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Date : Oct 10, 2017
Monthly Bulletin for October 2017

The Reserve Bank of India today released the October 2017 issue of its monthly Bulletin. The Bulletin includes fourth Bi-monthly Monetary Policy Statement for the Year 2017-18, Resolution of the Monetary Policy Committee (MPC), Reserve Bank of India, Speech by the Top Management, two Articles, Press Release of one Working Paper and Current Statistics. The two articles are: I. Non-Banking Finance Companies in India’s Financial Landscape; and II. Consumer Confidence Survey – Q2:2016-17 to Q1:2017-18.

I. Non-Banking Finance Companies in India’s Financial Landscape


  • NBFCs are integrally involved in credit intermediation outside the regular banking system.

  • The nature of their operations and the regulatory framework, however, make them distinctly different from shadow banking entities in other countries.

  • Although India accounts for a miniscule share of global shadow banking assets, high growth in credit by NBFCs-ND-SI has distinguished from peers in other countries.

  • NBFCs primarily lend to the industrial sector, though retail credit has picked up recently.

  • While there has been some deterioration in asset quality of NBFCs in recent years, it is better than that of banks.

  • NBFCs also reported better profitability and capital positions.

  • Recent regulatory initiatives have been motivated by the objectives of financial stability, financial inclusion and harnessing of specialised domain expertise.

II. Consumer Confidence Survey Q2:2016-17 to Q1:2017-18

The Reserve Bank’s Consumer Confidence Survey (CCS) assesses consumer sentiments from 5,400 households across six cities. This article analyses four rounds of the survey carried out between September 2016 and June 2017.


  • Consumers’ current perceptions on the general economic situation, the employment scenario and their own incomes deteriorated sharply since the second half of 2016-17, with the survey’s Current Situation Index (CSI) declining for three consecutive quarters between December 2016 and June 2017.

  • In contrast, the survey’s Future Expectations Index (FEI) reached an all-time high in December 2016, reflecting consumers’ expectations of an improvement in the macro economic outlook, including price and employment scenario.

  • Although the FEI has been ebbing in 2017, it remains in the expansion zone.

Jose J. Kattoor
Chief General Manager

Press Release : 2017-2018/982

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