PART ONE : THE ECONOMY: REVIEW AND PROSPECTS

I. ASSESSMENT AND PROSPECTS

Assessment of 2013-14

Prospects for 2014-15

Some Challenges for the Indian Economy in the Short and Medium Term

II. ECONOMIC REVIEW

The Real Economy

Price Situation

Money and Credit

Financial Markets

Government Finance

External Sector

PART TWO: THE WORKING AND OPERATIONS OF THE RESERVE BANK OF INDIA

III. MONETARY POLICY OPERATIONS

Monetary Policy Operations: Context and Rationale

IV. CREDIT DELIVERY AND FINANCIAL INCLUSION

Credit Delivery

Financial Inclusion

Financial Literacy

V. DEVELOPMENT AND REGULATION OF FINANCIAL MARKETS

Government Securities Market

Foreign Exchange Market

Derivatives market

VI. REGULATION, SUPERVISION AND FINANCIAL STABILITY

Financial Stability Assessment

Assessment of the Banking Sector

Major Decisions Taken by Board for Financial Supervision

Commercial Banks

Urban Co-operatives Banks

Rural Co-operatives and Regional Rural Banks

Deposit Insurance and Credit Guarantee Corporation

Non-Banking Financial Companies

Customer Service

Banking Codes and Standards Board of India

VII. PUBLIC DEBT MANAGEMENT

Debt Management of Central Government

Debt Management of State Governments

VIII. CURRENCY MANAGEMENT

Banknotes in Circulation

Coins in Circulation

Currency Operations

Clean Note Policy

Counterfeit Banknotes

Expenditure on Security Printing and Distribution

IX. PAYMENT AND SETTLEMENT SYSTEMS AND INFORMATION TECHNOLOGY

Trends in Payment Systems

Policy Initiatives

Information Technology Initiatives for the Banking System

Information Technology within Reserve Bank

X. GOVERNANCE, HUMAN RESOURCES DEVELOPMENT AND ORGANISATIONAL MANAGEMENT

Initiatives for Improved Governance

Directors/Members of the Central Board/Local Boards-Changes

Initiatives in Communication Processes

Human Resource Initiatives

Initiatives in Organisation Management.

Enterprise Wide Risk Management in the Bank

XI. RESERVE BANK’S VISION AND AGENDA FOR 2014-15

XII. THE RESERVE BANK’S ACCOUNTS FOR 2013-14

Balance Sheet

Statement of Significant Accounting Policies for the year ended June 30, 2014

Income

Expenditure

Annex I

INDEX OF APPENDIX TABLES

1. Macroeconomic and Financial Indicators

2. Growth Rates and Composition of Real Gross Domestic Product – Supply and Expenditure (At 2004-05 Prices)

3. Inflation, Money and Credit

4. Capital Market - Primary and Secondary

5. Key Fiscal Indicators

6. Combined Receipts and Disbursements of the Central and State Governments

7. India’s Overall Balance of Payments

8. Foreign Direct Investment Flows to India: Country-wise and Industry-wise

BOXES

I.1 Low Rainfall and Its Consequences

I.2 Rethinking Contractual Arrangements with Private Sector in Infrastructure

II.1 Investment Cycles in India and the Recent Downturn

II.2 Productivity Growth in India

II.3 Trends in Inflation Expectations: Evidence from Survey Based Measures in India

II.4 Regional Inflation Dynamics in India

II.5 The risks from the exit from the unconventional monetary policies for the emerging markets

II.6 Understanding Foreign Institutional Investor Debt and Equity Flows in India

II.7 Structure of the Banking Industry – A Global Perspective

II.8 Information Content from the CPI-based REER

III.1 Monetary Policy Response to Exchange Market Pressures

III.2 Changes in monetary policy operating framework

III.3 Factors Impeding Smooth Monetary Policy Transmission

IV.1 Guidelines for Strengthening the BC Model

IV.2 Recommendations of the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households

V.1 Reforms in Financial Benchmarks

VI.1 Implementation of Internationally Agreed Reforms in India

VI.2 Framework for Revitalising Distressed Assets in the Economy: Pivotal Role for CRILC

VI.3 Basel III: Countercyclical Capital Buffer

VI.4 Grievance Redressal Mechanism in Banks and the Banking Ombudsman Scheme

VI.5 Implementation of Recommendations of FSLRC

IX.1 Cardless Cash Withdrawal Facility for Unbanked Persons

IX.2 Technical Committee on Mobile Banking

IX.3 Forex Forward Trade Compression

IX.4 Financial Market Infrastructure Framework

CHARTS

II.1 Growth in Real GDP

II.2 Growth in Real GDP at Market Prices

II.3 Trend in Investment

II.4 Household Financial Savings

II.5 Food Stock and its Determinants

II.6 Growth in the Index of Eight Core Industries

II.7 Growth in Services Sector GDP

II.8 Performance of Road Sector

II.9 Employment generation in export-oriented sectors (annual change)

II.10 Trends in Inflation: Consumer Price Index-Combined

II.11 Pressure Points from CPI-Excluding Food and Fuel Inflation

II.12 Services Price Inflation in CPI-IW

II.13 Inflation and Price Volatility in CPI Food Group: January 2012-June 2014

II.14 CPI Inflation Across Major States: June 2014

II.15 Trends in Wholesale Price Index (WPI) Inflation

II.16 Global and Domestic Fuel Price Movements

II.17 Trends in Global Commodity Prices

II.18 Liquidity conditions remained generally tight in 2013-14

II.19 Variations in Monetary Aggregates

II.20 Trends in Sectoral Deployment of Credit

II.21 Global Markets Recover as Uncertainties Reduce

II.22 Money Market Rates

II.23 Trends in CD and CP Segments

II.24 Trends in the G-sec Market

II.25 Net FII Flows in the Equity and Debt Segments

II.26 Trends in the Equity Market

II.27 Movement in the Housing Price Index

II.28 Deficit Indicators - Budget Estimate vs Outcome

II.29 Trend in Capital Expenditure

II.30 Key deficit Indicators of the State Governments

II.31 India’s Merchandise Trade

II.32 Financing Pattern of Current Accont Deficit

II.33 Movements in Rupee Exchange Rate

III.1 Yield Differential (10-year G-sec: India-US) and Exchange Rate Movement

VII.1 Cash Balance of the Government of India

TEXT TABLES

II.1 Gross Fixed Capital Formation

II.2 Financial Saving of The Household Sector (Gross)

II.3 Gross Domestic Savings- Sector-wise

II.4 Agricultural Production 2013-14

II.5 Index of Industrial Production (IIP)

II.6 Movements in Cross-Country Exchange Rates against the US dollar

II.7 Primary Capital Market Mobilisation Shows Some Improvement

II.8 Fiscal Performance of the Central Government

II.9 Select Items of Expenditure of the Central Government

II.10 Gross Tax Revenue Raised by the Central Government

II.11 Major Destinations of Export Growth in 2013-14

II.12 Sector-wise Decline in Imports

II.13 External Sector Vulnerability Indicators

III.1 Asymmetry in Transmission in Different Phases of Monetary Policy Cycles (To Deposit and Lending Rates of Banks)

III.2 Deposit and Lending Rates of SCBs (Excluding RRBs)

III.3 Sectoral Median Lending Rates of SCBs (Excluding RRBs) (at which 60 per cent business is contracted)

IV.1 Priority Sector Advances

IV.2 Target and Achievement for Agricultural Credit

IV.3 Bank Group-wise Target and Achievement for Agricultural Credit: 2013-14

IV.4 NPAs-Agriculture Loans

IV.5 Recovery of Direct Agriculture Advances

IV.6 Credit to Micro and Small Enterprises by SCBs

IV.7 Financial Inclusion Plan-Summary Progress of all Banks including RRBs

IV.8 Activities Undertaken by Financial Literacy Centres

VI.1 Select Financial Indicators

VI.2 Indicators

VI.3 Loan sales to ARCs

VI.4 Gross NPAs Across Sectors

VI.5 Draft Framework for D-SIBs

VI.6 State-wise Progress in Mergers/Acquisitions of UCBs

VII.1 Gross and Net Market Borrowings of the Central Government

VII.2 Central Government’s Market Loans-A Profile

VII.3 Issuance of GoI Dated Securities - Maturity Pattern

VII.4 States’ Market Borrowings

VII.5 Utilisation of WMA/OD and Investment of State Governments (Average monthly outstanding)

VIII.1 Banknotes in Circulation

VIII.2 Coins in Circulation

VIII.3 Currency Chests and Small Coin Depots as on March 2014

VIII.4 Indent and Supply of Banknotes by the Presses to the Reserve Bank (April-March)

VIII.5 Indent and Supply of Coins by the Mints to the Reserve Bank (April-March)

VIII.6 Disposal of Soiled Banknotes by the Reserve Bank

VIII.7 Number of Counterfeit Notes Detected (April-March)

VIII.8 Denomination-wise Detection of Counterfeit Notes in the Banking System (April-March)

IX.1 Payment System Indicators - Annual Turnover

X.1 Reserve Bank Training Establishments-Programmes Conducted

X.2 Number of Officers Trained in External Training Institutions in India and Abroad

X.3 Recruitment by the Reserve Bank - 2013

X.4 Staff Strength of the Reserve Bank

X.5 Category-wise Actual Staff Strength

X.6 Reserve Bank’s Office-wise Staff Strength (as on June 29, 2014)

XII.1 Holding of Gold

XII.2 Deposits – Others

XII.3 Details of Other Liabilities

XII.4 Balances in Contingency Reserve and Asset Development Reserve.

XII.5 Balances in Currency and Gold Revaluation Account (CGRA), Foreign Exchange Forward Contracts Valuation Account (FCVA) [previously Exchange Equalisation Account (EEA)] and Investment Revaluation Account (IRA)

XII.6 Details of Foreign Currency Assets

XII.7a Foreign Exchange Reserves in Rupees

XII.7b Foreign Exchange Reserves in USD

XII.8 Investments of the Banking Department

XII.9 Holdings in subsidiaries/associates

XI.10 Details of Other Assets

XI.11 Gross Income

XI.12 Earnings from Foreign Sources

XI.13 Earnings from Domestic Sources

XI.14 Expenditure

XI.15 Agency Charges

XI.16 Trends in Gross Income, Expenditure and Net Disposable Income