institutions.
(13) Includes participation certificates (PCs) issued by scheduled commercial banks to others.
(14) Figures in brackets relate to advances of scheduled commercial banks for financing food procurement
operations.
Table No. 6
(1) Total of demand and time deposits from ‘Others’.
(2) Includes borrowings from the Industrial Development Bank of India and National Bank for Agriculture
and Rural Development.
(3) At book value; includes treasury bills and treasury receipts, treasury savings certificates and postal obligations.
(4) Total of ‘Loans, cash credits and overdrafts’ and ‘Bills purchased and discounted’.
(5) Includes advances of scheduled state co-operative banks to central co-operative banks and primary co-
operative banks.
Table No. 7
With a view to enable the banks to meet any unanticipated additional demand for liquidity in the context
of the century date change, a ‘Special Liquidity Support’ (SLS) facility was made available to all scheduled
commercial banks (excluding RRBs) for a temporary period from December 1, 1999 to January 31, 2000.
(1) With effect from April 13,1996, banks are provided export credit refinance against their rupee export
credit and post-shipment export credit denominated in U.S. Dollars taken together.
(2) General Refinance Facility was replaced by Collateralised Lending Facility (CLF)/Additional Collateralised
Facility (ACLF) effective April 21, 1999. ACLF was withdrawn with the introduction of Liquidity Adjustment
Facility (LAF), effective June 5, 2000. CLF was withdrawn completely effective October 5, 2002.
(3) Special Liquidity Support Facility which was introduced effective September 17, 1998 was available
upto March 31, 1999.

RBI
Monthly Bulletin
S 1190 November 2009
 CURRENT
STATISTICS
Notes on
Tables

(4) Post-shipment credit denominated in US dollars (PSCFC) scheme was withdrawn effective February 8,
1996 and the refinance facility thereagainst was withdrawn effective April 13, 1996. The scheme of
government securities refinance was terminated effective July 6, 1996.
Table No. 8
(a)The data includes cheque clearing for both i.e. clearing houses managed by Reserve Bank of India and
clearing houses managed by other banks. Paper based inter-bank clearing has been discontinued at all the
centres, the last June, 2005.
The other MICR Centres are Agra, Allahabad, Amritsar, Aurangabad, Baroda, Belgaum, Bhilwara, Coimbatore,
Cuttak, Dehradun, Ernakulum, Erode, Gorakhpur, Gwalior, Hubli, Indore ,Jabalpur, Jalandhar, Jamshedpur, Jammu,
Jodhpur, Kolhapur, Kozhikode, Kota, Lucknow, Ludhiana, Madurai, Mangalore, Mysore, Nasik, Panaji, Pondicherry,
Pune, Raipur, Rajkot, Ranchi, Salem, Sholapur, Surat, Thiruchirapalli, Tirupur, Thrissur, Tirunelveli, Udaipur,
Varanasi, Vijayawada and Vishakhapatnam.
(b) Graphs: The graphs 3 and 4 on Paper and Electronic payments - the Electronic Payment System data include
Retail Electronic Payment Systems, RTGS (customer and inter-bank) and CCIL operated systems.
(c) Non MICR Data pertains to the Clearing Houses managed by 10 banks namely SBI (709), SBBJ (51), SB Indore
(27), PNB (8), SBT (69), SBP (63), SBH (50), SBM (45) and United Bank of India (6). (Figures in bracket indicate
Non MICR Cheque Clearing Houses managed by the bank.)
(d) The other MICR Centres includes 47 centres managed by 13 PSBs namely Andhra Bank, Bank of Baroda, Bank
of India, Canara Bank, Central Bank of India, Corporation Bank, Oriental Bank of Commerce, Punjab National
Bank, State Bank of India, State Bank of Indore, State Bank of Travancore, State Bank of Hyderabad and Union
Bank of India.

Table No. 9A
The data pertains to retail electronic payment.
Table No. 9B
The data pertains to Large Value Payment Systems. The figures for CCIL, the operations pertains to
selected services, are taken from the CCIL published data.
Table No. 10
(a) For details of money stock measures according to the revised series, reference may be made to January
1977 issue of this Bulletin (pages 70-134).
(b) Banks include commercial and co-operative banks.
(c) Financial year data relate to March 31, except scheduled commercial banks’ data which relate to the last
reporting Friday of March. For details, see the note on page S 963 of October 1991 issue of this Bulletin.
(d) Scheduled commercial banks’ time deposits reflect redemption of Resurgent India Bonds (RIBs), since
October 1, 2003 and of India Millennium Deposits (IMDs) since December 29, 2005.
(e) Data are provisional.
(1) Net of return of about Rs.43 crore of Indian notes from Pakistan upto April 1985.
(2) Estimated : ten-rupee commemorative coins issued since October 1969, two-rupee coins issued since
November 1982 and five-rupee coins issued since November 1985 are included under rupee coins.

RBI
Monthly Bulletin
November 2009 S 1191
CURRENT
STATISTICS
Notes on
Tables

(3) Exclude balances held in IMF Account No.1, Reserve Bank of India Employees’ Provident Fund,
Pension Fund, Gratuity and Superannuation Fund and Co-operative Guarantee Fund, the amount
collected under the Additional Emoluments (Compulsory Deposit) Act, 1974 and the Compulsory
Deposit Scheme (Income-Tax Payers’) Act.
(f) Revised in line with the new accounting standards and consistent with the Methodology of Compilation
(June 1998). The revision is in respect of pension and provident funds with commercial banks which
are classified as other demand and time liabilities and includes those banks which have reported such
changes so far.

Table Nos. 11 & 13

(a) On the establishment of National Bank for Agriculture and Rural Development (NABARD), on July 12,
1982, certain assets and liabilities of the Reserve Bank were transferred to NABARD, necessitating
some reclassification of aggregates in the sources of money stock from that date.
(b) Please see item (c) of notes to Table 10.
(c) Data are provisional.
(1) Includes special securities and also includes Rs.751.64 crore (equivalent of SDRs 211.95 million)
incurred on account of Reserve Assets subscription to the IMF towards the quota increase effective
December 11, 1992.
(2) Represents investments in bonds/shares of financial institutions, loans to them and holdings of
internal bills purchased and discounted. Excludes since the establishment of NABARD, its refinance
to banks.
(3) Inclusive of appreciation in the value of gold following its revaluation close to international
market price effective October 17, 1990. Such appreciation has a corresponding effect on Reserve
Bank’s net non-monetary liabilities.
Table No. 11A
The conceptual basis of the compilation of the Commercial Bank Survey are available in the report of
the Working Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V.
Reddy), RBI Bulletin, July 1998, which recommended changes in the reporting system of commercial
banks and the article entitled “New Monetary Aggregates: An Introduction”, RBI Bulletin, October 1999.
(1) Time Deposits of Residents : These do not reckon non-residents’ foreign currency repatriable fixed
deposits (such as FCNR(B) deposits, Resurgent India Bonds (RIBs) and India Millennium Deposits
(IMDs)) based on the residency criterion and exclude banks’ pension and provident funds because
they are in the nature of other liabilities and are included under ‘other demand and time liabilities’.
(2) Short-term Time Deposits : Refers to contractual maturity of time deposits of up to and including
one year. This is presently estimated at 45.0 per cent of total domestic time deposits.
(3) Domestic Credit : It includes investments of banks in non-SLR securities, comprising commercial
paper, shares and bonds issued by the public sector undertakings, private sector and public financial
institutions and net lending to primary dealers in the call/term money market, apart from
investment in government and other approved securities and conventional bank credit (by way
of loans, cash credit, overdrafts and bills purchased and discounted).

RBI
Monthly Bulletin
S 1192 November 2009
 CURRENT
STATISTICS
Notes on
Tables

(4) Net Foreign Currency Assets of Commercial Banks : Represent their gross foreign currency assets
netted for foreign currency liabilities to non-residents.
(5) Capital Account : It consists of paid-up capital and reserves.
(6) Other Items (net) : It is the residual balancing the components and sources of the Commercial
Banking Survey and includes scheduled commercial banks’ other demand and time liabilities, net
branch adjustments, net inter-bank liabilities etc.

Table No. 11B

The conceptual basis of the compilation of new monetary aggregates are available in the report of the
Working Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V. Reddy),
RBI Bulletin, July 1998. A link series between the old and present monetary series has been published
in the article entitled “New Monetary Aggregates: An Introduction”, RBI Bulletin, October 1999.
(1) NM2 and NM3 : Based on the residency concept and hence does not directly reckon non-resident
foreign currency repatriable fixed deposits in the form of FCNR(B) deposits, Resurgent India
Bonds (RIBs) and India Millennium Deposits (IMDs).
(2) NM2 : This includes M1 and residents’ short-term time deposits (including and up to the contractual
maturity of one year) with commercial banks.
(3) Domestic Credit : Consistent with the new definition of bank credit which includes investments
of banks in non-SLR securities, comprising of commercial paper, shares and bonds issued by the
public sector undertakings, private sector and public financial institutions and net lending to
primary dealers in the call/term money market. The RBI’s loans and advances to NABARD would
be included in the RBI credit to commercial sector. Other components such as credit to
Government, investments in other approved securities and conventional bank credit remain
unchanged.
(4) Net Foreign Assets of The Banking Sector : It comprises the RBI’s net foreign assets and scheduled
commercial banks’ net foreign currency assets (refer to note 4 of Table 11A).
(5) Capital Account : It consists of paid-up capital and reserves.
(6) Other Items (net) of the Banking System : It is the residual balancing the components and sources
of money stock, representing other demand and time liabilities etc. of the banking system.

Table No. 11C

The conceptual basis of the compilation of the Reserve Bank Survey is given in the report of the
Working Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V.
Reddy), RBI Bulletin, July 1998 and the article “New Monetary Aggregates: An Introduction”, RBI
Bulletin, October 1999. The components of reserve money (to be referred as M0) remain unchanged.
On the sources side, the RBI’s refinance to the National Bank for Agriculture and Rural Development
(NABARD), which was hitherto part of RBI’s claims on banks has been classified as part of RBI credit
to commercial sector. The Reserve Bank’s net non-monetary liabilities are classified into capital
account (comprising capital and reserves) and other items (net).

Table No. 12
Please see item (c) of notes to Table 10.

RBI
Monthly Bulletin
November 2009 S 1193
CURRENT
STATISTICS
Notes on
Tables

Table No. 27C

(a) Month-end yields for different integer valued residual maturities are estimated using interpolation
technique on weighted average yields of select indicative securities derived from SGL transactions data
on government securities observed during a select month-end day. Yield corresponding to each
transaction in a security is calculated from the following Yield to Maturity (YTM) and price relationship.
n c /v F
+
P + bpi = y vt y
i=1 (1+ /v) i (1+ /v)vtn
Where,
P = price of the bond
bpi = broken period interest
c = annual coupon payment
y = yield to maturity
v = number of coupon payments in a year
n = number of coupon payments till maturity
F = Redemption payment of the bond
ti = time period in year till ith coupon payment
(b) The weighted average yield corresponding to each traded security on that particular day is calculated
from the yields of all transactions on that security using amount (Face Value) traded as the weights.
(c) Broken period (number of days) is based on day count convention of 30 days a month and 360 days a year.

Table Nos. 29 & 30

Table 29 presents Index Numbers of Industrial Production (Sectoral and Use-based Classification). Due to
revision of the indices of the mining sector and also the deletion of four items, viz., radio receivers,
photosensitised paper, chassis (assembly) for HCVs (bus, truck) and engines from the item–basket of the
manufacturing sector, the IIP data have been revised from 1994-95 onwards. This has also resulted in the
change in redistribution of weights in use-based classification of IIP. Table 30 contains data on
manufacturing sector at two digit level of 17 groups along with general index and sectoral indices, viz.,
Mining and Quarrying, Manufacturing and Electricity.

Table No. 31
(a) Figures exclude data on private placement and offer for sale but include amounts raised by private
financial institutions.
(b) Equity shares exclude bonus shares.
(c) Preference shares include cumulative convertible preference shares and equi-preference shares.
(d) Debentures include bonds.
(e) Convertible debentures include partly convertible debentures.
(f) Non-convertible debentures include secured premium notes and secured deep discount bonds.
(g) Figures in brackets indicate data in respect of premium on capital issues which are included in respective
totals.

RBI
Monthly Bulletin
S 1194 November 2009
 CURRENT
STATISTICS
Notes on
Tables

Table No. 35
The ban on forward trading in gold and silver, effective November 14, 1962 and January 10, 1963, has
been lifted with effect from April 1, 2003.
(1) In case Friday is a holiday, prices relate to the preceding working day.

Table No. 36
Annual data relate to average of the months April to March.
(1) The new series of index numbers with base 2001=100 was introduced from January 2006 and with
that the compilation of the index numbers with the base year 1982 was discontinued. The linking
factor can be used to work out the index numbers with the base year 2001 for data from January 2006
onwards.
(2) Based on indices relating to 78 centres.

Table No. 37
Annual data relate to average of the months April to March. The new series of index numbers with
base 1984-85=100 was introduced from November 1987.
(1) Based on indices relating to 59 centres.

Table No. 38
Annual data relate to the average of the months July to June.
(1) With respect to base: July 1960-June 1961=100.
(2) The new series of index numbers with base : July 1986 to June 1987 = 100 was introduced from
November 1995 and with that the compilation of index numbers with base : July 1960 to June
1961 was discontinued. The linking factor given in this column can be used to work out the index
numbers with old base (i.e., 1960-61 = 100) for November 1995 and subsequent months.
(3) In the case of Assam, the old series (i.e., with base 1960-61 = 100) was being compiled for the composite
region viz. Assam, Manipur, Meghalaya and Tripura while the index of the new series (i.e., with base
1986-87 = 100) has been compiled for each of the constituent States separately. The index for Assam
region on old base can be estimated from the corresponding indices of the new series as under :
A
I O
= 5.89 [ (0.8126 X IAN) + (0.0491 X IMaN) +(0.0645 X IMeN) + (0.0738 X ITN)]
where IO and IN represent the index numbers for old and new series, respectively, and superscripts A,
Ma, Me and T indicate Assam, Manipur, Meghalaya and Tripura, respectively.
(4) Similarly, in the case of Punjab, where the old series (i.e., with base 1960-61 = 100) was being compiled
for the composite region, viz., Punjab, Haryana and Himachal Pradesh, the index for the Punjab region
on old base can be estimated as under :
IPO = 6.36 [(0.6123 X IPN) + (0.3677 X IHaN) + (0.0200 X IHiN)]
where IO and IN represent the index numbers for old and new series, respectively, and superscripts P,
Ha and Hi indicate Punjab, Haryana and Himachal Pradesh, respectively.
(5) Indices for the State compiled for the first time from November, 1995.

RBI
Monthly Bulletin
November 2009 S 1195
CURRENT
STATISTICS
Notes on
Tables

(6) Consumer Price Index for Rural Labourers (including agricultural labourers) are compiled from November
1995 only.
(7) Average of 8 months (November 1995 - June 1996).

Table Nos. 39 & 40

The new series of index numbers with base 1993-94=100 was introduced in April 2000. Details regarding
the scope and coverage of new series are published in June 2000 issue of the Bulletin.

Table No. 41
(a) The foreign trade data relate to total sea, air and land trade, on private and government accounts. Exports
are on f.o.b. basis and imports are on c.i.f. basis. Exports include re-exports of foreign merchandise
previously imported to India and imports relate to foreign merchandise whether intended for home
consumption, bonding or re-exportation. Direct transit trade, transshipment trade, passengers baggage,
ship’s stores, defence goods and transactions in treasure i.e. gold and current coins and notes, diplomatic
goods, “proscribed substances” under Atomic Energy Act, 1962, are excluded from the trade data, while
indirect transit trade, transactions in silver (other than current coins) and in notes and coins not yet in
circulation or withdrawn from circulation are included.

Table Nos. 42 & 43

(1) Data up to 1980-81 are final, subsequent data are preliminary actuals.
(2) Interest accrued during the year and credited to NRI deposits has been treated as notional outflow
under invisible payments and added as reinvestment in NRI deposits under Banking Capital – NRD.
(3) The item “Non-monetary Gold Movement” has been deleted from Invisibles in conformity with the
IMF Manual on BOP (5th edition) from May 1993 onwards; these entries have been included under
merchandise.
(4) Since 1990-91 the value of defence related imports are recorded under imports (merchandise debit)
with credits financing such imports shown under “Loans (External commercial Borrowings to India)”
in the capital account. Interest payments on defence debt owed to the General Currency Area (GCA)
are recorded under Investment Income debit and principal repayments under debit to “Loans (External
commercial Borrowings to India)”. In the case of the Rupee Payment Area (RPA), interest payment on
and principal repayment of debt is clubbed together and shown separately under the item “Rupee
Debt Service” in the capital account. This is in line with the recommendations of the High Level
Committee on Balance of Payments (Chairman : Dr. C. Rangarajan).
(5) In accordance with the provisions of IMF’s Balance of Payments Manual (5th Edition), gold purchased
from the Government of India by the RBI has been excluded from the BOP statistics. Data from the
earlier years have, therefore, been amended by making suitable adjustments in “Other Capital Receipts”
and “Foreign Exchange Reserves”. Similarly, item “SDR Allocation” has been deleted from the table.
(6) In accordance with the recommendations of the Report of the Technical Group on Reconciling of Balance
of Payments and DGCI & S Data on Merchandise Trade, data on gold and silver brought in by the
Indians returning from abroad have been included under import payments with contra entry under
Private Transfer Receipts since 1992-93.

RBI
Monthly Bulletin
S 1196 November 2009
 CURRENT
STATISTICS
Notes on
Tables

(7) In accordance with the IMF’s Balance of Payments Manual (5th edition), ‘compensation of employees’
has been shown under head, “income” with effect from 1997-98; earlier, ‘compensation of employees’
was recorded under the head “Services – miscellaneous”.
(8) Since April 1998, the sales and purchases of foreign currency by the Full Fledged Money Changers
(FFMC) are included under “travel” in services.
(9) Exchange Rates : Foreign currency transactions have been converted into rupees at the par/central
rates up to June 1972 and on the basis of average of the Bank’s spot buying and selling rates
for sterling and the monthly averages of cross rates of non-sterling currencies based on London
market thereafter. Effective March 1993, conversion is made by crossing average spot buying
and selling rate for US dollar in the forex market and the monthly averages of cross rates of
non-dollar currencies based on the London market.

Explanatory Notes
Balance of payments is a statistical statement that systematically summarises, for a specific time period, the
economic transactions of an economy with the rest of the world.
Merchandise credit relate to export of goods while merchandise debit represent import of goods.
Travel covers expenditure incurred by non-resident travellers during their stay in the country and expenditure
incurred by resident travellers abroad.
Transportation covers receipts and payments on account of international transportation services.
Insurance comprises receipts and payments relating to all types of insurance services as well as reinsurance.
Government not included elsewhere (G.n.i.e.) relates to receipts and payments on government account not
included elsewhere as well as receipts and payments on account of maintenance of embassies and diplomatic
missions and offices of international institutions.
Miscellaneous covers receipts and payments in respect of all other services such as communication services,
construction services, software services, technical know-how, royalties etc.
Transfers (official, private) represent receipts and payments without a quid pro quo.
Investment Income transactions are in the form of interest, dividend, profit and others for servicing of
capital transactions. Investment income receipts comprise interest received on loans to non-residents,
dividend/profit received by Indians on foreign investment, reinvested earnings of Indian FDI companies
abroad, interest received on debentures, floating rate notes (FRNs), Commercial Papers (CPs), fixed deposits
and funds held abroad by ADs out of foreign currency loans/export proceeds, payment of taxes by non-
residents/refunds of taxes by foreign governments, interest/discount earnings on RBI investment etc.
Investment income payments comprise payment of interest on non-resident deposits, payment of interest
on loans from non-residents, payment of dividend/profit to non-resident share holders, reinvested earnings
of the FDI companies, payment of interest on debentures, FRNs, CPs, fixed deposits, Government securities,
charges on Special Drawing Rights (SDRs) etc.
Foreign investment has two components, namely, foreign direct investment and portfolio investment.

RBI
Monthly Bulletin
November 2009 S 1197
CURRENT
STATISTICS
Notes on
Tables

Foreign direct investment (FDI) to and by India up to 1999-2000 comprise mainly equity capital. In line
with international best practices, the coverage of FDI has been expanded since 2000-01 to include, besides
equity capital reinvested earnings (retained earnings of FDI companies) and ‘other direct capital’ (inter-
corporate debt transactions between related entities). Data on equity capital include equity of unincorporated
entities (mainly foreign bank branches in India and Indian bank branches operating abroad) besides equity
of incorporated bodies. Data on reinvested earnings for the latest year are estimated as average of the
previous two years as these data are available with a time lag of one year. In view of the above revision, FDI
data are not comparable with similar data for the previous years. In terms of standard practice of BoP
compilation, the above revision of FDI data would not affect India’s overall BoP position as the accretion to
the foreign exchange reserves would not undergo any change. The composition of BoP, however, would
undergo changes. These changes relate to investment income, external commercial borrowings and errors
and omissions. In case of reinvested earnings, there would be a contra entry (debit) of equal magnitude
under investment income in the current account. ‘Other Capital’ reported as part of FDI inflow has been
carved out from the figure reported under external commercial borrowings by the same amount. ‘Other
Capital’ by Indian companies abroad and equity capital of unincorporated entities have been adjusted against
the errors and omissions for 2000-01 and 2001-02.
Portfolio investment mainly includes FIIs’ investment, funds raised through ADRs/GDRs by Indian companies
and through offshore funds. Data on investment abroad, hitherto reported, have been split into equity
capital and portfolio investment since 2000-01.
External assistance by India denotes aid extended by India to other foreign Governments under various
agreements and repayment of such loans. External Assistance to India denotes multilateral and bilateral
loans received under the agreements between Government of India and other Governments/International
institutions and repayments of such loans by India, except loan repayment to erstwhile “Rupee area” countries
that are covered under the Rupee Debt Service.
Commercial borrowings covers all medium/long term loans. Commercial Borrowings by India denote loans
extended by the Export Import Bank of India (EXIM bank) to various countries and repayment of such
loans. Commercial Borrowings to India denote drawals/repayment of loans including buyers’ credit, suppliers’
credit, floating rate notes (FRNs), commercial paper (CP), bonds, foreign currency convertible bonds (FCCBs)
issued abroad by the Indian corporate etc. It also includes India Development Bonds (IDBs), Resurgent India
Bonds (RIBs), India Millennium Deposits (IMDs).
Short term loans denotes drawals in respect of loans, utilized and repayments with a maturity of less than
one year.
Banking capital comprises of three components : a) foreign assets of commercial banks (ADs), b) foreign
liabilities of commercial banks (ADs), and c) others. ‘Foreign assets’ of commercial banks consist of (i)
foreign currency holdings, and (ii) rupee overdrafts to non-resident banks. ‘Foreign liabilities’ of commercial
banks consists of (i) Non-resident deposits, which comprises receipt and redemption of various non-
resident deposit schemes, and (ii) liabilities other than non-resident deposits which comprises rupee and
foreign currency liabilities to non-resident banks and official and semi-official institutions. ‘Others’ under
banking capital include movement in balances of foreign central banks and international institutions like
IBRD, IDA, ADB, IFC, IFAD etc. maintained with RBI as well as movement in balances held abroad by the
embassies of India in London and Tokyo.

RBI
Monthly Bulletin
S 1198 November 2009
 CURRENT
STATISTICS
Notes on
Tables

Rupee debt service includes principal repayments on account of civilian and non-civilian debt in respect of
Rupee Payment Area (RPA) and interest payment thereof.
Other capital comprises mainly the leads and lags in export receipts (difference between the custom
data and the banking channel data). Besides this, other items included are funds held abroad, India’s
subscription to international institutions, quota payments to IMF, remittances towards recouping the
losses of branches/subsidiaries and residual item of other capital transactions not included
elsewhere.
Movement in reserves comprises changes in the foreign currency assets held by the RBI and SDR
balances held by the Government of India. These are recorded after excluding changes on account of
valuation. Valuation changes arise because foreign currency assets are expressed in US dollar terms and they
include the effect of appreciation/depreciation of non-US currencies (such as Euro, Sterling, Yen) held in
reserves.

Table No. 44
1. Gold is valued at average London market price during the month.
2. Conversion of SDRs into US dollars is done at exchange rates released by the International Monetary
Fund (IMF).
3. Conversion of foreign currency assets into US dollars is done at week-end (for week-end figures) and
month-end (for month-end figures) New York closing exchange rates.
4. Foreign exchange holdings are converted into rupees at rupee-US dollar RBI Holding rates.
5. Reserve Tranche Position (RTP) in IMF has been included in foreign exchange reserves from April 2,
2004 to match the international best practices. Foreign exchange reserves figures have accordingly
been revised for 2002-03 and 2003-04 to include RTP position in the IMF.

Table No. 51
The 5-country indices of REER/NEER were replaced with new 6-currency indices in December 2005. The RBI
Bulletin December 2005 carried a detailed article on the rationale and methodology for the replacement. A
revision has now been undertaken in the construction of the 6-currency REER indices. This revision was
necessitated by a sudden spurt in Chinese inflation indices during April-May, 2006. It may be mentioned that
Chinese inflation indices are not readily available in the public domain. The National Bureau of Statistics provides
only point-to-point inflation rates on a monthly basis in the public domain. In view of this, inflation indices
were constructed taking into account the inflation rates with 1993-94 as the base year. It may be further mentioned
that the period from January 1993 to December 1995 was marked by continuous double digit inflation rates in
China. This lent an upward bias to the Chinese inflation indices (base: 1993-94=100) leading to a sharp fall in
the value of 6-currency REER in April 2006. In order to remove the distortion in REER on account of sudden
spurt in Chinese inflation numbers, a new series of Chinese inflation indices has been constructed taking 1990
as the base year (a year with much less volatility in inflation rates). Subsequently, the base year of the new series
of Chinese inflation indices has been changed from 1990 to 1993-94 through splicing to facilitate the construction
of the 6-currency REER (base 1993-94=100).

RBI
Monthly Bulletin
November 2009 S 1199

Important Recent Publications of the Reserve Bank of India
Name of Publication
1. The Reserve Bank of India
History 1935-1981(3 Volumes)
2. Reserve Bank of India Bulletin
3. Weekly Statistical Supplement
to RBI Monthly Bulletin
4. Report on Trend and Progress
of Banking in India 2008-09
5. India’s Financial Sector an
Assessment Vol. I to VI 2009
(Including Vol. I to VI CD Rom) Rs.1,500 (concessional over the counter)
6. Quarterly Statistics on Deposit
and Credit of Scheduled
Commercial Banks 2009
i) March
ii) June
7. State Finance -
A Study of Budgets of 2008-09
8. A Profile of Banks 2008-09
9. Handbook of Statistics on the
Indian Economy 2008-09
PUBLICATIONS
Important
Recent
Publications
of the
Reserve Bank
of India
Price
India Abroad
Rs.3,700 (including postal charges) –
Rs.200 per copy (over the counter) US $ 20 per copy (inclusive of postage)
Rs.150 per copy (concessional over the counter) US $ 200 (one-year subscription),
Rs.180 per copy (concessional inclusive of postage) US $ 500 (three-year subscription)
Rs.225 per copy (inclusive of postage)
Rs.2,250 (one-year subscription),
Rs.1,750 (concessional one-year subscription)
Rs.6,250 (three-year subscription)
Rs.5,000 (concessional three-year subscription)
Rs.12 per copy, US $ 34 (one-year subscription),
Rs.550 (one-year subscription),
Rs.1,500 (three-year subscription) US $ 85 (three-year subscription)
Rs.350 per copy (normal) US $ 36 per copy (inclusive of airmail
Rs.425 per copy (including postal charges) Courier charges)
Rs.335 per copy
(concessional inclusive of postal charges)
Rs.260 per copy (concession price over the counter)
Rs.2,000 per set (over the counter) US $ 40 per set and
Rs.2,300 (inclusive of postage) US $ 120 per set (inclusive airmail
courier charges)
Rs.1,800 (concessional inclusive of postage)
Rs.40 per copy (over the counter) US $ 10 per copy
Rs.60 per copy (including postal charges) (including registered air-mail)
US $ 15 (inclusive of courier charges)
Rs.215 per copy (normal) US $ 23 per copy (including airmail
Rs.245 per copy (including postal charges) courier charges)
Rs.160 per copy (concessional)
Rs.190 per copy (concessional inclusive of postage)
Rs.60 per copy (normal) US $ 5 per copy (inclusive of registered
Rs.90 per copy (inclusive of postal charges) airmail charges)
US $ 45 per copy (inclusive of
courier charges)
Rs.175 per copy (normal) US $ 28 per copy & US $ 6 for CD-ROM
Rs.240 per copy (Inclusive of postage) and US $ 30 for Print version
Rs.130 per copy (Concessional) alongwith CD-ROM by air-mail
Rs.190 per copy (Concessional with postage) courier charges
CD-ROM Rs.185 (Normal)
Rs.210 (Inclusive of postage)
Rs.140 (Concessional)
Rs.165 (Concessional with Postage)
Print version alongwith CD-ROM
Rs.350 (Normal)
Rs.450 (Inclusive of postage)
Rs.250 (Concessional)
Rs.350 (Concessional with postage)
RBI
Monthly Bulletin
November 2009 I
PUBLICATIONS
Important
Recent
Publications
of the
Reserve Bank
of India
Important Recent Publications of the Reserve Bank of India
Name of Publication
10. Circulars on Monetary and
credit policy No. 12
(from April 2008 to
March 2009)
11. Basic Statistical Returns of
Scheduled Commercial Banks
in India Vol. 37 March 2008
12. Reports on Currency and
Finance 2003-08 Vol. I to V
(Special Issue)
13. Report on Currency and
finance 2006-08 Vol. I and II
14. Statistical Tables Relating to
Banks in India 2007-08
15. Banking Glossary
(English-Hindi 2007)
16. Handbook of Instructions Basic Rs.40 per copy inclusive of postage
Statistical Returns 1 and 2
Seventh Edition March 2008
17. Foreign Collabration in Indian Rs.75 per copy (normal)
Industry Seventh Survey Report Rs.90 per copy (inclusive of postal charges)
2007 (1994-95 to 2000-01)
18. Directory of Commercial Bank
Offices in India Vol. 3 March
31, 2006. on CD ROM
19. 50 Years of Central Banking
Governors Speak
20. C.D. Deshmukh Memorial
Lecture Series Centenary
Commemorative Volume
21. Reserve Bank of India
Occasional paper 2008
1) Vol.29 No.1 (Summer)
2) Vol.29 No.2 (Monsoon)
3) Vol.29 No.3 (Winter)
RBI
Monthly Bulletin
II November 2009
Price
India Abroad
CD - Rom US $ 9 per CD Rom
Rs.335 per CD (over the counter) (inclusive air-mail book-post and
Rs.355 per CD (inclusive of postage) US $ 43 inclusive of
Rs.255per CD (concessional at counter) airmail courier charges)
Rs.275 per CD (concessional inclusive of postage)
Rs.300 per copy (normal) US $ 25 per copy (inclusive of
Rs.340 per copy (inclusive of postal charges) Registered air-mail)
US $ 60 per copy (inclusive of
courier charges)
Rs.1,100 Normal US $ 55 per set (including airmail
Rs.1,170 (inclusive of postage) courier charges)
Rs.830 (concessional)
Rs.900 (concessional inclusive of postage)
Rs.400 per set (over the counter) US $ 40 per set (inclusive of
Rs.425 per set (inclusive of postal charges) airmail courier charges)
Rs.300 per set (concessional)
Rs.325 per set (concessional inclusive of postage)
Rs.200 per copy (Rs.250 by registered book-post) US $ 80 per copy (by courier)
US $ 20 per copy (by registered
CD-ROM Rs.225 & Rs.250 inclusive of air-mail)
postal charges US $ 15 per CD inclusive of
registered air mail
US $ 45 per CD inclusive of
courier charges
Rs.75 per copy (normal) –
Rs.100 per copy (including postal Charges)
–
US $ 15 per copy (inclusive of air-mail
courier charges)
Rs.70 per copy (concessional)
Rs.150 per CD (normal) US $ 15 per CD (include of postage)
Rs.200 per CD (including postal charges)
Rs.400 per copy (normal) –
Rs.100 per copy (normal) US $ 25 per copy
(by air-mail book-post)
Rs.80 per copy (inclusive of postal charges) US $ 45 per copy (inclusive of
postal charges)
 PUBLICATIONS
Important
Recent
Publications
of the
Reserve Bank
of India

Important Recent Publications of the Reserve Bank of India

Name of Publication
22. L. K. Jha Memorial
Lecture Series
23. Statistical Tables Relating to
Banks in India 1979 - 2007
on CD-ROM
24. Selected Banking Indicators
1981 to 2002
25. Private Corporate Business
Sector in India, Selected
Financial Statistics From 1950-51 (including postal charges)
to 1997-98 (All Industries)
26. Selected Financial Statistics
Public Limited companies
1974-75 to 1999-2000
(Selected Industries)
27. Report of the Committee on
Fuller Capital Account
Convertibility
(Tarapore Committee Report II)
Price
India Abroad
Rs.190 per copy (normal) US $ 23 per copy (inclusive of
Rs.200 per copy (inclusive of postal charges) air-mail courier charges)
Rs.150 per copy (Concessional)
Rs.190 (over the counter) US $ 20 inclusive of registered
Rs.240 (inclusive of postage) air-mail & US $ 55 inclusive of
Courier Charges
Rs.320 per copy (normal) (Rs.460 by registered US $ 75 per copy (by air-mail
book post). Rs.250 for CD-ROM Rs.300 (including book-post)
postal charges)
Rs.300 per copy (normal) and US $ 60 per copy and US $ 100 for
Rs.500 for Print version and CD-ROM CD-ROM
(including registered air-mail)
Rs.700 for all Vol. I. II. and III US $ 140 for all Vol. I. II. and III
Rs.350 for CD-ROM US $ 70 for CD-ROM
(including postal charge) (including registered air-mail)
Rs.140 per copy (normal) US $ 25 per copy (including
Rs.170 (per copy by post) air-mail charges)

Notes : 1) All above publications are also available at M/s. Jain Book Agency, C-9, Connaught Place, New Delhi-110001,
Ph:011 2341 6390 upto 94, Fax: 011 4151 3850, website: www.jba.in, e-mail: sales@jba.in and at their dealer network.
2) The Reserve Bank of India History 1935-1981 (3 Volumes) is available at leading book stores in India.
3) All other publications are available from The Director, Sales Section, Division of Reports, Reviews and Publications, Department
of Economic Analysis and Policy, Reserve Bank of India, Amar Building (First Floor), P.M. Road, Fort, Mumbai-400001.
4) Concessional price is available only at RBI counters for research students, full time teachers in economics statistics,
commerce and business management, academic/education institutions and public libraries in india provided the request
is forwarded through the head of the institution every year.
Cheques/drafts should be drawn in favour of Reserve Bank of India payable at Mumbai, and sent to The Director, Division
of Reports, Reviews and Publications, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building,
Sixth Floor, P.M. Road, Fort, Mumbai - 400 001. The yearly subscription will be for 12 issues subject to the processing/
realisation of the cheques/drafts. The details and confirmation of the subscription will be sent accordingly. The back issues
of monthly Bulletin are not available, the same can be accessed through internet at the address given at website page. The
complaints about non-receipt of the Bulletin issue should be intimated within three months of release of the issue. For
details on subscription, please contact on the above address. Publications are available on sale at Sales Section, Division of
Reports, Reviews and Publications, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building,
Ground Floor, P.M. Road, Fort, Mumbai - 400 001.

RBI
Monthly Bulletin
November 2009 III
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

(In stock)
Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
A. Annual Publications
1. Report on Trend and Progress of Banking in India # DEAP –
i) 1987-88 1988 32 *£ 13
ii) 1988-89 1989 45 *£ 15
iii) 1990-91 1991 60 *£ 35
iv) 1992-93 1993 60 * 35
v) 1993-94 1995 60 * 35
vi) 1994-95 1995 75 * 35
vii) 1995-96 1996 85 * 35
viii) 1996-97 1997 85 * 35
ix) 1997-98 1998 120 *£ 45
x) 1998-99 1999 220 * 50
xi) 1999-00 2000 350 *£ 70
xii) 2000-01 2001 350 * 70
xiii) 2001-02 2002 400 80
542 *
xiv) 2002-03 2003 250 £ 30
400 * 20 *
xv) 2003-04 2004 275 30
300 * 20 *
250 **
xvi) 2004-05 2005 325 30
350 * 20 *
275 **
250 ***
xvii) 2005-06 2006 400 £ 40
450 * 25 *
350 **
300 ***
xviii) 2006-07 2007 500 45
550 * 38 *
375 ***
425 **
xix) 2007-08 2008 425 38
475 * 37 *
320 ***
370 **
2. Report on Currency and Finance # DEAP
i) 1988-89 - Vol.I 1989 100 *£ 35
80 **
- Vol.II 1989 60 * 20
45 **
ii) 1989-90 - Vol.I 1990 100 *£ 40
80 **
- Vol.II 1990 60 *£ 25
45 **
iii) 1990-91 - Vol.I 1991 100 *£ 40
80 **
- Vol.II 1991 60 * 25
45 **

RBI
Monthly Bulletin
November 2009 i
PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
iv) 1991-92 - Vol.I DEAP 1992 100 * 40
80 **
- Vol.II 1992 60 *£
45 **
v) 1992-93 - Vol.I 1993 100 * £ 40
80 **
- Vol.II 1993 60 * £
45 ** 25
vi) 1993-94 - Vol.I 1994 110 * £ 40
85 **
- Vol.II 1994 75 * £ 25
vii) 1994-95 - Vol.I 1996 110 * £ 40
85 **
- Vol.II 1996 105 * £ 40
85 **
viii) 1995-96 - Vol.I 1996 110 * 40
85 **
- Vo.II 1996 105 * 40
85 **
ix) 1996-97 - Vol.I 1997 125 * 40
100 **
- Vo.II 1997 125 * 40
100 **
x) 1997-98 - Vol.I 1998 175 * £ 50
125 **
- Vol.II 1998 175 * 50
125 **
Hindi Edition 1999 175 * 50
xi) 1998-99 1999 200 * £ 60
150 **
xii) 1999-00 2001 200 * 60
150 **
xiii) 2000-01 2001 200 * 60
150 **
xiv) 2001-02 2003 200 60
150 **
xv) 2002-03 2004 300 25
325 * 20 *
150 **
xvi) 2003-04 2005 200 £ 25 *
225 *
150 **
xvii) 2004-05 2006 200 £ 25 *
225 *
150 **
xviii) 2005-06 2007 280 35
300 *
210 ***
235 **

RBI
Monthly Bulletin
ii November 2009
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
3. Handbook of Statistics on Indian Economy DEAP
i) 1998 Print version 1998 125 * £ 20
100 **
ii) 1999 (a) Print version 1999 200 * £ 60
150 **
(b) CD-ROM 1999 200 *
iii) 2000 (a) Print version 2000 250 * 70
200 **
(b) CD-ROM 2000 200 *
iv) 2001 (a) Print version 2001 250 * 70
200 **
(b) CD-ROM 2001 300 * 60
200 **
v) 2002-03 (a) Print version 2003 300 * £ 80
250 **
(b) CD-ROM 2003 300 * 60
200 **
(c) Print version along with CD-ROM 2003 500 * £ 130
400 **
vi) 2003-04 (a) Print version 2004 180 25
200 *
150 **
(b) CD-ROM 2004 200 15
220 *
150 **
(c) Print version along with CD-ROM 2004 380 30
400 *
300 **
vii) 2004-05 (a) Print Version 2005 200 25 *
225 *
170 **
(b) CD-ROM 120
140 ** 15 *
100 **
(c) Print Version alongwith CD-ROM 300
350 * 30 *
270 **
viii) 2005-06 (a) Print Version (£) 2006 200 25 *
225 *
170 **
(b) CD-ROM 110 15 *
130 *
100 **
(c) Print Version alongwith CD-ROM 300 30 *
350 *
270 **
ix) 2006-07 (a) Print Version 2007 270 40
300 *
200 ***
230 **

RBI
Monthly Bulletin
November 2009 iii
PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
(b) CD-ROM DEAP 100 15
120 *
75 ***
95 **
(c) Print Version alongwith CD-ROM 330 50
380 *
240 ***
300 **
x)2007-08 (a) Print Version 2008 250 38
290 *
190 ***
230 **
(b) CD-ROM 150 6
170 *
115 ***
135 **
(c) Print Version alongwith CD-ROM 400 40
450 *
300 ***
350 **
4. State Finances - A Study of Budgets DEAP
i) 1999-00 2000 110 * 20
90 **
ii) 2000-01 2000 110 * 20
90 **
iii) 2001-02 2002 110 *£ 20
(English £ & Hindi) 90 **
iv) 2002-03 2003 110 * 20
90 **
v) 2003-04 2004 100
125 * 15 *
90 ** 12 *
vi) 2004-05 2005 120
(English & Hindi) 150 * 15
100 **
vii) 2005-06 2006 170 15 *
(English & Hindi) 200 *
130 **
viii) 2006-07 2007 200 20*
(English & Hindi) 230 *
150 ***
175 **
ix) 2007-08 2008 320
350 * 30
250 ***
280 **
5. Handbook of Statistics on State Government Finances 2004 do 2004
(a) Print version 170
200 * 25
125 ** 20 *

RBI
Monthly Bulletin
iv November 2009
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
(b) CD ROM DEAP 120 15
140 * 10 *
90 **
6. Handbook of Monetary Statistics in India 2006 do 2006
(a) Print version 130 20 *
155 *
120 **
(b) CD ROM 100 15 *
90 **
120 *
(c) Print version along with CD ROM 200 25 *
250 *
190 **
B. Banking Statistics
1. Basic Statistical Returns of Scheduled Commercial Banks in India
(Formerly Banking Statistics (BSR) till March 1999 Vol. 28 issue) DSIM
i) Dec. 76-77 - Vol. 7 (Formerly known 1981 65 * £
ii) June 79 to Dec. 79 Vol. 9 as DESACS) 1984 150 * £
iii) June 80 to June 81 Vol. 10 1986 125 * £
iv) March 1990 - Vol. 19 1992 210 65
v) March 1994 - Vol. 23 1997 220 * 70
vi) March 1995 - Vol. 24 1997 220 * 70
vii) March 1996 - Vol. 25 1998 220 * 70
viii) March 1997 - Vol. 26 1999 220 * 70
ix) March 1998 - Vol. 27 1999 220 * 70
x) March 1998 - Vol. 27 (Hindi Edition) 1999 220 *
xi) March 1999 - Vol. 28 2000 220 * 70
xii) March 2000 - Vo. 29 (English Hindi) 2000 220 * 70
xiii) March 2001 - Vol. 30 (Hindi English) 2002 220 * 70
xiv) March 2002 - Vol. 31 (Print Version) 2003 225 * 70
(a) CD-ROM 2003 225 * 70
xv) March 2003 - Vol. 32 (Print Version) 2004 210 55
250 * 20 *
(a) CD-ROM 210 55
250 * 20 *
xvi) March 2004 - Vol. 33 (Print Version) 2005 180 55
220 * 20 *
(a) CD-ROM 180 55
220 * 20 *
xvii) March 2005 - Vol. 34 (Print Version) 2006 180 55
220 * 20 *
(a) CD-ROM 180 55
220 * 20 *
xviii) March 2006 - Vol. 35 (Print Version) 2007 280 60
320 * 25 *
2. Basic Statistical Return 1 & 2 do
i) Handbook of Instructions (English) 1996 20 * £
ii) Handbook of Instructions (Hindi) 1996 20 * £
iii) Basic Statistical Returns 1 and 2 Handbook of Instructions 2002 35 *

RBI
Monthly Bulletin
November 2009 v
PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
3. i) Form A-1 (Revised) DSIM 1996 2£ 13
ii) Form A-2 (Revised) 1996 3£ 38
iii) BSR-1 A forms (1 pad contains 25 sheets) 1996 14 £ 200 19
iv) BSR-1 B forms (1 pad contains 25 sheets) (Revised) 1996 14 £
v) BSR-2 forms (1 pad contains 25 Sheets) (Revised) 1996 14 200 19
(The Regional Rural Banks from Western region may please contact
DESACS, RBI, B.K. Complex, Bandra (E), Mumbai 400 051 for
BSR-1A, BSR-1B & BSR-2 forms.)
4. Banking Statistics Basic Statistical Returns 1 & 2 do 2004 420 59
Vol. 1 to 31, 1972 to 2002 DISC 1 & 2 475 * 27 *
5. Banking Statistics-Summary Tables, do
i) March 1995 1997 25 *
ii) March 1996 1998 25 *
iii) March 1997 1999 25 *
iv) March 1998 1999 25 *
v) March 1999 2000 25 *
vi) March 2000 2001 25 *
6. Banking Statistics - Quarterly Handout # do
i) 1990 (4 Issues) 1990 40 * £
ii) March 1991 1991 10 * £
iii) June 1991 1991 12 * £
iv) September 1991 1991 15 * £
v) December 1991 1991 12 * £
vi) 1992 (3 Issues) 1992 75 *
vii) 1993 (4 Issues) 1993 120 *
viii) 1994 (4 Issues) 1994 120 *
ix) 1995 (4 Issues) 1995 120 *
x) 1996 (4 Issues) 1996 120 *
xi) 1997 (4 Issues) 1997 100 *
xii) 1998 (4 Issues) 1998 100 *
xiii) 1999 (4 Issues) 1999 100 *
xiv) 2000 (4 Issues) 2000 100 *
xv) 2001 (4 Issues) 2001 100 *
xvi) 2002 (4 Issues) 2002 100 *
xvii) 2003 (4 Issues) 2003 100 *
xviii) 2004 (4 Issues) 2004 140 *
xix) 2005 (4 Issues) 2005 140 *
xx) 2006 (4 Issues) 2006 140 *
xxi) 2007 (4 Issues) 2007 140 *
xxii) 2008 (4 Issues) 2008 140 *
Name changed w.e.f. Sept. 2003 issue as Quarterly Statistics on
Deposits and Credit of Scheduled Commercial Banks.
7. Banking Statistics - Bank Credit do
i) June 1987 1989 20 * £
ii) December 1987 - June 1988 1989 40 * £
iii) December 1988 1989 20 * £
iv) June 1989 1989 25 * £
8. Banking Statistics 1972-95 do 1998 120 *
9. Branch Banking Statistics - Vol. 1 March 1999 do 1999 130 * 40
10. Branch Banking Statistics - Vol. 2 March 2001 do 2001 130 * 40
50 **

RBI
Monthly Bulletin
vi November 2009
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
11. Branch Banking Statistics - Vol. 3 March 2002 (On CD-ROM) DSIM 2003 300 * 40
12. Branch Banking Statistics - Vol. 3 March 2002 do 2003 185 * 40
13. Statistical Tables Relating to Banks in India do
i) 1988-89 1993 106 £ 12
123 *
ii) 1990-91 1999 130
180 * 50
iii) 1992-93 1998 135 £ 50
200 *
iv) 1994-95 1997 125 45
185 *
v) 1995-96 1998 125 45
185 *
vi) 1996-97 1999 130 50
180 *
vii) 1997-98 1999 130 50
180 *
viii) 1998-99 1999 130 50
180 *
ix) 1999-00 2000 175 50
225 *
x) 2000-01 (a) Print version 2001 150 50
200 *
(b) CD-ROM 2001 150 50
225 *
xi) 2001-02 (a) Print version 2002 150 50
200 *
(b) CD-ROM 2002 100
150 * 50
xii) 2002-03 (a) Print version 2003 200 50 *
250 *
(b) CD-ROM 2003 200 50 *
250 *
xiii) 2003-04 (a) Print version 2004 230 25
280 * 15 *
(b) CD-ROM 2004 175 25
225 * 15 *
xiv) 2004-05 (a) Print version 2005 190 55
240 * 20*
(b) CD-ROM 200 55
250 * 20*
xv) 2005-06 (a) Print version 2006 250 55
300 * 20*
(b) CD-ROM 200 55
250 * 20*
xvi) 2006-07 (a) Print version 2007 180 55
230 * 20*
(b) CD-ROM 150 55
200 * 20*
14. Selected Banking Indicators, 1947-1997 (Print Version) do 1998 45 15
105 *
(a) CD -ROM 1998 50

RBI
Monthly Bulletin
November 2009 vii
PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
15. Selected Banking Indicators 1981 to 2002 DSIM 2003 320 75
460 *
16. Selected Banking Indicators 1981 to 2002 (On CD-ROM) do 2003 250 75
300 *
17. Quarterly Statistics on Deposits and Credit of Scheduled do 2004 185 55
Commercial Banks 1981-2003 (on CD-ROM) 240 * 20 *
18. Annual Accounts of Scheduled Commercial Banks (Including do 2002 200 50
Regional Rural Banks) 1989-90 to 2000-01 (on CD-ROM) 250 *
19. Annual Accounts of Scheduled Commercial Bank do 2004 85 £ 25
(Including Regional Rural Banks 1979-2004) CD-Rom 135
20. Directory of Commercial Bank Offices in India Vol. 1-0 do 2000 500 * £ 100
December 2000 (on CD-ROM)
21. Directory of Commercial Bank offices in India Vol. 2 do 2003 200 * £ 40 *
September 2003 (On CD-ROM)
22. All-India Debt and Investment Survey 1981-82 do
i) Assets and liabilities of households as on 30th June 1981 1987 75 15
85 *
60 **
ii) Statistical tables relating to capital expenditure and capital 1987 125 £ 25
formation of households during the year ended 30th June 1982 135 *
100 **
iii) Statistical tables relating to cash borrowings and repayments 1990 100 £ 32
of households during July 1981 to June 1982 and cash dues 110 *
outstanding as on 30th June 1982 80 **
23. A Profile of Banks
i) 2004-05 do 2005 100 20 *
130 *
ii) 2005-06 2006 90 55
120 * 20 *
iii) 2006-07 2007 90 55
120 * 20 *
iv) 2007-08 2008 40 5*
70 * 45
C. Public/Private Limited Companies
1. Selected Financial Statistics Public Ltd. Companies 1974-75 to 1999-2000 do 2001 350 * 70
(Selected Industries) on CD-ROM
2. Selected Financial Statistics Public Ltd. Companies 1974-75 to 1999-2000 do
(Selected Industries)
1974-75 To 1982-1983 Vol.I 2001 1700
1982-83 To 1990-1991 Vol.II
1990-91 To 1999-2000 Vol.III
2001
2001
} 700 * 140 1500
2000
(Rs.700 for three volums)
3. Selected financial and other ratios-public limited companies do
1980-81 to 1987-88 Vol.I 1990 45 £ 15
Vol.II 1990 60 £ 20
1988-89 to 1990-91 (Part I) 1996 90 £ 50
4. Selected financial & other ratios-private limited companies do 1996 80 45
1988-89 to 1990-91 (Part II)
5. Private Corporate Business Sector in India Selected Financial do 2000 300 * 60
Statistics from 1950-51 to 1997-98 (All-Industries) (Print Version)
(a) CD-ROM 500 * 100

RBI
Monthly Bulletin
viii November 2009
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
D. Reports of Committees/Working Groups
1. Study group on deployment of resources by State and Central UBD 1982 25 * £
co-operative banks (Hate committee report)
2. Capital formation and savings in India 1950-51 to 1979-80 DEAP 1982 18 £ 400 21
Report of the working group on savings (Raj committee report)
3. Report of the working group to consider feasibility of introducing MICR/ DBOD 1983 7£ 200 19
OCR technology for cheque processing (Damle committee report) (Amt. rounded off)
4. Report of the committee to review the working of the monetary DEAP 1985 35 £ 10
system (Sukhamoy Chakravarty committee report) 25 **
5. Report of the committee to consider final accounts of banks DBOD 1985 56 £ 500 22
(Ghosh committee report)
6. Report of the committee on agricultural productivity in Eastern India DEAP
(Sen Committee Report) Vol. I 1985 70 * £ 15
(Hard Bound) Vol. II 1985 85 * £ 20
7. Report of the working group on the money market MPD 1987 15 *
(Vaghul committee report)
8. Report of the committee to review the working of credit IECD (Old) 1988 10 * 10
authorisation scheme (Marathe committee report)
9. Co-ordination between term lending institutions and do 1988 10 * 1
commercial banks (Bucher committee report)
10. Report of the working group to review the system of cash credit do 1988 12 * £
(Chore committee report)
11. Report of the study group to frame guidelines for follow-up of do 1988 16 * £
bank credit (Tandon committee report)
12. Report of the study group for examining introduction of factoring do 1989 30 *
services in India (Kalyansundaram committee report)
13. Report of the committee on computerization in banks DSIM 1989 40 £ 500 22
(Rangarajan committee report)
14. Report of the Committee on Financial System DBOD 1991 (Reprint) 60 £ 170 19
(Narasimham Committee Report)
15. Report of the working group on financial companies DFC 1992 30 £ 300 20
(Shah committee report)
16. Report of the task force on money market mutual funds MPD 1992 10 * £ 5
(Basu committee report)
17. Report of the committee on the licensing of new urban co-operative UBD 1992 40 400 21
banks (Marathe committee report) (Hindi Edition)
18. Report of the committee to examine the legal and other difficulties IECD (Old) 1993 (Reprint) 90 £ 500 22
faced by banks and financial institutions in rehabilitation of sick
industrial undertakings and suggestremedial measures including
changes in the law (Tiwari committee report)
19. Report of the committee on structure of export credit do 1993 36 25 200 19
(Sundaram committee report) (English & Hindi Edition)
20. Report of the committee to review the system of lending under do 1993 50 £
consortium arrangement (Shetty committee report)
21. Report of the committee to examine the adequacy of institutional credit RPCD 1993 (Reprint) 55 9 300 20
to the SSI sector & related aspects (Nayak committee report)
22. Review of the agricultural credit system in India do 1993 (Reprint) 270 £ 80
(Khusro committee report) 315 *
23. Report of the committee to enquire into securities transactions of DOC 1994 85 £
banks and financial institutions (Jankiraman committee report) 100 *

RBI
Monthly Bulletin
November 2009 ix
PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
24. Committee on technology issues relating to payments system, DIT 1994 50 *£ 20
cheque clearing and securities settlement in the banking industry
(Saraf committee report) (Hindi Edition)
25. Report of the committee to study the problems of sick/weak units IECD (Old) 1994 69 £
in leather industry and to suggest measures to overcome them
(Balsubramanian committee report)
26. Report of the working group for examining the schemes and incentives FED 1995 50 *£ 10
available to NRIs for investment in India (Sodhani Committee Report)
27. Report of the expert group for designing a supervisory framework DBOD 1996 35 307 21
for non-banking financial companies (Khanna Committee Report)
28. Report of the committee for proposing legislation on electronic funds DIT 1996 150 15 333 21
transfer and other electronic payments (Shere Committee Report)
29. Report of the Committee on Capital Account Convertibility DEIO 1997 100 * 35
(Tarapore Committee Report)
30. Money Supply : Analystics and Methodology of Compilation- DEAP 1998 35 £ 20
Report of the working group (Reddy Committee Report)
31. Report of the high level Committee on agricultural credit through RPCD 1998 30 £ 200 19
commercial banks(Gupta Committee Report)
32. Report of the high level Committee on credit to SSI do 1998 50 £ 10 277 20
(Kapur Committee Report)
33. Report of the Technical Committee on external debt DEAP 1998 20 *£ 15
(Nair Committee Report)
34. Report of the Committee on Banking Sector Reforms DBOD 1998 32 244 20
(Narasimham Committee Report)
35. Report of the Working Group on Euro DEIO 1998 100 £ 30
(Subramanyam Committee Report)
36. Report of the Committee on Hedging through International FED 1998 100 * 50
Commodity Exchange (Gupta Committee Report)
37. Report of the Committee on Tecnnology Upgradation in the DIT 1999 100 * 25
Banking Sector (Vasudevan Committee Report)
38. Report of the High Power Committee on Urban Co-operative Banks UBD 1999 80 490 22
(Madhava Rao Committee Report)
39. Report of the Advisory Group on Payment and Settlement System MPD 2000 40 * 15
Part (I) June 2000 30 **
40. Report of the Advisory Group on Payment and Settlement do 2000 20 * 10
System (Part II) 15 **
41. Report of the Advisory Group on Payment and Settlement do 2001 20 * 10
System (Part III) 15 **
42. Report of the Advisory Group on “Transparency in Monetary do 2001 45 * 20
and Financial Policies”. 35 **
43. Report of the Advisory Group on Corporate Governance do 2001 40 * 15
30 **
44. Report of the Advisory Group on Fiscal Transperency do 2001 30 *
20 ** 15
45. Report of the Advisory Group on Data Dissemination do 2001 35 * 20
25 **
46. Report of the Advisory Group on Banking Supervision do 2001 90 * 40
60 **
47. Report of the Advisory Group on Securities Market Regulation do 2001 25 * 10
20 **
48. Report of the Advisory group on Bankruptcy Laws (Volume-I & II) do 2001 90 * 45
75 **

RBI
Monthly Bulletin
x November 2009
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
49 . Report of the Advisory Group on Insurance Regulation MPD 2001 35 * 20
25 **
50 Report of the Advisory group on Accounting & Auditing do 2001 40 * 20
51. Report of the Technical Group on Market Integrity do 2002 65 * 20
50 **
52 Standing Committee on International Financial Standards and do 2002 200 * 60
Codes on CD-ROM 150 **
53. Report of the Standing Committee on International Financial do 2002 65 * 20
Standards and Codes 50 **
54. The Standing Advisory Committee for Urban Co-operative Banks UBD
i) First meeting 1983 5 200 19
ii) Second meeting 1984 6£ 200 19
iii) Third meeting 1985 6 200 19
iv) Fourth meeting 1985 9 300 20
v) Fifth meeting 1986 9£ 200 19
vi) Sixth meeting 1988 12 £ 200 19
vii) Seventh meeting 1989 12 200 19
viii) Eighth meeting 1990 21 300 20
ix) Ninth meeting (Bilingual edition) 1992 24 200 19
x) Tenth meeting 1994 95 300 20
xi) Eleventh meeting 1995 90 300 20
xii) Twelfth meeting 1996 52 100 18
E. Manuals
1. Manual for urban co-operative banks do 1984 15 £ 400 21
2. Manual on costing exercise in commercial banks MSD 1987 5£ 200 19
3. Manual on costing exercises in private sector and urban banks (Reprint) do 1989 27 £ 200 19
4. RBI-Exchange Control Manual- (Reprint of 1993 edition) (Vol.I & II) FED 1998 400 £ 2200 39
(updated upto July, 1998)
i) RBI - Exchange Control Manual on floppy Disc - size 3.5 1999 400 £
(Upadated upto June, 1999)
ii) RBI - Exchange Control Manual - on C.D. Rom 1999 400 £
(updated upto 31st May, 2000)
F. Compendium of Circulars
1. i) Compendium of A.D. (M.A. Series) circulars No. 1 do 1997 75 £
ii) Compendium of A.D. (M.A. Series) circulars No. 2 1998 120 £
iii) Compendium of A.D. (M.A. Series) circulars No. 3 1999 200
2. A. D. (M.A. Series) Circular No. 11 Foreign Exchange Management Act 1999 do 2000 185 900 26
3. MPD Circulars
i) August 1970 to December 1981 - Vol. I MPD 1989 75 *
ii) January 1982 to March 1989 - Vol.II 1989 75 *
iii) April 1989 to April 1995 Vol.III 1996 200 1530 33
4. i) Circulars on Monetary and Credit Policy Vol. 4 2002 165 * 50
(From May 1995 to April 1997) 130 **
ii) Circular on Monetary and Credit Policy Vol. No. 5 2002 235 70
(From May 1997 to March 1999) 422 *
372 **
185 ***
iii) Circulars on Monetary and Credit Policy
Vol. No. 6. Part I & II
(from April 1999 to March 2003) (English & Hindi)
a) Print Version (A set of four books) 2003 900 170
1300 *
1100 **
700 ***
b) CD-ROM 400 * 80
300 **

RBI
Monthly Bulletin
November 2009 xi
PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
iv) Circulars on Monetary and Credit Policy Vol. No. 7 MPD
(from April 2003 to March 2004) (English & Hindi)
a) Print Version 2004 250 25
275 * 20 *
200 **
b) CD-ROM 180 5
200 * 12 *
140 **
v) Circulars on Monetary and Credit Policy Vol. No. 8 2005
(from April 2004 to March 2005) 375 30 *
(a) Print Version (Billingual) 400 *
280 **
(b) CD-ROM 180 15 *
200 *
140 **
vi) Compendium of MPD Circulars - Vol. No. 9 2006 480 35 *
(April 2005 - March 2006) (Billingual) 500 *
375 **
vii) Circulars on Monetary Policy Vol. No. 10 2007 600 40
(April 2006 to March 2007) Billingual 620 *
450 **
viii) Circulars on Monetary Policy Vol. No. 11 (CD-ROM) 2008 210 8*
(April 2007 to March 2008) 230 *
160 ***
180 **
5. IECD circulars IECD (Old)
i) July 1978 to June 1986 bilingual (Vol.I & II) 1993 250 10 2114 39
ii) 1986-89 1990 70 1325 31
iii) 1989-94 (Vol. I&II) 1995 250 £ 2295 40
iv) 1994-95 1995 80 700 24
v) 1995-96 1996 55 380 21
vi) 1996-97 1997 65 445 22
6. Rural Planning and Credit Department (RPCD) Circulars (Bilingual edition) RPCD
i) July 1994 to June 1995 (Vol. X) 1998 180
200 *
ii) July 1995 to June 1996 (Vol. XI) 180 £
200 *
iii) July 1996 to June 1997 (Vol. XII) 1999 180
200 *
iv) July 1997 to June 1998 (Vol. XIII) 1999 180
200 *
v) July 1998 to June 1999 (Vol. XIV) 2000 180
200 *
vii) July 1999 to June 2000 (Vo. XV) 2001 210
240 *
7. Compendium of Circulars on Small Scale Industries do 2000 120 25
150 *
8. RPCD Circular (on CD-ROM) (1st July 1982 to 31 March 2004) do 2004 120
150 *
9. RPCD Circulars on Small Scale Industries (upto 30-09-2004) do 2004 120
on CD-ROM 150 *
10. Compendium of Circulars on Small Scale Industries do 2004 140
(January 2000 - March 2004) 170 *

RBI
Monthly Bulletin
xii November 2009
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
11. UBD circulars UBD
i) June 1985 1986 115 274 20
ii) 1985-1992 (Vol.I & II) 1995 250 3195 49
iii) 1992-1994 1995 165 1792 35
iv) 1995-96 1997 55 735 25
12. i) Compendium of Instructions/Guidelines issued by RBI UBD 2000 85 742 25
for Primary Co-operative Banks (July 1996-December 1997)
ii) Compendium of Instructions/Guidelines issued by RBI for 2003 100 £ 1032 68
Primary Co-operative Banks (January 1998-December 1999)
iii) Compendium of Instructions/Guidelines issued by RBI for 2003 120 £ 1300 68
Primary Co-operative Banks (January 2000-December 2001)
G. Memorandum
1. Memorandum of Exchange Control Manual, 1993 containing FED
detailed procedural instructions
a) Relating to general insurance in India (GIM) 1994 20 70 19
b) Relating to channeling transactions through Asian Clearing Union (ACM) 1996 20 70 19
c) Relating to co-operative/commercial banks (other than authorised 1994 20 £
dealers) authorised to maintain non-resident rupee accounts (ABM)
d) Memorandum of Instructions to full-fledged money changers (FLM) 1999 30 £ 110 19
e) Memorandum of Instructions to restricted money changers (RLM) 1999 30 £ 90 18
f) Memorandum of Instruction on project & service exports (PEM) 1997 40 £ 280 20
2. Memorandum of Exchange Control Regulations Relating to do 2002 30 26
general insurance in India (GIM)
3. Memorandum of instructions to Authorised Money Changers (AMC) do 2002 30
4. Memorandum of Procedure for channelling transaction through do 2003 30 21
Asian Clearing Union (ACU) Memorandum ACM
5. Memorandum of Instructions on Project and Service Exports (PEM) do 2003 40
H. Reserve Bank of India Occasional Papers (Quarterly) DEAP –
i) 1987 to 1989 (Yearly four issues) 30 * @ £ 10 @
ii) 1990 to 1995 (Yearly four issues) 35 * @ £ 25 @
iii) 1996 (Yearly four issues) 35 * @ 25 @
iv) 1997 (Three issues) 35 * @ 25 @
v) (Combined issue June-September, 1997) 70 * @ 50 @
vi) 1998 (Yearly four issues) 40 * @ 25 @
vii) 1999 (Yearly 3 issues) 50 * @ 30 @
viii) 2000 (Yearly 2 issues) Summer - Vol. 21 No. 1 80 * @ 45 @
ix) (Monsoon & Winter Combined Issue) - Vol. 21 No. 2 & 3 80 * @ 45 @
x) 2001 Vol. 22 Nos. 1, 2 & 3 (Combined Issue) 80 * @ 45 @
xi) 2003 Vol. 24 Nos. 1 & 2 (Summer & Monsoon Combined Issue) 80 * @ £ 45 * @
xii) 2003 Vol. 24 No. 3 (Winter) 80 * @ 45 * @
xiii) 2004 Vol. 25 No. 1, 2 & 3 (Summer, Monsoon & Winter Combined Issue) 80 * @ 45 * @
xiv) 2006 Vol. 27 No.1 and 2 (Summer and Monsoon Combined Issue) 80 * @ 45 * @
xv) 2006 Vol. 27 No. 3 (Winter) 80 * @ 45 * @
xvi) 2007 Vol. 28 No. 1 (Summer) 80 * @ 45 * @
xvii) 2007 Vol. 28 No. 2 (Monsoon) 80 * @ 45 * @
xviii) 2007 Vol 28 No. 3 (Winter) 80 * @ 45 * @
I. Others Important Publications
1. Small Scale Industries-Policy & Guidelines RPCD 1997 20 200 19
2. Regulatory Framework for Non-Banking Financial Companies DNBS 1998 40 £ 365 21
3. Question/Answer New NBFC Policy do 1998 10 50 18
4. Payment Systems in India DIT 1998 60 * 10
150 *
5. Mechanised Cheque Processing Using MICR Technology do 1999 50 *£
Procedural Guidelines

RBI
Monthly Bulletin
November 2009 xiii
PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Title of the Publication Department Year of Price Price Weight in gms.
publication (Rs.) US $ & RBP Charges
of Single copy
in Rs.
1 2 3 4 5 6
6. Mechanised Cheque Processing using MICR Technology DIT 2002 50 *
Procedural Guidelines. (Second Edition)
7. Indian Financial Network Banking Applications Message Formats (INFINET) do 2000 100 *
8. Indian Financial Network (INFINET) Banking Applications Messages do 2002 100 *
Formats Vol. II
9. Balance of Payments compilation DEAP 1987 45 * 30
10. New Series on Wholesale Price Index Numbers do 1990 11 * £
11. India’s Balance of Payments monograph – 1948-49 to 1988-89 do 1993 90 £ 40
12. Centenary Commemorative Volume do 1996 100 25 400 21
(C.D. Deshmukh Memorial Lecture series)
13. 50 years of Central Banking : Governors Speak do 1997 400 800 25
14. Indian Economy – Basic Statistics – 1997 do 1997 4£
15. External Debt-Management : Issues, Lessons and Preventive Measures do 1999 250 * 20
16. Foreign Collaboration in Indian Industry - Sixth Survey Report do 1999 60 * 20
17. Flow of Funds Accounts of the Indian Economy 1951-52 to 1995-96 do 2000 75 * 20
18. Exchange facilities for foreign travel FED 1996 8£ 35 18
19. Exchange facilities for resident Indians do 1997 15 32 18
20. A Handbook on foreign Collaboration do 1997 50 £ 15 *
65 *
21. Indian Overseas Investment Handbook of Policies and Procedures do 1998 100 £
125 *
22. Facilities for Non-resident Indians do 1999 35 £ 8
50 *
23. RBI Remittance Facilities Scheme - 1975 DGBA 1989 3£ 25
24. Karyalayeen Shabdavli (English-Hindi) DAPM 1994 15 166 19
25. Directory of Bank Offices 1993 (English) DBOD 1996 485
568 * 36
26. Computer Paribhasha Kosh (Hindi) do 1999 100 528 23
27. Your Guide to Money Matters DCM 1999 5£ 44
28. The Paper & The Promise: A Brief History of Currency & do 2001 100 £ 15 36
Bank notes in India
29. Functions and Working of RBI (Hindi) CO 1984 30 £ 719 25
30. RBI 50 years - 1935-85 do 1985 50 £ 15 428 22
35 **
31. Banking Glossary (English-Hindi) Rajbhasha 1995 38 471 22
32. Banking Glossary (English-Hindi) do 2003 50 5 24
33. Reserve Bank of India Functions and working RBI Staff College, 2001 120 68
Chennai
34. Risk Management (Hindi) BTC 2003 100 *
35. Corporate Governance in Banks (Hindi) do 2005 100 *
Inclusive of Courier charges.
* Inclusive of surface mail/sea mail/air postage whichever is applicable; for others it is subject to changes in the postal rates.
** Concessional price (inclusive of postage) for public libraries and educational institutions. Also applicable to wholetime teachers and research
students in economics, commerce, statistics and business management in universities and colleges in India, provided the request is forwarded
through the head of the institution.
*** Concessional price on the counter for public libraries and educational Institutions. Also applicable to wholetime teachers and research
students in economics, commerce, statistics and business management in universities and colleges in India, provided the request is forwarded
through the head of the Institution.
# Few copies of earlier years’ report are also available.
£ Out of stock at present.
@ Price of single issue.

RBI
Monthly Bulletin
xiv November 2009
 PUBLICATIONS
Reserve Bank
of India
Publications

Reserve Bank of India Publications

Reserve Bank of India Bulletin

The subscription rates for the monthly RBI Bulletin and the Weekly Statistical Supplement to RBI Bulletin are as follows:

Single Issue One-Year Three-Year

Monthly Bulletin
In India:
(a) Inclusive of Postage Rs. 225 Rs. 2,250 Rs. 6,250
(b) Concessional ** Rs. 180 Rs. 1,750 Rs. 5,000
Abroad:
(a) Inclusive of Postage US $ 20 US $ 200 US $ 500
Weekly Statistical Supplement
In India (Inclusive of Postage) Rs. 12 Rs. 550 Rs. 1,500
Abroad (Inclusive of Postage) — US $ 34 US $ 85
The price of a single copy of December issue alongwith the supplement ‘Report on Trend and Progress of Banking in India 2007-08’
is Rs. 600 (Normal), Rs.675 (Inclusive of Postage), Rs.450 (Concessional normal), Rs. 525 (Concessional inclusive Postage), and Abroad
US $ 45 (Courier) and US $ 42 (Air-mail Book-post).
** Available for research students, full time teachers in economics, statistics, commerce and business management, academic/education
institutions and public libraries in India provided the request is forwarded through the head of the institution every year.

General Instructions
1. Publications once sold will not be taken back.
2. Publications will not be supplied on a consignment VPP basis.
3. A 20 per cent discount will be allowed to Bookseller on the official price of the following Publications. Report on Trend and Progress of Banking
in India, Report on Currency and Finance, State Finances - Study of Budgets, Handbook of Statistics on Indian Economy, Handbook of Statistics
on State Government Finances, Handbook of Monetary Statistics in India, CPC, IECD, UBD and MPD Circulars, All Committee Reports, Banking
Statistics 1972-95, Statistical Tables relating to Banks in India, Selected Banking Indicator 1947-97, and 1981-2002, All India Debt and Investment
Survey 1981-82, Payment System in India, INFINET, External Debt Management, Foreign collaboration in India Seventh survey Report, Flow of
Funds Accounts of the Indian Economy 1951-52 to 1995-96, Indian Overseas Investment Handbook of Policy and procedures, Karyalaeen
Shabdavli, Banking Glossary, Risk Management (Hindi), Corporate Governance in Bank (Hindi), All Advisory Group Reports, Balance of payments
compilation.
4. Ordinary postal charges for sending the publications to the booksellers within India will be borne by the Bank. For safe delivery, registered
book post charges will be charged additionally.
5. The publications of the Reserve Bank of India in this list may be had from the Director, Division of Reports, Reviews and Publications, Sales
Section, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building, Ground Floor, Sir P. M. Road, Fort, P. B. No.1036,
Mumbai - 400 001. All communications and remittances may be made to him (Tel. No. 22604002). For direct purchase against cash payment
over the sales counter, the timing is 10.30 a.m. to 3.00 p.m. (Monday to Friday).
6. Remittances should be sent by demand draft/cheque payable at Mumbai in favour of Reserve Bank of India, Mumbai and addressed to the
Director, Division of Reports, Reviews and Publications, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building,
Sixth Floor, Sir P.M. Road, Fort, Mumbai - 400 001.
7. Recent publications are also available from Sales and Dissemination Cells at all Regional Offices of the Reserve Bank of India.
8. Foreign subscribers are requested to send their subscription directly to the address as above and not through agents.
9. Every endeavour will be made to despatch publications expeditiously. However, in case of rush of orders, these would be executed on a first-
come first-served basis. Minimum one month period will be required to complete formalities and then to despatch the available publication.
Complaints regarding ‘non-receipt of publication’ may be sent within 2 months’ period.

RBI
Monthly Bulletin
November 2009 xv
SUBSCRIPTION/
RENEWAL FORM

Reserve Bank of India Bulletin

Subscription for Bulletin / Weekly Statistical Supplement

Subscription / Renewal Form

1. Name :
2. Designation :
3. Organisation :
4. Address for communication :
i) Post Office :
ii) PIN Code :
iii) Telephone No. :
iv) Fax No. :
v) e-mail :
5. Whether new subscriber Yes / No
6. If No, please mention your Subscription No.
7. If Yes, please furnish the following details English / Hindi
i) Name of the Publication for Subscription Bulletin / WSS
ii) Regular Subscription Yes / No
iii) Concessional Subscription Yes / No
iv) Foreign Subscription Yes / No
8. Period of Subscription one year / three years
9. Details of Payment
i) Amount
ii) Currency
iii) Demand Draft Cheque No.
iv) Drawn on
v) Date of DD/Cheque
Signature

Date

(For Office use)

Subscription No. Receipt No.

 SURVEY

Readers’ Views on the Monthly Bulletin

Dear Reader,
With a view to improving the format and content of RBI Bulletin, we approach you
with the following questionnaire. We greatly appreciate your sparing time to answer the
questionnaire and mail it to the address given below:
Editor,
RBI Bulletin,
Division of Reports, Reviews and Publications,
Department of Economic Analysis and Policy,
Reserve Bank of India,
Amar Building, 6th Floor,
P.M. Road, Fort,
Mumbai - 400 001.

Please tick-mark (✓) the appropriate box/boxes.

(1) Please tell us about yourself – your occupation/

your activity - association :

Government/Semi-Government/Public Sector
Financial Services
Profession/Business/Consultancy
Academics/Research Institute/Teaching Institution/Library
Audio and/or visual Media/Journalism
Other: Please specify
(2) Please indicate the items in the Bulletin that you find useful:
Studies/Articles on various aspects of banking, corporate sector,
Government finances, etc.
Supplements to the Bulletin
Speeches delivered by Governor/Deputy Governors/
Executive Directors of the RBI
Credit Policy/Credit Control Measures of the RBI
Exchange Control Measures
RBI Press Release
Current Statistics
SURVEY

Readers’ Views on the Monthly Bulletin

(3) Please indicate, with reference to the answer given for (2) above, your suggestions
for improvements in regard to items other than the ‘Current Statistics’ portion of
the Bulletin.

(4) What in your opinion, should be done to improve the get up or coverage of the
“Current Statistics” portion ?

(5) Do you think it would be advisable to separate ‘Current Statistics’ portion from the
rest of the Bulletin and have ‘Monthly Statistics’ separately brought out ?

Yes No

(6) If the answer to Q.(5) is Yes, do you think it would be sufficient to have a Quarterly
Bulletin of articles, speeches, and policy measures ?

Yes No

(7) Are you a user of our web site (http://www/rbi.org.in) ? Yes No

Thank you very much for your cooperation.

Editor
 RBI
WEBSITES

Reserve Bank of India Websites

To facilitate quicker access to RBI documents available on the RBI Website
(URL : www.rbi.org.in), frequently accessed documents have been given a special
URL. By keying-in the URL which can also be saved in ‘Favourites’, the visitor can
directly reach the desired document on the RBI site.
Advance release calenders relating to data categories pertaining to: (i) analytical
accounts of the banking sector, (ii) analytical accounts of the central bank, (iii) share
price index, (iv) balance of payments, (v) international reserves, and (vi) exchange
rates under the Special Data Dissemination Standards (SDDS) of the IMF are also
posted on the RBI Website (http://www.rbi.org.in).

The documents available on special URL are:

 Weekly Statistical Supplement: www.wss.rbi.org.in
 RBI Bulletin: www.bulletin.rbi.org.in
 Monetary and Credit Policy: www.cpolicy.rbi.org.in
 8.5% Government of India Relief Bonds: www.goirb.rbi.org.in
 RBI Notifications: www.notifics.rbi.org.in
 RBI Press Release: www.pr.rbi.org.in
 RBI Speeches: www.speeches.rbi.org.in
 RBI Annual Report: www.annualreport.rbi.org.in
 Credit Information Review: www.cir.rbi.org.in
 Report on Trend and Progress of Banking in India: www.bankreport.rbi.org.in
 FAQS: www.faqs.rbi.org.in
 Committee Reports: www.reports.rbi.org.in
 FII List: www.fiilist.rbi.org.in
 Facilities for Non-Resident Indians: www.nri.rbi.org.in
 SDDS-National Summary Data Page-India: www.nsdp.rbi.org.in
 Foreign Exchange Management Act, 1999: www.fema.rbi.org.in
 NBFC Notifications: www.nbfc.rbi.org.in
 Master Circulars: www.mastercirculars.rbi.org.in
 List of suit filed accounts: www.defaulters.rbi.org.in
 Currency Museum: www.museum.rbi.org.in
 Electronics Clearing Service: www.ecs.rbi.org.in
 Exchange Control Manual: www.ecm.rbi.org.in
 Y2K: www.y2k.rbi.org.in
 Data base on Indian Economy: http://dbie.rbi.org.in
– Editor
RBI
WEBSITES

RBI provides Web based Access to its Database on Indian Economy

The Reserve Bank of India has released a number of long time series data on
several aspects of Indian economy covering key macro economic aggregates to the
public in user-friendly manner through dynamic web based application.
Objective : The Database on Indian Economy is built for the convenience of
researchers, analysts and other users. It is created to provide the public with an
access to the published data series, with additional details on some series as available
in the Reserve Bank of India’s enterprise wide data warehouse.
Coverage : Data available on published time series, can be accessed through a
completely browser based software include data on:
 financial sector,
 real sector,
 financial market,
 external sector,
 public finance and
 corporate finance

Features :
 All the data series are accompanied with data definitions, i.e. metadata,
which allow the user to view the definitions/concepts of the underlying
variables;
 The data definitions provides search feature;

 Extract data through standard reports which allows the users to select and
view the preformatted reports or
 Dynamic ‘data query’, which enables user to define list of data series and
allows the user to choose the time period for data extraction.
 Data files can be downloaded in the form of CSV / pdf format.

Access : The data can be accessed from the home page of the RBI website
(www.rbi.org.in) through the static headline “Database on Indian Economy” List of
data series available on the site is available on the homepage of the site, i.e. Database
on Indian Economy.
This list will be proggressively enlarged on the basis of feedback received and
availability of relevant data series in the RBI data warehouse. Feedback may please
be sent to dbiehelpdesk@rbi.org.in or through the feedback option on the home
page of the website.
– Editor
 REPORT OF THE
COMMITTEE ON
FINANCIAL SECTOR
ASSESSMENT

India’s Financial Sector – An Assessment

A comprehensive assessment of India’s financial sector by the Committee
on Financial Sector Assessment (CFSA), constituted by the Government of India
and the Reserve Bank of India, evaluating financial sector stability and
development, identifying gaps in compliance with various international financial
standards and codes, and suggesting corrective policy measures. The Report
contains six volumes. Volume III – VI contain independent reports by the four
Advisory Panels assisting the CFSA as follows:
• Financial Stability Assessment and Stress Testing, covering macro-
prudential analysis, stability assessment and stress-testing of the financial
sector (Volume III).
• Financial Regulation and Supervision, covering assessment of standards
pertaining to banking regulation and supervision, securities market
regulation and insurance regulation (Volume IV).
• Institutions and Market Structure, covering assessment of financial
infrastructure including legal, regulatory and liquidity management aspects
and standards regarding accounting and auditing, corporate governance,
payment and settlement systems and effective insolvency and creditor rights
systems (Volume V).
• Transparency Standards, covering assessments of standards regarding
transparency in monetary and financial policies, fiscal transparency and data
dissemination (Volume VI).

The Overview Report (Volume II) of the CFSA draws on the assessments and
recommendations of the Advisory Panel reports. Volume I is an Executive Summary
of the assessments and recommendations.

Exclusively distributed by:

Foundation Books, An Imprint of Cambridge University Press India Pvt. Ltd.,

Cambridge University Press India Pvt. Ltd, Cambridge House, 4381/4, Ansari Road,
Darya Ganj, New Delhi – 110 002.

Price: Rs. 2000 (Volumes I to VI)

Price: Rs. 500 (Volume I and II)